Organization, proper regulation, and also remuneration of labor are categories that together occupy the most important place in the system of ensuring effective production planning. Under the remuneration of workers, it is necessary to understand the price of those labor resources that take part in the production process. First of all, it is determined by the quality and quantity of labor expended. Market factors also play a significant role. Among them, it is worth noting the supply and demand of labor; prevailing specific market conditions; legislative norms; territorial aspects and so on. In our article, we consider the essence and principles of the organization of remuneration.
Remuneration of labor as an independent category
In a market economy, salary expresses the key and immediate interest of employees, employers and the state as a whole. It is worth noting that the proper balance of interests of these three parties is considered one of the main factors in the effective organization and streamlining of wages.
Let us examine the concept and principles of organization of remuneration. In Russian literature, it is customary to distinguish between nominal (monetary) and real salaries. So, nominal should be understood as the amount of cash received by the employee for a certain period of time. Real salary is a category that is characterized by the amount of services and goods that a person who can work in the case of a given nominal salary and a specific price level for goods, work and services can purchase.
The dynamism of the market type of economy, especially during its formation (transition period in the economy), in one way or another leads to changes in real wages due to inflation and price processes. Such a situation necessitates appropriate changes in the nominal wage in order to prevent a decrease in the standard of living of workers and to ensure full reproduction of the slave. strength.
The system of principles for organizing remuneration
The basis of remuneration laid many principles. All of them depend on the prevailing type of property in social production, the level of development of the national economy, state policy in terms of ensuring minimum wages, the national wealth of a particular country, and so on.
Among the basic principles of organizing remuneration, the following points should be noted:
- The principle of determining the average salary of employees. It must exceed the minimum wage established by the state.
- The principle of organization of remuneration, which involves maximum independence in relevant matters.
- A principle that emphasizes the outstripping rate of productivity growth relative to salary growth rates.
- The principle of organization of remuneration, specifying that payment is made in accordance with the final results of production and the amount of labor expended.
- The principle of promoting high quality characteristics of marketable products, services, works and labor.
- The principle of material interest of employees in the growth of their labor productivity.
- The principle of organization of remuneration associated with the full provision of rational ratios in terms of payment of simple and complex, physical and mental labor.
- The principle of ensuring the correlation in wages for certain professions, categories and groups.
- The principle of salary indexation according to inflation growth rates.
- The principle of organization of remuneration, suggesting that it is necessary to ensure the optimal proportion of s / n in the cost of the product.
Additional principles
In addition to the above, we indicate the principles of organization of remuneration of an additional nature:
- Analysis of the average salary in similar organizations, as well as planning for its excess in future periods.
- Definition of a rational system (piecework or time-based) of remuneration for some categories of employees.
- The principle of organization of remuneration at the enterprise, involving the analysis of the average salary of one person in a district (region) and planning for exceeding it.
- Full-fledged social security of employees of the structure through internal and state labor guarantees.
- Qualitative analysis of dynamic changes in the growth of wages and its individual components (tariff rates, salaries, bonuses, remuneration).
- The principle of organization of remuneration at the enterprise associated with the assessment of labor costs (calculated as the number of family members multiplied by the cost of living for the specific region).
Organization mechanism
So, we examined the basic principles of organizing a wage system. It is worth noting that to date, a certain mechanism has been formed in Russia related to the organization of salaries. The overall sequence of salary management activities in the organization is presented in the figure:
Salary Organization Requirements
Currently, the market economy puts forward more stringent, fundamentally new requirements for the basic principles of organization of remuneration. Why is this happening? On the one hand, commercial and non-commercial structures are completely independent in organizing salary and labor, determining the size of the salary fund, setting official salaries, as well as tariff rates for employees, bonus employees for the quality and results of labor. On the other hand, companies will have to continuously seek opportunities related to lowering salary costs and improving product quality to ensure competitiveness.
Many organizations tried to solve this problem using a fairly simple technique. They increased the share of salaries and the price of marketable products. As a result, firms paid for overstocking the finished product in the warehouse, delays in paying salaries due to the lack of working capital and, accordingly, the dismissal of skilled workers and employees. Thus, not only knowledge has gained particular relevance, but also the clear implementation of the functions and principles of the organization of remuneration in the modern market.
