Employee Remuneration
Chapter I
INTRODUCTION
1. MEANING OF WAGE/ COMPENSATION PAYMENT: Wage is a monetary payment made by the employer to his employee for the work done or services rendered. It is a monetary compensation for the services rendered [1]. A worker may be paid Rs. 100 per day or Rs. 4500 per month. This is wage payment. The worker gives his services and takes payment called wage payment. Industrial workers are paid remuneration for their services in terms of money called wage payment. Wages are usually paid in cash at the end of one day, one month or one week. Money wage is the monetary compensation or price paid by the employer to his employee for the services rendered. Such compensation is also called wage or salary or reward given by an organisation to a person in return to a work done. Generally, compensation payable to an employee includes the following three components: ❖ Basic compensation for the job (wage/salary) ❖ Incentive compensation for the employee on job ❖ Supplementary compensation paid to employees (fringe benefit and employee services)
All the * marked references, taken from the individual website or from the books are given at the end in Bibliography.
1.1 IMPORTANCE OF WAGE PAYMENT: To worker: Wage payment [2] is important to all categories of workers. Wage is a matter of life and death to workers/employees. Their life, welfare and even social status depend on wage payment. It is only source of income to large majority of workers. They and their unions always demand higher wages and other monetary benefits. Majority of labour problems and disputes are directly related to wage payment. The efficiency of workers and their interest and involvement in the work depend on wage payment. Even their attitude towards employer depends on wage payment. In brief, wage payment is a matter of greatest importance to workers. Wage problem is the most pressing and persistent problem
INTRODUCTION
1. MEANING OF WAGE/ COMPENSATION PAYMENT: Wage is a monetary payment made by the employer to his employee for the work done or services rendered. It is a monetary compensation for the services rendered [1]. A worker may be paid Rs. 100 per day or Rs. 4500 per month. This is wage payment. The worker gives his services and takes payment called wage payment. Industrial workers are paid remuneration for their services in terms of money called wage payment. Wages are usually paid in cash at the end of one day, one month or one week. Money wage is the monetary compensation or price paid by the employer to his employee for the services rendered. Such compensation is also called wage or salary or reward given by an organisation to a person in return to a work done. Generally, compensation payable to an employee includes the following three components: ❖ Basic compensation for the job (wage/salary) ❖ Incentive compensation for the employee on job ❖ Supplementary compensation paid to employees (fringe benefit and employee services)
All the * marked references, taken from the individual website or from the books are given at the end in Bibliography.
1.1 IMPORTANCE OF WAGE PAYMENT: To worker: Wage payment [2] is important to all categories of workers. Wage is a matter of life and death to workers/employees. Their life, welfare and even social status depend on wage payment. It is only source of income to large majority of workers. They and their unions always demand higher wages and other monetary benefits. Majority of labour problems and disputes are directly related to wage payment. The efficiency of workers and their interest and involvement in the work depend on wage payment. Even their attitude towards employer depends on wage payment. In brief, wage payment is a matter of greatest importance to workers. Wage problem is the most pressing and persistent problem
References: 1. Anderson, M. C., Banker, R. D., & Ravindran, S. “Executive compensation in the information technology industry” Management Science, 46(4), 530–547 (2000). 2. Azfar, O., & Danninger, S. “Profit-sharing, employment, stability, and wage growth” Industrial and Labor Relations Review, 54(3), 619–63 (2001). 3. Balkin, D. B., Markman, G. D., & Gomez-Mejia, L. R. “Is CEO pay in high technology firms related to innovation?” Academy of Management Journal, 43(6), 1118 1129 (2009). 4. Barringer, M. W., & Milkovich, G. T. “A theoretical exploration of the adoption and design of flexible benefit plans: A case of human resource innovation” Academy of Management Journal, 23(2), 305–324 (1998). 5. Blanchflower, D. G., & Freeman, R. B. “The attitudinal legacy of communist labor relations” Industrial and Labor Relations Review, 50(3), 438–459 (1997). 6. Carlin, P. S. “Is lunch and other break time productive in Sweden? A hedonic earnings approach” Industrial and Labor Relations Review, 50(2), 324–341 (1997). 7. Carpenter, M. A. “The price of change: The role of CEO compensation in strategic variation and deviation from industry strategy norms” Journal of Management, 26(6), 1179–1198 (2000).. 8. Carpenter, M. A., & Sanders, W. G. “Top management team compensation: The missing link between CEO pay and firm performance” Strategic Management Journal, 23, 367–375 (2002). 9. Davidson, W. N. I., Worrell, D. L., & Fox, J. B. “Early retirement programs and firm performance” Academy of Management Journal, 39(4), 970–984 (1996). 10. Feliciano, Z. M. “Workers and trade liberalization: The impact of trade reforms in Mexico on wages and employment” Industrial and Labor Relations Review, 55(1), 95–115(2001). 11. Gerhart, B. “Compensation strategy and organizational performance in S. L. Rynes, & B. Gerhart (Eds.), Compensation in organizations: Current research and practice ( pp. 151–194)” San Francisco, CA: Jossey-Bass (2000). 12. Gerhart, B., Trevor, C. O., & Graham, M. E. “New directions in compensation research: Synergies, risk, and survival” Research in Personnel and Human Resources Management, 14, 143–203(1996). 13. Gomez-Mejia, L. R., & Wiseman, R. M. “Reframing executive compensation: An assessment and outlook” Journal of Management, 23(3), 291–374(1997). 15. Milkovich, G. T., & Newman, J. M. “Compensation” 7th ed. Boston, MA: McGraw Hill Irwin Pubs(2002). 16. Mishra, C. S., & Gobeli, D. H. “Managerial incentives, internalization, and market valuation of multinational firms” Journal of International Business Studies, 29(3), 583 598(1998). 17. Shaw, J. D., Duffy, M. K., Jenkins Jr., G. D., & Gupta, N. “Positive and negative affect, signal sensitivity, and pay satisfaction” Journal of Management, 25(2), 189–206(1999). 18. Werner, S., & Mero, N. P. “The effects of external, internal, and employee equity on changes in performance of major league baseball players” Human Relations, 52(10), 1291–1310 (1999). 20. Zhou, J., & Martocchio, J. J. “Chinese and American managers’ compensation award decisions: A comparative policycapturing study” Personnel Psychology, 54, 115 141 (2001).