| Fixation of compensation or wage rates for different | | | | related to skill job requirements of job. Due |
| categories of employees in a company is an important | | | | consideration should be given to such factors as skill, |
| task of management. The employees are not only | | | | length of time required in learning, versatility required |
| concerned with the wages received but also | | | | and working conditions. In all fairness to management, |
| concerned with the level wages received by same | | | | the plan should usually result in a reduction of unit cost |
| level of employees in similar organizations. Hence | | | | of manufacture, making possible lower prices and |
| wage structure may be considered very important. | | | | higher profits. |
| The relative wage-rules must be fixed carefully, | | | | In all fairness to the consumers a share of higher |
| because they have implications for promotion, transfer, | | | | efficiency should be passed on to them by way of |
| seniority and other important personnel matters. | | | | lower price. This will be possible when there is |
| Wage plan should possess certain fundamental | | | | reduction in cost due to higher efficiency. Thus the |
| characteristics if the long term interests of the worker, | | | | wage plan must ensure that all participate share the |
| management and the consumer are to be served. The | | | | gains of higher productivity. The wage plan should |
| wage plan must be linked with the productivity of the | | | | include an incentive system for the efficient workers. |
| workers. Unless higher pay scales of workers are | | | | The system should ensure higher pay to the workers |
| linked in some way to the productivity of workers, a | | | | who perform work at higher level of efficiency. The |
| wage plan will not be fair either to the management or | | | | wage plan should guarantee minimum wage to protect |
| to the consumers. | | | | the interest of workers against conditions over which |
| Basic wage for each job classification should be | | | | they have no control. |