Question

Explain the principle of remuneration.

Answer 1

Every individual joins the organization with the main aim of earning his bread and butter. The wages or salary which he earns for his work helps him to fulfill the basic and other needs of life. The wages or salary must be in equality with the work done by him so that he gets satisfied and can perform better.

Fayol is of the view that each employee must get fair remuneration so that the employee as well as the owner gets the same amount of satisfaction. The remuneration system must be such which provides for the adequate remuneration to the employees, motivates the employee to perform better, and may ensure safety & security, raise standard of living of the employees.