Affecting Compensation

Submitted by: Janine

Alvarez Submitted to: Mrs. Rosario dela Cruz

 Supply

skills Labor organizations Firms financial condition Productivity of the firm and present condition of the economy Cost of living Government

and demand for employee

If a firm desires an employees service, the firm must pay for a price for such services which are subject to control by the worker or group of workers acting in concert with one another. Also, we might apply the law of supply and demand which indicates that IF THE GREATER THE SUPPLY OF ANY COMMODITY AND THE LESSER THE DEMAND FOR IT, THE PRICE IS LOW AND VICE VERSA.

-are formed inside an organization w/c consist of the employees and their aim is to monitor their wages that they are receiving.

If the firm is making a handsome profit and is prosperous, a part of which should be shared by the labor. But, it is quite difficult to prove , so as an employee, it is not so easy to demand for the increase of compensation that they are receiving. There are also some factors to consider for the employees to be approved in order for them to propose a demand regarding wage increase.

This may be the result or the measure of performance of the employee. If the employees are effectively motivated and are consistently do their job well done, there will be a possibility for them to produce even more. And as such, the firm may increase the employees compensation or if employees do it conversely, the firm might base their employees compensation to the amount of their small amount of production.

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given compensation of the firm to their employees may also be based to the cost of living in the place where their firm or working environment are located. An example for this is the comparing of cost of living in the provinces and in Metro Manila.

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firm should also consider the bills and law that are involve in giving the minimum wage for the employees whether they are working in public or private firms.

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of the group of employees argued that employers should not only be given the benefit of their minimum wage, but also, will produce salutary effect of making workers a contented group and as such, may bring about the greater efforts in productions.

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some of the developing countries like Philippines, whenever price continue to spiral as they usually do, there are to common proposals are aired by not only few to solve the problem resulting in the erosion of real wages; institute price control and second, raise wages.

 -before

any compensation can be paid , various tax bodies and the owners of the business must receive their share of every revenue earned

-The

individuals compensation should be substantial enough that he can obtain a reasonable standard of living.

- compensation should provide employees with the means live reasonably well among people in the community who work on a comparable level of employment - it must be competitive and must compare favorably with pay similar work in both the area and industry.

a compensation plan should recognize significant differences in responsibility, authority, accountability, and level of employment within the organization.

compensation should be based on the individuals contribution to the objective s of the company, and reward him for improved performances and acceptance of greater responsibilities

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compensation should be capable of revisions to meet changing conditions.

 Earnings

provide the individual with a yardstick to measure his place on the society. He can compare what he gets with what he believes his neighbors receive and mark his progress in life accordingly.

1. Determining the relative value of positions 2.Grouping positions into classes or grades. 3.Deciding upon general compensation levels 4.The companys relative ability to pay. 5.Devising the range of compensation for the class. 6. Establishing criteria for advancement through the range. 7. Evaluating the individual.