According to Fayol wage-rates and method of their payment should be fair, proper and satisfactory. Bothemployees and ex-employers should agree to it. Logicaland appropriate wage-rate and methods of their paymentreduces tension and differences between workers andmanagement, create harmonious relationship and a pleasingatmosphere of work. Further Fayol recommends thatresidential facilities be provided including arrangement of electricity, water and facilities.