BASIC FORMS OF PAYMENT AND THEIR INFLUENCE ON RESULTS OF ENTERPRISE ACTIVITY

As any commodity, labor has the price. The price of labor is wages. "The price" of labor of an individual depends on its quality – qualifications.

The wages are the size of the monetary compensation paid to the hired worker for the performance of a certain task, the amount of work or the performance of the official duties during some time.

Nominal and real wages are distinguished. The nominal wages are the wages charged and received by the worker for a certain period. The real wages are the amount of goods and services which can be obtained for nominal wages.

There are two forms of payment. Payment is fixed either depending on the time during which the enterprise used labor, or according to the amount of the work performed. In the first case payment refers totime (time wage, time-work), in the second case it refers tojob wage (price-work).

The time wage form is applied, if it is impossible or it is difficult to standardize labor, in strictly regulated, highly mechanized and automated production processes, in kinds of manufacturing demanding high quality and accuracy of work performance, and there where there is no need to stimulate the intensity of work.

The main advantage for the worker with the time wage form will be that he has a guaranteed monthly income (earnings), not dependent on possible drop in production during the given period of time. The shortcoming is that the worker has no opportunity to raise his earnings by the increase of a personal share of participation in the production process.

From the point of view of the enterprise, the main shortcoming of the time wage is that it does not stimulate the increase of the manufacturing indexof workers. Thus, the enterprise has relative wage saving with the increase in production.

The time wageincludes two systems: time rate system and time plus-bonus wage system (time-rate-bonus system).

With time rate system the size of wages depends on the tariff rate (basic rate) of the worker and the amount of hours worked.

Time plus-bonus wage system (time-rate-bonus system) is applied with the purpose of increasing qualitative or quantity indicators (trouble-free operation, the improvement of production quality).

The job wage (price-work) form of payment is applied there where it is possible to fix unequivocal dependence between the volume of production manufactured and the amount of the applied work of each worker or a group of workers.

From the point of view of the worker, the job wage has that advantage that it enables increasing earnings with the increase in intensity of work.

For the enterprise the application of the job wage system of payment enables to stimulate if necessary the manufacturing indexof workers, and its basic shortcoming is possible decrease in quality with the growth of the manufacturing index.

The job wage (price-work form of payment) formof payment has some systems: direct job wage, job rate with bonus, progressive piece rate wage system, indirect job wage, accord job wage, collective job wage.

Date: 2015-12-18; view: 726