In: Economics
Discuss the contributions of economics to employee and management motivation and pay.
Human Capital is the most important capital for any enterprise. It is accountable for all decisions made, for each and every job done and for each and every outcome. Employees should be adequately treated and empowered in compliance with industry practises by delivering the highest remuneration and benefits. The lucrative pay would also help to recruit and retain the best workers. It is the remuneration earned by an individual in gratitude for his or her service to the company. It is an integrated activity that includes managing the work-employee relationship by supplying workers with monetary and non-monetary incentives. It is an important aspect of the management of human resources and seeks to inspire employees and increase the productivity of the company.
In return for payment of money or payment in kind, economists interpret jobs as an exchange of labour resources. They often view wages, especially demand and supply, as a feature of labour market dynamics. Wage theories thus seek to clarify in this way how wages are calculated and how wage relationships are formed. There are several different theories of wages, historical and contemporary, that refer to different types of wages paid and different wage determination issues.