...provide a literature review on wage rate determination issues globally and in Zimbabwe. This chapter provides an overview of wage determination. Determination of wage rates is reviewed bringing into attention some of the factors that contribute to determination of wages. Review of the importance of wage determination is also done. Empirical tools commonly used in assessing wage determination are finally reviewed. The third chapter will provide an outline of the methodology used in the study. A conceptual framework will be developed in order to identify possible variables for the study. Tools of analysis are also discussed in this chapter. The relevance of the hypothesis is also tested in this chapter. Chapter four analyzes the determinants of wages. Econometric techniques will be used in this chapter. Chapter five provides a conclusion and possible policy recommendations for the empirical findings of the study. A summary of results is presented first before recommendations. Chapter one Background of the study There is extensive literature that demonstrates important wage differences across workers exist. One of the principal explanations is that workers differ on levels of human capital. According to Schultz (1961), “investment in human capital accounts for most of the impressive rise in the real earnings per worker”. He goes on to suggest that workers who invest more in human capital will earn higher wages compared to their counterparts...
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...Introduction and Problem Statement ABC Company is currently involved in litigation involving a current female employee’s complaint that the company unfairly administers its wage and salary policies between male and female employees performing the same job. The goal of the research is to determine if ABC Company policies are current, ethical, fair, legal, and administered properly throughout the organization. Our hypothesis is that the wage and salary policies of ABC Company are administered ethically and legally across all units of the company. Is there pay equity and discrimination among women and men in the workplace? Congress passed anti-discrimination legislation including the equal pay Act of 1963. Women are still struggling for equal pay in the workplace. According to the Labor Department data show that for 35 to 44 year olds, the earnings ratio of women and men rose from 58 percent in 1979 to 77 percent in 2006 (Labor Department 2006). After researching, the Institute for Women’s Policy Research 2014, states the change in wages for women equal pay is a slow process and it will take nearly fifty years for women to reach the pay as men. The Institute for Women Policy also express that women earn less than men in almost any occupation (Institute for Women’s Policy Research 2014). “A significant wage gap is still with us, and the gap constitutes nothing less than an ongoing assault on women’s economic freedom,” declared U.S. Rep. Rosa L. DeLauro, D-Conn. (Thomas J. Billitteri...
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...Does Fairness Prevent Market Clearing? An Experimental Investigation Ernst Fehr; Georg Kirchsteiger; Arno Riedl The Quarterly Journal of Economics, Vol. 108, No. 2. (May, 1993), pp. 437-459. Stable URL: http://links.jstor.org/sici?sici=0033-5533%28199305%29108%3A2%3C437%3ADFPMCA%3E2.0.CO%3B2-E The Quarterly Journal of Economics is currently published by The MIT Press. Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/about/terms.html. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at http://www.jstor.org/journals/mitpress.html. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. The JSTOR Archive is a trusted digital repository providing for long-term preservation and access to leading academic journals and scholarly literature from around the world. The Archive is supported by libraries, scholarly societies, publishers, and foundations. It is an initiative of JSTOR, a not-for-profit organization with a mission to help the scholarly community take advantage of...
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...appraisal 13-14 12 Forced Distribution 15 13 Behavioral Observation Scales 16 14 References 17 Performance Appraisal A performance appraisal (PA) is a systematic and periodic process that assesses an individual employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives. According to Michael R. Carrell and Frank E. Kuzmits “Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance”. To collect PA data, there are two main measures: Objective Measures Subjective Measures Figure: Methods of Performance Appraisal Compensation Determination Definition Employee compensation refers to all forms of pay going to employees and arising from their employment. Direct financial payments include wages, salaries, incentives, commissions and bonuses whereas financial benefits like employer-paid insurance and vacation. It has to main components: Figure: Employee Compensation Different types of compensation include:...
