wages presented by:

8/14/2019 WAGES Presented by:

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Presented By:Abhradeep Paul

Pawan Kumar

WAGESWAGES


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OVERVIEW:Wages are defined by I.L.O as the remuneration paid by the

employer for the services of the worker who is engaged bthe hour, days, week or fortnight.

Wage differentials serve many useful purposes that includethe following:

1.To induce the employees to change jobs.2.To channel employees from declining industries to newindustries.

3.To get employees to to learn and acquire new skills.4.To get employees to accept more responsible position.

Organization cant afford to ignore the impact of various wage differentials. Effective management of human resources essentially requires the management tokeep the wage programmes current.

1.


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TYPES OF WAGES:- Two types of wages :

. :Time Wage nder this method employees is paid on the

. ,asis of t ime worked i e hourly weeklyor monthly r any other f ixed period of t ime irrespect ive of.he quanti ty of work done

mployee is paid at the set t led rate as soon;s the t ime contracted for is spent and his

.roduct ion is not taken into consideration

his pament is found in pract ice in those industr ies

nd for those jobs where qual ity of goods produced.s of extremeimportance


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he quali ty of the product can be maintained b paying par ticular.t tention as there is no time limit for completion of a job

,s workers in no hurry to complete the job they wil l avoid over,peeding and the consequent damage to equipments thus there is

.o rough handl ing l l the members doing a part icular kind of work get the same

;age under this sys tem so there is no reason for jealous among.he members of the group

.t gives the workers a sense of secur i ty The need not be

f raid of the cut in wages even when their ef f iciency is.emporari ly impaired by an injury or sickness

his system promotes industr ial peace because labor unions

avour i t and recognize i t in the interest of workers as i t does.o t create any dist inc t ion in the ranks of the workers

ADVANTAGES OF TIME WAGE SYSTEM


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v There is frequent tendency of being slack in work as there is no.specific time limit to complete a job

vv This system doesn t distinguish between efficient and inefficient

.workers and between honest and a shirker Wages are paid to all

;according to time spent on work it decreases the morale of capable.workersvv It requires continuous and strict supervision so as to maintain

quality and quantity of work and to reduce the cost of production.thereby

v

v Employer find it difficult to calculate the labor cost and cost of production because the output and the cost fluctuates considerably under.this system

DISADVATAGES OF TIME WAGE SYSTEM


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2. Piece wage :

Under this method quantum of work is the basis.for paying the wages and not the time spent on work A

fixed rate for producing a unit of output is agreed.upon and paid

Worker s earning can be calculated on thebasis of this formula

= WE NR, Where

= WE worker searning

= .N no of piecesproduced

= .R rate per piece


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he cost of production and cost per uni t can easi ly be alcula ted and est imated because labor cost per unit i s

.onstant upervision charges are not so heavy since no str ic t

upervision is cal led for as workers themselves are interested.n ra ising the production to earn higher wages here is increased product ion as well as productivi ty due to

.reater motivational effec ts through financial incent ives here is greater coopera t ion from workers in avoiding

.nter rupt ions in work They take great care to prevent a.reakdown in machine or workshop

D V A N T A G E S O F P I E C E W A G E S Y S T E M :


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t lays too much emphasis on quant i ty of product ion at the cost of.uali ty of the product

, , ,here is frequent spoi lage of tools equipments wastage of mater ia ls

ver working in machines and more consumption of power as the workers.re in hurry to f inish the work at a breakneck speed

t makes the worker feel insecure because he gets wages on the basis

.f output .f the worker s effic iency is impaired temporar ily by i ll health etc he

.i l l lose his wages for that per iod abour Unions oppose this system because the fixat ion of piece rate

.s not done on a scienti f ic basis Pol i t ical ly too this system weakens.he labour unions as workers get no t ime for union activi t ies

orkers may have to lose their wages where the product ion process is

nterrupted by reasons beyond their control such as power failure or- .on avai labil i ty of mater ials etc

ISADVANTAGES OF PIECE WAGE:YSTEM


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WAGE PAYMENT SYSTEMS :

A.Payment by Result System :B.III.This is designed to reward the employee for the no. of units he produces or the time

he takes to do a given amount of work.

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 moreslowly than the increase in output.


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B. Measured Day Work :This system is designed to level out earnings from week

to week. ,Several levels may be set using a work measurement

technique and the employees progresses through them as.he becomes more proficient

So when an employee reaches a certain output over a

,period say 2 weeks he is paid at the rate for that.level of programme This system can overcome the problems produced by the

.variations of piecework


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C. Flat Rate Systems :

These are also known as day rate, day work, timerate or hourly rate. hese provide that the employee receive an agreed

.ate of payment in return for a given period of work his rate is f ixed periodical ly through col lective

.argaining or by referr ing to local ra tes Pa varies,nly with the hours worked not with the rate of

.utput


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HANK YOYHANK YOY

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