HR Rewards and Wages MBA Notes

Reward

In HRM reward is most important source in each and every organisation as well as every individuals. It includes employee satisfaction and increasing the working sprit of each and every individuals. The word reward means employee gain something through from employer. It such beneficial thing ,in other words advantages from the employer. The reward based on economic or social consequence.

Features of Reward

• Timeliness

In this type fully based at time, the reward goes to who do the work fastly, who complete the work sonly these are the thing management should watch and provide some reward to that candidates. The main aim of reward means employee motivation.

• Performance

It play an important role in rewards, that is which the employee do the work correctly and fastly these thigs where noted and provide it.

• Durability

It based on time management, because in every orders they must follow time durability , so the organisation provide the work in such groups. Then they monitor smoothly, finally the organisation checked the working speed of the employees and we noted which group has completed the work early. In this manner we provide rewards.

• Visibility

It means the high authority will through directly the performance of the workers. Then they provide commitments or give promotion.

Types of Rewards

• Financial Reward

        It means the organisation will provide some cash, salary increment for his performance.

• Non-Financial Reward

         Non-Financial reward means some such promotion, wishes from high authority etc…

• Membership

         It is based on the organisation provide insurance, invite some company parties, provide job training.

WAGES

The word wages means  amount paid to the labour for his services to the employees.

Types of wages

• Minimum wage

It means organisation provide some agreement between the management and the workers

• Fair wage

It is something above from the minimum wage, it means the workers go out our own country , they provide more much better from minimum wages.

• Living wage

Something increasing from the fair wage, it means the family men choosing this type because he run his own family.

• Real wage

It is totally different from all these above because the real wage is depend the movement in the value of money, it also depends on time.

                                W_r = W_n ,

                                         P_G

W_r  --------real wage

W_n -------- Money wages

P_G   --------- Price level

Methods of wage payment

• Time rate

                It based upon time duration that is

                                Wages = Number of days worked x Rate per Day

• Piece rate

                It is based on output

                                Wages = NxR,

                Where N  is number of production,

                             R  is rate per unit

• Balance or debt system

                This is combination of above two ,that is  for example ,. If today wage is 100 means the organisation provide only 50rs_, the balance 50rs is collected tomorrow  that is know as debt system.