Group 4 HRM
Group 4 HRM
Group 4 HRM
CLASSICAL WAGE THEORY- Classical Wage Theory posits that labor is a commodity
with prices based on supply and demand. Higher wages are necessary for laborers to
survive and perpetuate their race. When labor supply is below industrial requirements,
competitive bidding leads to increased wages. When labor prices are below natural
prices, laborers' conditions worsen, deprived of essential comforts.
THE JUST WAGES THEORY OF ST. THOMAS AQUINAS - St. Thomas Aquinas' Just
Wage Theory states that a just wage allows workers to live according to their position in
society, prioritizing their cost of living over production costs. This theory is the basis for
minimum wage laws and addresses basic subsistence living requirements. The Tri-
partite Board, consisting of Labor, Management, and the Department of Labor, is a
solution to implementing just wages.
THE WAGE FUND THEORY -The Wage Fund Theory, developed by John Stuart Mill,
posits that the nation's working capital provides a fund for wages, which is divided
proportionately among workers. An increase in wages through collective bargaining will
negatively affect others. This theory suggests that increasing wages would redound to
decrease wages in other sectors, as the fund should be elastic for other factors of
production, such as capital, maintenance, materials, and labor. Factor of production,
such as capital, maintenance , materials, and labor.
THE PURCHASING POWER THEORY -The purchasing power theory explains the
relationship between wages and economic activity, highlighting the importance of
savings for economic growth and employment opportunities.
LABOR THEORY OF VALUE- Karl Marx's Labor Theory of Value emphasizes that
labor is the source of all products and must receive a greater share of profits. Organized
labor groups, who share profits with labor, believe that profits are surpluses from other
factors of production, which are pocketed by capitalist businessmen. This theory
suggests that profits should be shared with labor, as they create goods that generate
surplus incomes. However, if employer's actions contradict activist labor unions, labor
unrest can negatively impact labor, management, and economic growth.
THE STANDARD OF LIVING THEORY OF WAGES-The Standard of Living Theory of
Wages suggests that wages should be based on the cost of living, which depends on
family economic needs for basic necessities. This approach is economically sound due
to global economic activity and competition. However, increasing economic growth
would lead to increased wages, which in turn would increase consumption. Government
labor and management must collaborate to determine living wages for industries and
regions.
WAGE AND SALARY SURVEYS - Wage and salary surveys determine the actual
salary for each job, as salaries from other companies impact employment, morale, and
turnover rates. Most companies participate in these surveys or conduct their own, using
informal or formal methods. Informal surveys involve telephones and interviews, while
formal surveys use questionnaires based on benchmark jobs in other industries.
SALARY RANGE- It is the range of the salary that is paid to an employee doing similar
functions that has a minimum and maximum pay and a series step adjustments. It is to
provide adjustment in pay for performance evaluation without distorting the salary pay
plan.
SALARY ADJUSTMENTS WITH HIGH SENIORITY- When the employee with high
seniority is either so competent or has received so many increases that his salary is
above the maximum of the pay grade. This is called red circle rate which can be
handled in two ways.
Wages are payments for labor services rendered frequency. Expressed in hourly rates.
While a salary is a similar payment, expressed in weekly, monthly or annual rates.
Thus the term “wage” frequently connote payments in terms of the number of hours
worked and may fluctuate depending upon hours actually worked.
The determination of wage rates, administration of age policies and satisfying the
employees as regards to wages and rate of wages is an important aspect of wage
administration.
UNSKILLED LABOR- Labor that requires little or no training or experience for its
satisfactory performance.
These labor grades are frequently referred to as non-competing labor grades. The
expense of education and training might be a substantial impediment. They may lack
the chance to make such a move, as well as the initiative.
The method of using two-dimensional graphs. The graph is used with the points system,
and the value points for important jobs are drawn based on the evaluation points and
grades. Following that, all salary survey data should be plotted.
An examination of the graph will indicate the trend of the plotted. A line is drawn to
indicate this trend, using of the ff. techniques.
1. EYE INSPECTATION- This technique is the least scientific and reliance as this
does not require scientific computation.
2. THE LEAST SQUARE - This uses the statistical formula. It presents (the data)
more accurately. The relationship between PESO or money value and the points
for the less key job.
3. THE SECOND DEGREE CURVE - Another type of statistical formula. The trend
line will take normally the form of a curve and more accurately indicate the trend
of the data.
