Here are detailed but simple answers with side headings for your 15-mark questions:
1. Nature and Significance of Vision in Salary Administration
Nature of Salary Administration
1. Strategic Process: Aligns employee compensation with organizational goals.
2. Fairness and Equity: Ensures fair pay based on performance and market standards.
3. Compliance: Adheres to labor laws and regulations.
4. Employee-Centric: Focuses on motivating and retaining employees.
Significance of Vision in Salary Administration
1. Attracts Talent: Competitive salaries help in hiring skilled employees.
2. Retains Employees: Prevents turnover by ensuring satisfaction.
3. Enhances Productivity: Motivates employees to perform better.
4. Improves Employer Reputation: Builds trust in the organization.
5. Promotes Fairness: Eliminates discrimination and promotes equality.
2. Steps Involved in Wages and Salary Survey
1. Define Purpose
• Clarify the objective, such as comparing industry pay standards.
2. Select Benchmark Positions
• Identify key roles to be analyzed across industries.
3. Collect Data
• Obtain wage data through surveys, company reports, and government publications.
4. Analyze Data
• Compare collected data with internal salary structures.
5. Prepare Recommendations
• Propose changes to align with market trends.
6. Implement Changes
• Adjust wages and benefits based on survey results.
7. Review Periodically
• Conduct regular surveys to stay updated with market dynamics.
3. Social Security
Definition
• A system of government-mandated programs to protect individuals from financial instability.
Features of Social Security
1. Comprehensive Coverage: Includes pensions, health care, and unemployment benefits.
2. Mandatory Contributions: Funded by employer and employee contributions.
3. Universal Access: Covers employees in organized sectors.
Objectives
1. Financial Stability: Provides income during retirement or unemployment.
2. Healthcare Support: Covers medical expenses for workers.
3. Poverty Reduction: Ensures a safety net during crises.
Examples in India
• Employees’ Provident Fund, Employees’ State Insurance (ESI), Pension Schemes.
4. Workers’ Education in Industries
Definition
• Education programs aimed at improving workers’ skills and awareness.
Objectives
1. Enhance technical and job-related skills.
2. Develop awareness about rights and responsibilities.
3. Foster better workplace communication.
Methods of Workers’ Education
1. On-the-Job Training: Hands-on experience at the workplace.
2. Workshops and Seminars: Interactive learning sessions.
3. Literacy Programs: Basic education for unskilled workers.
Benefits
1. Improves productivity and efficiency.
2. Reduces workplace conflicts.
3. Promotes career development for workers.
5. Provident Fund Act
Definition
• A statutory framework under the Employees’ Provident Fund and Miscellaneous Provisions
Act, 1952, to ensure retirement savings for employees.
Key Provisions
1. Applicability: Covers organizations with 20 or more employees.
2. Contribution: Employers and employees contribute 12% of basic salary each.
3. Interest Earnings: Accumulated funds earn interest annually.
4. Withdrawals: Allowed during emergencies, retirement, or for specific needs.
Benefits
1. Promotes savings for retirement.
2. Provides financial security during crises.
3. Offers tax exemptions on contributions and interest.
6. Grievance
Definition
• A grievance is a formal complaint by an employee regarding workplace issues.
Causes of Grievances
1. Unfair wages and benefits.
2. Poor working conditions.
3. Discrimination or harassment.
4. Lack of communication or recognition.
Grievance Handling Process
1. Identification: Recognize the grievance and its cause.
2. Discussion: Employee discusses the issue with the supervisor.
3. Resolution: Management resolves the issue within a time frame.
4. Follow-Up: Ensure the resolution satisfies the employee.
Importance
• Promotes workplace harmony and employee satisfaction.
7. Consequences of Industrial Dispute Act
Definition
• Industrial disputes are disagreements between employers and employees regarding workplace
matters.
Consequences
1. Economic Loss: Reduced production and profits due to strikes and lockouts.
2. Unemployment: Job losses during prolonged disputes.
3. Social Disruption: Affects the livelihoods of workers and their families.
4. Legal Issues: Leads to penalties and legal actions.
5. Poor Industrial Relations: Reduces trust between employers and employees.
6. Reputation Damage: Affects the company’s image in the market.
Preventive Measures
1. Establish grievance handling systems.
2. Conduct regular negotiations with unions.
3. Promote a positive work culture.
