Page 1 of 6
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 09
August 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 188
A Study on the Impact of Wages & Salary Admin in Current
Organisation System
Dr.I.Satyanarayana1
, N.B.C. Sidhu*2
, Dhondi Kubeer Mukul3 (15X31E0003)
Abstract:
This unit starts with the discussion on the concepts of
wages. Then the different theories of wage payments
and wage determination process are described
elaborately. Wage payment procedures and types of
wage are two important issues which are discussed in
detail in this unit. In the last part of this unit, we have
discussed on wage differentials. ‘Wage and Salary
Administration’ refers to the establishment and
implementation of sound policies and practices of
employee compensation. The basic purpose of wage
and salary administration is to establish and
maintain an equitable wage and salary structure.
Wages and salaries are often one of the largest
components of cost of production and such have
serious implications for growth and profitability of
the company. On the other hand, they are the only
source of workers’ income.
After the independence and particularly after 1948,
some new terms relating to wages began to be used.
These are:
1.Statutory Minimum Wages
2. Basic Minimum Wages
3. Minimum Wages
4. Fair Wages
================================================================================
1.Principal, Sri Indu institute of Engineering & Technology, Sheriguda, Ibrahimpatnam,Telangana, India.
2.Assoc. Prof & HOD, Dept. of Master of Business Administration, Sri Indu Institute of Engineering & Technology,
Sheriguda, Ibrahimpatnam, Telangna, India.
3.Student, Dept. of Master of Business Administration, Sri Indu Institute of Engineering & Technology, Sheriguda,
Ibrahimpatnam, Telangna, India.
Key words: Financial Markets and functions, financial Policy, equity analysis , Equity Markets...
Introduction:
This unit starts with the discussion on the concepts of
wages. Then the different theories of wage payments
and wage determination process are described
elaborately. Wage payment procedures and types of
wage are two important issues which are discussed in
detail in this unit. In the last part of this unit, we have
discussed on wage differentials. „Wage and Salary
Administration‟ refers to the establishment and
implementation of sound policies and practices of
employee compensation. The basic purpose of wage
and salary administration is to establish and maintain
an equitable wage and salary structure. Wages and
salaries are often one of the largest components of
cost of production and such have serious implications
for growth and profitability of the company. On the
other hand, they are the only source of workers‟
income.
After the independence and particularly after 1948,
some new terms relating to wages began to be used.
These are:
1.Statutory Minimum Wages
2. Basic Minimum Wages
3. Minimum Wages
4. Fair Wages
5. Living Wages
6. Need Based Wages
1. Statutory Minimum Wages: By it we mean the
minimum amount of wages which should essentially
be given to the workers as per provisions of the
Minimum Wages Act, 1948.
2. Basic Minimum Wages: This minimum wage is
fixed through judicial pronouncement, awards,
industrial tribunals and labour. The employers are
essentially to give this minimum wage to the
workers.
3. Minimum Wages: The concept of minimum
wages has developed due to different standards in
different countries. In Indian context, minimum wage
means the minimum amount which an employer
thinks necessary for the sustenance of life and
preservation of the efficiency of the worker.
According to Fair Wage Committee, the minimum
wages must also provide for some measures of
education- medical requirements and amenities.
4. Fair Wages: In order to bring about improved
relations between labour and management an effort
has been made in modern times that the labour gets a
fair deal at the hands of owners and managers of
industries. Various proposals were undertaken at the
Industries Conference in 1947 and a resolution
Page 2 of 6
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 09
August 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 189
known as the Industrial Truce Resolution was passed.
It is provided for the payment of fair wages to labour.
The government of India appointed a Fair Wages
committee in 1948 to determine the principles on
which fair wages should be based and to suggest the
lines on which those principles should be applied.
According to the report on this Committee, Fair
Wages is that wages which the laborer gets for his
work just near to minimum wages and living wages.
Generally, the current rate of wages being paid in the
enterprise is known as fair wages.
5. Living Wages: According to Fair Wage Committee
Report, “The living wage should enable the male
earner to provide for himself and his family not
merely the bare essentials of food, clothing and
shelter, but also a measure of frugal comfort
including education for children, protection against ill
health, requirements of essential social needs and a
measure of insurance against the more important
misfortunes including old age.” According to the
Committee on Fair Wages, the living wages represent
the highest level of the wages and include all
amenities which a citizen living in a modern civilized
society is to expect when the economy of the country
is sufficiently advanced and the employer is able to
meet the expanding aspirations of his workers. The
Living Wage should be fixed keeping in view the
National income and the capacity of the industry to
pay.
6. Need Based Wages: The Indian Labour
Conference at its 15th session held at New Delhi in
July, 1957 suggested that minimum wage fixation
should be need based. Following are the important
points of the Resolution of the Conference. a) The
standard working class family should include three
consumption units for the one earner.
b) Calculation of minimum food requirements should
be made on the basis of the recommendation of Dr.
Aykoroyed i.e. 27000 calories for an average Indian
adult.
c) Calculation of cloth should be made @ 18 yards
annually for one member. As such, a family
consisting of four members will require 72 yards of
cloth.
d) The workers should get minimum rent as per
guidelines fixed by the government in the industrial
housing policy.
e) Expenses for fuel, light and so on should be equal
to 20% of the entire minimum wages.
