REMUNERATION OF PERSONALS

REMUNERATION OF PERSONALS

#Every individual joins the organization with the main aim of earning his bread and butter.

#The wages or salary which he earns for his work helps him to fulfill the basic and other needs of life.

#The wages or salary must be in equality with the work done by him so that he gets satisfied and can perform better.

#Fayol is of the view that each employee must get fair remuneration so that the employee as well as the owner gets the same amount of satisfaction.

#The remuneration system must be such which provides for the adequate remuneration to the employees, motivates the employee to perform better, and may ensure safety & security, raise standard of living of the employees.

#A fair wage system is one that guarantees equality between the work done and the payment received. Such a system satisfies the owner in terms of the work completed by an individual employee and satisfies the employee in terms of payment received by him.

#This creates a healthy organizational environment and relation between the management and the employees.

Positive impacts of this principle:

•  It creates good relation between workers and management;
• Employees get motivated;
•  It declines the labor turnover rate;
•  Employees feel satisfied with their wages and thus contribute their best effort;
•   It raises the standard of living of the employees; and
•  It develops the society indirectly.

Consequences of violation of this principle:

•   Employee’s efficiency decreases;
•  Conflict between management and employees;
•   Labor turnover rate will be more;
•   The immediate result is incomplete work; and
•  Hard to achieve organizational objective.

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