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
HRM Concepts
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
Common Team Problems
In today’s organizations, people work in teams that have either a leader or a self-driven team member to lead. While these teams provide support mechanism in the office environment and are used to improve productivity and results, they are also a source of competition. It is this team building scenario that is envisioned to promote the productivity of the employees, and at the same time the organization. In any team there is a difference of opinions, this is beneficial as it provides the building blocks to ideas for their team and organization as a whole. At the same time these opinions do raise the emotions and feelings of the team players. There arises conflict within the group that either improves the team’s performance or the breaks down of the team and consequently hampering the achievement of the organizations goal. The most common team problems are; Floundering: This problem occurs in Continue reading
Theories of Motivation: McClelland’s Three Need Model
Each person tends to develop certain motivational drives as a result of his cognitive pattern and the environment in which he lives. David McClelland gave a model of motivation, which is based on three types of needs, namely, achievement, power and affiliation. They are stated below: Need for achievement (n-Ach): a drive to excel, advance and grow; Need for power (n-Pow): a drive to influence others and situations; and Need for affiliation (n-Aff): a drive for friendly and close interpersonal relationships. Achievement motivation: some people have a compelling drive to succeed and they strive for personal achievement rather than the rewards of success that accompany it. They have a desire to do something better or more efficiently than it has been done before. This drive is the achievement need. From researches into the area of achievement need, McClelland found that high achievers differentiate themselves from others by their desire to Continue reading