Salary Definition - Salary is one of the things that are important to every employee who works in a company, because the salary earned by a person can meet their needs. - Salary Definition
Hasibuan (2002) states that "Salary is the remuneration paid periodically to the permanent employees and have a definite assurance" (p. 118). Another opinion expressed by Handoko (1993), "Salary is the provision of financial payments to employees as remuneration for work performed and the motivation of the implementation of activities in the future" (p. 218). In addition to statements Hasibuan and Handoko, there are other statements regarding the salaries of Hariandja (2002), the salary is one of the important elements that can affect employee performance, because the salary is a tool to meet the various needs of employees, so that with salaries paid employees will be motivated to work harder. - Salary Definition
Another theory put forward by Sastro Hadiwiryo (1998), namely: - Salary Definition
Salaries may play a role in increasing employee motivation to work more effectively, improve performance, increase productivity within the company, as well as compensate for the lack of commitment and engagement that characterize today's workforce. The Company is classified as a modern, today many associate salaries to performance.
The above statement is also supported by the opinion and Lackson Mathis (2002), "Salary is a form of compensation linked to individual performance, group or organizational performance" (p. 165).
The role of wages - Salary Definition
According Poerwono (1982) the role of salary can be viewed from two sides, namely:
a. Aspects of the employer (the employer) is the manager - Salary Definition
Salary is an essential element in calculating production costs and components in determining the cost of goods that could determine the survival of the company. If a company provides salaries are too high then, would result in higher cost of goods as well and if the salary is too low will lead to companies having trouble finding employment.
Salary is an essential element in calculating production costs and components in determining the cost of goods that could determine the survival of the company. If a company provides salaries are too high then, would result in higher cost of goods as well and if the salary is too low will lead to companies having trouble finding employment.
b. Aspects of working recipients - Salary Definition
Salary is income received by someone and used to meet their needs. Salary is not the one - the only motivation of employees in the achievement, but the salary is one important motivation that urges employees to excel, so that high given the low salaries will affect performance and employee loyalty.
Payroll Functions - Salary Definition
According Komaruddin (1995) payroll functions not only help the personnel manager in determining a fair and decent wages, but there are still other functions, namely (p. 164):
Salary is income received by someone and used to meet their needs. Salary is not the one - the only motivation of employees in the achievement, but the salary is one important motivation that urges employees to excel, so that high given the low salaries will affect performance and employee loyalty.
Payroll Functions - Salary Definition
According Komaruddin (1995) payroll functions not only help the personnel manager in determining a fair and decent wages, but there are still other functions, namely (p. 164):
- To attract workers who have capabilities into the organization
- To encourage workers to demonstrate high achievement
- To maintain the achievements of workers over a long period
Payroll purposes - Salary Definition
According to Hasibuan (2002) payroll purposes, among others:
a. Ties of cooperation
With salaries terjalinlah formal cooperation ties between employers and employees. Employees must do the work - good job, while the employer or the employer must pay wages in accordance with the agreed contract.
b. Job satisfaction
With remuneration, employees will be able to meet the needs - physical needs, social status, and egoistiknya so as to obtain job satisfaction from his post.
With remuneration, employees will be able to meet the needs - physical needs, social status, and egoistiknya so as to obtain job satisfaction from his post.
c. Effective Procurement
If the program is set sufficiently large salaries, procurement of a qualified employee for the company would be easier.
If the program is set sufficiently large salaries, procurement of a qualified employee for the company would be easier.
d. Motivation
If the remuneration provided is large enough, the manager will be easy to motivate subordinates.
If the remuneration provided is large enough, the manager will be easy to motivate subordinates.
e. Stability employees
With the compensation program on the principles of fair and reasonable as well as external consistency kompentatif then stability is guaranteed due to employee turnover is relatively small.
With the compensation program on the principles of fair and reasonable as well as external consistency kompentatif then stability is guaranteed due to employee turnover is relatively small.
f. Discipline
With the provision of adequate remuneration of the employee discipline, the better. Employees will be aware of and comply with regulations - regulations.
With the provision of adequate remuneration of the employee discipline, the better. Employees will be aware of and comply with regulations - regulations.
g. The influence of trade unions
With a good compensation program effect is inevitable and the union employees will concentrate on his work.
With a good compensation program effect is inevitable and the union employees will concentrate on his work.
h. Government influence
If the salary program in accordance with laws - laws that apply (such as minimum salary limit) then government intervention can be avoided. - Salary Definition
If the salary program in accordance with laws - laws that apply (such as minimum salary limit) then government intervention can be avoided. - Salary Definition
