The Wages Policy Adopted by the Alp Federal Government Is a Hybrid of Theoretical Approaches and Aims to Benefit the Interests of Both Employers and Wage and Salary Earners. This Approach Has Not Achieved Its Aims.
Critically evaluate the following statement
The wages policy adopted by the ALP Federal Government is a hybrid of theoretical approaches and aims to benefit the interests of both employers and wage and salary earners. This approach has not achieved its aims.
The ALP government has adopted a multifaceted approach to constructing an outline to wage and salary setting. The movement to “collective agreement making will be available under the ALP proposal,” (Retail Times 2008) which means that individual agreements will be abolished, which was part of the policy for WorkChoices under the liberal government. There are clear differences between the two theories, Neoclassical and Institutional, both of which can be argued are present within the current approach to wage setting. The possible combination of both of the theories illustrates the more recent wage setting agenda that is being applied by the current ALP government. The central idea of the neoclassical theory has two main objectives in regards to wages and salaries, these are demand and supply. As stated in the (Lecture notes Week 2 slide 7 2010) the neoclassical theory “can be understood through the interaction of the demand for labour (or how much employers are willing to pay), and the supply of labour (or how much workers are willing to accept).” The neoclassical theory determines wages through the natural interaction of supply and demand and the “supply of labour depends on the willingness of individuals to provide labour to the market at different levels of real wages.” (Lecture notes week 2 slide 14 2010) Intervention within the labour market is a large part of setting wages and also with the level of engagement for decentralised wage fixing, which is a large focus of wage systems that are underpinned with the neoclassical theory. In regards to approaches to intervention, neoclassical theory does not support intervention as it is believed to create market “imperfections” so consequently a more individual approach is established. In contrast with this theory, Institutional theory can be understood through a more straight forward approach, basically through more orthodox market principles. Institutional theory is a multifaceted concept that draws from all parts of the labour force, not just supply and demand. The theory acquires information for constructing the wage setting from a vast range of sources including political, sociological, economical and parts of industrial relations. The institutional theory focus’ heavily on organizations within the labour market as well, and this reinforces the idea that the institutional theory encourages intervention. The theory supports collective agreements and union bargaining, and only an individual agreement if it will favour the employee. Rather than perceiving unions as an imperfection they believe that they are a natural development “as a means of ensuring that goals of social equity are met.” (Lecture notes week 2 slide 29 2010) The “regulation involves the imposition of restraints on the actions of employers and/or their workers – the shape of such regulation, does however, vary with the intellectual, ethical and political climate of the time.” (Lecture notes week 2 slide 29 2010) This statement implies that the regulation of the market must be adjusted to the different elements that can occur with each individual. The purpose of having an intervening body is so that “institutions determine the structure and existence of labour markets, which in turn determine their behaviour and performance.” (Buchanan, Wanrooy, Oxenbridge, Jakubauskas 2010 p. 427) Intervention is a significant part of the institutional theory in that “whatever the efficiency properties or claims of the market it cannot be relied upon to produce a distribution of earnings that is fair and guarantee those on the lowest earnings a standard of living relevant to the standards of the day” (Richardson, 1999: 23). Wage setting, under institutional...
...Running head: WAGE AND WAGEEARNERSWage and WageEarners
There has always been much debate about the wages earned between those with many years of education and those with many years of work experience. Does one factor promise higher compensation than the other? In a study conducted by University of Phoenix students, one hundred working adults were surveyed on how many years of experience they had, how many years of education they had, and what their annual salary is. The results vary. Many factors play a role in the salaries earned, versus what is required to earn that salary. Field of work is a large contributing factor. Personal preference may also play a role.
In the data set used, the independent variables being used are years of experience and years of education. These were the factors that could be changed by the people conducting the research. The independent variable of years of education was changed from four years up to 18 years. The independent variable of years of experience ranged from none all the way up to 54. The affects these had on the dependant variable were surprising.
The dependant variable in this data set was the amount of income generated by each individual. The amount of income ranged dramatically and it seemed that the amount of experience had...
...Should the Government Raise Minimum Wage?
Personally I think that it would be a good idea for the government to raise minimum wage. One of the reasons why I believe this is because of the fact that the cost of living has risen so high to the point where people aren’t making enough money to pay for their basic necessities anymore, and it is causing our nation’s debt to continue to grow higher because more and more people are filing for unemployment or government subsidies who are just not making enough money from their minimum wage jobs to pay for the things they need. This ultimately leads to an increase in taxes from peoples paychecks in order for the government to pay these subsidies that they offer which in turn increases the national debt.
Another reason why I believe it would be beneficial to raise the minimum wage is because of the fact that it would help our economy in the long run by increasing consumer spending. If minimum wage was to be raised, then people would earn more money to the point where they are able to pay for their basic necessities and still have money left over; this would cause to an increase in consumer spending, and that would not only be beneficial to businesses, but also to the economic growth in local and national economies.
However, many politicians and people...
...company or analyze the approach your college uses to pay teaching assistants or faculty. Infer its compensation strategy using the five dimensions (objectives, internal alignment, externally competitive, employee contributions and management).
Firepond, Inc. provides multi-tenant, on-demand software that automates and simplifies the process companies use to sell products and services in the United States. It offers Configure, Price, Quote (CPQ) software-as-a-service that automates sales processes, enhances order accuracy, and accelerates sales cycles. The company also provides professional services, which include consulting, implementation, and training services. It also provides technical support services, such as data maintenance, enhancement, and end-user support services. It serves high technology, transportation, construction machinery, agricultural equipment, and service companies.