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...Since compensation and benefits are vital part of HRM in most of the organizations, education of compensation and benefits reflect many practices and concepts pertaining to HRM. Human Resources practices do not operate in parts. They need to be strategic, logical and planned in the situation of the bigger organization, of which they are a part. Anyone in HRM is first a business partner of the organization and then an HR professional in their individual disciplines such as compensation and benefits. A business partner is the one who is loyal to the company passionate about the business first and then to his or her respective discipline or area of work. This reflective research paper will also identify the major elements of compensation and benefits in addition to teaching strategies of these functions. It is important to implement compensation and benefits in a mutually beneficial way, for the individual and the organization. Prior to any discussion about compensation and benefits, it is important to understand the distinction between direct and indirect compensation. Direct compensation refers to any reward, usually in cash and stock, given in direct proportion to performance. Indirect compensation is not related to performance and is given in the form of various benefits. Compensation and benefits strategy must cascade from the organizational mission and the HR strategy. This is true of all the HR functions. However, it is particularly critical in compensation and benefits...
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...Employee Compensation that Encourages Performance By Kate Greene, SPHR The strategy my neighborhood kids use to get customers for their lemonade stand is not unlike what many employers use to get employees. The kids scream “35 cents a glass” over and over, louder and louder. Would they have more success if they used signs, knocked on doors, yelled in a more even tone of voice, sold from a rolling wagon, etc.? Similarly, employers that advertise $8.00 an hour, over and over, may not get applicants or results they require. Better results come from compensation strategies that align company and employee performance goals. Establishing wages that will both attract employees and provide contain labor costs starts with careful evaluation of internal and external factors to establish fair pay ranges that reward performance. Recently a client asked how to best compensate his employees. The response, it depends. Compensation is a complex issue requiring careful consideration and research regarding many factors. The design of your company compensation structure can send a very strong message regarding what you expect from employees. Many authors have written on this subject and a lot of research and compensation theories/plans have been completed. When working with a small to mid-size employer to create a compensation plan, I recommend following a few central principles. These are: 1. Keep it Simple Pay structures needs to be easy to communicate and understand. Complicated formulas that...
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...9-700-047 REV: SEPTEMBER 6, 2002 DEBORA L. SPAR Hitting the Wall: Nike and International Labor Practices Moore: Twelve year olds working in [Indonesian] factories? That’s O.K. with you? Knight: They’re not 12-year-olds working in factories... the minimum age is 14. Moore: How about 14 then? Does that bother you? Knight: No. — Phil Knight, Nike CEO, talking to Director Michael Moore in a scene from documentary film The Big One, 1997. Nike is raising the minimum age of footwear factory workers to 18… Nike has zero tolerance for underage workers. 1 — Phil Knight, 1998 In 1997, Nguyen Thi Thu Phuong died while making sneakers. As she was trimming synthetic soles in a Nike contracting factory, a co-worker’s machine broke, spraying metal parts across the factory floor and into Phuong’s heart. The 23 year-old Vietnamese woman died instantly.2 Although it may have been the most dramatic, Phuong’s death was hardly the first misfortune to hit Nike’s far-flung manufacturing empire. Indeed, in the 1980s and 1990s, the corporation had been plagued by a series of labor incidents and public relations nightmares: underage workers in Indonesian plants, allegations of coerced overtime in China, dangerous working conditions in Vietnam. For a while, the stories had been largely confined to labor circles and activist publications. By the time of Phuong’s death, however, labor conditions at Nike had hit the mainstream. Stories of reported abuse at Nike plants had been carried in publications...
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...differences in male and female wages using data from Statistics Canada’s annual Survey of Consumer Finance (SCF) and Survey of Labour Income Dynamics (SLID). In addition to information on annual income, this study also looks at hourly wage data, which is a more precise measure as the earnings data series takes into account the price of labour as well as quantity (i.e. individuals’ work/leisure preferences). This study looks at the variables of race, highest achieved level of education as well as age to examine the existence of a wage gap. Like other studies, we have found that males have a higher wage in each of these areas, with females earning an average of 80 – 87% of the males’ average. Furthermore, we have examined the existence and size of a wage gap in three industries; law, nursing and the education industry. Finally, we looked at the Canadian gender-based wage gap statistics compared to International gender-based wage gap statistics. We deduced that there is, indeed, a wage gap in each of the mentioned industries, and can be partially attributed to human capital theory and occupational segmentation theory, however, a substantial portion of the gap remains unexplained. 2. General Existence of Gender-Based Wage Differentials in Canada The existence of gender based wage differentials in North America have been well documented for decades. Although female-male wage ratios have closed significantly since the mid 1980s, progress in wage equalization has seen some stabilization...
