Wages and Incentives
Wages and Incentives
NIMSHAJ .P
NITHEESH.K
GROUP NO :-6
In all societies taking from the primitive,people have been
selling their services for wages.Wage labour existed from the
ancient,through the middle ages and till the time,factory system
devoloped and gave birth to the modern wage system.Wage may
be defined as payment for the use of labour.Wages include both
money and non money payments.
Incentives is an inducement or a reward which is given to a
worker for his efficiency and hard work.Incentives motivate and
encourage a worker to produce more and better.Incentives are in
addition to the job hourly rate and are in proportion to the
workers contribution toward production
Wage may be defined as payment for the use of labour.Wage include
both money and non money payments.Non money payments may also
be called as fringe benefits,etc.Fair wage is a wage paid to a worker which
is fair as regards the work accomplished by him and which is sufficient to
fullfill the basic necessities of life .
TIME WAGES
_ The payment of wages on the basis of a year,a month,a week,a day is
probably the most common method.Wages paid under this methord are
often spoken of as time wages.
REAL WAGES
Real wages represent the amount of goods and services that the money
wages will buy.
Non incentives plans like time or day rate system and incentive wage
plans like piece rate and other schemes.
Incentives is an inducement or a reward which is given to a worker for
his efficiency and hardwork.Incentives motivate and encourage a worker
to produce more products and better. Incentives are addition to the job
hourly rate and in proportion to the workers contribute towards
production.
DIRECT INCENTIVES
Direct incentives are those which are given to an individual worker
for his own contribution.
INDIRECT INCENTIVES
Indirect incentives are paid to a group of workers .
FINANCIAL INCENTIVES
Financial incentives involves direct monetory payments or benefits.
NON FINANCIAL INCENTIVES
Include good working conditions,amenities and social benefits in
the oraganisations.
Wage incentive plans rewards an employee for his good job-
performance.The various aspects of job performance are:-
o Product quantity
o Product quality
o Efficiency
o Utilization of materials,tools and plant
HALSEY PLAN
W=RT+[(S-T)/S]*RT
Supervisory staff:-Supervisory staff can be paid an incentive on the output for which
it is responsible.A supervisor can be given a bonus depending upon :-
i. The number of satisfactorily units produced by his section/department in one day
or a week
ii. The number of work hours saved in achieving the same output.
iii. Reduction in scrap and wastages .
iv. Net cost saved for organisation.
v. Optimum utilization of workers .