Process of Wage Determination

Question

What is the Process of Wage Determination?

Answer 1

Practically how wages are determined and maintained or administered in an organization is very organization to organization. Ideally speaking it depends upon sole discretion that what procedure an organization follows for wage and salary administration. More or less an attempt is made by every organization to follow the principles suggested for sound compensation management. Organization tries to inculcate systematic procedure for wage determination and their revision at an appropriate time. Process of wage determination includes job analysis and job evaluation, survey of wages in the environment, determining wage structure, and deciding rules for wage administration. Briefly these steps are discussed as under:

1. Job Analysis and Job Evaluation

2. Determining Performance Standard and Wage Surveys

3. Deciding Wage Structure and Rules for Its Administration