Investigation of Relation between Efficiency and Wage in Big Industrial Factory

Hamed Haji Ebrahim Zargar¹ Ahmadreza Kasraei²

1) MSc. Student in Industrial Management, Islamic Azad University, Central Tehran Branch
2) Professor Assistant, Industrial Management, Islamic Azad University, Central Tehran Branch

IOI Code : XYHC-BEHAA
Publication : 4th International Conference on Modern Research’s in Management,Economics & Accounting(4meaconf.com)
Abstract :
    Nowadays, different theories have been presented to explain the behavior of manufacturing firms in order to use the wages as a tool to improve the efficiency. In this view, a wage increase, is not a factor to increase the production cost, but is a factor for improving efficiency and productivity. Efficiency wage theories believe that rather than accept market wages, they can pay the wage, based on their goals that is not the same wages as markets. In this study, to investigate the relationship between wages and efficiency, one of the existing models was used. According to this model, wage has been divided into four sub factors: fixed salary, remuneration, overtime, bonus. This study has been carried out in one of the shoe manufacturing firms. To implement the research, first a sample selected and data gathered by questionnaire and the hypotheses tested by using SPSS software. Finally, the sub factors were ranked. The results show that the main hypothesis and the others are significant and fixed salary is in the first priority, remuneration is in the second priority, overtime is in the third priority and bonus is in the fourth priority.

Keywords : efficiency wage fixed salary remuneration overtime bonus