Wage and salary administration is establishment and implementation of sound policies and practices of employee compensations. The basic objective of wage and salary administration is to establish and maintain an equitable wage and salary structure and secondary objective is to establish and maintain an equitable labour cost structure. Fixed compensation includes base salary, hourly wages and draws. Salary and wage administration is the process of compensating an organizations employees under accepted policy and procedures. What are the objectives of wage and salary administration.
View test prep objectives of wage and salary administration. The main reason why workers get involved in paid jobs is to earn a. Briefly discuss the factors that influence wages and. A poorly administered wage and salary program has the potential for creating chaos in a companys workplace by generating discontent among employees. Wage and salary administration project management case. What is wage and salary administration major components of an employees wage. Importance of wage and salary administration in hr management. The main objective of wage and salary administration is to have a scientific, rational and balanced wage and salary structure. For the love of physics walter lewin may 16, 2011 duration.
Wage and salary plan the universitys wage and salary plan classifies each position into a grade that is associated with a salary range. It contains a brief description of nine basic performance appraisal techniques. University salary administration philosophy and policies jmus compensation philosophy is to pay employees in a manner sufficient to recruit and retain a high. Hr management assignment help, objectives of wage and salary administration, objectives of wage and salary administration. Jobs of similar value are grouped together into grades. Reward employees according to the effect and merit.
Factors influencing wage and salary administration mba. A key objective of adequate wages and salaries is to help. Factors influencing wage and salary structure of an. Which factors have to be considered in wage setting. We will examine various job analysis and job evaluation processes. Chapter 7 wage and salary administration human resource. While much of the salary and wage administration process takes place within the wusm human resources office, it is the responsibility of the department chairs, business managers, and other members of management to support equitable application of salary administration within the university.
Nov 28, 2011 wage and salary administration plans must always be consistent with overall organizational plans and programmes. Basic pay, dearness allowance, incentive, fringe benefits and annual statutory bonus the wage or salary components of indian employees depend on various factors such as paying capacity of employers, conditions of labour market and legal provisions. Importance of wage and salary administration in hr. Compensation is the human resource management function that deals with every type of reward individuals receive in exchange for performing an. Generally speaking, compensation is a reward for time, skills, effort, andor knowledge. Feel satisfied with a relationship between his wages and wages of other people performing the same type of work in some other organization. It is a department or subset of a department in a company that sets wages and salaries for employees. The primary objective of wage and salary administration program is that each employee should be equitably compensated for the services rendered by him to the enterprise on the basis of. Objectives of wage and salary administration, hr management. Going forward, each individual will have the opportunity to receive a base salary that is commensurate with. Wage and salary administration establishing internal equity and external competitiveness is a critical objective of a wage and salary program economically challenging times are causing employers both large and small to rethink their positions on automatic annual increases for their employees. What are advantages, disadvantages and applicability oftime wage plans. Sep 29, 2015 wage and salary administration objectives. Revisions to this plan were made in june 2014, june 2019, and in september 2019.
Goals and objectives this course is focused on the general concepts and practices of wage and salary administration with specific emphasis on the design, construction, and administration of a competitive compensation system. Jun 17, 20 wage and salary administration plans must always be consistent with overall organizational plans and programmes. As a matter of fact wage and salary administration is one of the major responsibilities of modern manpower management. To satisfy people, reduce the incidence of turnover, grievances, and frictions. The wage and salary administration is concerned with financial aspects of needs, motivation and rewards. It includes such areas as job evaluation, surveys of wage and salaries, analysis of relevant organisational problems, development and maintenance of wage structure, establishing rules for administering wages, wage. Personnel administration business area is intended to ensure consistent application of research foundation rf policies and procedures for salary and wage administration. Candidates decide upon their career in a particular organization mostly on the basis the amount of remuneration the organization offers.
Wages and salary administration, salary management system, staff salary management, staff wage management, salary and wage administration during the period of prosperity, workers are paid higher wages because management wants to share the profits with labor job requirements. Review the usg salary administration policies and procedures. Salary grades include jobs of approximately equal worth as determined by job evaluation and direct market pricing methods. Sep 10, 2016 wage and salary administration refers to the establishment and im plementation of sound policies and practices of employee compensation. The work entails how civil servants of imo state can be motivated through their pay services they render to the organization because if they.
An important component of a successful organizations policy for administering salaries and wages is monitoring and evaluating all employees compensation to ensure that theyre being paid appropriately, both. May 08, 20 in a salary administration, the employer should not feel thatthe employees are paid more than they deserve and theemployees should not feel that they are underpaid. Wage incentive refers to performance linked compensation paid to improve motivation and productivity. Importance of wage and salary administration in hr management the words wage and salary are sometimes considered synonymous strictly speaking however they have slightly different meaning. What principles should wages and salary administrationconsider while.
Wage and salary administration linkedin slideshare. Jmus salary administration plan was first effective october 1, 2000. Recent trends in wage and salary administration in nigeria. Read this essay to learn about wage and salary administration of employees. To retain the present employees by keeping wage levels in tune with. Wage and salary administration 147 complete the job in less than the standard time. Wages and salaries administration linkedin slideshare. The aim of salary administration is to develop and maintain a salary system of policies. Attract and retain the services of desirable employees. Compensation has a lot of objectives to accomplish. Beach has listed the five objectives of wage and salary administration. Salary administration guidelines auburn university. The central objective or purpose of wage and salary administration is to provide pay that is both competitive and equitable atchison, 2003. Salary and wage administration is the process of compensating an organizations employees in accordance with accepted policy and procedures.
