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LECTURE ORGANIZATION OF WAGES IN ENTERPRISES Wages in all forms of economic organization is the main source of income of the employee, the basis of material well-being of his family members, it is the most effective means of encouraging employees to high performance and high quality work. The transition to a market economy are profoundly changing the content and organization of all work to pay. In economic theory there are two main concepts to determine the nature of wages: a)wage is the price of labor. Its size and dynamics are influenced by market factors and primarily supply and demand; b) the salary - this is the monetary expression of value of the commodity "labor" or "converted form of the cost of goods the labor force." Its value is determined by the conditions of production and market factors - supply and demand, which is under the influence of deviation of wage labor costs. It is also necessary to distinguish between nominal and real wages. Nominal wages or income is the total amount of money received by the employee for his expended labor, work done, services rendered or hours worked. It is determined by the current rate of wages or the cost of labor per unit of time of work. Real wages - is the amount of goods and services that can be purchased at a nominal salary. Wages play a huge role in the development of the state's economy, raising living standards. It gets reflected broad aspect of economic relations between society, the workforce and workers about their participation in social work and its payment. Wages performs several functions. Reproductive function is to provide opportunities for the reproduction of labor power socially normal level of consumption, that is, determining that the absolute wage, which allows for normal reproduction of the conditions of labor, in other words, maintaining and even improving the living conditions of the employee, who must be able to normally live (pay rent, food, clothing, that is, the essentials), which should be a real opportunity to take a break from work to restore power required to operate. Social function, sometimes separated from reproduction, but is a continuation and complement of the first. Wages as a major source of income should not only contribute to the reproduction of labor power as such, but also give a person to use a set of social goods - health care, quality recreation, education, education of children in preschool education, etc. And, moreover, provide a comfortable existence working in retirement. Stimulating function is important from the standpoint of the company's management: it is necessary to encourage the worker to labor, to maximize impact, increase efficiency. This is the purpose of setting the amount of earnings, depending on the progress made by each of the results of labor. The separation of payment from the individual work effort of employees undermines the basis for labor wages, leads to weakening of the incentive function of wages, to make it to the consumption function and dampens initiative and human rights efforts. The employee should be interested in increasing their skills for greater earnings, as higher qualifications higher pay. Status function implies that the wage status, defined by the amount of wages, employment status of the employee. Regulatory function - is the regulation of the labor market and the profitability of the firm. Of course, other things being equal, the worker hires to work at a company where people get paid more. But it is true, and more - the company is unprofitable to pay too much, otherwise its profitability decreases. Businesses hire workers, and employees offer their labor in the labor market. Like any market, the labor market has laws formation of prices for labor. With the organization of wages in the enterprise due to the solution of the following tasks: - To guarantee wages to each employee in accordance with the results of his labor and labor costs in the labor market; - To provide to the employer in the manufacturing process to achieve this result, which would allow him (after the sale of products on the market of goods) to reimburse costs and profit. The economic purpose of wages - to ensure the conditions of human life. The more so that higher wages may have a beneficial effect on the economy as a whole, ensuring a high demand for goods and services. Thus, the main requirements for the organization of wages in the enterprise responsible, as the interests of the employee and the interests of the employer, is: 1) Providing the necessary wage growth; 2) By reducing its unit costs; 3) Guarantee pay increases for each employee on the growth performance of the enterprise as a whole. Level of pay depends on many factors. First of all, this is - the economic condition of the organization, the overall socio-economic situation in the country and the region, supply and demand in the labor market, the state of the consumer market, the dynamics of consumer prices for goods and services, etc. Other definitions of wages: • the price of labor involved in the production process. • expressed in monetary terms of the gross national product originating in private consumption of workers in accordance with the quality and quantity of labor expended. • the costs of production and sales, is earmarked for salaries of employees. The tariff system is the set of standards, with the aid of which the differentiation of wages of workers in different categories depending on: the complexity of the job, working conditions, climatic conditions, the intensity of work, nature of work. Forms of the tariff piecework and time-based. system are: Piecework pay - a form of compensation of employees, in which earnings depend on the number of units produced them or the amount of work performed in accordance with their quality, complexity, and working conditions. Efficiency primarily at quantitative indicators. wage is aimed improving the performance The most appropriate use piecework under the following conditions: • The need for increasing the volume of activity; • the availability of quantitative performance indicators that are directly dependent on the employee; • The need to stimulate this part of the employee to a further increase in workload; • to increase the volume of work without compromising quality. When using piece rates there is a danger: • reducing the quality of products; • deterioration of equipment maintenance and as a result of premature equipment failure; • violations of the process; • violations of safety requirements; • raw materials and cost overruns.