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21 February, 2021

Discuss the factors determining wages

 A number of factors can act as determinants of the amount of wages of employees of

Organizations in Bangladesh. In this book we have identified the following factors that are

Discussed shortly:

1. Collective bargaining: The bargaining power of the employees can influence the

Amount wages. If the bargaining power is strong rate of wages is high. Other wise it may set

at low rate.

2. Company ability: If the company has high financial ability, employee can get high

wages rate. On the other hand, low financial ability can influence the employee to accept low

rate.

3. Labor market: Available manpower in the labor market can increase the' bargaining

strength of management and employee then get lower wages. Otherwise rate may be high.

4. Relative worth or the job: High position ‘of jobs can ensure' high wages but' low

position can not earn so. Therefore; relate worth of jobs act ,as universal factor influencing

rate of wages.

5. Changes In price level: Due to change of price level, employees have the scope to

place demand for wages changes. ' If price level is changed heavily, rate of wages is high

otherwise experiences minor changes.

6. Government legislation:' In case of public' sector dominance' wage scale is

determined and charged by the govt. of Bangladesh. If govt. machinery act positively and

liberally, employees get high wages.

7. State of competition: There are many competing origination in Bangladesh . So

change of wage rates depends on the change of rates of other organizations. Because

management usually follows instance of competing organizations.

8. Ability of workers: Skills and efficiency of workers-also convince the management

for higher wage rates. Otherwise skilled workers turnover rate may ~ high. '

9. Nature or work: It is the ninth factor influencing the rate of wages.' If the job nature

is risky employees get higher rate; But workers ‘in simple jobs get minimum wages.

10. Working, time: More time for work earn higher rate. While workers who need not

work more, can not convince the management for higher rate. Customers' pressure also can

influence to set time for work high or less.

11. Facilities or the jobs: Some works have higher facilities such as transfer,

accommodation, overtime etc. The real wages of these Jobs are higher. Fewer facilities can, earn less real wages.

12. Scope of additional income: In some works. honorarium for extra work,

"bakhshish ", increase the rate of wages both in cash or in kind. In such eases; employees

can not insist for higher wages.

13 .. Preferred work: In some cases, employees prefer some work, because. of their

status, benefits, image of the organization and so 'on. If their demands are satisfied, they

become happy with. a particular wages.

14. Possibility of career development: Possibility of career development can

influence the present rate of wages. Jobs with high possibility of career development may

initially have low wages. The jobs, which have no future growth possibility, give high wage . .. . rates. .

The above-mentioned factors can determine the rate of wages in the business and

industrial workers in Bangladesh. If all these factors behave positively, employees can earn

high rate of wages. If not, employees get lower rates

A number of factors can act as determinants of the amount of wages of employees of

Organizations in Bangladesh. In this book we have identified the following factors that are