Performance appraisal is the assessment of an individual’s performance in an organization in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility etc. assessment should not be confined to the past performance alone. Potentials of the employee for the future performance must also be assessed. Performance appraisal can be defined as “the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development”. A more comprehensive definition is, “Performance appraisal is a formal structured system of measuring and evaluating an employee’s job and how the employee can perform effectively in future so that the employee, organization all be benefited.” Performance appraisal, to common understanding, is the formal and informal assessment of the performance of the employee at work. In an informal system Continue reading
Human Resource Management
Human Resource Management (HRM) is branch of management that deals with people at work, it is concerned with the human dimensions of management of the organization. As organization consists of people, therefore acquiring them, developing their skills, providing them motivation in order to attain higher goal and ensuring that the level of commitment is maintained are the important activities.
Achieving Competitive Advantage through Human Resource Development
Human resource development is defined as the framework for helping employees develops their personal and organizational skills, knowledge and abilities. Human resource development involves using a range of learning and training techniques and strategies to change the work related behavior and attitudes of an employee and it also engages in performance management in other to ensure that people can do things well or do new and better things. Human resource development is concerned with enhancing organizational performance through effective development and deployment of organizational members. To enhance performance, a human resource developer has to ensure that the individuals in the organization has the knowledge, expertise and the right attitudes to execute their work, also human resource development aims at ensuring that the organization has the skilled, committed and well-motivated employee it needs to sustain competitive advantage by focusing on processes that develop skills, knowledge and the attitude of the employee, Continue reading
Role of Human Resource Management in Organizations Difficult Times
Today, Human Resource Management (HRM) is emphasizing on adding value in the organization as a key player. The most significant challenge for organization in difficult time (recession) is transforming of the human resource to recognize, sustain, enlarge and exploit talents in the whole organization to their fullest capacities than organization can claim that it has the best of the systems to identify talents across the organization. The management professionals and employees might undergo through the anxiety and other issues during recession and economic downturn, so organization must make plan for economic crisis. Roles and functions of HR in the Organizational change HR can and ought to play a key role in creating and executing organizational change and transition. HR can give help and direction in investigation and determination, highlighting the employee’s problems that will essentially influence the success of the organization. HR might recommend on resourcing programs and planning and Continue reading
Major Criteria to Assess the Performance of Employees
The starting point for the performance appraisal process is identifying specific performance goals. An appraisal system probably cannot effectively serve every desired purpose, so management should select the specific goals it believes to be most important and realistically achievable. For example, some firms may want to stress employee development, whereas other organizations may want to focus on pay adjustments. Too many performance appraisal systems fail because management expects too much from one method and does not determine specifically what it wants the system to accomplish. The next step in this ongoing cycle continues with establishing performance criteria (standards) and communicating these performance expectations to those concerned. Then the work is performed and the supervisor appraises the performance. At the end of the appraisal period, the appraiser and the employee together review work performance and evaluate it against established performance standards. This review helps determine how well employees have met these Continue reading
Factors Influencing International Compensation
Recently, the dilemma between sector and cultural predictors of compensation policies has become a public concern, and is extremely important in the background of internationalization. Even some well-known cultural traditions at working styles of many countries, examples like the Industry Wide Bargaining of Germany, the Lifetime Employment of Japan and the Wide-range Social Safety Net of France, now are facing the threats of being damaged owing to the big pressures from economic globalization. As a result, multinational employers are facing unprecedented challenges when choosing a job due to the pressures of economic globalization and market economy. The growth of global economy plays a major role in general business, especially in the areas of human resource management. It has been at the agenda of company leaders to chase the qualification of global mind-sets by which they used to meet the challenges brought by the trend of globalization of economy and create Continue reading
Variable Compensation Program – Types, Pros and Cons
Performance Related Pay is a kind of a payment system which relates the wages and salaries with the performance of an employee. It includes incentive payments, merit pay, etc. Performance Related Pay is also known as Variable Compensation. Variable compensation programs are customized in such an order that, as said before, the performance of the employees depicts their incomes. It does not depend on his/her designation in an organization. These programs are designed to motivate individuals and groups that contribute effectively, as they differentiate between performers and non-performers. Many companies believe that a variable compensation program enhances productivity and motivates employees. The American Management Association, based on a study of 83 companies, concluded that grievances had dropped by 83%. absenteeism by 84% and lost – time by 64%, after variable pay programs were introduced in these firms. Variable compensation is also one of the employee involvement programs. Such programs make Continue reading