The money paid to employees in turn for their services is probably the main source of income to the employee's living cost, while to the firms it is usually the important expenditure, on the other hand, in the point of view about the home products pri...
The money paid to employees in turn for their services is probably the main source of income to the employee's living cost, while to the firms it is usually the important expenditure, on the other hand, in the point of view about the home products price, it is the important factor determine the competitive force ' of home products in the international market.
Therefore, proper administration of a compensation program can have a profound affect not only on both management and employees but also on national economy, It can save an organization costs invalid with high turnover while attracting, retaining, and motivating capable and productive employees.
The decision of wage structure is the one of the most important issues for performing the proper administration of wage and salary program.
In the determining wage structure, a manager should examine the basic philosophy behind their payment of wage and salary. This is characterized by many variables within a particular company and defies categorization by industry or even by a company within an industry.
Generally, the internal wage differentials of employees in a company is determined by the wage structure adopted by the company. The employees are interested in and effected by the relationship of his salary when compared with those of fellow employees. In fact, pay inequities within a firm, whether real or imagined, adversely affect an employee's morale and job performance. So, in this sense, among all kinds of wage structure introduced to our country-living wage structure, job wage structure, ability wage structure, ability-job wage structure and synthetic determining wage structure-the most proper one is the job wage structure based on the relatives of jobs in a firm.
Generally, the wage level of a firm is influenced mainly by the competitive rates in the labor market, industry pay levels, financial strength of the firm, management pay policies, public pay policies, and union pay contracts.
The issue of the job wage structure concerns the hierarchy of pay rate, pay grade, and job classifications existing on organization. The job wage structure problem is the matter of determining exactly what the relationships are among internal organizational position. The methods used for determining this internal relationships are job analysis and job evaluation.
One of the methods of retaining high morale and low turnover is to have a formal program consisting of written policies and procedures and the communication of it to employees through supervisors and other appropriate means.
The purpose of this study is to develop the method which solves the problems caused by adopting the job wage structure to firms in Korea. The job wage structure is the one of the most reasonable methods for determining the wage amount paid to employees, but the surroundings of a firm in Korea should be different from that of America. So, in many aspect, we must develop proper method of adopting the job wage structure to native firms.
First, it is necessary to consider the limitations and problems of job wage structure itself. And then, it is necessary to consider the problems caused by adopting this structure to native wage and salary administration system. These are the most important things to be solved before it's actual practice. To minimize the minus effect caused by actual practice of the job wage structure in native firms, amount of time, cost and methods of a transitional stage must be prepared.
Recently, so many rapid changes occur around native firms m the aspect of national economy, automation, technical reform, labor and labor market. To meet these important changes, it is impossible to go on with the conventional method of payment.
The job wage structure is the most reasonable methods for the payment of wage and salary to meet these requirements.