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Thursday, Dec 06, 2007
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Opinion - Letters
Differential wages

This has reference to the view of the Chairman and Managing Director, Bank of Baroda, Dr A .K. Khandelwal, that an employee’s career has to be tailored according to his strengths (Business Line, November 28). It is indeed true that an organisation, be it in the manufacturing sector or in the tertiary sector, cannot have a standardised approach for measuring the performance of the employees. It is imperative that the entrepreneurs dangle the carrot of high wages to lure extraordinary talents to their companies.

Like the piece-rate system enhances the output in cottage industries and some small-scale units, the differential levels of wages/salary determined by performance, including in government enterprises and banks, can help them maximise the efficiency and minimise the costs.

S. Ramakrishnasayee Ranipet, TN

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