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Behavioral theory – Wage theories
Compensation Management
Prepared By
Kindly restrict the use of slides for personal purpose.
Please seek permission to reproduce the same in public forms and presentations.
Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
Behavioral theories
• Many behavioural scientists
— notably psychologists and
sociologists- like March and
Simon, Robert Dubin, Eliot
Jacques—have presented
their views on wages and
salaries on the basis of
research studies and action
programmes conducted by
them.
Behavioral theories
• It has been found that wages
are determined by such factors
as . size and prestige of the
company, strength of the
union, the employer’s concern
to maintain the workers,
contribution by different kinds
of workers, etc.
Behavioral theories
• Wage differentials are
explained by social norms,
traditions, customers prevalent
in the organisation
psychological pressures on the
management, prestige
attached to certain jobs in
terms of social status, need to
maintain internal consistency
in wages at the higher levels,
the wages paid for similar jobs
in other firms, etc.
Behavioral theory – wage theories   compensation management - Manu Melwin Joy

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Behavioral theory – wage theories compensation management - Manu Melwin Joy

  • 1. Behavioral theory – Wage theories Compensation Management
  • 2. Prepared By Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations. Manu Melwin Joy Assistant Professor Ilahia School of Management Studies Kerala, India. Phone – 9744551114 Mail – manu_melwinjoy@yahoo.com
  • 3. Behavioral theories • Many behavioural scientists — notably psychologists and sociologists- like March and Simon, Robert Dubin, Eliot Jacques—have presented their views on wages and salaries on the basis of research studies and action programmes conducted by them.
  • 4. Behavioral theories • It has been found that wages are determined by such factors as . size and prestige of the company, strength of the union, the employer’s concern to maintain the workers, contribution by different kinds of workers, etc.
  • 5. Behavioral theories • Wage differentials are explained by social norms, traditions, customers prevalent in the organisation psychological pressures on the management, prestige attached to certain jobs in terms of social status, need to maintain internal consistency in wages at the higher levels, the wages paid for similar jobs in other firms, etc.