It is the monetary inducements offered to employees to make them perform beyond the acceptance standards. Office of inspector general page 1 audit of the payroll process background in accordance with our fy 2016 audit plan, our office conducted an audit of the payroll process. Wages become important in somalia, because to be effective if linked to productivity for real. Base pay administration guidelines base pay overview the base pay program at auburn is designed to ensure jobs are competitively valued relative to comparable jobs in the marketplace. Wage and salary administration refers to the establishment and implementation of sound policies and practices of employee compensation. Basic wages depend largely on the difficulty level, and physical. However, understanding the ways in which compensation management affects business outcomes can help you leverage your compensation plan to achieve better results. Wages and compensationintroduction wage and salary.
Keywords wages, salaries, motivation, employer, employee, compensation 1. The main objective of wage and salary administration is to establish and maintain an equitable wage and salary system. The functions of a wage and salary committee or any other person connected with wage and salary administration are as follows. An important component of a successful organizations policy for administering salaries and wages is monitoring and evaluating all employees compensation to ensure that theyre being paid appropriately. While formulating a wage structure, a wage board should consider. This work is concerned with salaries and wages administration in nigeria public sector, a case study of olamaboro local government area of kogi state. Each grade has a salary range a minimum, midpoint, and maximum salary to be used. Wages and salary administration free download as powerpoint presentation.
Wage and salary are often discussed in loose sense, as they are used interchangeably. Purpose or objectives of wages and salary administration definition of wage and salary administration sound wage policy00. Apr 17, 2020 salary and wage administration is the process of compensating an organizations employees in accordance with accepted policy and procedures. Direct compensation that is in line with the industry standards facilitates employees with the assurance that they are getting paid fairly. Salary and wage administration functions and responsibilities intent. Salary and wage administration functions and responsibilities. Some units pay high wages because of a combination of a favorable product market demand, higher ability to pay and the bargaining power of trade union. Candidates decide upon their career in a particular organisation. It can meet specific business objectives and goals.
It includes such areas as job evaluation, surveys of wage and salaries, analysis of relevant organisational problems, development and maintenance of wage structure, establishing rules for administering wages, wage payments incentives, benefits including. To adequately budget for employee salaries, you must plan for employee pay changes and assess the financial impact of those changes on your salary budget. Project report on salary and wages administration pdf. Wage refers to at an hourly rate of pay and is the pay basis used most frequently for production and maintenance employees. What principles should wages and salary administrationconsider while setting up the structure.
The study also aims at evaluating the practical wage and salary administration under taken by the organization in their work environment to improve their working. Regularly planned increases based on seniority changes. According to nwachukwu 2000 and ogunbameru 2000 wage and salary administration refers to the development, implementation and ongoing maintenance of a base pay system. This list is currently growing by about 10 names a day. A study on wages and salary administration with reference to. The words wage and salary are sometimes considered synonymous strictly speaking however they have slightly different meaning. To establish and maintain equitable wage and salary structure. In the broadest sense, the purpose of a wage and salary administration program is to create order where there is the potential for a whole lot of chaos. Essay on wage and salary administration of employees. The 5 key objectives of compensation management hrsoft. Most hr professionals already understand the most common objectives of compensation management.
Jun, 2015 wages and salary administration session2 duration. Wage and salary administration plans must always be in conformity with the social and economic objectives of the country like attainment of equality in income distribution and controlling inflation, etc. The wage and salary administration may use a variety of factors, including the company budget and the amount that competitors pay, in making of decisions. Wage and salary administration plans must always be consistent with overall organizational plans and programmes. The main objective of wages and salary administration is to have scientific study about rational and balanced wages and salary in vidarbha vinkar shetkari sahakari sut girni ltd. The objects of wage and s alary administration are numerous and sometimes conflict with each other. But a large number of them seek to be competitive in their wage programme, i. Pdf wages and salaries administration as motivational tool.
The determination of wage rates, administration of wage policies and satisfying the employees as regards to wages and rates of wages is an important aspect of wage administration. Wages and salary administration in nigeria civil service problems and prospect abstract this study gives a suitable detail of wages and salary administration in imo state civil service, with their performances. Wage and salary administration policy reference number. The basic purpose of wage and salary administration is to establish and maintain an equitable wage and salary structure. Objectives and principles of wage and salary administration. Apr 21, 2017 this part present case studies on wage and salary administration. According to the national commission of labour wage incentives are. What should be the objectives of wage and salaryadministration. Wages and salary are paid on the basis of fixed period of time and normally not associated with productivity of an employee at a particular time. Generally sound wage and salary administration tries to achieve following objectives. One of the most important functions of human resources is the payment ofthe proper salaries and the wages to all company employees. To ensure maintenance of equity in respect of payment of salarywages in terms of equal pay for equal work. Salary administration programs are designed to provide competitive and equitable base pay to all employees, through the use of salary structures and formal policies and procedures. A sound plan of wage and salary administration seeks to achieve the following objectives.
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