Page 148 - DMGT106_MANAGING_HUMAN_ELEMENTS_AT_WORK

Managing Human Element at Work

Notes 7. The system is ……………… as the same point systems cannot generally be used for
production and office jobs.
(a) flexible (b) inflexible
(c) serial (d) parallel

8. A guaranteed base rate should be included in any …………..
(a) plan (b) jobs
(c) both (a) and (b) (d) none of these
Fill in the blanks:
9. To prescribe the minimum rate of wages ………….. was passed.

10. With the object of providing for concilation and arbitration the ………….. was passed.
11. The Indian Labour Conference held in …………..
12. A wage board can make only ………….., since there is no legal sanction for it.

6.4 Summary

• Job evaluation is a formal and systematic comparison of jobs in order to determine
the worth of one job relative to another.
• The comparison and evaluation may be made on two bases such as non-analytical or
non-quantitative system and analytical or quantitative system.
• Services rendered to organizations by individuals have to be equitably paid for good
compensation plans, have a salutary effect on employees.

• The fundamental methods of compensating the workers are time wage and piece wage.
• The elements selected for rating purposes should be easily explainable in terms and
as few in number as will cover the necessary requisites for every job without any
overlapping.

6.5 Keywords

Fringe benefits: These are the additional benefits and services that can be provided by a
company to its employees in addition to their direct salary.
Job evaluation: It is useful in eliminating many evils to which nearly all systems of wage
and salary payments are subjected.
Need-based wage: It is the wage that should enable the worker to provide for himself and
for his family not merely the bare necessities of food, clothing and shelter but also include
education for children, protection against ill-health.
Ranking method: It is somewhat crude as specific job requirements are not normally analyzed
separately. Therefore, in the absence of any yardstick, each rater has his own set of criteria.

Value Added by Manufacture (VAM): It is not the result of the effort of labour alone. Along
with labour, capital, technology and management also contribute towards productivity.
Wage policy: It refers to legislation or government action calculated to affect the level or
structure of wages or both, for the purpose of attaining specific objectives of social and
economic policy.

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