Employee Remuneration

Good Essays
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



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).

You May Also Find These Documents Helpful

  • Powerful Essays

    Manage remuneration and Employee benefits BSBHRM505A By Takul Kanjanaphanichkul C63070 Part 1 Develop Organisation’s Remuneration Strategy You are HR manager in a 5* Hotel located in Melbourne CBD. The strategic and operational plans have been reviewed and updated by senior management and as a result new positions will have to be created. Remuneration packages will need to be prepared for those positions. • Conference Manager • Sales Executive-business market segment • Business Centre Coordinator…

    • 4816 Words
    • 20 Pages
    Powerful Essays
  • Good Essays

    WEEK 7 RESEARCH PROJECT (Set #1) ACCT 429 DeVry University IMPORTANT NOTE TO STUDENTS This assignment is being distributed solely for your use in completing the Week 7 project in DeVry University’s online Accounting 429 class. This assignment is an individual assignment, and you are to complete it without any outside assistance by any other student, individual, or outside materials, other than those specifically permitted by the problem. Any violations of these requirements will be addressed…

    • 27245 Words
    • 109 Pages
    Good Essays
  • Good Essays

    Directors Remuneration

    • 1417 Words
    • 6 Pages

    GUIDELINES FOR DIRECTORS’ REMUNERATION The board of directors has both executive and non executive directors. Executive directors have both executive and board duties to perform while non executive directors have only board responsibilities. Therefore both types of directors vary in the responsibilities and authority they have in the company affairs. Thus the non executive directors devote very little time to company affairs ( only attend board meetings, committee meetings of which they are…

    • 1417 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Remuneration Strategy

    • 920 Words
    • 4 Pages

    organizational remuneration strategy. Based on the case study “Remuneration as an Attraction Factor”, we can identify that remuneration is the key to draw and attract employees towards an organisation or a profession. Public sector organisations usually reward employees mainly for the job performed including the period of service and experience gained. On the other hand, private sector organisations combine basic pay with the skills, expertise and the performance of the employee. Remuneration is a reward…

    • 920 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Remuneration of Salesman

    • 1463 Words
    • 6 Pages

    Remuneration of Your Sales Force and Customer Service Team Members How do you decide what remuneration packages to adopt? How do you ensure that your remuneration packages incentivise and motivate the right people? How do you make sure that the amount of pay helps your staff with their lifestyle requirements? These questions are vital ones to anybody trying to run a sales team or customer service team, when you have a look at how you can actually reward personal effort as well as maintain service…

    • 1463 Words
    • 6 Pages
    Good Essays
  • Good Essays

    EQUAL REMUNERATION ACT

    • 3569 Words
    • 12 Pages

    EQUAL REMUNERATION ACT, 1976 [Act 25 of 1976 amended by Act 49 of 1987] CONTENTS CHAPTER I PRELIMINARY 1. Short title, extent and commencement. 2. Definitions. 3. Act to have overriding erect. CHAPTER II PAYMENT OF REMUNERATION AT EQUAL RATES TO MEN AND WOMEN WORKERS AND OTHER MATTERS 4. Duty of employer to pay equal remuneration to men and women workers for same work or work of similar nature. 5. No discrimination to be made while recruiting men and…

    • 3569 Words
    • 12 Pages
    Good Essays
  • Best Essays

    | Remuneration and Reward for Graduates | | HRM 301 | Research Report | | | | | | Contents 1. Introduction 3 1.1 Graduate programs 3 1.2 Y Generation 4 2. Remuneration and Rewards 5 2.1 Base Salary 5 2.2 Incentives 6 2.3 Travel 7 2.4 Employee Benefits 7 3. Employee Engagement 8 4. Career Advancement 8 5. Training and Development 9 6. Conclusion 9 7. References 11 8. APPENDIX. Chart 1 13 Remuneration and Reward for Graduates…

    • 3646 Words
    • 15 Pages
    Best Essays
  • Powerful Essays

    this report we have aimed to compare and contrast the remuneration plans and sustainability reporting between three companies, CRH, Kingspan and Marshalls. In doing this we aim to devise an appropriate remuneration plan and suggest sustainability reporting practices for Carminho Building Products considering Watts and Zimmermans Positive Accounting Theory and in line with the cultural and financial reporting context of UK. 2.0 Remuneration Comparison We aim to compare and contrast both the similarities…

    • 1623 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    CHALLENGES AFFECTING REMUNERATION People who administer wage and salary face challenges which often necessitate adjustments to a remuneration plan. The more important of the challenges are skills-based pay, salary reviews, pay secrecy, comparable worth, and international pay. Skill-based pay: In the traditional job-based pay, employees are paid on the bases of jobs the do. In the skill-based system, workers are paid on the basis of number of jobs they are capable of doing, or on the depth…

    • 500 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Remuneration Policy

    • 1474 Words
    • 6 Pages

    ‘There is too much accounting regulation’. In order to address this comment, this essay will focus on how theories of regulation apply to accounting practices and the necessity of accounting regulation. First of all, according to Oxford Dictionaries, accounting means ‘the process or work of keeping financial accounts’. While regulation is ‘a rule or directive made and maintained by an authority’. (Oxford Dictionaries 2013) Since long ago the necessity of accounting regulation has been keep questioning…

    • 1474 Words
    • 6 Pages
    Powerful Essays