MS-27 Wage and Salary Administration Sample Paper
MBA - Master of Business Administration
Note: There are two sections A and B. Attempt any four questions from Section A. Each questions carries 15 marks. Section B is compulsory and carries 40 marks.
1. What is the role of Compensation in an organisation? What are micro-level consideration which corporate Compensation Policy should take into account?
2. Critically discuss the types of wage theories and also discuss their relevance in today's world.
3. What are the methods of job-evaluation? Analyze critically with suitable examples.
4. Discuss the concept of social security and fringe benefits. How are they related? Discuss with suitable example.
5. Critically examine Voluntary Retirement Scheme. Can you suggest other methods to deal with redundancy?
6. Write short notes on any three of the following:
(i) Performance linked pay
(ii) Living Wages
(iii) Wage Board
(iv) Incentive Payment
(v) Competency related wages
SECTION B
Please read the case given below and answer the questions at the end.
In Patel Metal Works, there was a practice of working regular overtime in Maintenance Dept. Some of the maintenance workmen who were suspected to be in league with their supervisors earned about 150 to 200 per cent of their wages as overtime. It was a known racket. The workers of Maintenance Dept. who did not earn any overtime as well as the workers of other dept. were very unhappy. They, therefore, jointly represented to the management that such an unhealthy practice should be stopped. They also accused that some of the supervisors were also getting a share form out of overtime earning. Besides planned absence, they were showing 2 hours jobs taking 12 hours for earning overtime.
The management did not take it seriously and Maintenance Head
justifies excessive overtimes due to
1. Shortage of people in Maintenance dept.
2. Increase in production with the result that normal maintenance
work during normal working hours was not possible, and
3. Some workers have specialized for specific machines, as such
help cannot be obtained from elsewhere.
The Maintenance Head felt that other workers were jealous of the workers getting more earning. He, however, assured of better control of overtime in future. In the meantime the management wanted to improve the standards of production on some of the machines, as there was improvement in the tooling system. Workers were willing to increase production, provided management gives them overtime. Management did not agree and argued that because there has been improvement in the tooling systems, there should be increase in production. They demonstrated this also. Inspite of all this, thee was no change in production and workers insisted on overtime.
Management called a meeting of the unions to discuss and resolve the issue. The unions argued that if management ignored legitimate demands and was not ready to control overtime in Maintenance Dept., they could not persuade workers in Production Dept., they increase production, though there was scope to do so. Management assured them to reduce overtime Maintenance Dept. and to ensure that no worker will get more than 50% of wages as overtime. Due to this decision of management, there was a sudden drop in the productivity of the maintenance workers. They showed indifference and wasted time on one or the other pretexts. In view o this negative attitude, management issued charge sheet against some of the maintenance workers for willful negligence and showing down the work.
The unions once again took up the matted that management was harassing the workers. The management called a meeting of their supervisors to discuss the problem, particularly the behaviour and attitude of the unions who had serious complaints against the maintenance workers. Obviously, management was anxious to have better relations with the unions and improved productivity.
Questions:
(a) Identify the issues in the case.
(b) Analyse the causes that led to the problem.
(c) As a manager, what would you do to solve the problem?
