Factors of Successful Wage Plan (Cost Accounting):
- Simplicity: The plan should be simple to understand and also easy for calculation.
- Productivity: The plan should increase productivity to lower the cost.
- Regular: The system should ensure regular payment of wages without delay to workers.
- Reward: The skilled workers should be properly rewarded as compared to the inefficient workers.
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Feature of a good wage system:
The essential feature of good wage system are as follows:
- This system should ensure equal pay for equal work.
- Workers should be paid according to their merits.
- Skilled workers should be paid more as compared to the unskilled workers.
- The system should be fair to both employer and employee.
- The system should aim at increasing the morale of the workers and reducing the labor turn over.
- The method of calculation should be easy and simple to calculate by workers.
- It should be flexible to meet necessary changes.
- The system should not violate any local or rational trade unions agreement.
- It should be based on scientific motion study.
- The system should be corrected to the capacity of the organization to pay.