The most important objective of any pay system is fairness or equity. The team equity has three dimensions: Internal equity: This ensures that more difficult jobs are paid more. External equity: This ensures that jobs are fairly compensated in comparison to similar jobs in the labour market. Individual equity: It ensures equal pay for equal work, i.e. each individual’s pay is fair in comparison to others doing the same jobs. In addition, there are other objectives as well. The ultimate goal of compensation administration (the process of managing a company’s compensation program) is to reward desired behaviours and encourage people to do well in there jobs. Some of the important objectives that are sought to be achieved through effective compensation management are listed below: Attract Talent: compensation needs to be high enough to attract talented people. Since many firms compete to hire the services of competent people, the salaries offered 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.
Tactics or Strategies Adopted in Collective Bargaining
The tactics or strategies to be adopted in any collective bargaining situation vary depending upon the culture of the organization and different environmental factors, particularly the type of union operating in an industrial establishment. But the following are some of the common strategies to make collective bargaining exercise more meaningful: The management has to anticipate the demands and also understand the main directions in which the demands are going to be placed. Generally speaking, negotiations are best done if both the parties do their home work well. The representatives must come to the bargaining table equipped with the necessary information and supportive data regarding the company’s economic status and prospects, the prevailing rates of pay and conditions of employment in comparable industries in the local areas. The management team should take into consideration the financial liability involved, the past agreements, and the impact of present negotiations in future years. It Continue reading
HR Strategy Formulation: Organization Mission and Goals Analysis
Even similar organizations often pursue different goals; a thorough organizational analysis of the organization’s overall mission and goals is a second integral aspect of identifying human resource strategies. All organizations exist to accomplish something in their larger environments. The mission — the purpose of an organization’s existence — should guide its strategic thinking. For example, two similar electronics manufacturers may have varying missions. One may want to “be a successful organization in the entertainment business,” while the other may define its mission as “occupying a technological leadership position in the industry.” The associated strategies are likely to show significant differences. Apart from manufacturing electronic goods used for home entertainment, the former firm may acquire video and film production firms and get into the music industry (e.g., producing music DVD’s); while the second firm may be more committed to innovative electronic products through research and development. The associated human resource strategies Continue reading
Quality of Work Life (QWL) – Definition, Scope, Principles, and Techniques
The term Quality of Work Life (QWL) aims at changing the entire organizational climate by humanizing work, individualizing organizations and changing the structural and managerial systems. It takes into consideration the socio-psychological needs of the employees. It seeks to create such a culture of work commitment in the organizations which will ensure higher productivity and greater job satisfaction for the employees. Quality of work life refers to the favorableness or unfavorableness of the job environment of an organization for its employees. It is generic term which covers a person’s feelings about every dimension of his work e.g. economic incentives and rewards, job security, working conditions, organizational and interpersonal relationships etc. The term QWL has different meanings for different people. A few important definitions of Quality of Work Life (QWL) are as follows: According to Harrison: “Quality of Work Life is the degree to which work in an organization contributes to Continue reading
The Importance of Human Capital in Business
Managers may ask the question what is the most important asset in their company? The greatest asset of a company is not its financial capital, the number of building or it’s properties, nor it is the equipment or products that the company own. The greatest asset that a company own is it employees. Then again, what exactly is human capital? The term human capital is recognition that people in organisations and businesses are important and essential assets who contribute to development and growth, in a similar way as physical assets such as machines and money. The collective attitudes, skills and abilities of people contribute to organisational performance and productivity. Any expenditure in training, development, health and support is an investment, not just an expense. The importance of human capital is rising tremendously since the last few decades. Human capital is now regarded as the most important factor in an organization Continue reading
Management Development Programme
Management development programme is an attempt to improve managerial effectiveness through a planned and deliberate learning process. Unlike general purpose of training, management development programme aims at developing conceptual and human skills of managers and executives through organized and systematic procedures. In India, many professional institutes like Administrative staff college of India, Management Development Institute, Indian Institute of Management, Quality Management International, National Institute of Personnel Management, Indian Society of Training and Development etc, conduct different management development programmes to sensitize managers and executives to various emerging problems of the corporate world. The major components of Management Development Programme are: Selection: To identify innate potentiality or managerial abilities of executives. Intellectual conditioning: To educate executives and managers on different managerial tools & techniques. Supervised training: To guide executives and managers on application and use of knowledge in the course of day to day activities. Management Development Programme Objectives For top Continue reading