Linking Wage System To Productivity

Conceptually wage is the remuneration given to people in return for the work they do. But somewhere during the process of our wage administration for the last three decades, the link between wages and work has been completely lost. The problem, how to restore this lost link between wages and work, is now attracting the attention of thinking people concerned with the evaluation of wage policies, design of wage systems and administration of wage/salaries.

Different Components Of Wages:
These emoluments of employees consist of eight to nine major components:-
1. Basic wages/Salary
2. Dearness allowance
3. Incentive earnings
4. Annual bonus
5. Leave and holiday pay
6. Other allowances like HRA, CCA, etc
7. Fringe benefits
8. Terminal benefits
9. Overtime. 
Each of these components has to be examined in relation to productivity, in order to evolve valid criteria for a wage policy.

Authentic Communication

Authentic Communication, up and down through the various levels of the organization and sideways through its various divisions, departments and sections in an organization and among superiors and subordinates vertically and peers horizontally in groups, will facilitate sound decision-making and effective implementations of decision taken. The process of communication should be completely open sharing all relevant facts and information as well as ideas and feelings. But this openness should be functional (intended to promote teamwork and organizational effectiveness) not dysfunctional (to adversely to affect intra-group and inter-group relations). Absolute openness can destroy even the most personal relationship as nudism can destroy married life. Communication can be effective only after “leveling” or equalizing the wavelength of those who communicate mutually. In other words a footing of equality among the members of a group or among the groups in an organization is a pre-requisite for effective communication. The other factors that improve team work and organizational effectiveness are Identifying the new jersey real estate primary goal of an organization and understanding it, Integration of individual goals, Mutual trust and support, Leadership, Selective use of members, Control methods, Environment and Achievement motivation.

Communication & Counselling

The selection, induction, training, performance appraisal, remuneration and other personnel policies should be conductive to promote productive work performance. Performance standards should be fair and consistent from job to job. The job requirements and the rules to be observed to fulfill them should be properly communicated ‘Why’ of the rules should be explained to them so that they share the objectives and willingly accept them. When an employee knows the purpose of the rules and accept them mentally his behavior will be positive and productive. 

Instead of giving orders, try suggesting and making them see the needs and advantages of doing so. Friendly persuasion should be the modus operandi of supervisors. In the process the suggestion from employees should be patiently listened and due consideration given to them. Where there are differences in approach logical explanation using objective data and information should be offered and the attempt should be to convince them change their point of view.