The wage system must be very sound and based on some principles. It must satisfy all the economic, social and psychological needs of the workers. The cooperation, willingness and productivity of the workers depend to a large extent upon the system of wages enforced in the enterprise. Therefore, the system of wage payment must be highly satisfactory. An ideal wage system must be based on the following guidelines:
1. It must be simple:
The system of wage payment must be simple to calculate the wages. It must be such that may be easily and clearly understood by the workers.
2. It must be economical:
The system of wages must be economical for the enterprise so that the cost of labour may be minimised.
3. It must be flexible:
The system of wages must be flexible so that necessary changes may be made in it according to the need of time.
4. It most be stable:
The system of wage payment must have a stability. The rates of wage payment must be certain and stable.
5. It must be practical:
The system of wage payment must be practical from the point of view of workers.
6. It must be impartial and justified:
The wages must be paid on the basis of. It must be suitable for industrial peace The system of wages must be such that it may also contribute in maintaining the industrial peace in the enterprise because most of the labour disputs arise on the question of wages.
7. Wages must be according to the efficiency and productivity:
The rates of wages must be determined considering the efficiency and productivity of the workers. The qualification, ability and experience etc., of the employees must also be considered while determining the rates of wages.
8. It must be paid at the right time:
The payment of wages must be made at the right time so that the workers may satisfy their needs in time.
9. It must be adopted with the consent of the labour union:
The system of wages must be adopted with the consent of the labour union. It must be kept in mind, while adopting a pattern of wages that the workers are active partners of the production process.
10. It must be enough according to the cost of living:
The rates of wage must be determined considering the cost of living of the country so that the workers may easily meet their needs out of the wages.
11. It must offer freedom to both parties:
The rates of wages must be determined in a manner that it may offer freedom to both the employer and employees.
RELATED TOPIC
Characteristics of Human Resource Management
Objective of Human Resource Management
Scope of Human Resource Management
