Analysis of the Internal Supervision System

Oct 13, 2025 by vinooalluri.com 124 views

Introduction

Every company, except non-profit, has the main goal to maximize profits and develop its business. To achieve these goals, various strategies and efforts are implemented. The success or failure of a company is strongly influenced by several factors, one of which is labor. Human resources (HR) play an important role in carrying out company operations. The workforce donates energy, thoughts, experiences, and expertise that are valuable capital for the company. As a form of compensation for the contribution given, the workforce is entitled to get a decent salary and wages. Therefore, companies need to have a good supervisory system to control and pay attention to employee welfare.

The problem of salary and wages is not just a number in the payment slip. This is also closely related to the workload borne by the workforce and the moral responsibility of the organization towards the lives of employees and their families. If the workforce receives a salary that is proportional to its contribution, they will tend to be more productive and feel more bound to the company. Conversely, mismatch between salary and contribution can cause problems such as strikes, demonstrations for salary increases, and actions that are detrimental to the company.

Analysis of the Internal Supervision System

Internal Salary and Wage Supervision System in the Department of Cooperatives of Micro and Medium Enterprises in Medan City is very important to ensure transparency and justice in providing benefits. In this system, every aspect related to payroll must be clearly regulated so that there are no errors or abuse.

Transparency

Every employee needs to get clear information about the structure of salary and wages. This is to avoid the impression of injustice among employees. This transparency can also prevent internal conflicts that can damage the atmosphere of work. A transparent system will help to build trust among employees and management. With clear information, employees can understand how their salary and wages are calculated, and they can also see the fairness of the system.

Compliance with Regulations

Dinas must comply with applicable regulations regarding employment. This includes minimum wages, benefits, and other rights that must be given to employees. This compliance is important so that the service avoid legal issues and increase employee confidence in management. Compliance with regulations is crucial to ensure that the company is operating within the bounds of the law. This will also help to prevent any potential legal issues that may arise from non-compliance.

Performance Evaluation

Performing Performance Evaluation Periodically is part of an effective supervision system. This helps in determining how much the contribution of each employee to the company. With an objective evaluation, salary and bonus can be more fair and results-oriented. Performance evaluation is essential to ensure that employees are rewarded based on their performance. This will help to motivate employees to perform better and contribute more to the company.

Employee Welfare

In addition to salary, employee welfare also includes facilities, benefits, and good work environment. Companies that care about the welfare of employees will get high loyalty from their employees, thus encouraging productivity. Employee welfare is crucial to ensure that employees are happy and motivated. This will help to increase productivity and reduce turnover rates.

Conclusion

Internal supervision of salaries and wages in the Department of Micro and Medium Enterprises Cooperatives in Medan City has a crucial role in maintaining the welfare of the workforce and organizational stability. With the application of transparent systems, obedient to regulations, appropriate performance evaluations, and attention to welfare, it is expected that the agency can increase productivity and create a conducive work environment. Thus, the company's main objectives to develop and achieve maximum profit can be achieved in a sustainable manner.

Recommendations

Based on the analysis, the following recommendations are made:

Implement a transparent system: The company should implement a transparent system that provides clear information about the structure of salary and wages.
Comply with regulations: The company should comply with applicable regulations regarding employment, including minimum wages, benefits, and other rights that must be given to employees.
Perform performance evaluation: The company should perform performance evaluation periodically to determine how much the contribution of each employee to the company.
Pay attention to employee welfare: The company should pay attention to employee welfare, including facilities, benefits, and good work environment.

By implementing these recommendations, the company can ensure that the internal supervision of salaries and wages is effective and efficient, and that the welfare of the workforce is maintained.

Q: What is the purpose of the internal salary and wage supervision system?

A: The purpose of the internal salary and wage supervision system is to ensure transparency and justice in providing benefits to employees, and to maintain the welfare of the workforce and organizational stability.

Q: What are the key components of the internal salary and wage supervision system?

A: The key components of the internal salary and wage supervision system include:

Transparency: Every employee needs to get clear information about the structure of salary and wages.
Compliance with regulations: Dinas must comply with applicable regulations regarding employment.
Performance evaluation: Performing Performance Evaluation Periodically is part of an effective supervision system.
Employee welfare: In addition to salary, employee welfare also includes facilities, benefits, and good work environment.

Q: Why is transparency important in the internal salary and wage supervision system?

A: Transparency is important in the internal salary and wage supervision system because it helps to build trust among employees and management. With clear information, employees can understand how their salary and wages are calculated, and they can also see the fairness of the system.

Q: What are the benefits of complying with regulations in the internal salary and wage supervision system?

A: The benefits of complying with regulations in the internal salary and wage supervision system include:

Avoiding legal issues: Compliance with regulations helps to prevent any potential legal issues that may arise from non-compliance.
Increasing employee confidence: Compliance with regulations increases employee confidence in management and the company.
Ensuring fairness: Compliance with regulations ensures that the system is fair and just for all employees.

Q: How does performance evaluation contribute to the internal salary and wage supervision system?

A: Performance evaluation contributes to the internal salary and wage supervision system by helping to determine how much the contribution of each employee to the company. With an objective evaluation, salary and bonus can be more fair and results-oriented.

Q: Why is employee welfare important in the internal salary and wage supervision system?

A: Employee welfare is important in the internal salary and wage supervision system because it helps to increase productivity and reduce turnover rates. Companies that care about the welfare of employees will get high loyalty from their employees, thus encouraging productivity.

Q: What are the consequences of not implementing an effective internal salary and wage supervision system?

A: The consequences of not implementing an effective internal salary and wage supervision system include:

Decreased productivity: Without an effective system, employees may become demotivated and less productive.
Increased turnover rates: Without an effective system, employees may leave the company, leading to increased turnover rates.
Legal issues: Without an effective system, the company may be exposed to legal issues related to employment.

Q: How can the internal salary and wage supervision system be improved?

A: The internal salary and wage supervision system can be improved by:

Implementing a transparent system: The company should implement a transparent system that provides clear information about the structure of salary and wages.
Complying with regulations: The company should comply with applicable regulations regarding employment.
Performing performance evaluation: The company should perform performance evaluation periodically to determine how much the contribution of each employee to the company.
Paying attention to employee welfare: The company should pay attention to employee welfare, including facilities, benefits, and good work environment.

By implementing these improvements, the company can ensure that the internal salary and wage supervision system is effective and efficient, and that the welfare of the workforce is maintained.