Test Papers / Previous Question Papers of Indira Gandhi National Open University MS27 (S) Wage and Salary Administration June 2007

MANAGEMENT PROGRAMME

Term-End Examination

MS-27 : WAGE AND SALARY ADMINISTRATION

Time : 3 hours
Maximum Marks : 100
(Weightage 70%)

Note : (i) There are two Sections A and B.
(ii) Attempt any four questions from Section A. Each question carries 15 marks
(iii) Section B is compulsory and carries 40 marks.

June 2007

SECTION A

1. What are the objectives and principles of job evaluation? What are its advantages?

2. What are the main featuers of the Payment of Bonus Act, 1965? The Act has no relevancein the present economic situation of the country. Critically examine.

3. Give an account of the various types of wage differentials. They are necessary both in the interests of efficiency and in the interests of justice. Discuss.

4. What are the well-known wage incentive systems? When incentive schemes are applied in a particular undertaking, the interests of employers and workers may be seriously affected if provision is not made for suitable safeguards. Discuss.

5. The industrial wage structure in India consists of various components such as a basic wage, a dearness allowance, annual statutory bonus and a host of incentives and fringe benefits. Discuss.

6. Attempt any two of the following :
(a) Main features of The Minimum Wages Act, 1948
(b) Gain-sharing and Profit-sharing schemes
(c) Compensation planning

7. Write short notes on any three of the following:
(a) Compensation policy at macro and micro level
(b) Managerial compensation
(c) Issues revolving around reward systems
(d) Time and Plece rate system of wage payment
(e) V.R.S.

SECTION B

8. Read the following case and answer ths questions given at the end :

CASE

The United National Bank has just decided to open a branch in a town "X", which is an exclusive resort located about 40 km away from a large city "Y". There is no bank in that town at present.

The United National Bank is anxious to determine the appropriate salary for the clerical staff it expects to recruit. Clerks in the bank's offices in the neighbouring city "Y" receive a starting salary of Rs. 3,000 a month. As a matter of company policy, pay scales have been fixed on a par with other banks in the city.

A survey of local establishments at the town "X", primarily insurance offices and other comparable concerns, indicates that the salary for qualified clerical personnel is Rs. 3,500 a month. The higher salary in town "X" may be attributed in part to the substantial higher cost of living, the limited number of people seeking employment, and the fact that there are no other banks. Banks in city "Y" have traditionally paid lesser salaries than other establishments, on the ground that banks offer better working conditions and higher dignity.

Questions :

(a) What should be the salary structure for the clerical staff in the United National Bank?

(b) If there is difference in pay scales in two different locations, how could the bank justify the same?

(d) Give details of dat a/information to be collected from the comparable concerns, as a part of compensation survey.

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