SALARY ADMINISTRATION

In an organization, each function or each office has its value. You can only justly and fairly compensate the occupants of a position if the value of that position is known relative to each other and also to the market situation. As the organization is an integrated charges in different hierarchical levels and in different areas of specialty assembly, administration of wages is a matter covered by the organization as a whole, and affects all levels and sectors. 

The Administation salaries can be defined as the set of rules and procedures to establish or maintain structures of equal and fair wages in the organization. These salary structures should be fair and just in relation to: 

wages relative to other positions in the organization itself, then speedily bringing internal balance of these wages; 

wages with respect to the same charges from other companies active in the labor market, then seeking means of external equilibrium wage. 

The internal balance is achieved through internal information obtained through the assessment and classification of positions on a previous program description and analysis of charges. 

The external balance is achieved by external information obtained by investigating wages. 

These internal and external information, the organization defines a wage policy, standardizing procedures regarding staff compensation. This pay policy is always a particular and specific aspect of the general policies of the organization. 

2. OBJECTIVES OF WAGE admnistración 

With the establishment and / or maintenance of balanced wage structures, wage administration intends to achieve the following objectives: 

Paying for each employee according to his position; 

Adequately reward him for his commitment and dedication; 

Attract and retain the best candidates for the positions, according to the requirements for adequate coverage; 

Expand the flexibility of your organization, giving you the means to staff mobility, streamlining opportunities and career development; 

Get employees accepting compensation systems adopted by the company; 

Maintaining balance between the financial interests of the organization and its policy of employee relations; 

To facilitate the process of payroll.

Tomado de http://ingindustrialjejm.co.tripod.com/1.htm