ABSTRACT
It is always desirable to have an idea about the current practices with regard to wage fixation in Indian organizations because, in case, wages are not fixed appropriately, workers are likely to suffer not only economically but also emotionally, socially and psychologically. Hence, this chapter deals with wage determination in Indian organizations. So far as wage fixation in the ‘organized sectors’ is concerned, it is done unilaterally usually by employers through the process of job evaluation and job pricing (for which the exercise of job analysis is a must which has also been discussed at length). Both the methods of job evaluation, viz. non-analytical and analytical, have been discussed. Various methods of job pricing have been discussed. In the ‘unorganized sector’ also, wage fixation is done by the employers unilaterally as trade unions are usually missing, which is generally on the lower side. Bipartite wage fixation is common in a good number of organizations and is done through the process of collective bargaining whereas tripartite wage fixation is prevalent in industries where ‘wage boards’ are constituted. Statutory wage/salary fixation is implemented through ‘legislative steps’ and also by constituting ‘pay commissions’. Third-party wage fixation involves the role of ‘adjudication’ and ‘arbitration’ machinery. The base pay, fixed through job evaluation and so on, is also supplemented through contingency pay, i.e. paying for performance, competence, skills, etc. It has been suggested that keeping in view the sensitive nature of wage fixation, the management should formulate such a strategy in this regard to protect not only its own interest but also the workers and the community. The chapter comes to an end after writing the chapter review, discussion questions, individual and group activities and case study.
