Minimum Wage Determination: Theoretical Approaches and Management Practices

Running head: REWARD MANAGEMENT
Reward Management
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Table of Contents
Introduction......................................................................................................................................3
The contrasting theoretical approaches to minimum wage determination......................................3
The extent to which these stakeholders approached aligns with contemporary reward
management.....................................................................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
The report is prepared to adders the perspectives of different types of stakeholders in
business on the management of rewards, benefits and compensation based on the organizational
perspective. According to the case study, it can be understood that the rules and regulations in
Australia maintained has helped in creating fair work commission to make a national minimum
wage order. It is the duty of the minimum wage panel to conduct the review of annual wages
during each financial year and ensure that the workers’ needs and requirements are kept fulfilled.
One of the most important legislation can be the Fair Work Act that has created few
requirements of the processes that are needed to be reviewed. Thus, the topic will discuss the
perspectives, views and opinions of the various stakeholders and ensure that they have reviewed
the minimum wage conditions efficiently (Aubert et al. 2014).
The contrasting theoretical approaches to minimum wage determination
The wage determination theoretical approaches have been combined, as presented in the
FWA, is needed for determining the right structure of wages provided to the workers and ensure
that it benefits both the employers and employees of the various business organizations in
Australia. The topic will also illustrate the reviews and perspectives of the FWC to check
whether the aims and objectives of the FWA have been achieved or not. Based on the
submissions of ACTU and employer organisations, it could be understood that the Fair Work Act
was managed by the Expert Panel, who believed that it could accomplish the requirements of
reviewing the national minimum wage in the form of rewards provided at each of the financial
years. Based on the feedbacks of the Expert panel, who are also regarded as important
stakeholders, the national minimum wage order is set and can help to set the right wages for the

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employers and employees of the organisation with ease and effectiveness (Brown 2014). The
Fair Work Act enables to fulfill the requirements of the minimum wage review allow all the
individuals to participate in the review panel.
According to the reviews, it is clear that the NMW rate has to be set properly and
understand the necessity of making any changes to the modern reward minimum wage. The
Panel performs its roles and responsibilities by making certain considerations according to
section 134 and then set the NMW rate to handle the legal considerations as well. Under the Fair
Work Act, the Fair Work Community or FWC is also considered as an important stakeholder
who has reviewed the financial years and declared that there may or may not be changes to the
national minimum wage order (Bustamam, Teng and Abdullah 2014).
Collective bargaining
The Fair Work Act has created an impact on the national minimum wage through the
encouragement of collective bargaining. The collective bargaining enables to negotiate between
both the employees and employers of the organisation to control the salary structure, manage
terms and conditions and benefits related to the rights and compensations of the employees. The
representatives of the Trade Union provide the interests of the employees and it can also
facilitate the scale of pay, working hours, training, health and safety, grievance methods, rights
to get involved in the workplace and other company related affairs (Panagopoulos 2012).
Wage theory
It is seen that the various theories for the determination of wages based on the
contribution of labour workforce have changed from time to time with the change in economic
business environment. Previously there was subsistence theory that focused more on the labour