jibin wage payment system

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Wage Payment System Submitted by, Jibin S.R B.Ed Commerce Reg.No:19014300008 GCTE,Thycaud

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Page 1: Jibin wage payment system

Wage Payment System

Submitted by,Jibin S.RB.Ed Commerce

Reg.No:19014300008GCTE,Thycaud

Page 2: Jibin wage payment system

What is wage payment system

O It is the way of giving financial compensation to the workers for the time and effort invested by them in converting materials into finished

products. O This method adopted by manufacturing industry to

remunerate workers.

Page 3: Jibin wage payment system

ImportanceO Facilitates the preparation of wage plan

for future.O Determine the cost of production and the

profitability.O Determines the earning their living

standards.O Affects the interest and attitude of the

workers and the rate of labor turnover.O Helps in recruiting skilled, experienced

and trained workers.O Helps to increase the productivity and

goodwill.

Page 4: Jibin wage payment system

CharacteristicsO Fair and justifiable to both.O Help in maximizing workers' satisfaction and

minimizing labor turnover.O Assure minimum guaranteed wages to all workers.O Provide more wages to efficient and skilled

workers.O Follow government policy and trade union's norms.O Simple and understandable to all the workers.O Help in improving performance and productivity of

the workers.O Flexible enough to suit the needs of the

organization.

Page 5: Jibin wage payment system

systemsTime rate systemPiece rate systemWork study systemIncentive rate systemBalance or debt system

Page 6: Jibin wage payment system

Time Rate System O Laborers get wage on

the basis of time which is utilized in organization. This wages may be charged on per hour, per day, per month or per year basis.

O It is also called as day wages system or time wok system.

Page 7: Jibin wage payment system

Advantage O Workers can easily compute their

own remuneration.O Earnings are regular and fixed and

do not suffer from temporary loss of efficiency.

O No pressure, the quality of work can be kept high.

O Learners can concentrate on learning the best methods of work.

Page 8: Jibin wage payment system

Disadvantage O No incentive for better performance

as reward is not proportionate to effort.

O Guaranteed remuneration makes workers indifferent and complacent.

O Calculation of labor cost per unit is difficult

O Control over labor cost becomes difficult and more payment may be made for the lesser amount of work.

Page 9: Jibin wage payment system

Suitability O Units of output are non-measurable

an (office work and mental work)O Quality of work is important, (artistic

furniture, fine jewelry, etc.)O Workers are new and learning the jobO Collective efforts of a group of

persons are essential for completing the job.

Page 10: Jibin wage payment system

Piece Rate SystemO Laborers can get the

wages on the basis of their work done. No time element will be used for calculation of wages.

O Under this, method, laborer tries to best for producing the products fastly for getting more wages. This method is also called payment by result.

Page 11: Jibin wage payment system

Advantage O Direct relation between effort and

rewardO Ambitious and efficient workers are

provided ample opportunity to utilize their talent and increase their earnings

O Management can distinguish between efficient and inefficient workers.

O Increase in productivity results in higher output and lower costs of production per unit.

O workers themselves have a stake in maximization of efficiency, cost of supervision is low.

Page 12: Jibin wage payment system

DisadvantageO Difficult to fix piece wage rates.O Earnings of workers are not stable and

they may suffer temporary delays or difficulties.

O This system may create jealousy between efficient and inefficient workers.

O Clerical work is increased. O The method is not practicable when

contribution of individual workers cannot be calculated, i.e., construction work.

Page 13: Jibin wage payment system

Suitability O Work can be measured accurately,

e.g., production of standardized goods in the factory.

O When the quantity of output depends directly upon the skill and efforts of the worker.

O Repetitive jobs.O Quality and workmanship are not very

important.

Page 14: Jibin wage payment system

Thank You