Salary Administration Procedures

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There are various ways to administer salaries:

1. Salary control:
a. Employees should be paid according to a maximum and minimum salary range.
b. Methods of progress should be within the maximum and minimum range.
c. A detailed salary budget, including forecasts, employee turnover, etc. should be taken into account.
d. The management distributing wages should be clearly defined at the appropriate organizational level.
e. Clear salary review guidelines should be defined, and instructions on maximum awards should be given.
f. Procedures for auditing increases and salary levels should be provided.

2. Salary budget:
This is a statement in qualitative/financial terms regarding the planned allocation, and resource use to meet operational needs of the company.

3. Salary reviews:
When it becomes necessary to increase salaries, a salary review takes place. Its main purpose is to increment salaries of staff based upon merit.

4. Fixing salary levels:
Levels of new starting salaries are controlled by the appropriate senior authority. Promotions should be dealt with immediately.

Additional Readings:

1. Personnel Administration and Personnel Staff
2. Duties of Personnel Managers
3. Manpower Planning
4. Valuation of Human Resources
5. Career Planning
6. Advantages of Diversifying Managerial Training
7. Causes of Failure of Training Programs
8. Promotion Procedures of an Organization
9. Calculation of Minimum Wages according to Indian Labor Conference 1957
10. Wage Influencing Variables and Bonus Schemes
11. Salary Administration Procedures
12. Classification of Fringe Benefits
13. Importance of Good Communication in Business
14. Job Analysis
15. Recruitment Checklist

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Page accessed on: September 10, 2010, 6:54 pm.

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