Building Regulations and Managing Salary Distribution Forms

How and how? In principle, QTL is a type of financial fund used to pay for labor costs, taken from the results of production and business (ie the enterprise's revenue). That is, to have a source of salary payment, the enterprise must have a source of income, must generate revenue. If the period of establishing QTL does not coincide with the production and business cycle, the salary fund is an advance. Paying salary, in the eyes of the business owner, is a form of investment. And all investments must be recovered and profitable. Therefore, the salary fund cannot be separated from the revenue from production and business of the enterprise. Regarding the scale and structure of QTL, there are many factors that simultaneously affect such as:

 Revenue scale of the enterprise.

 Scale and quality structure of human resources used by the enterprise.

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 The average salary level of enterprises in each period.

 Adjustments to Lmin, the allowance system and other employee benefits policies as prescribed by the government require businesses to implement.

There have also been quite different views on the need to plan financial resources for salary payments (simply called QTL planning). Some opinions say that the characteristics of planning are not compatible with the characteristics of the market. Salary fund planning is a subjective task, separate from the rules of the market. Salary is an agreement between the business owner and the hired employee, based on respect for the interests of both parties and objective adjustments of the market. QTL is a type of financial fund, compensated by the business's revenue. The source of salary payments depends on the total number of hired employees and the actual salaries of the employees. If QTL is planned, it will lead to subjective imposition, losing the flexibility of salary agreements as well as forms of salary organization, especially when the business situation of the business fluctuates due to objective impacts from the market (either a decrease in revenue, or a stagnation of business, or the business is facing

difficult to unify and negotiate demands of unions...). However, many opinions still support the need to firmly define the QTL plan and consider the QTL plan an important part of the business plan of the enterprise. Correctly, reasonably and promptly defining the QTL plan corresponding to the business plan will help the enterprise:

 Be proactive in paying salaries and wages according to the agreement in the labor contract.

 Fully and accurately estimate production and business costs, as a basis for determining cost price, selling price, expected consumption, revenue and profit.

 Provide management departments with documents to analyze and evaluate the effectiveness of resource usage options, including human resources.

In practice, managers have proposed many QTL planning methods, but the most popular is the method of establishing QTL planning based on the salary cost level for a revenue unit and the total revenue of the enterprise. To determine the QTL plan according to revenue, the planning content must determine the following parameters:

 Total expected revenue that the enterprise can achieve in the planning year.

 Total expected QTL expenses for all types of labor that the enterprise uses, to achieve the total planned revenue.

The above two parameters are the premise for determining the level of salary costs per unit of revenue in the planning year. This salary cost level will be the basis for the enterprise to allocate salary funds to each department, for each period of the planning year. Calculating the total QTL cost for all types of labor expected to be used to create the total planned revenue is the most complicated step, but will determine the reasonableness, reliability, and feasibility of the salary cost level. Both in theory and in practical experience, managers agree that accurate and scientific labor cost will be the premise for

decisive factor to estimate the total planned salary fund accurately, scientifically and reasonably. The reason is that the quality of the labor level system will directly affect the quality and reliability of the basic parameters used to predict the planned QTL such as:

- Expected number of employees

- Salary coefficient according to average job level of expected number of employees.

- Salary allowance coefficients are calculated in the planning year.

- The Lmin level that the enterprise chooses is based on the characteristics of the business sector; the complexity of the work group; the working conditions and financial capacity of the enterprise.

1.2.3.2. Lmin level management

This is the Lmin of the enterprise, which is referenced from the Lmin of the government, combined with the labor rental price on the market and the financial potential of the enterprise. In principle, the Lmin of the enterprise must not be lower than the general Lmin prescribed by the government. The Lmin level of the enterprise is also a basic factor for making a QTL plan. Therefore, to make a QTL plan, in order to increase the initiative in salary payment sources, enterprises can determine one or several Lmin levels. The Lmin level is also a factor affecting the increase or decrease in salary costs because, when Lmin increases, labor costs will increase, total salary expenses will increase. If total revenue does not increase or increases lower than the increase in total QTL expenses, it means that the use of human resources is ineffective. In fact, enterprises are very cautious when determining Lmin. The Lmin level of the enterprise is used by managers as the basis for human resource treatment policies, specific salary levels will depend on the determined Lmin and the coefficient of each salary level. The Lmin DN level can be considered as the wage price of the lowest level of labor in the total number of workers that the enterprise hires, working under normal conditions, completing normal jobs,

That is, jobs that do not require employees to have basic training. Therefore, Lmin should not be considered fixed, or if adjusted, it will only increase. Factors that need to be taken into account when considering and analyzing the adjustment of Lmin levels of enterprises include:

- Changes in the magnitude of the general Lmin issued by the government.

- Specific conditions of the enterprise (such as the location and importance of the enterprise in the national economy, the geographical location of the enterprise, special preferential regulations of the government for the enterprise...).

- Competitive pressure in the labor market, especially the labor supply market that requires high competition from employers.

- Information on supply and demand, prices in the regional and world markets for labor of equivalent quality.

- Demands from unions on wages and income.

- In enterprises with many business lines, or the business's operating areas are arranged in geographical areas that are quite different in terms of cost of living, cost of living for employees, it is possible to build a number of different Lmin, or one Lmin, but the same system of adjustment coefficients exists for the above characteristics. However, the factor that forces enterprises to always review their Lmin is the cost of living and the type of labor that is competitive in the market. Once the flexibility of Lmin is ensured, QLTL will reduce subjectivity and at the same time, will enhance the role of salary in human resource management of enterprises.

1.2.3.3. Management of labor and employment contracts

In general, the salary is associated with each specific form of salary that the enterprise chooses, which is the amount of salary paid for each unit of product, service or volume of work, volume of work... that each employee has completed. The term "salary" is often used in the form of salary payment.

