---
title: "Wage/salary factors; training methods"
subject: "Organization and Management"
chapter: 7
key: "semester_7/organization_and_management:wage-factors-training"
source: https://www.bctengineer.com/q/semester_7/organization_and_management/wage-factors-training
site: BCT Engineering
---

# Wage/salary factors; training methods

Organization and Management · Chapter 7: Personal Management

- Asked in: 2072 Chaitra, 4+4 marks
- Video: [wage system and factors influencing wage system](https://www.youtube.com/watch?v=SFB8GhWkbjQ) — ᴀʏsʜᴀ ᴋʀ
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/organization_and_management/wage-factors-training
- Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-7

## Question

What are the different factors that affect wage/salary structure? Explain different methods of training manpower.

## Short answer

Wage factors include labor supply-demand, ability to pay, cost of living, legal minimums, union bargaining, and job evaluation. Training methods are on-the-job (coaching, rotation, apprenticeship) and off-the-job (lectures, simulation, case study, vestibule training).

## Answer

#### Factors affecting wage/salary structure
1. **Supply and demand of labour:** Scarce skills pay more.
2. **Ability to pay:** Profit and financial strength of the firm.
3. **Cost of living:** Rising prices push wages up.
4. **Laws:** Labour Act, 2074 and the minimum remuneration fixed by the Government of Nepal.
5. **Trade union bargaining.**
6. **Job evaluation:** Difficulty, responsibility and skill level.
7. **Employee's education, experience and performance.**
8. **Prevailing rates** in the industry and region.
9. **Management policy.**
10. **Working conditions and risk.**

#### Methods of training manpower
**A. On-the-job training**
1. **Job instruction/coaching:** A supervisor shows and guides the trainee.
2. **Job rotation:** Moving between jobs to widen skills.
3. **Apprenticeship:** Combined classroom and work, common in technical trades.
4. **Understudy/assistantship:** Learning under a senior in order to take over later.
5. **Internship** for fresh graduates.

**B. Off-the-job training**
1. **Lectures, seminars and workshops.**
2. **Case study:** Analysis of real situations.
3. **Role play:** Acting out situations to learn skills.
4. **Simulation:** Models of the real task, e.g. a flight simulator for pilots or a control-room simulator for power-plant operators.
5. **Programmed instruction and e-learning.**
6. **Vestibule training:** Practice on duplicate equipment away from the production floor.
7. **Conferences and study tours.**

On-the-job training is cheaper and practical; off-the-job training allows concentration on theory. A combination is best.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Why do scarce skills command higher pay?
   A. Because of the supply and demand of labour
   B. Because of low cost of living
   C. Because unions are weak
   D. Because of age
   Answer: A. Supply and demand of labour: scarce skills are paid more. (Key point: Supply and demand)

2. Which factor relates to a firm's profit and financial strength?
   A. Cost of living
   B. Ability to pay
   C. Job evaluation
   D. Prevailing rates
   Answer: B. Ability to pay depends on the firm's profit and financial strength. (Key point: Ability to pay)

3. Which is an on-the-job training method?
   A. Case study
   B. Vestibule training
   C. Job rotation
   D. Role play
   Answer: C. Job rotation moves workers between jobs at the workplace; the others are off-the-job. (Key point: On-the-job methods)

4. What is vestibule training?
   A. Learning under a senior to take over later
   B. Practice on duplicate equipment away from the production floor
   C. Moving between departments
   D. Reading manuals only
   Answer: B. Vestibule training uses duplicate equipment away from the production floor. (Key point: Vestibule training)

## Related in Organization and Management

- [Incentives; factors affecting wage/salary](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Aincentives-wage-factors) — Organization and Management, chapter 7, asked 3×
- [Interview, wage vs salary, incentive](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Ainterview-wage-incentive) — Organization and Management, chapter 7

## Related in other subjects

- [Project finance; sound capital structure; factors](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aproject-finance-features-sound-capital-structure) — Project Engineering, chapter 6, asked 2×