Read the following passage and answer the question.

Atul joined ABC Ltd. as a worker and was getting paid according to his skills and performance. He was assigned to a team where all his team members were very cooperative and used to help each other in need. Each team in the company was given one target to achieve. His supervisor used to take suggestions from the subordinates and reward the constructive suggestions. There was no chaos in the organisation as synchronisation of activities of different departments was maintained.

When the workers get paid according to skills and performance in the organisation, name the principle that is being followed.

Fair remuneration of employees

The correct answer is option (2) : Fair remuneration of employees.

When workers get paid according to their skills and performance in the organization, the principle being followed is Fair remuneration of employees.

This principle ensures that employees are compensated in a manner that aligns with their skills, performance, and contributions to the organization. It's often referred to as a fair and equitable compensation system.

The overall pay and compensation should be fair to both employees and the organisation. The employees should be paid fair wages, which should give them at least a reasonable standard of living. At the same time it should be within the paying capacity of the company. In other words, remuneration should be just and equitable. This will ensure congenial atmosphere and good relations between workers and management. Consequently, the working of the company would be smooth.