Direct Distribution – The Basic Part of Wages.

The most powerful influence on the efforts and endeavors of employees and determine the personal responsibility of employees in relation to business results. Therefore, income distribution needs and can be linked to business results. This is a distribution principle that is endogenous to business activities: business results are linked to the efforts, quantity and quality of labor and production activities of business participants.

Business results are distributed in accordance with efforts, with the quality of work is reasonable and becomes an economic driving force, further dividing the efforts of business members and in general for the close attention of business members. This principle is not contrary to the principle of parity, moreover it comes from the requirements of development: Development is carried out by efforts, constantly improving responsibility and quality of work, at the same time the results of development are distributed in accordance with efforts and improving the quality of work. The principle of distribution is linked to business results, is implemented on the basis of evaluating business results and determining the contributions of business members, from which the salary fund is determined in accordance with business results.

3. The principle of income distribution is based on the quantity and quality of labor.

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In the relationship between the employer and the employee (hired employee), the basis of this relationship is the market relationship. Here , they face each other as subjects of goods and their relationship is essentially an exchange relationship, a buying and selling relationship. But once the buying and selling relationship is complete, the use of labor belongs to the business owner. To manage the labor well and effectively use the hired labor, in relation to achieving the business goal of reducing costs and increasing profits, the business owner must not only organize, manage, and operate the labor force well, but also pay attention to the economic interests of the employees. Labor is a commodity that can be exchanged and the benefit of the buyer of this commodity is to effectively use that labor.

But how effectively labor is used depends not only on how the employer organizes and manages the labor force, but also on the decision

determined subjectively by the worker. This is a special property of the commodity labor power. We know that wages - the price of labor power - are determined when buying and selling and are agreed upon by contract between the employer and the worker. But when using labor power, there are two opposite trends: The employer wants the employee to devote all his effort to the job, on the contrary, the employee tends to increase his benefits by reducing as much as possible the waste of his effort: he still receives the price.

Firstly , labor power and labor are two different categories. Labor power is the ability and capacity to work of the worker, while labor is the activity in

that the worker uses labor to achieve a certain purpose. This difference causes a disagreement between the value of labor and the actual use of labor. The purchase and sale of labor, the price of labor is determined by the market, but the use of labor is a process that takes place after that purchase and sale. The business owner hires labor, the ultimate purpose is to use labor. In using labor, the business owner always tends to force the worker to work hard. Meanwhile, the employee tends to increase his benefits by reducing his effort as much as possible. To force the worker, the business owner can use labor organization and distribution, closely manage the labor process, however, how the worker works depends on how they actually use their labor, which organizational and management solutions cannot overcome. Workers, as the subject of labor commodities, also have goals to achieve economic benefits in using or applying their labor. This is what truly creates the motivation for workers to best apply their labor in the production and business process. Therefore, in a certain sense, payment according to the contract, that is, according to the principle of parity of the market mechanism, only stops at laying the foundation for income distribution, and is therefore a basic principle, of a dominant nature. Therefore, to pay accurately

and associated with the real results of use, or the labor process, then taking the results of labor, that is, basing on the quantity and quality of labor, is the central principle. This comes from the problem: The essence of hiring (buying) labor

Labor is the use of labor, so it is a matter of workers using their labor.

how labor works in the production and business process. Here , the problem of abstract labor, the problem of value, price and market takes a back seat, giving way to concrete labor, and thus to the consideration of concrete labor costs in the direct production labor process.

Second , labor is a creative activity. In the process of development, creativity increasingly becomes a decisive function in labor activities.

labor, therefore, becomes a decisive factor for the economic development process in general and business activities in particular. In labor activities, organizational and management solutions can to some extent control and pressure workers.

The workers work hard, but those solutions are of little effect on the creative function of labor. Only economic benefits can form the internal motivation for workers to be creative in the process of applying their strength. To form creative motivation for workers, payment or income distribution based on the results and efficiency of labor, therefore based on the quantity and quality of labor becomes a necessity.

