Many behavioural scientists — notably psychologists and sociologists- like March and Simon, Robert Dubin, Eliot Jacques—have presented their views on wages and salaries on the basis of research studies and action programmes conducted by them.

1. Behavioral theory – Wage theories
Compensation Management

2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. Behavioral theories
• Many behavioural scientists
— notably psychologists and
sociologists- like March and
Simon, Robert Dubin, Eliot
Jacques—have presented
their views on wages and
salaries on the basis of
research studies and action
programmes conducted by
them.

4. Behavioral theories
• It has been found that wages
are determined by such factors
as . size and prestige of the
company, strength of the
union, the employer’s concern
to maintain the workers,
contribution by different kinds
of workers, etc.

5. Behavioral theories
• Wage differentials are
explained by social norms,
traditions, customers prevalent
in the organisation
psychological pressures on the
management, prestige
attached to certain jobs in
terms of social status, need to
maintain internal consistency
in wages at the higher levels,
the wages paid for similar jobs
in other firms, etc.