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...customers such as Sears. Our cost model was based on the “Principles of Cost Modeling” from the article Competitive Cost-Analysis: Cost-Driver Framework by Timothy Laseter, et al. Based on the article, we continuously pondered over not only the cost elements, but also the cost drivers, so as to get a better picture and to arrive at a more accurate analysis. To capture all the elements, we constructed our own template, so that we could customize it to Whirlpool, so as to capture as many cost drivers as possible. In addition, to ensure that we accounted for all parts contributing to the actual cost, we thought about total cost of ownership and considers drivers such as transportation, taxes, duties, etc. Initially, we just dived in to the data and made the process very complicated, thereby making very little progress, so we stepped back and reconstructed our entire process with some basic cost drivers, upon which we continued to add layers. Under the cost-driver framework, cost elements are categorized into Design,...
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...#include #include #include using namespace std; // //CLASS DECLARATION SECTION // class EmployeeClass { public: void ImplementCalculations(string EmployeeName, double hours, double wage); void DisplayEmployInformation(void); void Addsomethingup (EmployeeClass, EmployeeClass, EmployeeClass); string EmployeeName ; int hours ; float wage ; float basepay ; int overtime_hours ; float overtime_pay ; float overtime_extra ; float iTotal_salaries ; float iIndividualSalary ; int iTotal_hours ; int iTotal_OvertimeHours ; }; int main() { system("cls"); cout 40) { /* This section is for the basic calculations for calculating overtime pay. - base pay = 40 hours times the hourly wage - overtime hours = hours worked – 40 - overtime pay = hourly wage * 1.5 - overtime extra pay over 40 = overtime hours * overtime pay - salary = overtime money over 40 hours + your base pay */ /* Implement function call to output the employee information. Function is defined below. */ } // if (hours > 40) else { /* Here you are going to calculate the hours less than 40 hours. - Your base pay is = your hours worked times your wage - Salary = your base pay */ /* Implement function call to output the employee information. Function is defined below. */ } // End of the else } //End of Primary Function void EmployeeClass::DisplayEmployInformation () { // This function displays all the employee output information...
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...Assignment #1: Setting the Stage for Strategic Compensation and Bases for Pay Katilia Y. Reed Professor: Kristin Araujo BUS-409 April 30, 2012 1. Describe the three main goals of compensation departments. Internal consistency- Compares all jobs with in a company and defines the relative value of each individual job establishing job structure or hierarchy. This ensures that the workers are being paid in relative comparison to the amount of skill, knowledge, training and ability the worker has as well as in relation to the level of each needed to be applied in order to perform the jobs proficiently Job analysis and job evaluations have to be done systematically in order to determine the levels needed and the wage amount comparable to work amount. Recognition of individual contributions- Establishes pay structures and identifies pay rate differences for jobs of unequal worth and the framework or recognizing differences in employee contribution. This will help to ensure that employees are paid according to their credentials, knowledge or job performance. Pay grades and pay ranges are structural features to the pay structure. Jobs are grouped for pay policy application. There is no single formula to determine what is sufficiently similar in terms of content and value to warrant grouping in to a pay grade. Pay ranges build upon the pay grades establishing minimum, maximum, and midpoint pay rates. Market competitiveness- This is the aspect that attracts new employees as...