4. Principles of income distribution associated with sustainable development .

In economics, sustainable development is effective, stable and equitable development. These three criteria represent the high quality of the expanded reproduction process of the economy. There are many different processes involved in sustainable economic development. In particular, the distribution of income to individuals in enterprises has a special meaning: Forming an economic basis for the reproduction of high-quality human beings. In turn, the reproduction of high-quality human beings not only forms the foundation for sustainable development in general, but also for business activities in particular. We know that, on the one hand, employees in relations with business entities are separate relationships, but that is

basic relationship in a market economy, the economy of the business process. Therefore, if the relationship between the employer and the employee is well resolved, in which case the relationship of income distribution is satisfactorily resolved, the reproduction of labor power, that is, the reproduction of a decisive part of the productive forces of society, will take place well. In a certain sense, the reproduction of labor power based on reasonable income distribution will reproduce a solid foundation for a high quality of reproduction in business. On the other hand, the employee is also the owner of a family, that is, a basic cell of society. If income is well distributed, a good economic foundation will be formed for the family. On a solid economic basis, generations in the family are well nurtured, thus developing well, which will be the foundation for sustainable development in general, and for businesses in particular. Here , through income distribution, a model of close connection between the three basic elements of a society will be formed: market - business - family.

Income distribution based on sustainable development is a modern income distribution principle. It is based on business in a continuous development process, with high efficiency, stability and fairness. This distribution principle requires placing income distribution for individuals in overall development, that is, placing individual distribution beyond the separate interests between owners and workers, beyond immediate and temporary interests.

3.3.3. Implement income distribution forms that are appropriate to the market mechanism within the Corporation.

In order to distribute income to individuals in the enterprise to implement the distribution principles of the market economy, thereby meeting the requirements of modern business of the enterprise, the form of distribution, specifically the form of remuneration - that is, the form of payment between the buyer, the business owner, and the seller, the employee, has a special meaning. That special meaning is shown in the following aspects: a , Correctly reflecting the results of labor and in general the results of the activities of the employees in the enterprise, moreover, determining

accurate determination of the quantity and quality of labor of workers.

This is the basis for determining the level of contribution of employees to business results, therefore, it is the basis for determining the price level, or the actual payment level of business owners and employees. b , It is the basis for business owners to organize and manage well in the field of labor, and moreover, decide to change or improve production methods, business methods in relation to saving labor and increasing labor productivity. It can be said that the form of payment is a factor in creating and maintaining a good relationship between business owners and employees. The form of payment, or appropriate payment, is beneficial for both employees and business owners.

3.3.3.1. Direct distribution – the basic part of wages .

There are basically two forms of wages, time wages and piece wages.

a, Time-based wages . This is the basic form of remuneration. In business activities

Business activities of enterprises have many jobs whose work results cannot be expressed in quantifiable products. These are jobs in the fields of management, administration, administration, or miscellaneous. Because the characteristics of work results do not manifest in quantifiable products, payment by time becomes necessary. Of course, time, in a certain sense, is a basis for payment, but in many cases it is not the basis for calculating wages. In specific jobs, time is an indirect way of calculating the amount of work. For example, in one hour, a worker can usually do a certain amount of work, and from the amount of work, people set the price for an hour of work, and so on. These are often simple jobs, the amount of work cannot be measured accurately, so it is also estimated to be converted into time to calculate wages. What is worth noting is complex jobs. These jobs not only do not result in specific products, but also do not depend on the time of implementation, but have a very decisive meaning for the results of a series of jobs, or for the entire result.

business. There are also cases where jobs do not occur regularly, but the control of those jobs or timely resolution of those jobs that do not occur regularly determines the overall operation. In these types of jobs, workers do not work continuously but only work when special jobs appear. In these cases, the form of payment is of course based on time: monthly salary . But how much is the salary? Of course, these are complex jobs that require high quality and are important to the overall business efficiency, so how the business owner pays depends on the market correlation and on the profitability of those jobs for the entire business operation. Based on the supply and demand in the market for the type of high-quality labor needed, and on the profitability of the labor

In that case, the employer will decide what wage to pay. Here , the wage will be determined by the level at which high-quality workers will accept and the level of profit that the employer considers acceptable.

