Deciding how much to pay an employee is an issue that just about every employer struggles with at one time or another. For a large corporation, the paying systems are designed and operated by the Human Resource Department while for small organizations, the paying system are more to informal systems.
Worker’s wage should be compared with the production which is includes worker motivation and satisfaction, or be linked to decision about a company’s strategy. In addition, wages is not only involving worker’s production or organization’s strategy, but it is also influence the worker’s moral. First, the attitude of the employee and second, society which concerned with people’s welfare.
In the market economy, the wages of the workers is determined by the forces of the market. The how pay in the market should be considered by all the organizations in the market place so that the workers may have a set of just pay.