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Market economy Essay

One of the most difficult functions of Arizona State is the determining the rates of wages at various levels of the executive. It is not only complex, but significant both to the organization and employees. Employee wages decisions are crucial for the success of an organization. From a cost perspective alone, effective management of employee wages is critical because of the total operating costs. Another reason for studying wages from the organization’s perspective is to assess its impact on a wide range of employee attitudes and behaviors and, ultimately the effectiveness of the organization and its units.

Wages may directly influence key outcomes like job satisfaction, attraction, retention, performance, skill acquisition, cooperation, and flexibility. Supply and Demand of a correctional officer’s position The wages function as the main contributor to the supply and demand of officer’s organizational effectiveness by the following factors: 1) Wages serve to attract qualified applicants to the organization. Other things being equal, an organization offering a higher level of pay attracts a larger number of qualified applicants than its competing units.

2) Wages helps to retain competent employees in the organization. Although retaining competent workers is contingent on many factors, wage policies help by maintaining a fair internal

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pay structure and by providing attractive benefits. Turnover is thus reduced, along with costs associated with recruiting, selecting, and training replacements. 3) Wages serves as an incentive to motivate employees put forth their best efforts.. When employees put forth their best, average productivity of personnel increases.

Employees become stable in their respective places Position of demand increases in other states where pay structure is poor. States compete in the market to get the best talent for officers with such other states. A pay level that is too low relative to other states could lead to difficulties in attracting and retaining sufficient number of quality employees. As such, labor market competition can be seen as placing a lower boundary on pay level. In order to avoid such a situation, many states and departments emphasize that their total salary is equal to or better than other companies in the market.

How a correctional officers pay is determined and how the salary is structured Determination of Pay The primary purpose of wage is to assure management a sound system for employees an equitable wages for services rendered. The objectives of a sound wage administration programme can be subdivided into specific sub -goals: 1) Equitable payment in proportion to relative work to the organization. 2 Consistency of payments between comparable occupations. 3) Adjustment of payments in relation to changes in the market. 4) Recognition of individual capability and proficiency.

5) Comprehension of the plans by supervision and management. 6) Procedures to solve wages problems rationally. Some principles of wage administration are mentioned to make it more clear for determination of officers pay: 1)The enterprise should have a clear—cut plan to determine differential pay level in terms of divergent job requirements involving varied skill, effort, responsibility and working conditions. 2) An attempt should be made to keep the general level of salaries of the enterprise in line with that obtained in other states.

3) Adequate care should be taken to distinguish people from the jobs. 4) Irrespective of individual considerations, care should be taken to ensure equal pay for equal work depending upon flexibility of jobs — of course, variations maybe permitted within a pay range. 5) There should be a plan to adapt equitable measure for recognizing individual differences in ability and contribution. 6) Attempt should be made to provide some procedure for handling wage grievances. 7) Adequate care should be taken to inform the employees, about the procedure followed in determining wage rates.

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