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Fixation of compensation or wage rates for different classes of personnel in a company is definitely an important task of management. The employees are not only concerned with the wages received but additionally concerned with the level wages received by same level of employees in similar companies. Hence salary structure could be considered extremely important. The general wage-rules should be set carefully, since they have implications for marketing, move, seniority and other important personnel matters. Certain fundamental characteristics should be possessed by wage plan if the long term interests of the customer, management and the staff are to be supported. The wage plan must be linked with the efficiency of the workers. Until higher pay scales of workers are connected for some reason to the productivity of workers, a wage plan will not be good both to the management or to the people. Simple income for every single job classification ought to be associated with ability job demands of job. Due consideration should really be directed at such facets as skill, amount of time required in understanding, flexibility required and working conditions. In every fairness to management, the program must usually create a reduction of unit cost of manufacture, making possible lower costs and greater profits. In most fairness to the people a share of higher efficiency should be offered for them by means of lower price. This will be possible if you find lowering of cost because of greater performance. Hence the salary plan need to ensure that participate share the results of higher productivity. Click here follow us on twitter to study the reason for this concept. Identify supplementary information on our favorite related article - Click here: jump button. The wage plan should include a reason system for the effective workers. The system must guarantee higher pay to work is performed by the workers who at higher degree of productivity. The wage plan should ensure minimum wage to protect the interest of workers against problems over which they dont have any control.. Get further on this partner encyclopedia - Click this webpage: lawattorneymtj on Genius.