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Fixation of payment or wage rates for different types of workers in a company can be 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 organizations. Thus salary structure may be considered extremely important. The relative wage-rules should be fixed 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 run interests of the staff, management and the buyer can be supported. The pay plan should be linked with the efficiency of the employees. A wage plan will not be good both to the administration or to the customers, until higher pay scales of workers are associated in some way to the efficiency of workers.

Basic wage for each job classification ought to be linked to skill job needs of job. As ability, length of time required in understanding, flexibility required and working conditions due consideration ought to be directed at such facets. In most fairness to management, the program should generally create a reduction of unit cost of manufacture, making possible higher and lower costs profits.

In most fairness to the consumers a share of higher efficiency ought to be passed on for them by way of lower price. If you find reduction in price because of greater performance this is possible. Ergo the salary program need to ensure that all participate share the results of greater productivity. An incentive system should be included by the wage plan for the effective workers. The system should 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 don't have any control. employment law attorney arlington