Prepared & Compiled by : Prof.

Ajay Kumar Ganguly

Q. Define wages. How they differ from salary?

Ans Wages are compensation of wage earners The numerous employees who use the tools and equipments for their employers to produce goods and services that are sold by their employers.

Wages for Salary : Wage is a compensation to the employees for services rendered to the organisation In case the quantum of services rendered is difficult tomeasure, then the payment is called salary. Normally the wage period is shorter than the salary period. Q. Write short notes on minimum wage, fair wage and living wage. Ans. 1.Fair Wage :- One of the most important and persistent demand of labour in the present day is to guarantee of a fair wage which is reflected in the slogan equal pay for equal work. It is the wage equal to that received by employees performing equal work demanding equal skills, equal difficulty and equal unpleasantness.

2 Minimum Wage: It is the wage to convince bare necessaries of life i e food, shelter and clothing It may provide a little for workers efficiency e g for his health and education

3. Living Wage : It is wage which can offer an employee, incentive to work and produce enough in quantity, without sacrificing quality, so that the payment of such a age is justifiable by the industry A literate and intelligent worker will use living wage for steady size in his standard of living i.e. healthy living, with a few comforts and provision for contingencies.

Q. Discuss different issues in Indian Wage Policy ? What are the strengths and weaknesses of this policy? Ans Wage Policy in India Recent wage practices in India in the organised sector are such that dearness allowances are paid to neutralize at least partially, price increases, bonus paid as per the bonus act and fringes benefits given under the employees state insurance act and the employees provident fund act. Wage boards have attempted to settle wage disputes taking into account the principle of fair wages first set forth by the report of committee on fair wages.

(a) Productivity of labour. (b) Prevailing rates of wages in the same and similar occupations in the same neighbouring localities. (c) Level of the national income and its distribution.

Prepared & Compiled by : Prof. Ajay Kumar Ganguly

(d) Place of the industry connected in the economy of the country The committees recommendations are similar to the requirement laid down above The Minimum Wages Act:- 1948 The act empowers the central and state governments to fix minimum rates of wages and to revise such wages from time to time in respect of schedule employments The state governments are required to appoint advisory board for fixing minimum wages and there is to be a central advisory board to advise on the wage fixation matters in general and for the co-ordination of the work of the state advisory boards Fringe Benefits In almost all industrial organisations the employees receives several employee benefits, commonly known as fringe benefits. In India fringe benefits for the labour personnel in common use may he categorised as Dearness Allowance, City Compensatory Allowance and Special Housing Assistance Allowance To these may be added cleaning charges for uniforms travelling allowance, canteen subsidy, food subsidy, special financial assistance to workers educational schemes leave with wages for attending basic education school etc Mechanics of Wage Fixation in India : Collective bargaining can be used for negotiating wages and hours of work Unfortunately the trade unions lack solidarity The multiplicity of unions often makes workers bargaining power rather weak The state therefore, has provided conciliation and adjudication machinery The industrial tribunals usually attempt to five a reasonable rate to wage Very often however a tribunals award was not found satisfactory either by the employer or the workers Wage Boards A wage board is a tripartite body with representatives of management and workman presided over by an independent person nominated by the government The board is required to fix wages in accordance with a principles of wage fixation and discussed earlier The wage board help to resolve the disputes in a democratic manner by bringing the parties together, without compulsion on either side It may however be pointed out that a wage board can only make recommendations as there is no legal sanction behind it But for all practical purposes, a boards recommendations are regarded as awards, and if unanimous, are made binding on the parties. Q. What do you understand by performance appraisal? Ans. Performance appraisal is a systematic appraisal of the employees personality traits and performance on the job and is designed to determine bio contribution and relative worth to the firm. Q. What do you understand by performance appraisal ? Discuss the various factors affecting performance appraisal? Ans. S.K. Chakraborty has identified four important factors affecting the performance appraisal system. These are: (a) Organisational Leadership The leadership at the top determines to a large extent the loyalty and commitment of the employees to the goals of the organisation. Effective top leadership orients and motivating the entire organisation for better performance.

