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What are the principles of wage and salary administration?
Posts: 3,285
Threads: 501
Joined: Sep 2010
ollowing are principles of wage administration i.e., wage administration should be guided by the following basic considerations:
(1) Wage policies should be carefully developed having in mind the interests of management, the employees, the consumers and the community.
(2) There should be a definite plan to ensure that differences in pay for jobs are based upon variations in job requirements such as skill, effort, responsibility or job or working conditions, mental and physical requirements.
(3) The general level of wages and salaries should be reasonably in line with that prevailing in the labour market.
(4) The plan should carefully distinguish between jobs and employees. A job carries a certain wage-rate and a person is assigned to fill it at that rate.
(5) Wage policies should be clearly expressed in writing to ensure uniformity and stability.
(6) Wage decisions should be checked against the carefully formulated policies.
(7) Management should see to it that employees know and understand the wage policies.
(8) Wage policies should be evaluated from time to time to make certain that they are adequate for current need.
(9) Departmental performance should be checked periodical against the standards set in advance.
(10) Job descriptions and performance ratings should be periodically checked to keep them up-to-date.
Posts: 3,285
Threads: 501
Joined: Sep 2010
Following are principles of wage administration i.e., wage administration should be guided by the following basic considerations:
(1) Wage policies should be carefully developed having in mind the interests of management, the employees, the consumers and the community.
(2) There should be a definite plan to ensure that differences in pay for jobs are based upon variations in job requirements such as skill, effort, responsibility or job or working conditions, mental and physical requirements.
(3) The general level of wages and salaries should be reasonably in line with that prevailing in the labour market.
(4) The plan should carefully distinguish between jobs and employees. A job carries a certain wage-rate and a person is assigned to fill it at that rate.
(5) Wage policies should be clearly expressed in writing to ensure uniformity and stability.
(6) Wage decisions should be checked against the carefully formulated policies.
(7) Management should see to it that employees know and understand the wage policies.
(8) Wage policies should be evaluated from time to time to make certain that they are adequate for current need.
(9) Departmental performance should be checked periodical against the standards set in advance.
(10) Job descriptions and performance ratings should be periodically checked to keep them up-to-date.
