Job evaluation as a mechanism for achieving the fairness of a wage structure in the administrative system: theoretical perspectives

PurposeThis paper aims to present a theoretical framework which reveals the relationship between job evaluation (JE) and the development of fair wage structure from the organizational justice (OJ) perspective. It focuses on analyzing the dimensions of job-based pay structure and the use of multifaceted construct of OJ (procedures, distribution and interaction) to determine how the perceived justice of JE's multi-levels construct contributes to achieve the fairness of wage structure.Design/methodology/approachThis paper adopts an analytical descriptive approach in terms of explaining the perspectives and viewpoints related to the analysis. This paper is based on examining a theoretical framework provided by the authors based on a theoretical review of literature and a set of empirical evidences.FindingsThe design of a hierarchical wage structure counts on the multidimensional approach of JE which consists of three dimensions (processes, outcomes and social system). In addition, the determination of wage structure fairness is dependent on the assessment of the perceived justice of: JE's procedures, wages distribution and management's treatment with its employees.Originality/valueThis study provides a new theoretical contribution in studying the relationship between JE and the design of fair wage structure. This contribution can be regarded as a theoretical foundation for conducting some empirical and comparative studies in the future. The study affords directive mechanisms to policymakers in order to enhance the fairness of the wage structure across the state.

The employee's right to a fair wage that ensures a decent human existence for himself and his family: some implementation problems

The article is devoted to some problems of the implementation of the employee's right to timely and full payment of fair wages, ensuring a decent human existence for himself and his family. Based on the analysis of legislation and judicial practice, the authors concluded that the legal regulation of some provisions of the institution of payment is imperfect, which complicates the implementation of this right.

Can reference points explain wage rigidity? Experimental evidence

I examine whether reference points can provide an explanation for rigid wages in recessions. Even though a recession provides a good reason to adjust wages downward, workers’ perception of a “fair wage” may depend on their previous wage, their reference point. Using a laboratory experiment, I test this idea by varying whether initially concluded contracts—and their stipulated wages—can serve as reference points. My experimental results show that with initial contracts workers punish wage cuts even in recessions, leading to considerable more rigid wages. Surprisingly, this is even true without an “objective” justification to feel entitled to initial contracts.

The thermodynamic principles as the theoretical basis of fair remuneration

Thermodynamics is the key to solving many economic problems. Since the human body is driven by heat engines, there is a loss of energy source. Measuring this loss means it is possible to indicate the size of a fair wage. Another version of the second principle justifies the amount of depreciation of real assets, such as machinery and equipment. A significant purpose of the article is to indicate that the category of capital cannot be understood without knowing the first and second principle of thermodynamics. The main aim is to present the theory of equitable remuneration developed using the second principle of thermodynamics and the discovered economic constant. Theoretical research leads to the creation of a model of capital and a model of fair pay with the understanding of the existence of an economic constant quantifying the action of natural forces on capital growth. Empirical research estimates the size of the constant and verifies the fairness of remuneration. The research reveals the existence of an economic constant necessary in capital theory, especially in the field of remuneration for work. Models for measuring human capital of employees and formulas enabling calculation of fair remuneration and its updating are presented. Additionally, using the entropic version of the second principle, the depreciation amounts of fixed assets are determined. The main conclusion of the presented research and the formulated theory is that thermodynamics is essential for the correct understanding of the category of capital defining as the abstract ability to perform work.