Paying by the amount of products or services that each individual or group has completed. Although each form of salary payment has a compatible type of salary, determining the salary often has something in common: It is necessary to determine the labor level and labor price corresponding to each form of salary organization, as well as the type of labor used. The labor level is the basis for calculating the salary. In terms of nature, there are two types of labor levels: time level and output level. Time level, in the most general sense, is the number of units of time necessary and reasonable for employees (individuals or groups) to complete a volume of work, a unit of product, service, etc. The output level is understood as the total volume of work or unit of salary for work or unit of product, service that employees (individuals or groups) complete in a unit of time. In terms of quantity, the time level is the inverse of the output level; In terms of origin, the time level is the basis for calculating the output level. To build a labor standard system, managers have proposed a number of different norming methods, including quite traditional methods such as: Labor standardization based on statistical data; Labor standardization by calculation analysis or survey analysis; Labor standardization method by correlation comparison...

Regarding the issue of labor market management, there have been conflicting views on the role of labor market. There are opinions denying the necessity of labor market work, because the market mechanism is based on the recognition of costs, including labor costs, from the buyer and cannot be subjective to the enterprise. Labor market essentially determines subjective cost levels, in this case labor costs. Enterprise managers cannot impose cost levels on customers; especially when costs are not strictly controlled and managed. However, there are also many opinions supporting the need to strengthen labor market activities in enterprises. According to them, labor standards are a measure of labor costs, a basis for evaluating work, and for paying wages according to labor.

Without a measuring stick, there will be no proper and scientific management. Labor standards also help forecasting and estimating, analyzing and evaluating the quality of human resources. Labor standards are a necessary condition not only for managers, using it as a tool to check all wage costs of the enterprise, but for enterprises, it is a solid basis to explain and justify the reasonableness of their unit's wage costs. In Japanese automobile manufacturers: TOYOTA, NISSAN, managers and foremen understand very well the operating procedures on the workers' assembly line, and at the same time have a firm grasp of the time costs (down to the second, minute) required for each operation or combination of operations. Although produced by automated or semi-automated systems, Western economic experts still attach great importance to labor standards in their factories. In the Federal Republic of Germany, in industry, construction, and textiles, the form of payment by product and piecework is mainly applied, in which the labor norm is considered the key step''[27]. Labor standards, in short, are the basis of plans - an effective and indispensable management tool for enterprises in a market economy.

As stated above, to implement human resource policies and pay full wages to employees, in the salary payment plans, it is necessary to have a labor cost estimate. Labor cost estimate is the labor cost to produce a unit of product, service or complete a unit of work volume. Labor cost estimate also focuses the attention of employees, because thanks to it, they can know the salary they can receive after each unit of working time (day, week, month). There are two factors that make up each labor cost estimate, which are the labor rate and labor price. The general expression to calculate the unit price of salary payment is as follows:

- If calculated by time:

DG = Average speed x Average speed (2)

- If calculated by workload level:

Error ! (3)

In there :

- The cost is calculated for 1 unit of product, service, 1 unit of work volume.

- M Tg is the time to complete 1 unit of product, service, 1 unit of work volume completed.

- TL Tg t.i is the corresponding labor price (calculated for minutes, hours, days... corresponding to the unit of M Tg )

- TL ng is the daily wage (according to the convention calculated according to job level)

- M slg is the workload level calculated for 1 shift, 1 working day of a worker.

The system of allowance coefficients, depending on each enterprise and the current regulations of the management level, can be added to the two general expressions above. This is one of the factors that makes the labor price flexible and the labor price easy to adjust, to adapt to fluctuations from the market. The labor price is synthesized from determining the Lmin of the enterprise; the rank coefficient corresponding to each type of work, each type of product, service that the employee must perform; the current salary allowance system is calculated into the labor price. In general, in the labor price, the labor price is unstable, often fluctuates according to fluctuations in the labor market, even depends on fluctuations in the price level (inflation situation) of the economy. But the labor level is quite stable, because it measures the average, reasonable, necessary labor costs to complete a unit of work volume, produce a unit of product, service. It can be understood as a representative level of labor expenditure. The labor level changes only when the quality of labor changes, causing the general level of productivity to change; or when technical and organizational conditions change.

The technical and working conditions in which workers work have changed. Therefore, the labor level is the root, and the labor price is the tip. Managing the labor market is, first of all, managing the labor market. Managing the labor market (or rather, managing the labor market activities) focuses on the following aspects:

- Analyze and evaluate the current status of the enterprise's labor relations work. This is the step of providing information so that managers know the requirements and tasks to optimize the enterprise's labor relations work.

- Manage methods of determining labor productivity. Each method has certain advantages and limitations, suitable for each condition of the production and business organization, the level of the labor management staff, and the actual requirements of the enterprise.

- Calculate and build a labor rate system, ensuring that all work that employees are doing must have a rate. This is a very large requirement, but it cannot be met, otherwise the combination of human resource management and salary activities will become ineffective or may be disordered.

- Manage a team of experts in charge of labor relations work.

- Conduct propaganda activities to popularize and apply labor standards to production. Labor standards are both the focus of the interests of employees and subjective management measures of enterprises. Therefore, the organization and implementation of labor standards need the consensus of employees, otherwise the management measures will be purely administrative orders and coercion. At the same time, with the nature of measuring labor costs, the organization and implementation of standards also need emulation movements, and it will also generate competition among employees. This is a strong factor to increase labor productivity.

- Monitor and inspect the implementation process; detect shortcomings not only in the implementation organization, but also in the adaptation between people and technology, between people and working conditions.

1.2.3.4. Develop regulations and manage forms of salary distribution

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