Incentives can be defined as monetary or non-monetary reward offered to the employees for contributing more efficiency. Incentive can be extra payment or something more than the regular salary or wage. Incentive acts as a very good stimulator or motivator because it encourages the employees to improve their efficiency level and reach the target. The two common types of incentives are: 1. Monetary or Financial Incentives The reward or incentive which can be calculated in terms of money is known as monetary incentive. These incentives are offered to employees who have more physiological, social and security need active in them. The common monetary incentives are: Pay and allowances. Regular increments in salary every year and grant of allowance act as good motivators. In some organizations pay hikes and allowances are directly linked with the performance of the employee. To get increment and allowance employees perform to their best ability. Profits 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.
Human Resource Management (HRM) – Definitions, Objectives, Scope and Importance
Definitions of Human Resource Management (HRM) Human Resource Management (HRM) is concerned with the “people” dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to high level of performance and ensuring that they continue to maintain their commitment to the Organization are essential to achieving organizational objectives. This is true regardless of type of organization – Government, business, education, health, recreation or social action. Those organization that are able to acquire, develop, stimulate and keep outstanding workers will be both effective, able to achieve their goals, and efficient (expanding the least amount of resources necessary). Those organization that are inefficient and ineffective risk the hazards of stagnating or going out of business. According to Thomas G. Spates, Human Resource Management (HRM) is a code of the ways of organizing and treating individuals at work so that they will get the Continue reading
Informal Recruitment – Meaning, Advantages and Disadvantages
Informal methods of recruitment and selection always have been into debate among HR experts and consultants across the globe because it is against the standard HR principles and practice. But still it exist because it gives lot of benefits to the employers. Informal recruitment methods generate better selection in the professional and qualified jobs as well when compare to formal methods. If organization hire the employees without following the complete procedure of recruitment and selection then these methods will be called informal methods like walk in interview given by employee without job announcement, applicant refer by existing employees. Word-of-Mouth (WOM) recruitment is commonly used and followed informal method across the globe with irrespective the sector and technology but the percentage vary from country to country. WOM is a reference to passing or communicate the information from person to person. WOM recruitment is getting the references from the current employee, personal Continue reading
Designing Strategy-Supportive Reward Systems in Organizations
Creating a strategy-supportive reward structure for an organization is an important task as it is a powerful management tools for gaining employee buy-in and commitment. Meanwhile, the key to creating a reward system is to promote relevant measures of performance that the dominating basis for designing incentives, evaluating individual and group efforts, and handling out rewards. In a competitive business climate, more business owners are looking at improvements in quality while reducing costs. While businesses need to get more from their employees, their employees are looking for more out of them. Employee reward and recognition programs are one method of motivating employees to change work habits and key behavior’s to benefit a business. As the strategy-supportive reward structure motivates and attracts the employee, designing the reward structure for an organization is quite complex. This is because the importance of the reward structure should define on the job and assignment in Continue reading
Human Resource Accounting
To ensure growth and development of any organization, the efficiency of people must be augmented in the right perspective. Without human resources, the other resources cannot be operationally effective. The success or otherwise of an organization depends on how best the scarce physical resources are utilized by the human resource. What is important here is that the physical resources are being activated by the human resources as the physical resources cannot act on their own. Therefore, the efficient and effective utilization of inanimate resources depends largely on the quality, caliber, skills, perception and character of the people, that is, the human resources working in it. The term Human resource at macro level indicates the sum of all the components such as skills, creative abilities, innovative thinking, intuition, imagination, knowledge and experience possessed by all the people. “Human Resource Accounting” is the offshoot of various research studies conducted in the areas Continue reading
Human Resource Cost Analysis
Human resource cost analysis is the study of behavior of cost in relation to one or more HR criteria. Controlling manpower costs has now become important for organizations, particularly when we are required to look within for cost savings to sustain organizational growth and profitability. To enforce control on HR costs, it is essential to develop a check-list at the outset. This requires grouping of activities under different cost heads and then Identifying the individual cost elements under each head. By developing an HR costs spreadsheet, we can understand the magnitude of HR costs in an organization. Element-wise cost trend over the years facilitates regular monitoring and operational control. At the macro-level, net value added per employee is an indicator of cost efficiency. Developing an HR Costs Checklist HR costs checklist varies from organization to organization due to obvious differences in their practices. Here we have mentioned about those cost Continue reading