Wage Fixation
Wage Fixation
Wage Fixation
Besides the basic factors provided by job description and job evaluation,
there are some other criteria also which is taken in to consideration while
fixing the wage and salaries, those are…
Productivity
It is another criterion, and is measured in terms of output per
man- hour. It is not due to labour efforts alone. Technological
improvements, better organization and management, the
development of better methods of production by labour and
management, greater ingenuity and skill by labour are all
responsible for the increase in productivity.
Job Requirements
Generally, the more difficult a job, the higher are the wages
Measures of job difficulty are frequently used when the
relative value of one job to another in an organization is to
be ascertained. Jobs are graded according to the relative
skill, effort, responsibility, and job conditions required.
Managerial Attitudes
These have a decisive influence on the wage structure and
wage level since judgment is exercised in many areas of
wage and Salary administration — including whether the firm
should pay below average, or above average rates, what job
factors should be’ used to reflect job worth, the weight to be
given for performance or length of service, and so forth, both
the structure and level- of wages are bound to be affected
accordingly.