Employee remuneration Employee Remuneration refers to the reward or compensation given to the employees for their work performances. provides basic attraction to an employee to perform job efficiently and effectively Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA Why is it important? Leads to employee motivation Affects employee productivity Affects work performance Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

FACTORS INFLUENCING EMPLOYEE REMUNERATION A number of factors influence the remuneration payable to employees. They can be categorized into: External Factors Internal Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Components of remuneration Wages and Salary Wages refer to the hourly rates of pay, salary refers to the monthly rate of pay, wages and salaries are subject to annual increments. Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Components of remuneration Incentives: also called ‘payment by result’ paid in addition to wages and salaries. depends upon productivity, sales profit 1. individual incentives scheme 2. group incentives scheme Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Components of remuneration Fringe benefits : - These include such employee benefits as provident fund, gratuity, medical care, hospitalization, accident relief, health insurance, canteen, uniform and like Perquisites - These are allowed to executives and include company car, club membership, paid holidays, furnished house and like Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA Non monetary benefits Challenging job responsibilities Recognition of merit Growth prospects Comfortable working conditions Competent supervision Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA Factors External factors Labour market Going rate Productivity Cost of living Labour union Government legislations The society The economy Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA External factors Labour Market Demand for and supply of labour influence wage and salary fixation. A low wage may be fixed when the supply of labour exceeds the demand for it. A higher wage will have to be paid when demand exceeds supply, as in the case of skilled labour. Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA Labour market High remuneration to skilled labour is necessary to attract and retain them. But exploitation of unskilled labour, like, for instance, paying niggardly wages because it is available in plenty, in unjustified. The Minimum Wages Act, 1948, is precisely meant to prevent this kind of exploitation. Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA Labour market The Going rate system involves fixing wage/salary rates in tune with what is paid by different units of an industry in a locality. Going rates are generally paid in the initial stages of plant operators. Productivity of labour also influences wage fixation Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA Labour market Productivity can arise due to increased effort of the worker, or as a results of the factors beyond the control of the management, and the like. From advance technology and more efficient method of production Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA

Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA Labour market Productivity has only a subordinate role in wage fixation. The argument that productivity would increase if it is linked to remuneration is hardly acceptable Unit - V 16BA609 & Human Resource Management, Mr.K.Mohan Kumar, AP/MBA