Succession planning is a process for identifying and developing internal people with the potential to fill key leadership positions in the company. Succession planning increases the availability of experienced and skillful employees that are hopeful to undertake these roles as they become available. This process focuses on seeking the right person, not just the available person. It’s built on the idea of recognizing the potential leaders in organization and developing them so that they are ready to move up when the opportunity arises. It’s one of the best methods to promote recruitment and retention in organization. Although people often mix up replacement planning and succession planning, the latter goes beyond former planning because its focus is larger than one position or department. While often related to planning for senior executive replacements only, it is really broader than that can extend as far down the organization chart as managers want to Continue reading
Human Resource Management Basics
Organizational Commitment
Organizational commitment refers to the “degree to which an employee identifies with a particular organization and its goals and wishes to maintain membership in the organization.” Nowadays, organizational commitment is given lower importance. Organizational commitment is being replaced by “Occupational Commitment” where employees are more loyal to the occupation they are in and lesser to the organization they are in. This has resulted in a high employee turnover ratio in firms. Organizational Commitment can be Affective, Continuance or Normative in nature. Affective Commitment which tells the emotional commitment and attachment to the culture, work place, location or the organization itself. It shows individuals working with dedication because they are more attached to the organization. Affectively committed employees in the organization can strongly identify with the goals of the organization and desire to be a part of the organization. In simple words affective commitment refers to the “Emotional attachment to the Continue reading
Wage Boards in Compensation Management
Wage boards are set up by the Government, but in selection of members of wages boards, the government cannot appoint members arbitrarily. Members to wage boards can be appointed only with the consent of employers and employees. The representatives of employers on the wage boards are the nominees of employers’ organization and the workers’ representatives are the nominees of the national center of trade unions of the industry concerned. The composition of wage boards is as a rule tripartite, representing the interests of labor, Management and Public. Labor and management representatives are nominated in equal numbers by the government, with consultation and consent of major Central Organizations. These boards are chaired by government nominated members representing the public. Wage board function industry-wise with broad terms of reference, which include recommending the minimum wage differential, cost of living, compensation, regional wage differentials, gratuity, hours of work etc. The main objectives of Continue reading
Role of Performance Appraisal in Improving Employee Performance
All organization faces the problem of directing the energies of their staff to the task of achieving organization goals and objectives. In doing so, organization need to devise means to influences and channel the behavior of their contributions. Performance appraisals constitute one of the major management tools employed in this process. This is based on the perception of an individual’s performance in a job is improved by having definite goals, feedback about their performance and complemented by an appropriate reward system. Therefore, performance appraisal are been implemented. Performance appraisals are used in nearly all organization in worldwide. Corporations use different tools and have a number of goals for performance appraisal often resulting in some confusion as to the true purpose of performance appraisal systems. However, it is core because it allows an organization to measure and evaluate an individual employee’s behavior and accomplishment over a specific period of time. There Continue reading
Wage Differentials – Definition, Causes and Types
Wage differentials have a great economic and social significance; they are directly related to the allocation of the economic resources of a country, including manpower growth of the national income, and the pace of economic development. Social welfare activity depends, in a large measure, on such wage differentials as will: Cause labor to be allocated among different occupations, industries and, geographical areas in the economy in such a manner as to maximize the national product. Enable full employment of the resources of the economy to be attained; and Facilitate the most desirable rate of economic progress. Wage differentials reflect difference in the physical and mental abilities of workers, differences in productivity, in the efficiency of management and in consumer preferences, and act as sign posts for labor mobility. By providing an important incentive for labour mobility, they bring about a re-allocation of the labor force under changing circumstances. Under competitive Continue reading
Effect of Job Satisfaction and Organizational Commitment on Individuals Behavior
Job satisfaction and organizational commitment are the two of the prominent work attitudes that seen in the work environment. Job satisfaction is an emotional response to a job situation while organizational commitment is the strong feeling of responsibility an employee has towards the mission of the organization. Job satisfaction is simply how people feel about their jobs and different aspects of their job. People can either like (satisfaction) and dislike (dissatisfaction) their job. According to Frederick Herzberg, he believed that employees can like their job because various contributions it has. These contribution involves the work itself, pay, promotions, job achievement, co-worker, supervision and benefits contribute to employees satisfy with their job. He called it motivators. If employees are not satisfied with their job then the productions of the organization with not grow. Manager will see their employees as lazy and they will assume that they don’t want to work. This Continue reading