Cost reduction is defined as the achievement of real and permanent reduction in the unit cost of goods manufactured or services rendered without impairing their suitability for use intended. Cost reduction must be real and increase productivity. It must be permanent and should not impair the suitability of products or services for the intended use. The scope of cost reduction is wide and it could be applied to wherever cost is incurred. In many organizations the cost of human resources is very high. The top management should find ways by which the cost of human resources is reasonably reduced. Any abnormal reduction of cost in this regard may lead to unfavorable organizational climate. In autocratic type of organizational climate the human resources cost will be reduced since the employer is not so particular about keeping the morale of the employees high and to motivate them for higher productivity. Since better Continue reading
Modern HRM
International and Comparative Human Resource Management
International Human Resource Management has been defined as HRM issues, functions, policies and practices that result from the strategic activities of MNEs. International Human Resource Management deals principally with issues and problems associated with the globalization of capitalism. It involves the same elements as domestic HRM but is more complex to manage, in terms of the diversity of national contexts and types of workers. The emphasis is on the MNCs’ ability to attract, develop and deploy talented employees in a multinational setting and to get them to work effectively despite differences in culture, language and locations. International HRM tends to mitigate the impact of national culture and national employment practice against corporate culture and practices. Comparative Human Resource Management, on the other hand, is a systematic method of investigation that seeks to explain the patterns and variations encountered in cross-national HRM rather than simply describe HRM institutions and practices in Continue reading
Corporate Entrepreneurship (CE) and Human Resource Management (HRM)
Today’s economy is experiencing its ups and downs very quickly: rising competitiveness and fast changing technologies create pressure to the companies that want to stay at the top of their markets. This is not going to slow down, so the need for tools of success is arising. At the same time we are moving away from the belief that “entrepreneurs are born, not made”. That is why the wanting, believing, hoping, planning must be followed by doing. As already Confucius said: “When it is obvious that the goals cannot be reached, don’t adjust the goals, adjust the action steps”. It is time for action and one form of it that suits different businesses nowadays is — Corporate Entrepreneurship (CE). Corporate entrepreneurship is the process whereby an individual or group of individuals, in association with an existing organization, create a new organization or instigate renewal or innovation within that organization. There Continue reading
The Alignment of Compensation and Business Strategies
Compensation is a key element in the success of any business. Although compensation plans were not always seen as a strategic business initiative, their huge impact on a company’s bottom line, recruiting, retaining and motivating people has led to compensation design being considered an important element to achieving success. Compensation and Business Strategies Alignment It is essential that a fair, competitive and attractive compensation plan is created in order to ensure the future success of the company. If the compensation plan is carried out properly it can improve organisational effectiveness, support human capital requirements of a business, and motivate and reward achievement of key corporate strategic and financial goals. It is thus essential that compensation plans are well thought out and effectively designed. Compensation is the answer to attracting, retaining and motivating employees who have the necessary competencies to carry out the business strategy and handle greater responsibilities. Managers must Continue reading
Case Study: Disney’s Cultural Lessons From Tokyo and Paris
Disney is a worldwide famous cartoon company that was set up by Walter Disney in 1923 in the United States. It has built up the first theme park in California in 1953, which named “Dream World”, it was a big success for the company. Then in Florida, Paris, Tokyo, Hongkong and other places, Disney theme parks have been set up and welcomed by both the young and the adult. So far, it has about 60-year experience of operating multi-nationally. Although Disneyland is not the pioneer of theme parks, Disney creates a lot of colorful animation and cartoon figures which appeal to a lot of people to come and enjoy their lives in the theme parks. According to this, Disney especially Disneyland acquires much more success in the commercial world, for visitors brought great wealth and spread its culture abroad to every corner of this modern world. Successful Cross-cultural Management of Continue reading
Non Traditional HR Approaches: Investment in Disabled Employees
Before we move on to the core of the issue, we must define what disability or being disabled means “Someone who is disabled has an illness, injury or condition that tends to restrict the way they live their life, especially by making it difficult for them to move about.” Thus, the employee, who is working for the organization, will be termed disabled if he/she is suffering from an injury or illness which affects or restricts them from performing their job effectively. There can be two types of disabled employees 1. Disabled – while employed: i.e. the person was fit and sound during the start of employment relationship, however, during the tenure of his/her service he turned disable, which can be either: On-the-job: This is during the work hours while working at premises. Off-the-job: This is not at work premises, but surely after the start of employment relationship. 2. Disabled – Continue reading