Pay

4.4 Systems of Pay

The Systems of Pay in organizations (Groups) would be made after a defined period of production.  The defined period could be after one week, or after two weeks, or after one month, or it could be after one year or any other defined period of time.

Systems of Pay would be based on individual Producer’s production levels and the Market demand for each Producer’s occupation or trade.  When a product is brought to Market the payment is made.  This is very common in Agriculture.

In the defined pay period all the income derived from production in the Group would be used to pay all the producing personnel in the organization.  This would be done after all other expenses of operation were taken into account.

All producing personnel would include all producing office personnel, all producing management, all other producing personnel, all producing directors and all producing owners.  Every Producer in the organization would receive the pay based on their statistical production percentage plus the market demand for each specific occupation.  Yes, even the Owners would have to have measured production in order to receive pay.

Owners and all personnel in an organization would have to produce a commodity (sub-commodity), trade (sub-trade), good (sub-good) or a service (sub-service) which is marketable on the Open Market.  They would have to do this in order to receive an income of money, value, energy, wealth, capital and power.  The reason: “Only the production of commodities, trades, goods and services creates money, value, energy, wealth, capital and power.”  Ownership entirely by itself does not create money, value, energy, wealth, capital and power.  Ownership is a static state of existence, there is no action.  There is no production taking place.  Working and laboring while producing is an action state of existence.  There is production taking place.  

Systems of Pay are based on individual Producer’s production levels and the Market demand for each Producer’s occupation or trade.

Producer Rewarded Open Market Economics
The Science of Economics.
By RP Obrigewitsch
May 28, 2014

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Wednesday, May 28th, 2014 Producer Rewarded Economics No Comments

4.2 Correlated Pay

Individuals in each producing Group should be paid based on a level in relation to their individual production and the Market value for their ability (occupation or trade.)  This is correlated pay.  Pay should be correlated with production levels and ability value for each Producer.  For the Producer creating 1% of the final product, the pay would be 1% of the income from the product correlated with the value of the ability (occupation or trade) of the Producer required to do the work.

Correlation in statistics is interdependence of variable quantities.  Correlation is mutual relationship or connection between two or more things.  Correlate is having a mutual relationship or connection, in which one thing affects or depends on another. (New Oxford American Dictionary.)

The interdependent variable quantities in economics are pay, level of individual production and the ability (occupation or trade) needed to create the work and labor.  The level of pay is interdependent with the level of production plus the ability (occupation or trade) needed to create the work and labor.  This applies to all people in all levels of organizations, societies and nations.  

Producers receive pay because they have the two other interdependent variable quantities.  These interdependent variable quantities are a production level and ability (occupation or trade.) 

Non-producers receive no pay.  Non-producers lack a production level.  They may have ability (occupation or trade) but they are not using it to create a production level. 

Counter-producers receive no pay.  They need to pay for the damages they cause to organizations, societies and nations.  Counter-producers have a negative production level.  They may have ability (occupation or trade) but they are using their skills to create destruction.

Producers should not be paid based on everyone getting equal pay without considering the occupation or trade required to create the money, value, energy, wealth, capital and power.  In most cases Producers should not be paid based on time units.  Pay based on time units should be made only if time is the statistical measure of the production.  An Example of time units would be security guard positions, policing, fire protection and defense. Very few Producers should be paid solely on a time bases.  They should be paid as much as possible based on production units or sub-product units. The measure of the individual production is a statistical measure defined in production units. 

Sports teams are very good examples of keeping statistics on the production of each team member.  Pay should be made totally based on the production measured through statistics.  Pay should be made after the production has been completed.  There could be a base pay or no base pay.  This would be determined by the producing individuals in the Group.  More pay would be allocated based on the percentage of production and ability requirements of each player or Producer.  The pay would be based on production.  Individual production levels would be correlated with the whole final product created by the Group. If the Producer created 2 percent of the final product, 2 percent of the pay correlated with the market value of the occupation or trade of the worker would be the correct pay to the Producer.  Each producer would theoretically produce a different percentage of the final product.  While using the production percentage to calculate pay, one could correlate the production percentage and occupation value to get the correct pay for each Producer.  Each Producer would receive the percentage in pay that he produced during the production of the final product.  The income received after marketing the final product would be paid out in relation to the production percentage put forth by the Producer.    This would be done after all other expenses of operation were taken into account

Producer Rewarded Open Market Economic
The Science of Economics
By RP Obrigewitsch
April 11, 2014

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Friday, April 11th, 2014 Producer Rewarded Economics No Comments
 

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