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
HRM Concepts
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
Significance of Human Resources in International Business Arena
As the success of domestic business depends on its human resources, the success of a multinational company depends on international human resource management. Human resources managers are kind of people managers of any business organization, and are responsible for managing a wide range of employees. The human resource manager in a multi-national company with divisions or subsidiaries in foreign countries has all the normal HR responsibilities plus a brace of additional tasks that are specific to offshore operations of his department. He is literally responsible for international human resource management. International human resource management functions cover many different activities related to a business organization’s employees and contractors. The first and most important is the staffing needs of the company whether staff members are company employees or outside contractors. Other functions include recruiting and training employees, ensuring that they are performing at expected levels or better, handling performance issues and making Continue reading
Impact of Workplace Wellness Programs in Modern Business Organizations
The modern workplace is constantly evolving, and employers are increasingly looking for ways to improve the health and wellbeing of their employees. Corporate wellness programs are one of the most popular strategies for achieving this goal. This essay will explore the impact of corporate wellness programs on employee engagement, productivity, and overall health. It will also discuss the challenges associated with implementing such programs in the workplace. By examining the evidence, this article will provide insight into how corporate wellness programs can be used to create a healthier and more productive work environment. Definition of Corporate Wellness Programs Corporate wellness programs are initiatives designed to promote healthy lifestyles among employees in the workplace. These programs typically include activities such as health assessments, nutrition education, physical activity classes, stress management workshops, and mental health support. The goal of corporate wellness programs is to create a healthier and more productive work environment Continue reading
Tips for Effective Employee Recognition and Reward Programs
Recognition is defined as a form of sincere praise or appreciation given to an individual by another and reward as the earned item of value presented to an individual for successful accomplishment of a particular service, task or mission. Recognition and reward programs has always been an effective strategy for retaining employees and it normally do not cost much and not very time-consuming. Informal recognition and reward program can recognize outstanding performance rather quickly while formal program develops the performance growth in a long term basis. Well planned recognition and reward programs builds comradeship within the team and makes employees feel valued and appreciated. Employees want to feel appreciated and seldom will they find compliments a surplus. Effective recognition and reward programs recognizes and appreciates the efforts of individuals while taking into account their individual needs, differences and personalities. As a leader, do not assume that the approach of one-size-fits-all Continue reading
Performance Related Pay – Definition, Objectives and Conditions
Rewarding performance is the element of the performance management process which seeks to give employees some kind of return for achieving their targets. This is wider than just financial recompense and includes such things as praise, greater opportunities for training and development, and promotion. Very often one of the things most sought by an employee is the recognition that he or she is doing a good job and where, for example, this is expressed in terms of bonus it is very often the recognition rather than the cash that really matters. It is only when money enters the equation that rewarding performance become very tricky and the emphasis her is therefore on the financial aspects. People very often consider performance management solely in terms of Performance Related Pay (PRP). PRP is a method of remuneration that provides individuals with financial rewards in the form of increases to basic pay or Continue reading