The Balanced Scorecard (BSC) is a tool utilized in corporations for the purpose of compensating workers in a way that is beneficial for both the management and the workforce. The Balanced Scorecard technique aids assessment of corporation performance in terms of monetary and non-monetary aspects. Connecting compensation to the Balanced Scorecard is useful because it acts as an equitable way of evaluating performance of companies by utilizing similar standards. The connection between company profitability and the amount of reward motivates employees to improve their performance. Realization of company’s goals is possible with the implementation of Balanced Scorecard and compensation. Usually, achievement of the goals and objectives of the company depends on the productivity of workers. Utilization of the Balanced Scorecard motivates workers to improve their performance and in turn achieve rewards. The linkage between the Balanced Scorecard and compensation operates well within the organization which possesses established quality programs. Assimilation Continue reading
Modern HRM
360 Degree Feedback – Meaning, Process, Pros and Cons
360 degree feedback is an assessment evaluation tool that is focused on employee job performance from a multisource perspective. It is also referred as a multisource assessment or a multi-rater feedback since it relies on information from various actors. Ideally a 360 degree feedback assessment is done by evaluating an employee job performance through a comprehensive investigation of their working relationship, from both an internal and external perspective. The idea is to generate an accurate assessment of an employee job skills, quality of work output and team work abilities that can be relied for employee assessment and job evaluation. The term “360 degree feedback” was introduced in the 1990-s as systematic collection of information on the results of an individual or a group obtained from the environment. It is intended to obtain an informative feedback from the manager, subordinates, peers and management. In some cases there may be used a Continue reading
360 Degree Performance Evaluation – Meaning, Process, Advantages and Disadvantages
Meaning and Process of 360 Degree Performance Evaluation Performance evaluations are an official interaction between managers and employees in which the manager assesses job performance and discusses in detail strengths, weaknesses and opportunities for development of the employee. Performance reviews serve as an important part of a human resource management systems. Measuring job performance, developing leadership skills, and designing a career path are the major uses of performance appraisal. Ideally, management conducts appraisals in an objective, consistent, and fair way. There are different forms of appraisals that organizations may choose to employ, including, 360 degree performance evaluation, management by objectives and a rating scale. A 360 degree performance evaluation (sometimes referred to as 360-degree feedback), utilizes input from oneself, colleagues, subordinates, and customers, as well as managerial feedback to complete the appraisal of job performance. The philosophy behind gaining feedback from a self-assessment and a variety of additional sources is Continue reading
Purposes of Performance Management System
Performance Management is often a misunderstood concept most people associate it with concepts such as: Performance appraisal, Performance-related pay, Targets and objectives, Motivation and discipline. But, performance management is much more than this. Performance management is about getting results. It is concerned with getting the best from people and helping them to achieve their potential. It is an approach to achieving a shared vision of the purpose and aims of the organization. It is concerned with helping individuals and teams achieve their potential and recognize their role in contributing to the goals of the organization. A performance management system consists of the processes used to identify, encourage, measure, evaluate, improve, and reward employee performance at work. Employees’ job performance is an important issue for all employers. However, satisfactory performance does not happen automatically; therefore, it is more likely with a good performance management system. A performance management system serves a Continue reading
Compensation Strategies for Different Workforce Generations
Employees are the most valuable assets of any organization. The main purpose of human resource management (HRM) is to manage the development and performance of people employed in an organization. Some of the important tasks of HRM include attracting and retaining employees with the right skills and abilities, match people to the right positions within an organization and to align employee’s goals and objectives with that of the organizations. All these key tasks are directly or indirectly affected by compensation and benefits plan which the human resource management decides. Compensation and benefits redefines value and success in any workplace. An efficient compensation and benefits strategy is seen as an opportunity by organisations to differentiate them-self from their competitors, who may otherwise take away talented workforce. Hence, organisations need to know the evolving needs of the working population to make sure they offer the most competitive package. Compensation is a major Continue reading
Concept of Human Capital
Liberalization, Privatization and Globalization all over the world, has created the need for quality products and quality service. It in turn necessitated organizations to compete with one another to improve the quality and device cost reduction measures to exist in the industry. That could be done only with the development of human capital which is evidenced by the rapid economic growth of Japan and other East Asian countries. The investment in human capital cannot be easily measured as it differs from one person to another. Basically, when we talk of human capital it refers to the human knowledge, their inner capabilities and creativity. The development of technology cannot be fully utilized without knowledge and skill. The capabilities of the human capital in relation to the needs of the organization should be improved by creating a climate in which the human knowledge, skill, capabilities and creativity can be developed. How do Continue reading