Factors affecting wages & salaries

50 %
50 %
Information about Factors affecting wages & salaries
Leadership & Management

Published on April 8, 2014

Author: rajesh11221

Source: slideshare.net


  According to D. C. Beach, “Wage and salary administration implies the establishment and implementation of sound policies and principles of employee compensation”. DEFINATION

Wages structure implies the wage rates for all the jobs within an organisation, industry or local market area. Generally, organisation maintain two parallel wage or salary structures. One can be for hourly rated and another cab be for salaried employees. All organisation cannot have the same wage and salary policy. Some organisation pay minimum necessary to attract the desired number and kind of workers. They just pay the minimum wage rate according to the legislation in the existence. While some organisation pay much more than that. MEANING

 1. PRODUCTIVITY : Productivity of a candidate or an employee is very important factor which affects the wage or salary rate. High wages and low costs are possible only when productivity increases considerably. Productivity differs from organistation to organisation, industry to industry, region to region etc. However, productivity is considered as one of the important factors which affects the wage and salary structure. Factors influencing Wage and Salary structure and administration :

 2. Capacity of an organisation to pay : Capacity or ability of an organisation to pay also affects the salary and wage levels and wage structures. The capacity to pay much depends upon the progress of an organisation and the profits it earns. Naturally those organisation which earn huge profits also cab afford to pay much better wage rates to their employees than the organisation which earns comparatively less profit or earns merely marginal profits.

 3. Managerial Attitudes : Managerial attitude also influence on the wage and salary structure and wage and salary levels. R. A. Lester, the expert in this field observed that the desire of the top management to maintain or enhance the prestige of its organisation is major factor in the wage policy of many organisation.

 4. Going Wage and Salaries : The wages and salaries paid to the employees for comparable jobs by other organisation in the industry have an impact on the wage and salary policies, An oraganisation’s wage and salary usually tend to conform to the wage and salaries paid by other oraganisation's in the industry.

 5. Demand and Supply of Labour : A price of any commodity is determined by its demand and supply. The wage and salary rates are also determined by the demand and supply position of the labour in the labour market.

 6. Cost of Living : The employees must get sufficient amount of pay in order to satisfy their wants and maintain a certain standard of living. The cost of living pay criterian is usually regarded as an automatic minimum equity pay criterian. This criterian calls for adjustments in payment of wages and salaries based increases or decreased in an acceptable cost of living index.

 Also other factors influencing wage and salary  Labour Cost  Job requirements and the skill levels available in the labour market  Trade Union’s Pressure, strategies and bargaining capacity  Desire of an organisation to build their goodwill  Government Policy and Legislations

Add a comment

Related presentations

El 46% de las empresas confían en la aplicación de planes para incrementar la prod...

Quantum Leadership

Quantum Leadership

November 6, 2014

Agiles oder Quantum Leadership? Sein, geistige Fähigkeiten und Verbundenheit. Vo...

“Do good, feel good” is one of the great truths of happiness — but you may be thin...

John's break through curricula on transformational leadership and sustainable ente...

HR Anexi - Corporate Profile

HR Anexi - Corporate Profile

October 20, 2014

HR Anexi is a strategic human capital consulting organization with a complete arra...

"Não adianta ser um bom advogado se o cliente for estúpido." http://paulo-jacob....

Related pages

Eight Factors That Can Affect Your Pay - Salary.com

What factors can impact how far your salary can stretch. ... Eight Factors That Can Affect Your Pay By Salary.com, Salary.com contributing writer. Comments.
Read more

Factors affecting Wage and Salary Administration?

Factors affecting Wage and Salary Administration? • The organizations ability to pay; • Supply and demand of labour; • The prevailing market rate;
Read more

7 Factors to Consider for Determining Wage and Salary ...

The following factors should be taken into consideration in determining wage and salary ... Another important factor affecting the wage is the cost ...
Read more

How Economic Factors Affect the Pay of Employees | Chron.com

How Economic Factors Affect the Pay ... companies must offer higher salaries to workers in areas with a high cost of living ... Factors Affecting Employee ...
Read more

Factors Influencing Wage and Salary Administration

Factors influencing wage and salary administration can be categorized into (i) External Factors and (ii) Internal Factors.
Read more

Factors influencing wage and salary structure of an ...

There are many factors influencing wage and salary structure of an organization.
Read more

Human Resources: Importance of External Factors in Wage ...

Nonunion Wage Determination. Wages in nonunion ... of unions in affecting ... factors are important in wage determination in that ...
Read more

Factors affecting salary and wage level - 4HRM | 4HRM

Factors affecting salary and wage level. I/ Based on work: Work is the deciding factor that affects the salary level. Most of the companies pay attention ...
Read more

Internal & External Factors for Salary Differences | Chron.com

Internal & External Factors for Salary Differences ... Internal & External Factors Affecting ... the company’s profitability may affect salary and wage ...
Read more