A Study on Analysis of Wage and Salary Administration

I. Satyanarayana, N.B.C. Sidhu, Kukkala Madhavi Reddy


One of the most important and difficult problem of management is that of determining the rate of monetary compensation i.e., the control of wage and salary levels is of paramount importance. The main objectives of wage and salary administration are to control the cost, to establish a fair and equitable remuneration to all, to utilize the wages and salary device as an incentive to greater employee productivity and to maintain a satisfactory public relations image. In order to achieve objectives the top management or the chief executive officer is responsible for developing the policies and procedures to administer the wages and salaries. The personal managers, being a staff officer, place an important role in developing wage and salary policies and procedures. In some organizations, the work is assigned to a wages and salary committee composed of line and staff executives which makes the wage and salary surveys, approves the systems of job description and job evolution, recommends the wage policies and the wage and salaries scheme department wise.

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