Prepared & Compiled by : Prof. Ajay Kumar Ganguly

(b) Organisational Structure There are two types of organisation structures Organistic and mechanistic. Organistic structure tend to be flexible. Such organisation change themselves very fast to cope up with the present changing environment. Mechanistic structure are very rigid and have clearly defined relationships and responsibility. (c) Environmental Constraints Various environmental constraints affects the performance of an employee. For example, the quality of new material may affect the productivity and performance of an employee. (d) Interdependence of sub-system : Every sub-system of a larger organisational system is interdependent. The malfunctioning of a subsystem affects the other sub system functioning. Because of this interdependence of sub-systems it is suggested that the performance appraisal should start from the apex. Q. What are the methods of performance appraisal? Which of these would you recommend for appraising managerial personnel in India? Ans Methods of Performance Appraisal There is no single effective method of performance appraisal. There is no easyway of classifing all of the various kinds of performance appraisal methods. Following are the mcthods of performance appraisal. (a) Ranking Method It is a simple process of placing employees in a rank in order to observe job performance It permits comparison of all employees in any single rating group regardless of the type of work. All workers are judged on the same factors. This method eliminates the necessity of comparing an individuals performance with the definition of satisfactory or excellent performance (b) Paired Comparison Method The use of ranking method, is difficult in large groups when the rate cannot compare several people simultaneously In the paired comparison every employee in a job is compared with all other employees in the group Pairs of employers are constituted to determine which is the better worker in each pair For instance, if there are three workers (X, Y and Z) in ajob group, there will be three pairs namely x, y and z, and x with z

(c) Graphic Rating Scale Method The graphic method of rating is the most commonly used method The employees are rated on personality characteristics and performance The rater is provided with a printed form for each employee to be rated, containing a number of characteristics to be rated The characteristics factors vary according to the position of the be rated (d) Forced Distribution Method Under this method, the rate the man on over all job performance The name of each employee to be rated is typed on a 3 X 5 card The rater is then asked to distribute the card into five pieces which may be labelled low (e) Checklist Method Under this method of merit rating, a list of necessary qualities for the performance of a job is prepared The qualities of all the employees are measured on the basis of the abilities of such lists If an employee possess that quality, the sign of (+) is marked in the list If an employee possess that quality, the sign of (+) is marked in the list If that quality is not possessed by an employer the sign of() is marked in the list

Prepared & Compiled by : Prof. Ajay Kumar Ganguly

(J) Field Review The type of merit rating is useful for large organisations and appears to overcome a number of the weaknesses found is many of the other systems It consists of having a trained employee from the personnel department interview line supervisors about their respective subordinates The supervisor is asked to give his opinion about the progress of his subordinates. (g) Confidential Report Method In this method each employee is rated confidentially by one or more senior officers for his performance. A confidential report by immediate supervisiors is still a major determinant of the subordinates promotion or transfer. (h) Assessment Centre Method - An assessment centre is an multiple assessment of several individuals performed simultanously by a group of trained evaluators using a variety of group and individual exercises. (i) Forced Choice Method : To use this method, many pairs of statements about job performance of men are selected. Each pair consists of statements expressing equally favourable/equally unfavourable things about a man. These statements are then printed on a form in groups of four such that two of the four statements are favourable and two others are unfavourable. (j) Critical Incidence Method: - This method has been developed in the recent time and is supported to land greater objectivity to employer appraisal. The system is based on observance of each employees several trait factors on the job such as quarrelsome with fellow employees showing willingness to assist others and work over time during peak periods and rating him accordingly (k) Appraisal by results (MBO): - The latest development in the field of performance appraisals by results. Result oriented appraisals are the outcome of the modern management technique known as management by objectives or MBO.