It can be said that the appropriate salary is the decisive factor in attracting brainpower, or high-quality labor, and in turn, the brainpower of high-quality human resources paid in the form of time has a special meaning in determining the quality and business efficiency of the enterprise, especially for the Electricity Corporation, an enterprise whose business content is the production and supply of electricity, a factor of production and life of society, attracting

The more quality brainpower becomes decisive, the more time-based compensation needs special attention.

b, Piece rate wages . This is a basic form of remuneration in industrial and service sectors where the results of work or products of work can be quantified. The advantage of piece rate wages is that they reflect

reflects quite accurately the quantity and quality of labor. Because the relationship between quantity, quality of labor and labor results is quite close, sometimes just a proportional relationship, can be measured accurately, therefore, the form of payment according to labor

The action ensures a fairly accurate correlation of interests between business owners and employees.

work for hire, so the form of payment by product motivates workers

work effort: while pursuing increased income by producing more products, workers increase the quantity, especially the quality, of their labor.

In the form of payment by product, there is a form of payment by volume of work. In many jobs, the results of work or products of labor

A job is a certain amount of work. The amount of work of this type can be

measurable, so piecework can be used. On the other hand, this type of work is not part of a chain, that is, it is not continuous and regular, or it is independent work, to encourage workers to be proactive.

To organize the labor process and apply measures to increase productivity, it is possible to use the form of payment by product, which here is according to the volume of work, but in the form of contract work. Contract work can be contracted by each part of the work, or can be contracted in a series of works related to the completion of several stages of work. Because it is a form of payment by product, contract work especially increases the responsibility of the contractees, while reducing the management costs of the business owner.

c, Mixed wage form . In the electricity industry, there are two types of jobs.

Special: i , Work with many serious risks, related to health and life; ii , Work operating in a large space, even separate from the worker's place of residence. These two types of work, workers often do not like to choose. In the old salary regime and mechanism, there are often salary allowances, hazard allowances and remote area allowances. These allowances are of an incentive nature and are often not suitable for labor costs and are not "encouraging" enough. We know that, in the electricity industry, safety in electricity production and supply holds a particularly important position and the probability of incidents related to human health and life is not small, as well as activities in remote areas with low quality of life, requiring a lot of travel, quite difficult are special jobs. This special nature is not necessarily within the framework of the time-based salary form; are also not included in the product-based remuneration framework, so they can be considered mixed or special remuneration jobs. Wages here are determined

determined by the market based on agreement between the tenant and the employee.

It should be noted that these jobs require as much seniority as possible. To have senior workers, that is, skilled workers with high years of experience, the remuneration must pay attention to maintaining a workforce that is committed to the profession and the work. In other words, the remuneration must be appropriate. In addition to wages, there must be an appropriate accident insurance regime so that workers can work with peace of mind, and when an incident or accident occurs, the victim is properly compensated.

3.3.3.2. Non-salary income .

a, Insurance . In business activities, employees have health risks such as illness, accidents, and cannot work continuously, have to take a break, or the business also has economic risks, or caused by the business cycle, so there are periods of little work, or no work, employees are forced to take a break, or have to change jobs, or even be fired. Of course, when they reach retirement age, employees still continue to live and need a source of income. In any economy, all of these are resolved on the basis of the results of human labor activities, only the way of resolving them is different. In a market economy, risks in production, business activities and leaving work after the working period are resolved by the insurance system. The economic essence of the insurance system for employees is that a part of the employee's wages or income is separated and established into an insurance fund. This insurance fund generally includes health insurance, personal insurance, social insurance, or pension. In addition, there is special insurance for jobs with many risks and these risks can endanger life or part of the human body.

It can be said that the insurance system is a special distribution method of the market economy, an indicator of industrial-market civilization. It is an inevitable economic basis of the social security state. In the cost-benefit relationship, enterprises, while pursuing profits, often cut into the wages of workers by not implementing the insurance system seriously.

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