Please enable JavaScript.

Coggle requires JavaScript to display documents.

Pay and Wages System - Coggle Diagram

- - - - The concept of ORP - payment calculated by reference to the mode of payment
      - For a weekly rated employee, the ORP is:
        Weekly rate of pay / 6 days
      - For a monthly rated employee, the ORP is:
        Monthly rate of pay / 26 days
      - For hourly, daily and piece rated employees, the ORP is:
        Total wages earned in the preceding wage period /
        Actual number of days worked during the wage period
  - - - Reimbursement of expenditure related to the employee’s work.
      - Termination benefits/retirement gratuity
      - Travelling allowance
      - Annual bonuses.
  - - - 2. On the written request (permission) of the employee and with the approval of the Director General of Labor ,for the purpose of:
        
        Cost of accommodation, food , services supplied to the
        employee by the employer.
        
        Any payment which the Director General is satisfied is
        for the benefit of the worker.
        
        Payment to a superannuation (retirement), welfare or
        thrift scheme.
      - 3. Without written request (permission) or consent of the employee , for the purpose
        
        Deduction of any payment of wages made by mistake to the employee during the preceding three months.
        
        Deduction for any indemnity (damages) due to the employer by the employee.
        
        Deduction authorized by the law (e.g. EPF and SOCSO contributions).
        
        Deduction of an advance on wages where no interest is levied.
      - 1. On the written request (permission) of the employee , for the purpose of:
        
        Payment to a cooperative society.
        
        Payment to a cooperative shop.
        
        Payment to a trade union.
- - - - more than 48 hours per week or
      - more than 5 consecutive hours without a 30-minute break
      - more than 8 hours per day or
  - - - Effect on the workers' efficiency
      - Effect on workers' motivation
      - Legal constraints
      - Type of system being used by majority of employers in comparable organizations and in the same locality
  - - - temporary increase of workload/demand
      - Low productivity of the workers
      - temporary shortage of manpower
      - Difficulty in recruiting of additional workers
    - - Effect on worker’s morale
      - Effect on productivity
      - Increase in cost of production
    - - Keep detailed records of
        
        department that do overtime
        
        num of workers involved
        
        overtime hours worked per month
        
        justification for overtime
      - Recruit more staff
      - Subcontracting of work
      - Tighten up supervision
      - Increase training
      - Invest in new technology to speed up production
      - Change payment mode from time-based to incentives given for completing particular task in a set time
    - - Production or service levels increase without hiring extra workers
      - Provides opportunity for workers to increase their income
    - - May cause fatigue which leads to accidents
      - May cause dissatisfaction amongst workers
      - Higher cost per hour of labour
  - - - Double Day
        
        Organization working 16 hours per day
        
        2 groups working 8 hours per shift
      - Triple Shift
        
        Organization working 24 hours per day
        
        3 groups working 8 hours per shift
      - Continuous
      - Semi Continuous
      - Split Shift
        
        Found in most hotel business
        
        Involves working several hours early in the morning, having time off and then continuing the same shift later in the day
        
        Should not exceed 10 hours although an employer could apply for exemption from this ruling
      - Rotating or Fixed Shift
        
        Worker on a double-day system alternates between first and second shift regularly (usually weekly)
        
        Worker in a continuous shift system rotate regularly between three shifts
        
        Employer must comply with Employment Act requirements when setting up shift roster
        
        A shift worker's weekly rest day must not be less than 30 hours
    - - Nature of the production technology (machinery needs to run continuously without break) e.g. paper, chemicals
      - To maximize productive use of plant and machinery
      - Nature of the services (Hospital, Police)
      - Customer service job (restaurant, cinema)
    - - Increase production cost
      - Workers' health affected (sleeping difficulties, eating habits change)
      - Women and night work
        
        the Employment Act says, “no female employee shall work in industrial and agricultural undertaking between 10 pm to 5am.”
        
        Currently, the Dept. of Labor has exempted all employers from this restriction provided (i) shift allowance be given, (ii) free transport and (iii) opportunity for rotation of shifts.
      - Stress and psychological problems (depressed)
  - - - either temporary or permanent
      - less than normal working hours (not exceed 70% of normal working hours - Employment Act 1955)
      - who?
        
        commonly found in retail sector, fast food restaurant
        
        those with lesser skills, require little or no proper training, job can be learn quickly
        
        want to earn some pocket money without full-time job stress
    - - Two people share one job, and divide the salary and other benefits between them.
      - Not 2 independent workers
      - SImilar job, but at different times of the day or week
      - Mostly professionals, retirees
    - - A system of working hours where the starting and stopping times decided by individual workers within a number of limitation set by employer
      - Problems
        
        Feasibility - not practical in some organization, whenever workers are interdependent/teamwork; office staff likely to be effective
        
        Supervision and communication - need to increase supervisors; communication problems may arise, so need core hours to overcome these problems
    - - Jobs that do not require employees to travel to the employer’s premises to do their work
      - Use ICT to work at home
      - Few people in Malaysia are involved, but a fashion in developed countries
      - Benefits
        
        Employees
        
        Increased opportunity for a dual income family.
        
        Childcare saving
        
        Flexible life scheduling, work, leisure and family balance
        
        Saving on petrol, TOLL, parking fees and formal clothing
        
        Less travel time, more effective use of work time
        
        Less stress and more casual work atmosphere
        
        Increased opportunity for community involvement
        
        Employers
        
        Improved recruitment and retention of skilled personnel
        
        Stress reduction and improved work quality due to better match between work habits and biorhythms
        
        Productivity improvement due to increase work efficiency
        
        Reduced absenteeism and related costs
        
        Operational overheads reduction (office space)
        
        Company more able to pursue affirmative action policies such as employment of the physically handicapped
      - Costs
        
        Lack of social interaction
        
        Lack of access of informal communication
        
        Isolation from the organization
        
        Lack of emotional support from peers
        
        Lack of visibility affecting career development and advancement
        
        Potential of overwork may increase work stress and burnout
        
        Lack of participation in organizational decisions and meetings
        
        Less personalized supervision
      - Not everyone is suitable, needs self-discipline to make sure work assigned is done
      - Related jobs
        
        Administrative, secretarial and accounting work
        
        Data processing and research functions
        
        Marketing and sales function
        
        Editing and function related to publication and ICT-related jobs
      - Disadvantages
        
        Distracted by children
        
        Need to device systems of control and communication
        
        Lonely
        
        Effort to ensure worker kept uptodate on company policies
        
        Not many companies likely to encourage due to potential problems