Henri fayol's Management principle (principle of Remuneration)

Principle of Remuneration 

Remuneration means fair wages or salary.

Or

Money paid for rendering services (according to google).

》According to this principle HENRI FAYOL advocates that the employees in the organisation must be paid fairly, adequately and both the parties employees and employers must be agree on it. With the increase in profit 📈  the management should share some parts with their employees. It increases positivity in employees for organisation.

◇ Fair wages can be determined through :-

1. Minimum wage limit set by the government at that region.
2. Financial capacity of the firm.

3. The wage and salary paid by competitive firms.

● Advantages and positive results using this principle :- 

• Employees will remain motivated. 
• Reduces employees turnover.

 •Improves demotivation and commitment of employees. 

● Disadvantages and negative results while violating this principle:-

• Demotivation among employees. 
• Increases employees turnover. 

 •Lack of devotion and commitment.

(* turnover :-  the rate at which employees leaves the job)

Thank you

🙂