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...Great Lakes Institute of Management PGPM 2013-14 MGNREGA: Is it resulting in the intended outcomes? Sharad Raghavan Introduction What is the Act? The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was passed in Parliament in 2005 and has been one of the flagship projects of the ruling Congress-led UPA coalition. The Act was put into place to provide 100 days of guaranteed employment in a financial year to any adult who asks, and who is willing to do unskilled work. The intended beneficiaries of the Act were the poor. It was almost entirely on the basis of the popularity of this concept that the UPA government won its re-election in 2009. The objectives of the Act, as stated by the Ministry of Rural Development are: 1. Ensuring social protection for the most vulnerable people living in rural India through employment opportunities. 2. Ensuring livelihood security for the poor through creation of durable assets, improved water security, soil conservation and higher land productivity. 3. Strengthening drought-proofing and flood management in rural India. 4. Aiding in the empowerment of the marginalized communities, especially women, Scheduled Castes (SCs) and Scheduled Tribes (STs), through the processes of a rights-based legislation. 5. Strengthening decentralized, participatory planning through convergence of various anti-poverty and livelihoods initiatives. 6. Deepening democracy at the grass-roots by strengthening the Panchayati Raj Institutions...
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...particularly difficult. Constraints on Human Resource Strategy HUMAN RESOURCE STRATEGY Product strategy Skills needed Talents needed Materials used Safety What Schedules Time of day Time of year (seasonal) Stability of schedules When Location strategy Climate Temperature Noise Light Air quality Where Process strategy Technology Machinery and equipment used Safety Procedure Individual differences Strength and fatigue Information processing and response Who Layout strategy Fixed position Process Assembly line Work cell Product How Labor Planning Employment Stability Policies 1. Follow demand exactly * Matches direct labor costs to production * Incurs costs in hiring and termination, unemployment insurance, and premium wages * Labor is treated as a variable...
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...“The Union Non-Union Gap,” and it can located at www.youtube.com/Watch?V=a7vwwcPdmgs. This video talked about the differences in the size of the gap between wages and compensation of union and nonunion workers. It also compared unions wages in America and unions wages throughout the world. From 1975 until the early 1980s, the union-nonunion was differential grew steadily as wage increases for union workers almost always exceeded those of their nonunion counterparts. During the 1980s, pay increases for both union and nonunion workers dropped sharply. The recession of 1981-82 contributed to the decline in pay increases for both union and nonunion workers, leading to wage freezes and pay cuts, and a lower rate of prices increases. Although pay gains in the union sector continued to exceed those in the nonunion sector through the middle of 1983, the drop in the rate or increase was sharper for union workers, due in part to the growing importance of lump-sum payments offered in lieu of wage increases in union contracts. From the end of 1983 until the early 1990s, nonunion wage increases consistently exceeded those for union workers. By the end of 1988, the union-nonunion differential in wage rates was smaller than it had been in 1975. During 1983-91, the decline in the difference between union and nonunion wages resulted from the confluence of several factors. First, highly unionized industries lost some of their protection from competitive forces. Manufacturing industries...
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...School of Economics Understanding NREGA: A Simple Theory and Some Facts * Diganta Mukherjee # and Uday Bhanu Sinha Abstract A developing economy like India is often characterised by a labour market with demand and supply of labour and a wage that even if competitively determined may not be adequate for the poor household to reach their target income; what they consider as means of a decent living. Envisaging situations like these, the Indian government has implemented the National Rural Employment Guarantee Act (NREGA) in recent past, to complement the income of the poor by providing them employment for certain number of labour days in a year. In this paper, using a simple theoretical model, we have analysed the impact of NREGA scheme on (i) rural labour market, (ii) income of the poor households and (iii) overall agricultural production. It is seen that the income from NREGA alone can be a substantial part of the target income of the poor. We show that in such a situation, the poor may exhibit a backward bending supply curve of labour which may lead to an aggregate reduction in agricultural output. This adverse production effect can happen even when the NREGA activities lead to a moderate improvement in agricultural productivity. Data on food prices tend to support our finding to some extent. Keywords: NREGA, target income, labour supply, agricultural productivity, India, Asia JEL Classification: I38, J22, J43 Corresponding Author: Uday Bhanu Sinha, Department of Economics...
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