Profit sharing is the most popular method rewarding the employees. Under profit sharing incentive plan, the employees are paid in addition to the regular wage, a particular share of the net profits of the business as incentive. Characteristics of Profit Sharing Incentive Plans The key features of profit sharing incentive plans may be stated as follows: It is based on an agreement between the employer and the employees. It is a payment made after ascertaining the net profits of the business. It is not therefore, a charge on profits. The amount paid to the employees is over and above their normal pay. The amount to the paid is determined based on some agreed formulas. The payments based on seniority and wage level of individual workers. Merits of Profit Sharing The advantages of profit sharing incentive plans are as follows: Better employer-employee relations – This is possible, as the employer is Continue reading
HRM Functions
Job Analysis – Meaning, Roles, Purposes and Types
Human resources management has to plan their activity to reach maximum level of organizational objective. Human resources personnel must have knowledge regarding skills required to perform various organizational jobs. Job analysis is done to get information regarding the requirement of skill, knowledge, experience, ability and other work related requirement. A job analysis is a systematic exploration of the activities within a job. Basically it is a technical process, which is used to define the duties, responsibilities, and accountabilities of a particular job. This analysis involves describing detail description about the task one has to perform during work, exploring the relationship with job to technology and determining knowledge, qualifications or the standards of employment, accountability of the person. There is an accuracy in recording activity is involved. The record consist information regarding following matter: Element: A job element is considered as the smallest element in which job is being divided. Job Continue reading
Aims of Human Resource Development
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. 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 such as training, developing, learning, educating and mentoring the employee and also by identifying and improving the skills and motivation of employees. In other to ensure that the organization as the right people to sustain competitive advantage, Human resource development engage in training, learning, development of the individual and mentoring. Training Staffs are important resources to an organization in other to achieve economic and effective performance, in other to Continue reading