UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

Lay – Off
i. Unsatisfactory performance
j. Grave misconduct
S.2 of the Industrial Disputes Act 1947 defines Lay off as follows:
“Lay off means the failure, refusal or inability of employer on account of coal,
power or raw materials or accumulation of stock, break-down of machinery or by any
other reason to give employment to a workman whose name is borne on muster roll”.
Compensation
Wage Incentives
Wages are payments in return for the use of labour.
Wages: Monetary compensation paid to the workers on hourly basis or piece rates.
Salaries: Monetary compensation paid to the staff like supervisors, executives etc.,
monthly.
Time wage rate: Payment made on basis of time such as hourly, daily, weekly and
monthly.
Real wages: Real wages represent the goods and services which can be purchased
from the money obtained from the wages.
Wage payment plans:
Incentives:
Motivation:
Two broad classifications are
i. Non-incentive wage plans like tune wage rate system.
ii. Incentive wage plans like piece –rate system.
Four types of incentives:
� Direct Incentives
� Indirect Incentives
� Financial Incentives
� Semi-Financial Incentives
� Non-Financial Incentives.