Concept of Time rate wages system

 Wages and salary administration is also an important function of Human resource manager. There are two types of wages organization pay to employees. These are Time rate and piece rate system. 

Time rate wages system-

The wages to the workers are paid on the basis of time they spent for the development of organization this system is called time rate wages system. 

In other words we can say that the process in which workers are paid according to their contribution of time in Production and concern activities of Production this process is called time rate wages system. 

It is fixed on the basis of unit of time like Hours, Days, weeks, months and years. 

Wage 

Time spent multiple Rate per unit of time

T multiple R

T Time spent in hours. 

R Rate per hour. 

Advantages

1. It is easy to implement in organization. 

2. It is beneficial to average workers. 

3. It provides regular income to employees so they are satisfied with organization. 

4. It maintains the feature of product or service. 

5. It minimize turnover of employees from organization. 

Disadvantages-

1. The speed of production is slow because without providing best talent employees get good wages. 

2. It requires continue supervision of employees. 

3. It does not inspire potential employees to provide their best for the development of organization. 

4. It is difficult to identify effective and non effective employees. 

5. Employees are satisfied with current situation so they do not provide extra energy, effort, resource for the growth of organization.