Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. In many organizations – but not all – appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss Continue reading
HRM Functions
Human Resource Planning (HRP) – Meaning, Definition, Features, Purpose, Need, Significance and Objectives
Human Resource is the most vital factor for the survival and prosperity of the organization. The human resource asset in a firm has the potential to appreciate the value of the firm. Though all the firms buy the same material and machines, the people in a firm make the difference in the final product. So the success of any organization mainly depends upon the quality of its human resource and their performance. Any forward looking management will be concerned with the problem of procuring or developing adequate talent for manning various positions in the organization. The success of a human resource planning process not only helps the organization itself, but also helps the society’s prosperity. The losses a firm suffers from inadequate human resource planning and utilization, is a loss to the nation. When these individual losses are added up the total losses may be very significant to the economy Continue reading
Job Evaluation Process
Job evaluation aims to provide this equity and consistency by defining the relative worth of different jobs in an organisation. Job evaluation is a process consisting of several steps. The following are the steps in job evaluation process: 1. Job Analysis Job evaluation process starts with the base provided by job analysis. Job analysis identifies various dimensions of a job in two forms: job description and job specification. Job description provides responsibilities involved in the performance of the job while job specification provides attributes required in the job performer. Both these taken together provide information about various factors involved in different jobs. 2. Appointment of Committee for Job Evaluation As pointed out earlier, job evaluation is a specialized function and is carried on by a committee consisting of members drawn from different line departments of the organisation, outside experts, besides HR personnel. HR person generally acts as committee convener or Continue reading
The Cultural Web – Johnson and Scholes’s Model of Organizational Culture
Organizational culture can be simply identified as the own unique personality that the respective organization practices. The group of people who works for the organization shares a system of Assumptions, Beliefs, and Values which governs them both individually and with the organizational needs. The cultural web model developed by Johnson and Scholes in 1993 is an important one, in which six dimensions of the organization culture are defined. The corporate culture consists of six major components, as structure, power structure, symbols, stories, rituals and control systems. They provide clear guidelines for the employees, about how things are performed within the organizational context; providing influences for the better change management. Cultural elements can be organized in the company to achieve productivity is described accordingly. Structure – Mainly refers to the structure of the company, in terms of the management layers and supervisory control. Modern organizations is thereby advised in adjusting to more flat type organization, Continue reading
What is a Salary Survey?
The salary survey is the vehicle for relating the organisation’s salaries to those for similar jobs in other organisations. Salary survey information provides the raw material for translating job sizes into currencies, that is, for job pricing. The survey gives information on base salaries and benefits. This can be used by the human resource manager to calculate the organisation’s competitive position and to plan any corrective actions required. As a first step in this process the human resource manager must identify the organisations for labor. In other words, does the organisation want to compare itself with: organisations in the same or related industries organisations in the same geographical area progressive Australian organisations multinationals organisations of a similar size in terms of sales, number of employees and so on the general community private sector companies only mix of private and public sector organisations? By answering such questions, the human Continue reading
Concepts of Compensation and Compensation Management
Concept of Compensation The literal meaning of compensation is to counter-balance. In the case of human resource management, compensation is referred to as money and other benefits received by an employee for providing services to his employer. Money and benefits received may be in different forms-base compensation in money form and various benefits, which may be associated with employee’s service to the employer like provident fund, gratuity, insurance scheme and any other payment which the employee receives or benefits he enjoys in lieu of such payment. Cascio has defined compensation as follows: “Compensation includes direct cash payments, indirect payments in the form of employee benefits and incentives to motivate employees to strive for higher levels of productivity” Based on above description of compensation, we may identify its various components as follows: Wage and Salary: Wage and salary are the most important component of compensation and these are essential irrespective of Continue reading