Income structure diagram
Of particular note is the conceptual scheme, which presents the income structure of an employee of the organization. It was proposed by Genkin B. M. in a textbook entitled Sociology and Labor Economics. Boris Mikhailovich identifies components and factors of income, and also reveals the relationship between them:
Interpretation of the basic scientific principle
Further, it is advisable to consider in more detail one of the scientific principles of organization of remuneration. It should be noted that payment in accordance with the final result serves as the most important prerequisite for achieving absolute harmony in the matter under consideration, since it assumes a direct relationship between wages and final production results. This principle fully ensures an increase in the interest of employees in the final results of labor, both qualitatively and quantitatively. The fact is that in the presented case, only the sold product is paid, that is, payment is made upon the sale of marketable products on the market according to the "goods - cash" scheme. Moreover, the salary is not limited by the maximum limits. It depends solely on the quality and volume of the product sold and its price in the market. This is the main direction in reforming the wage category.
Consider the criteria
The following points are accepted as criteria for the final results, depending on the specifics of the structure:
- revenue from product sales (volume of marketable product, sales);
- income (net, self-supporting, gross);
- profit from the sale of the product (sometimes book and net);
- the cost of the product (production costs, direct costs).
It is crucial that each of the effective indicators has an extremely clear quantitative measurement. So, all structural units will be aimed at achieving it. It is worth noting that the most appropriate indicator in a market economy is revenue from the sale of a product.
The principle of the optimal salary in costs
This principle involves the establishment of salaries in the amount that ensures the profitable activities of the enterprise, the acceptable reproduction of workers according to qualification and age. The size of the corresponding fund in a particular structure depends on a combination of factors. It is advisable to include the following points:
- industry specialization of the enterprise;
- occupied niche in the market;
- product competitiveness;
- level of production mechanization;
- vocational qualifications;
- level of external and internal specialization;
- the size of the loss of working time;
- state of labor discipline;
- the number of employees per unit of production and so on.
Establishing the laws governing the impact of these factors in quantitative terms gives the head of the company the opportunity to identify the optimal values of the salary fund, as well as ensure the profitability of the enterprise. This can be realized through correlation and regression analysis. It is he who makes it possible to determine quantitative indicators of the dependence of functions on the production factors influencing them. It is worth noting that for the criterion function in modern conditions it is advisable to take the cost of one ruble of the product, which at the same time shows the cost and losses (profit).
The principle of correlation of labor productivity and wage growth rates
An important principle in establishing a wage fund is the ratio of wage growth to labor productivity. In this case, a positive trend is the outstripping growth of the latter indicator. In the absence of such a trend, the amount of cash, that is, wages, will to some extent exceed the amount of consumer goods. So, part of the money will be without coverage of goods. Such a situation leads to violations in accordance with supply and demand, rising inflation, as well as a decrease in the competitiveness of an enterprise’s product on the market.
It is interesting to note that this indicator was included in the list of the most important in the administrative economy of the USSR. Unfortunately, today in Russian companies, insignificant attention is paid to him both from the leadership of structures and from the government of the country. The ratio of the growth rate of wages and labor productivity can be calculated as the ratio of the growth of the productivity indicator for a certain period to the growth of wages for the same time in percent.
For example, if labor productivity, subject to exclusion of the inflation factor for the year, increased by 6% in the company and became equal to 1.06, and salary growth - by 3%, that is, amounted to 1.03, then the ratio will be as follows: ST = 1, 06 / 1.03 = 1.03.
It is worth noting that a positive trend will appear when the ratio of these rates exceeds one (CT> 1). In the case of CT <1, the head of the enterprise needs to develop measures related to productivity growth or lower average salaries. It is worth adding that productivity growth in the company is ensured by introducing advanced production technologies, saving resources, increasing the qualifications of employees, reducing the loss of working time, reducing the number of auxiliary workers, and so on.
Final part
So, we examined the concept, essence, forms and principles of the organization of remuneration. In conclusion, it should be noted that the privatization of state structures and a decrease in production volumes of up to 50% in the Russian economy once led to excessive numbers and underemployment in many large companies. Even in such stably functioning structures as GAZ, BSZ and ZMZ, according to experts, the number of personnel is overstated by one third. Nevertheless, the implementation of a flexible social policy based on maintaining a stable workforce, part-time work (usually four working days), and restraining the growth of the average salary under the pressure of inflation - all this allowed us to avoid social conflicts and strikes. It should be added that similar ones were observed in the coal industry of Komi, Kuzbass, and Donbass, as well as in the automotive industry (AZLK and ZIL).
Thus, the management of modern organizations and enterprises must comply with the key principles of remuneration of employees, presented and discussed in detail in this article. This will allow them to effectively apply economic laws in practice, as well as ensure the development of human resources and the full reproduction of the workforce, which today plays a crucial role in practical activities. It is worth remembering that the main task of organizing wages is to make wages dependent on the quality of the labor contribution of both each of their employees and the team as a whole. A similar approach involves increasing the stimulating function of the contribution of each.