HUMAN RESOURSE MANAGEMENT

2. GROUP MEMBERS ARE :-
 ADITI SINGH
ANUJ PRATAP SINGH
ANAMIKA GOUR
BABITA SINGH
ADITYA SINGH

3. WAGES ANDSALARIES DEFINED
 Wages – paid to the blue-collar employees: paid
daily weekly or monthly: paid to jobs which can
be measured in terms of money’s worth.
 Salary – paid to white-collar employees: paid in
monthly basis: paid to employees whose
contribution cannot be measured easily.

4. WAGES & SALARY ADMINISTRATION
 A group of activities involved in the
development, implementation, and maintenance
of a pay system.
 An ongoing process of managing a wage and
salary structure.

5. WHY DO WE NEED TO STUDY WAGE AND
SALARY ADMINISTRATION?
 To have a scientific, rational and balanced wage
and salary structure.
 In a salary administration, the employer should
not feel that they deserve and the employees
should not feel that are underpaid.

6. THE ROLE OF HUMAN RESOURCES IN THE
PAYMENT OF SALARIES
 One of the most important functions of Human
Resources is the payment of the proper salaries
and the wages to all company employees. The
pay that the employees the receive from their
employer is the very reason for the being in the
job.
 The function of the payroll in a company is
usually the wage & salary administration and it
is carried by the Human Resources
Development.

7. PRINCIPLES OF WAGES & SALARY
ADMINISTRATION
 External Equity
 Internal Equity
 Individual Worth
 Should be sufficiently flexible.
 Job evaluation must be done
scientifically.
 Must always be consistent with overall
organizational plans and programs.

8. PRINCIPLES OF WAGES & SALARY
ADMINISTRATION
 Should be in conformity with the social and
economic objectives.
 Should be responsive to the changing local
and national conditions.
 Should maintain equity.
 Should maintain competiveness in market.
 Optimized employee and employer interest.

9. OBJECTIVES OF WAGES & SALARY
ADMINISTRATION
 ORGANISATIONAL OBJECTIVE :
The compensation system should be duly
aligned with the organisational need and
should also be flexible enough to modification
in response to change.
Accordingly, the objectives system should be
to:
1. Enable an organisation to have the quality
and quantity of staff it requires.

10. ORGANISATIONAL OBJECTIVE :
2. Retain the employees in the organisation.
3. Motivate employees for good performance for
further improvement in performance.
4. Maintain equity and fairness in compensation
for similar jobs.
5. Achieve flexibility in the system to
accommodate organisational changes as and
when these take place.
6. Make the system cost- effective.

11. INDIVIDUAL OBJECTIVES :
From individual employee's point of view, the
compensation system should have the following
objectives :
1. Ensures a fair compensation.
2. Provides compensation according to
employee’s worth.
3. Avoids the chances of favouritism from
creeping in when wage rates are assigned.
4. Enhances employee morale and motivation.

12. COLLECTIVE OBJECTIVES :
These objectives include :
1. Compensation in ahead of inflation.
2. Matching with market rates.
3. Increase in compensation reflecting increase in
the prosperity of the company.
4. Compensation system free from management
discretion.

13. OBJECTIVEs
Beach has listed five objectives
1. To recruit persons for a firm.
2. To control payroll.
3. To satisfy people, reduce turn over, grievances,
and friction.
4. To motivate people perform better.
5. To maintain good public image.
6. To fulfil legal requirements.

14. SALARY SYSTEM
Salary System – also referred to as
compensation plans or pay structure- are a
collection of steps, policies and practices
employers use to pay employees for their work.
Salary system consist of more than producing a
weekly, biweekly or bimonthly pay check.
Components of a salary system range include
everything for pay scales to the method
employers use to reward employees for
performance.

15. KEY ELEMENTS OF SALARY SYSTEM
 Business Planning - Employee salaries are part
of the earliest stage in business development.
Before creating a formal business plan,
prospective business owners calculate salaries in
the operational expenses.
 Workforce - Key elements within a salary
system are workforce skills and qualifications.
Employers construct job descriptions for each
position and assign value to those jobs through
an evaluation process.

16.  Pay Structure - A compensation structure
consists of starting wages, cost-of-living
Increases, annual raises and cash incentives
and bonuses. The actual salary paid to
employees depends on market conditions,
business revenue and profitability, workforce
size and how much employers contribute to
employee benefits. Employers have three
basic choices when it comes to establishing
pay rates.

17.  Employee Reward - A salary system also
includes the process for rewarding employees
for performance. Pay-for-performance
compensation structures and merit-based
increases are two different types of
compensation structures. Scheduled increases
usually include cost-of-living allowances as well
as differential wages for extended schedules or
hazard pay.

18.  Pay Scale - Before the company hires its first
employee, it constructs a pay scale. Pay scales
are subject to change based on production
demands and workforce planning; however,
initial pay scales may be modified once the
business completes the employment process by
hiring its first employees.

19. ELEMENTS AFFECTING WAGE/ SALARY
LEVELS
(1) Labour Unions : The labour unions attempt to
work and influence the wages primarily by
regulating or affecting the supply of labour.
(2) Personal perception of wage : Whether the
wage is adequate and equitable depends not only
upon the amount that is paid but upon the
perceptions and the views of the also recipients
of the wage.

20. (3) Cost of living : Another important factor
affecting the wage is the cost of living
adjustments of wages. It is an essential
ingredient of long term labour contracts unless
provision is made to reopen the wage clause
periodically.
(4) Government legislation : The laws passed
and the labour policies formed by the
Government have an important influence on
wages and salaries paid by the employees.
Wages and salaries can’t be fixed below the
level prescribed by the government.

21. (5) Ability to pay : Labour unions have often
demanded an increase in wages on the basis that
the firm is prosperous and able to pay. If the
firm is highly successful, there is little need to
pay for more than the competitive rates to obtain
personnel.
(6) Supply and demand :-
The practical result of the
operation of this law of
supply and demand is the
creation of “going- wage rate”.

22. (7) Productivity : Productivity is the key factor in
the operations of a company. High wages and
low costs are possible only when productivity
increases appreciably.