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Explain the objectives of wage and salary administration
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Joined: Sep 2010
The general objectives of the wage and salary administration are as follows:
(a) Control of costs
(b) Establishment of fair and equitable remuneration.
© Utilisation of wages and salaries as an incentive to greater employee productivity
(d) Maintenance of a satisfactory public relations image.
To achieve these objectives the responsibility for wage and salary administration usually lies with the top-management. Top-management develops policies and procedures regarding wages. In many organisations, this task is entrusted to wage and salary committee composed of line and staff executives. The functions of a wage and salary committee or any other person connected with wage and salary administration are as follows:
(1) To approve in a broad policy determining manner, the system of job-evaluation and job description.
(2) To check all activities of the salary administration group against the company policies.
(3) To recommend to top management the wage policies for the administration of the wage programme. .
(4) To recommend changes in wage policies and in the wage level.
(5) To review wage and salary schemes depart-wise.
(6) To recommend to top management specific raises for executives above a specified limit.
