In this competitive environment nowadays, organisations are predicted to be more aggressive on empowering the employees because the employees’ job satisfactions are important for the whole organizational performance. Because of this reason, in order to achieve the organization’s missions and goals, the effectiveness on managing the motivation of employees should not be excluded. The motivation such as employees’ satisfaction on their works or the rewards given to them leads to better performance in their organization. Rewards are the performance incentives that given by the company to the individuals due to their good work performance. There are two types of rewards that normally implemented by the organizations to motivate the employees, extrinsic rewards and intrinsic rewards. Based on the Vroom’s expectancy theory of motivation, extrinsic rewards are positively valued work outcomes that the individual receives from some other person in the work setting, include such things as pay, financial incentives, security, Continue reading
Human Resource Management Basics
Pay Concept in Human Resource Management
Pay, the financial facet of reward, is an important form in reward system; after all, it is the main reason why people work. In a pay system design, the fundamentally compensation policy issues are pay level, pay structure, and pay form. Pay level refers to pay position of an organisation compared with other competitors in labor market. In a word, it refers to ‘how much’ employees are paid. Organisations can lag, lead, or match the market. Pay structure refers to a framework within which an organisation sets different pay levels for jobs or groups of jobs. In some organisations, it presents as pay grades. Pay forms are methods of rewarding people for their efforts to the organisation and influence employee motivation and performance. There are two types of pay – fixed pay and variable pay. Fixed pay is contractual compensation that regularly paid and does not vary according to performance Continue reading
Career Counselling in Organizations
Career counselling is a process whereby an employee is guided by a manager in performance-related behavior. The employee is unable to perform the job satisfactorily. His work behavior is inconsistent with the work environment and organizational culture. It is manifested in fighting, stealing, unexcused lateness and absence. Career counselling involves guiding of employee by a manager to overcome performance problems. The problem is desire-created based on unwillingness. Career counselling involves the following steps: Identification of the performance problem – The reason for poor performance should be identified. Specific job behavior should be objectively documented in terms of date, time, and what happened. The manager should have good listening skills to uncover the reason for performance problem. The manager should focus on job performance problems only, not the employee as a person. He should treat the employee objectively, fairly and equitably. Make sure the employee owns up the problem – The Continue reading
Morale – Definition, Characteristics and Significance
Morale is the term usually applied to armed forces during wartime and to sports and athletic teams. It refers to team spirit and co-operation of people for a common purpose. Its importance has been realized by the management only in recent years. It is felt by the management that if the morale of the employees is high, production would be higher and vice-versa. Meaning and Definitions of Morale Morale represents the attitudes of individuals and groups in an organization towards their work environment. Morale is an indicator of the attitude of employees towards their jobs, superiors and their organizational environment. It is a collection of the employees attitude, feelings and sentiments. Various definitions of morale are; Flippo has described morale “as a mental condition or attitude of individuals and groups which determines their willingness to co-operate. Good morale is evidenced by employee enthusiasm, voluntary confirmation with regulations and orders, and Continue reading
Expatriate Compensation – Meaning, Factors, Components, and Approaches
The compensation has long been established as a primary means of fostering loyalty and productivity of international expatriates. Nevertheless, the HR managers continue to face several challenges when implementing it which ends up in loss towards the organizations. The issues that gave birth to international human resource management remain more important than other functional areas is expatriation and adaptation of practices to different cultures. Factors Affecting Expatriate Compensation The most often mentioned factor that influences the expatriates’ satisfaction by the compensation strategies is the differences in cost of living between the host and parent country. If the cost is higher, the employer is required to adjust the compensation package in order to merge the gap. In the opposite situation, the difference is not subtracted. Such approach is known as a no loss policy and occurs with slight variations in the majority of the HR practices. The most difficult part of addressing Continue reading
Ethical Issues in Human Resource Management
Business ethics are the moral doctrines that direct the way to business behave. Business ethics determines the actions of every individual that distinguish the right or wrong. Every business organization must develop the codes of conduct and ethics that should be followed by all the members. Ethics can be taken as the crucial way to self-presentation and public perception of the organization. Ethics in human resource management is related to the employee’s issues. Human resource management plays an important role in setting up and implementing ethics in the workplace. Implementation of ethics in the workplace has been one of the challenging tasks for the organization. Various human resources issues can be handled properly by the application of ethics and code of practices by the managers in the workplace. Ethics generally determine what is right and what is wrong. With the help of business ethics, proper allocation and maintenance of employee Continue reading