Title: Factors influencing pay systems in the manufacturing industry of Port Elizabeth
Abstract: Collective bargaining was impacted by the confrontation at Marakina and the role players, employers and unions were left looking for new creative alternatives to reward operational employees (blue collar workers).Then, finding a well-designed pay system is crucial for the success of the organisation, since collective bargaining is under pressure. The following determinants, job based pay, performance based pay, skills based pay, education and training, and tenure based pay were constructed from literature to formulate the conceptual model for the pay of operators in the manufacturing sector of Port Elizabeth. There are a number of factors that are at play in the determination and design of pay systems, which need to be considered. Two major pay systems are at the centre of this study and they are those based on the worth of the job and those that are based on employees’ skills, productivity, education and training, and tenure. Pay equity is at the heart of employment relationship and is the reference point with regard to the distribution of resources when economic productivity and profitability are achieved. The findings presented indicated that all the determinants, job based pay, performance based pay, skills based pay and education and training, with the exception of tenure based pay, were significant to the pay of operational employees. However, the multivariable regression model found that job based pay is more significant and should be modelled as the foundation of the pay system for operational employees. Other pay determinants, such as performance and skills based pay are best modelled as additional increments that accelerate employees’ pay.
Publication Year: 2014
Publication Date: 2014-01-01
Language: en
Type: article
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