It does not have a set of decision-making rules. It is also used to simplify processes
using two-dimensional graphs. Within the point system, a graph is used to depict the
value points for the main task based on the assessment points and grades. Following
that, the entire day's survey or (surveyed) data will be plotted.
REFLECTION ON WAGE AND SALARY ADMINISTRATION
The formation of company unions led to an active quest for fair treatment of all
employees in the granting of benefits and services. This movement led to more prudent
treatment of benefits, and now specific company guidelines and procedures cover the
granting of benefits. Management now recognizes that employee services and benefits
should be based on sound management principles of coexistence with the employees'
organization. The concept of fringe benefits has evolved over time, with companies now
recognizing the importance of fair treatment and fair treatment for all employees.
C. Bereavement Leave
House bill 6043 provides that employees in the private and public sectors shall
be entitled to a bereavement leave of 10 days will full pay following the death of
an employee immediate family member.
D. Hospitalization Plan
These plans are specifically created for individuals and families who want to have
coverage for hospitalization, out-patient, preventive healthcare, emergency,
member's financial assistance, and dental care.
E. Sickness and Accident Insurance Plan
Accident and Sickness insurance provides cover as portion of the insured
person’s income (up to 85% of weekly earnings) if they are unable to work due to
covered event arising from a bodily injury or sickness.
People are not your important asset. The right people are. Quoted by Jim Collins.
This quote sums up what benefits managers know to be true. Finding and keeping the
right employees is the key to a company’s success. That’s why creating the right
benefits package is so important. Financial and medical insurance tend to make
employees feel more secure, devoted, and engaged at work. Employee perks are things
that employers provide to employees that go above and beyond monetary remuneration
in order to assure their general well-being and pleasure.
Employee health benefits are crucial for several reasons, including increased
productivity, employee engagement, and company expansion. They also help you stand
out from the competition in the market, draw in top candidates, and keep them on
board.
The company culture, enhanced teamwork, and work-life balance are all influenced by
employee benefits. They promote a thoughtful workplace, better employee health and
engagement, and a culture of welfare and wellness. By enabling employees to take
parental or sick breaks, which frees them up to concentrate on themselves and their
families, employee benefits also assist in maintaining a healthy work-life balance. In the
end, this balance improves overall business performance by keeping people content,
more productive, and engaged.
CHANGES IN PERSONNEL STATUS
The proper movement of the employee in the organization is called placement that
could be defined as the assignment of the right man to the right job.
1. Temporary transfer
2. Permanent transfer
Transfers are useful tools for some operational needs of the company due to the
following:
1. Employee clearance- make sure that the employee is cleared of all money
and property responsibilities before he is paid with whatever benefits.
2. Conduct exit interview- it is an attempt to find out the actual reason of all
employees in resigning from the company.
b. Determine that all required papers related to his separation are properly
accomplished such as those of social security system (SSS), philhealth,
pagibig fund other government agencies.
c. Create in the employee the impression of goodwill toward the company that in
spite of the separation, the company is still interested in his personal welfare.
d. Create an impression to the employee that the company is still interested in his
career as he is an asset employee.
e. An employee who is compulsory retired, according to the law, after serving the
company the best years of his life, should be awarded a service merit plaque or
certificate of recognition in an appropriate occasion.
4. Determine those who can be trained for new jobs that will still be needed by
the company in case of new operation requirement at the option
management.
Promotion is a change from one post to another with an increase in tasks and
responsibilities as permitted by law. It is typically accompanied by a raise in
compensation and is based on seniority, performance, qualification, and eligibility as
well as death, termination, and retirement. Each department within a government
organization is required to create a merit promotion plan in accordance with the rules
and regulations given out by the commission. Similar to this, there are elements that go
into defining the level of ability and qualification of personnel, such as performance,
education, and training, experience, and significant accomplishments, physical traits,
personality traits, and potential.
On the other side, a transfer might result in a demotion, which is a drop in position, rank,
or payment. As a result, the employer has the authority to demote and transfer a worker
who has shown a lack of devotion in his work and a habit of tardiness, absences, and
laziness when performing his assigned duties. Therefore, transfers, promotions,
demotions, and employee separations are all considered changes in personnel status.
Change will always occur. Although it might be awkward and uncomfortable, it can also
be advantageous in the way that it may help a company in keeping up with market
trends, generating new chances, fostering innovation, increasing efficiency, and
enhancing attitude.