Labour

1. Labour

2. Basic productive factors Productive process Company’s output The evaluation of the output Equipment Combination and consumption of the basic productive factors in order to produce The result of the firm’s production in the form of goods, services and work's delivery Other firm’s activities what make possible to evaluate the production (sale, transport etc.) Labour Profit Material The main idea of the productive process Labour

3. Regulations determining human labour management The process of the human labour management in the firm is determined with various regulations: • External • Labour Code and other various laws, government decrees etc. • The intra-plant regulations these regulations delimit: • Criteria of the human labour evaluation (the qualification catalogues of the professions) • Wage regulations • Authorities and duties of the human labour (the organisation manual, the working regulations) • Contractual settlements • Between employees and employer (collective agreement) • Between employee and employer (contract of work) Labour

4. The labour classification Human labour: The use of physical and intellectual abilities of particular employees in the productive process or in the activities connected with the assurance of the productive process Classification of labour: • Workers • Workmen Workers (we use especially their manual skills and abilities) • Productive workers: • they partake on the production directly, their work becomes the important part of the final production • Non-productive workers: • they partakes on the production assurance Labour

5. The labour classification Workmen (we use especially their intellectual skills and abilities) • Technical workmen: • in the case of structural production they ensure the production from the aspect of technical requirements for the productive process (workmen at the production preparation, site engineers, etc.) • Economical workmen: • they partake on the production with the assurance of economic needs of the firm (economists, accountings, economists of building orders, etc.) • Senior managers: • they assure the production from the viewpoint of organisation needs of the firm, their main activity is connected wit the management of all processes in the firm Labour

6. The labour evaluation The ways of labour evaluation in the firm involves two steps: • Assignment of the requirements for the human labour • Own evaluation Assignment of the requirements for the human labour • In the case of worker it concerns especially about the productivity and quality of his work • In the case of manager on various levels is to assign this requirements quite harder, because the activity of this kind of employee is more general then in the case of worker • It’s possible to define required activities, harder it is to describe required quality of work Labour

7. The labour evaluation Own evaluation • to compare the human labor with the certain type sample • type sample is assigned in advance according to the elected requirements for the each employee or better for each kind of the work activity • Evaluation of workers, when we are able exactly to assign the required form of output of work • individual evaluation: • it is necessary to implement the analysis, where we compare the firm’s needs required on the employee and the ability of each employee to provide these services • employees on the higher levels of firm’s management Labour

8. The labour remuneration The system of labor remuneration involves two parts: • wages • voluntary pleasures provided by the company Classification of wages: • Classification of the wages according to the character of activity • Time wage • Task wage • Combination • Classification of the wages according to the structure • Basic wage • Individual wage • Classification of the wages according to the compulsory payments followed from the legislation • Gross wage • Net wage Labour

9. Classification of wages Classification of the wages according to the character of activity Time wage • human labour is remunerated according to the time usage • hour wages • daily wages • weekly wages • month wages Task wage • it is remuneration according to the amount of produced work, that means the workers are remunerated according to work they produce • there is in advance assigned the wage connected with production of unit of production and the whole wage is established according to the produced amount. This wage could be calculated for: • individual: the wage is calculated for certain worker according to the his production quantity • working group: the wage is established for whole working group and later divided according to the inner rules • the delivery, fitting – task wage: there is a sum of money intended for wages of certain delivery of e.g. civil work and the wages are divided among the workers in dependence on the each person share on the whole delivery and the price of his work Combination • it is a remuneration partly in the time wages and partly in the task wages Labour

10. Classification of wages Classification of the wages according to the structure • basic wage • this is the wage that belongs to the employee according to the contract of work concluded between employer and employee (remuneration for performances or for the quantity of the performance) • individual wage • it is a remuneration for next performances that are not evaluated in the basic wage. It involves: • the wage incentives: it remunerates increased performances (e.g. the personal evaluation, bonus and premium, the rates on the firm’s economical results) • refunds of wages: holiday-leave, other impediments to work • additional and premium pay: overtime work, working at the weekend, working in bed conditions, etc Labour