*Focuses on innovation
*Demonstrate respect for individual talent and limitless potential of a highly motivated team
* Encourage high standards of excellence, original thinking, a passion for the process of discovery, and a willingness to take risks
*Reward fresh ideas, hard work, and a commitment to excellence
*Pay differences that foster a collegial atmosphere
*Reinforce high expectations
*“Pay what others are paying”---they implemented a standard...
...Wages and Salaries
An extensive review of the literature indicates that important work- related variables leading to job satisfaction include challenging work, interesting job assignments, equitable rewards, competent supervision, and rewarding careers. It is doubtful, however, whether many employees would continue working were it not for the money they earn. Employees desire compensation systems that they perceive as being fair and commensurate with their skills and expectations. Pay, therefore, is a major consideration in human resource management because it provides employees with a tangible reward for their services (Bohlander, Snell, and Sherman, 2001). Stone (1982) indicated that people are motivated by money for many different reasons. The need to provide the basic necessities of life motivates most people. Some people think of money as instrumental to satisfying non-economic needs such as power, status and affiliations with desired groups. Money is often viewed as a symbol of personal success and achievement.
Many factors affect how wages and salaries are set. The factors depend on area of living, the labor market, minimum wages and other governmental regulations, the cost of living, the ability of the employer to pay, the worth of the job and the presence of a collective bargaining agreement. Pay rates can be adjusted to help employees cope with their living situations...
1. Clarissa is considering two job offers. One has an annual salary of $61.1K and the other
has an annual salary of $63.4K. What is the difference in the weekly pay for these two jobs? 63,400-61100=2,300
2. Mr. Leonard took a job through an employment agency. The job pays $88K per year. He
must pay a fee to the employment agency of 22% of his first four weeks’ pay. How
much money must Mr. Leonard pay the agency, to the nearest cent? 88,000/12=7,333.3
3. Mr. Varello is paid semimonthly. His annual salary is $64,333. What is his semimonthly
salary, rounded to the nearest cent? 64,333/12=5,361.08/2=2,680.54
4. Julianne works at a local Emerald Monday restaurant. Her regular hourly wage is $9.50.
a. She regularly works 40 hours per week. What is her regular weekly pay? 9.50*40=380
b. If she works 50 weeks each year at this rate, what is her annual salary? 380*50=19,000
5. Mr. Ed earns $14.50 per hour. His regular hours are 40 hours per week, and he receives
time-and-a-half overtime. Find his total pay for a week in which he works 45 hours.21.75*5=108.75
6. Mrs. Frasier worked her 40 regular hours last week, plus four overtime hours at the doubletime
rate. Her gross pay was $576. What was her...
...Assignment # 04
WAGE VS SALARY
Dr M.Z. Mamun
Course instructor, Productions and operations management
Md. Muktar Hossen
Bangladesh University of Professionals (BUP)
Mirpur Cantonment, Dhaka-1216
January 18, 2011
Introduction: Wage and salary are the two important elements for designing compensation package for any organization. Often, we mistake considering the wage and salary as synonymous. But there are some substantial differences between them. In order to get higher productivity, it is much more important to know the different between wage and salary. Before comparison, try to penetrate the insights of them.
Wages are generally paid per hour. This means that you have to be present and working in order to get paid. Most of the time, wage jobs are not as inclusive when it comes to things like paid vacations, or paid sick days. Wageearners often have to give up pay for leaving early, coming in late, missing a day, or taking a vacation.
Historically, we often refer to manual labor jobs as wage jobs, and positions. Wageearners are more likely to be found in positions...
IR 204 (Labor and Economy) - Dr. Maragtas S.V. Amante
By: Atty. Emmanuel S. Ocsing
Given the conditions in your own company and organization, what aspects of the two-tiered wage system apply? Why or why not?
DBP Leasing Corporation (DLC) is a GOCC that is organized and existing under the Corporation Code. It is within the jurisdiction of the SEC (as a private corporation and a financing company authorized to operate pursuant to R.A. No. 8556) and under the regulatory supervision of the BSP (as a wholly-owned subsidiary of DBP). At present, DLC only has 23 employees – 19 regular, 2 probationary and 2 contractual. Tier 1 (Floor Wage) does not apply to DLC employees because we receive ‘above minimum wage’ salaries. The reason is that DLC employees were hired to render specific professional services, not mere clerical or manual labor. On the other hand, Tier 2 (Productivity Based Pay) is somehow being practiced in DLC. Our company has a performance evaluation system that is conducted twice a year, every January and July, to assess an employee’s job performance and work behavior. After the employee and his/her immediate supervisor discuss on the key requirements of the job and details of the expected work output, both score the employee’s performance for the past six months. The average grade is the basis of the merit increase, if and when warranted by the...
It has been years since the minimum wagehas been updated in MN, It has stayed stuck at $7.25 an hour, but to put things into perspective, it would currently be up to $10.40 if it had kept up with inflation since 1968. Raising the minimum wage is crucial for it boosts the economy, it lifts people out of poverty, and it will help close the gender wage gap. I know a lot of people inthis room are, or at one point have worked for minimum wage, and it is not a very easy thing to manage with today’s cost of living getting higher and higher. Many states outside MN have raised the minimum wage and they are reaping the benefits, now it is time for us to do the same.
2. Affirmative position.
The main reason that raising the minimum wage, either here in MN, or nationwide, is so beneficial is that it boosts the economy greatly. A recent study by the Chicago Federal Reserve found that raising the minimum wage to $9 an hour nationwide would likely increase household spending by about $48 billion after just one year, amounting to a .3 percent boost to GDP. And while opponents warn that a raise would hurt jobs, the states that have already raised their minimum wage report that it has not had a negative effect on employment and some report a boost in job growth....