Hrm Notes

Topics: Wage, Employment, Minimum wage Pages: 4 (1123 words) Published: March 23, 2012
PRINCIPLES OF WAGE & SALARY ADMINISTRATION
The main principles that govern wage & salary fixation are three: * EXTERNAL EQUITY: Compare the pay of the same job in different organizations and judge if it is fair. Example: Retail store X has a Store Manager and retail store Y has a store manager (the same job in two different organizations)

* INTERNAL EQUITY: Compare the pay of different jobs in the same organization and judge if it is fair. Example: A retail store has an Assistant Store Manager and a Store Manager (2 different jobs in the same organization)

* INDIVIDUAL WORTH: Where equal pay is ensured for equal work or compare the pay of individuals who do the same job in the same organization and judge if it is fair. Example: A retail store has 2 Assistant Store Managers (2 people doing the same job in the same organization) FACTORS AFFECTING WAGE & SALARY LEVELS

* Remuneration in comparable industries
* Firm’s ability to pay
* Cost of living
* Productivity
* Union pressure & strategies
* Government legislations
WAGE FIXATION INSTITUTION IN INDIA
Wages are fixed by the following institutions in India:
* COLLECTIVE BARGAINING & ADJUDICATION: Collective bargaining is a procedure in which a compromise is reached through balancing of opposite strengths. If these problems are not solved through collective bargaining, they may be settled through voluntary arbitration or adjudication.

* WAGE BOARDS: This institution is set up by the government of India for fixation & revision of wages. Separate wage boards are set up for separate industries. Wage boards are not governed by any legislation but are appointed an ad-hoc basis by the government.

Each wage board consists of a NEUTRAL CHAIRMAN, TWO INDEPENDENT MEMBERS & 2-3 REPRESENTATIVES OF WORKER & MANAGEMENT EACH.

* PAY COMMISSIONS: This is another institution which fixes & revises the wages & allowances to the employees...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Journal on Note Taking Essay
  • Essay about Taking Notes in College
  • Note taking Essay
  • Hrms Essay
  • Essay on Hrms
  • Quotation and Research Notes Essay
  • Research Memo on How to Write Thank You Notes Essay
  • Strategic-Hrm Essay

Become a StudyMode Member

Sign Up - It's Free