11. Classification of wages Classification of the wages according to the compulsory payments followed from the legislation • It concerns about payments of the income tax, charges into the social and health funds • We recognise: • Gross wage: • the sum of basic and individual wage • Net earnings: • the wage after the reduction of the compulsory settlements from the wage • Income tax • Health insurance (4.5 % from the gross wage) • Social insurance (6,5 % from the gross wage) • Sickness insurance • Retirement income insurance • Unemployment insurance Labour

12. Voluntary pleasures provided with the firm The firm can to its employees provide following voluntary pleasures: • Health care • the firm ensures and covers the preventive check – ups, the firm contributes for spa, the firm ensures the conditions for the increasing of the working safety • Catering • firm can contribute from its sources for the catering in own or in the foreign eating places • Living • the firm can help to its employees to find or obtain the living with the providing of the firm’s flats, loans, ex-interest loans etc. • Superannuating scheme • besides the compulsory payments into the social funds the firm can provide voluntary payments to improve employee’s situation Labour

13. The basic factors that can influence the creation of the wage in the firm • Working function • each working function is connected with certain way of creating of a wage and the creation of particular wage depends on the character of the work • The worker’s performance and behaviour • in the case of determinable profession the wage is assigned according to the producing of determined amount of work, • in the case of indeterminable profession the wage depends on individual filling of working duties • The situations on the labour market • according to the demand for the labour the wages vary • in the case of low demand the wages decrease, in the case of higher demand for the labour the wages increase. Labour

14. Basic factors, those can influence the working performance • Personnel option • it is connected with the receiving of new workers and the other activities connected with personal management • the firm’s managers try to find right person for the corresponding working position, this could help to ensure efficient production • Working conditions • the working conditions are very important for every employee, we have to take care especially about following working conditions: • the work organisation • working hours: the duration and the layout in time (rozložení v čase) • the organisation of the workplace: the arrangement of the labour and of the working machines and machinery, the time arrangement of works • business climate: the relations between employees, the relation of each employee to the firm, the behaviour of the firm management in the face of the employees etc. • Voluntary firm’s pleasures • The remuneration for the work Labour

15. Costs for the labour power in the firm • Wages and compensations of the wages (in the case of holiday-leave etc.), this group of costs create about 70 % from the total costs for the label • Firm’s payment into the fund of social and health insurance, the amount is assigned according to the legislation • Health insurance (9 % from gross wage of the employee) • Social insurance (25 % from gross wage of the employee, it includes sickness insurance, retirement income insurance, unemployment insurance) • Social costs – these costs arise in the case that the firm has other costs connected with labor besides the costs assigned from the law • voluntary payments to the funds of social and health insurance, • costs connected with catering, living etc., • Assurance of the prevention and safety of work Labour

16. The ways of assigning of particular costs connected with labour power The employee’s wage consists from two parts, • the basic wage and • the individual wage (assigned individually according to the kind of firm, habits in the firm etc.) Costs for the time wage: • The costs for the labour work are assigned according to duration of the time usage in hours and the wage tariff in monetary units per an hour. • The wage tariffs vary according to the working function, kind of the firm, kind of the work etc. Wage size (C.U.) = Duration of time usage (h) x wage tariff (C.U./ h) • The time wage is used usually in the case, when the activity is indeterminable, that means that we are not able to assign the amount of work in measure units that the employee has to provide Labour

17. The ways of assigning of particular costs connected with labour power Costs for the task wage • To assign the costs connected with this kind of wages is more difficult Wage size (C.U.) = unit task wage (C.U./ M.U.) x workers performance (M.U.) • The unit task wage is assigned according to the following relation: Unit task wage (C.U./ M.U.) = norm of labour consumption (h/ M.U.) x wage tariff (C.U./ h) Labour