Wage Management Process
Riordan Manufacturing needs to streamline its wage management process to increase efficiency.
The firm needs to establish different pay grades that take note of duties performed by different employees.
Employees’ should be remunerated according to their skills, experience and the nature of work they perform.
This will make its internal human resource processes more competitive (Martocchio, 2009, p. 71).
Impact on Organization
It will help the firm improve the quality of its internal and external HR practices.
The firm will be able to evaluate all work duties performed in the firm to establish their value.
It will help the firm formulate equitable human resource policies that give credit to workers’ efforts.
This structure will help the firm estimate internal human resource costs it incurs in its operations (Martocchio, 2009, p. 76).
Wage Structure Formulation
The firm needs to assess the importance of each human resource position to its long-term business strategy.
Positions should be divided into different categories to allow easy coordination of various HR functions.
Salary grades need to conform to labor standards observed by other firms in the industry.
The firm needs to use this structure to measure actual performance of different employees in their respective departments (Milkovich & Newman, 2008, p. 47).
All workers will be constantly evaluated to determine their commitment to the organization.
Proper systems will be used to assess if wages paid are adequate for employees’ needs.
Time taken to perform specific tasks and quality of output will be used to assess the value of each position.
The firm will also establish reward systems that motivate workers who attain positive results in their duties (Milkovich & Newman, 2008, p. 52).
Martocchio, J.J. (2009). Strategic compensation: A human resource management approach . Upper Saddle River, NJ: Pearson Education.
Milkovich, G.T., & Newman, J.M. (2008). Compensation. New York, NY: McGraw-Hill.