HRM - exam preparation Essay Example | Topics and Well Written Essays - 500 words

HRM - exam preparation - Essay ExampleHow much of remuneration is to be paid (the absolute level) is important to the extent that it takes care of a mortals minimum needs. Fixing of a minimum wage by an employer or company, or legislating on minimum wages by the Government, so focuses on how much. This how much depends on physical variables (what is needed to keep body and soul together) and cultural variables (what is perceived as necessary) (Here we may carry on to the first two levels of Maslows Theory of the Hierarchy of Needs taking care of the physiological and safety needs.Beyond the level of the minimum wage to be paid, equity and lividness should play an important part in determining wages (the relative levels). Further, equity should be ensured without having to sacrifice the other objectives mentioned. Equity and fairness considerations in pay fixation take care of the social and esteem needs (Maslow) of an employee. Both internal and external equity principles (relat ive fairness of wages of proles in the same organisation, and outside the organisation) should be kept in mind while fixing pay.Rewards (compensation) are of two kinds direct and verificatory. The direct reward is the salary and indirect rewards are the benefits or perquisites (perks) that an employee gets. Benefits include company provided house, car, medical facilities, company paid holidays, company sponsored study courses and training and so on. Equity or fairness among one employee and another can be maintained by adjusting both the direct or indirect benefits.1- Modification of input or output to friction match pay. A person who is underpaid would reduce work effort a person who is overpaid may work more sincerely and for longer hours without further compensation. A worker may attempt to change the input/ output of others, by asking them to work/not work harder.2- Workers may adjust