Professional Documents
Culture Documents
Presented By:
Abhradeep Paul
Pawan Kumar
OVERVIEW:
Wages are defined by I.L.O as “the remuneration paid by the
employer for the services of the worker who is engaged b
the hour, days, week or fortnight”.
Wage differentials serve many useful purposes that include
the following:
1.To induce the employees to change jobs.
2.To channel employees from declining industries to new
industries.
3.To get employees to to learn and acquire new skills.
4.To get employees to accept more responsible position.
Organization can’t afford to ignore the impact of
various wage differentials. Effective management of
human resources essentially requires the management to
keep the wage programmes current.
1.
TYPES OF WAGES:-
Two types of wages :
1 . Time Wage :
Under this method employees is paid on the
basis of time worked i . e hourly , weeklyor monthly
or any other fixed period of time irrespective of
the quantity of work done .
§As workers in no hurry to complete the job , they will avoid over
speeding and the consequent damage to equipments , thus there is
no rough handling .
§All the members doing a particular kind of work get the same
wage under this system ; so there is no reason for jealous among
the members of the group .
§
§ It gives the workers a sense of security . The need not be
afraid of the cut in wages even when their efficiency is
temporarily impaired by an injury or sickness .
§
§This system promotes industrial peace because labor unions
favour it and recognize it in the interest of workers as it does
not create any distinction in the ranks of the workers .
DISADVATAGES OF TIME WAGE SYSTEM
I. Appropriate output or time rates are calculated using the work study technique or
effort rating. A base rate for all employees is normally applied, but the worker who
produces more or takes less time can earn more than the base rate.
II.
III. This additional payment may take the form of proportional piecework ( the
additional pay increases in direct proportion to extra output) or differential
piecework (beyond a given point, the additional pay increases either faster or more
slowly than the increase in output.
B. Measured Day Work :
This system is designed to level out earnings from week
to week.