HRM-Part-VI Wages & Salary Administration
Human Resource Management (HRM)-Part-VI Wages and Salary Administration Purpose: n To attract prospective employees for recruitment. n To motivate Human Resource to achieve organizational goal. n To maintain and regulate the labour cost. Two types of Compensation : n Direct (Money in terms of Wages) n Indirect (Benefits such as life, health, insurance, social security etc.) ‘Wages’ refers to – Blue collar workers (PR / TR employees) ‘Salary’ refers to – White collar workers (Clerk, Supervisor, MR employees etc.) Job Cluster : A group of work assignments or job classifications in an organization which are linked together by technology, production process etc. is called Job Cluster. Process of Determining Wages : Wage = Basic Wage + Other Allowances Basic Wage is the remuneration by way of basic salary and allowances . Allowances : - are paid in addition to basic wage to maintain the value of basic wage over a period of time. W