The need of the study is to understand the nature,
scope, and objectives of Human Resources
Management with close view of wage and salary
administration. The main need is to describe the
nature, importance, objectives, and methods and
types of wage and salary, and to know how
effectively „NEOSPARK‟ satisfy employees in their
organization.
1 The need is to know the importance of
Human Resources Management in respect of
Wage and Salary administration.
2 The main need is to know how the
organization motivates the employees by
providing remuneration.
3 To know how organization utilize Human
Resources effectively.
4 To identify and describe the factors that
affect wage and salary administration.
5 To know how employees gain job
satisfaction through wage and salary.
6 To know how the organization attains its
goals by providing remuneration to their
employees.
7 To know how the NEOSPARK
administrates the wages and salaries.
OBJECTIVES OF THE STUDY
1 To evaluate the organization wage and
salary administration.
2 To know how the organization attains its
goal by providing remuneration to their
employees.
3 To know how the managerial resources of
the organization are utilized optimally.
4 To measure the satisfaction of employees in
respect of their remuneration.
5 To study the different function of the
employees in respect of their remuneration.
6 To study on which basis they are paying
wages and salaries.
7 To study the different methods of wage and
salary administration in organization.
RESEARCH METHODOLOGY
SOURCES OF DATA:
After going through different methods of data
collection it was decided that both primary and
secondary data are suitable for this survey. A
questionnaire is administered on a random sample of
respondents. Based on the responses to the
questionnaires, and the best practices followed in the
industry, a proposal to make necessary improvements
in the HR policy is put forward to the management in
Neospark Drugs and Chemicals Private Limited.
PRIMARY DATA:
1 The primary data was collected mainly with
interactions and discussions with the
company‟s executive.
Page 3 of 6
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 09
August 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 190
2 The respondents were posted a number of
open ended, closed ended and scaled
questions in the form of a questionnaire,
which they were asked to fill.
SECONDARY DATA:
1 Some of the information regarding the
theoretical aspects was collected by
referring standard textbooks and reference
books.
2 The company reports, office manuals and
academic texts formed the main source of
secondary data.
SAMPLING TECHNIQUES:
The sampling technique used in this survey is random
sampling. A sample of 100 respondents has been
selected. Even though the sample size is small it is
used to draw conclusions.
SCOPE OF THE STUDY
The scope of the study is limited to Neospark Drugs
and Chemicals Private Limited. The study covers the
need of the study, the importance of the study to
find out the objectives of the study, the methodology
of the study and the limitations of the study to know
whether the data is collected primarily or secondarily.
The next is the study of review of the literature to
know what human Resources Management that tells
about the broader view of wage and salary
administration. The study of analysis and
INTERPRETATION covers what wage and salary
administration is, and its importance, objectives,
types and methods that are followed in the
organization. The study covers both executives and
non-executives.
In the present study of wage and salary
administration in the Neospark Drugs and Chemicals
Private Limited the following limitations are there.
1 Time is also one of the constraints. Duration
of 45 days is not sufficient to cover all
aspects of the study.
2 The managers of the organization are busy
with their work schedule so, it was difficult
to collect detailed data about wage and
salary.
3 Neospark Drugs and Chemicals Private
Limited strictly follows the rules and
regulations; this is also a limitation when
collecting the information about wage and
salary administration.
4 Since the study was on organizational
matters, some of the responses could have
been biases, as the respondent could have
felt reluctant to give the right information.
5 A few respondents of the study were not
willing to give genuine answer to some of
the questions in the questionnaire. This
could also be another limitation to the study
HISTORY OF CHEMICALS AND DRUGS
COMPANIES:
“The Indian Chemicals and Drugs
industry is a success story providing employment for
millions of employees and ensuring that essential
drugs at affordable prices are available to the vast
population of this sub-continent.”
Richard Gerster:
At the turn of century the Indian
drug industry is set up through the pioneering works
of scientists like Achary.P.C.Roy and Prof. T. K.
Gujjar. However after independence, the nascent
Indian Pharma industry could not evolve the meaning
full levels of function, but drugs were imported by
Glaxo, Pulitzer, Parke-Davis and Allenburys ruled
out the roost-drugs like streptomycin and
tetracycline, which were sold with out the cutting
edge of competitive antagonism at four times the
M.R.P.
This was followed by the acute
shortage of drugs following indirect cartelization in
the industry. This lead to the inclination towards
indigenous production, Hindustan antibiotics was set
up with W.H.O and UNCF in 1954.subsequently
Indian drugs and veterinary Chemicals and Drugs ltd
(IDPL) was set up with soviet technology in 1961.
With the setting up of Indian public
sector, antibiotic prices came crashing down in some
cases by 60-70%. The MNC‟s in order to survive in
the market slashed their prices. Interestingly it was in
the 1960‟s the Indian private sector also started
growing. Unlike the foreign sector, they also set up
substantial capacities for production of bulk drugs.
In 1970 with the production of the
PATENT ACT 1970 this sector began to bloom. This
act allowed Indian companies to register product if
proved that the process used was marginally different
from the original product manufacture of the MNC‟s
were restricted in their equity remained above
40%(no longer applicable the government also