Factors And Principles Of Fair Pay

The article covers the issues of factors influencing the formation of fair wages. The principles on which the system of guarantees of realization of the rights of workers to a fair wage should be based are considered. There are two groups of factors in the formation of wages: a) market; b) non-market or socio-legal. The first group includes: 1) changes in supply and demand in the market of goods and services in the production of which this work is used; 2) the usefulness of the resource of the entrepreneur; 3) the elasticity of demand for labor at price; 4) interchangeability of resources; 5) change in prices for consumer goods and services. The second group includes: 1) measures of state regulation related to the establishment of the minimum wage, minimum salary, subsistence level; 2) the level of wages and conditions of employment can have a significant impact on trade union policy, the strength of the trade union movement; 3) the final results of the enterprise and the personal contribution of the employee; 4) the existence of a system of guarantees for the realization of employees’ rights to fair remuneration. It is pointed out that we cannot study the institution of wages in isolation from the current economic situation in the country, so we need to know what factors affect the determination of the level of wages. There are four principles on which the system of guarantees for the realization of employees’ rights to fair remuneration should be based: 1) equality of remuneration; 2) timeliness of remuneration; 3) completeness of payment of wages; 4) fair pay. It is concluded that the proposed and analyzed factors that affect the formation of wages should be studied and taken into account during the regulatory reform of the institution of wages. In our opinion, the principles on which the system of guarantees for the realization of workers’ rights to fair remuneration should be based must be enshrined in law. It is argued that the institution of wages needs comprehensive reform. And above all, it is necessary to pay attention to the principles on which it should be built, because these are the fundamental foundations.

Fair wage potential as a tool for social assessment in building projects

PurposeThe fair wage potential (FWP) is a social assessment method that can serve as an important measure to estimate the related social impacts along a product's life cycle; however, it does not admit a direct relation to the functional unit. This research presents the weighted fair wage potential (WFWP) method that relates the functional unit to the FWP. It is a simplified method to connect the material inventory to social data. This study aims to develop an approach to assess and choose the best construction typology for buildings based on the social sustainability of workers involved in the sectors.Design/methodology/approachThe study is presented in phases. Phase 1 selected and identified two Brazilian house projects, which were considered for the following processes: extraction of raw materials, manufacture of building materials and housing construction. Phase 2 assembled the social life cycle inventories and executed them using the social life cycle assessment (SLCA). The inventory of materials followed the functional unit: “1.0 m² of the built housing”, and the social inventory observed data extracted from the National Household Sample Survey (PNAD). The study considered the stakeholder category “worker” and analysed the impact subcategory “fair salary”. The study also divided the social data into categories: worker gender, worker race/colour, worker union and worker formality to analyse the impact of subcategories: “equal opportunities/discrimination”, “freedom of association and collective bargaining” and “social benefits/social security”. Phase 3 compared the projects according to the results from the SLCA. The FWP considers the wage paid at supply chain sectors, and the WFWP relates the functional unit to the social data.FindingsThe results proved that the wages paid by the construction supply chain are fair. However, there are differences between the FWP of male and female workers, white and non-white workers, unionised and non-unionised workers and formal and informal workers. The study of the actual Brazilian minimum wage indicated that the FWP is sensitive to the reference wage to which the analysed wages paid are related. Considering the WFWP, the constructive typology employed in Project B can generate increased positive social impacts than Project A. The proposed study provides excellent results, and it can be adapted to different data to assess the social conditions of other countries and sectors.Research limitations/implicationsThere is not enough primary data available for the variables real wages and real working time; for this reason, these variables received secondary data. Another limitation is the data used for the year range, since Brazilian microdata do not include years before 2002 and years beyond 2015.Originality/valueThe WFWP differs from the existing social sustainability studies because it relates the material information to social data; also, it defines the best option among the analysed alternatives, taking into consideration social sustainability, which enables the project design to go beyond technical aspects. The constructive typology and materials take into account the social sustainability of the construction supply chain, generating more sustainable projects and improving the circumstances of affected stakeholders.

Experimental analysis of Wage requirement For Handling the Hopper Wagon in Thermal Power Plant using Job Evaluation Approach

The idea is to create a situation of input – output equilibrium that equates with a fair wage being paid in revisit for the type of work or job in hand. This is in order to reach a win / win situation, determine any problem that may occur between employees and their employer related to wage uniformity or equity, and to create sound work weather. In order to create a sound and scientific internal pay system, this thesis makes an in-depth assessment on the application process of point-factor job evaluation approach. Questionnaire survey and statistical analysis methods are used to decide the factors of job evaluation system. Also, it focuses on the weight determination using better AHP method.