Merits of Incentives The following are the advantages derived by providing incentives to employees: Higher output: By providing incentives to his employees, the employer is able to induce them to work better. This leads to higher output. Greater profits: Needless to say, higher output results in greater profits for the business. This happens in two ways. First, the cost per unit becomes less and second, the enterprise is able to keep the selling price low and this results in greater sales. No problem of idle time: In an organisation where no proper incentives are available for the workers, the tendency will be to while away the time. When suitable incentives are available, the workers become time conscious. They begin to see every minute in terms of money. Supervision does not pose any problem: When suitable incentives are available, the workers become duty conscious. The need for close supervision, thus, does Continue reading
Performance Management
Orthodox and Radical Critique of Performance Appraisal Process
Every organization has some goals and to achieve those goals organization hire people who can perform as per their standards to enable the organisation achieve its mission and vision. So performance is the key to achieve organisational goals. But to keep records and to analyse the performance, organisation needs to follow a specific processes which is known as “Performance Appraisal”. The important aspect for an organisation is not just to recruit good employees but also to retain them. Good working environment, promotions, career growth, rewards and recognition in return of their good performance will automatically retain the employees with the organisation. It is essential for an organisation to undertake different activities so that their employees feel motivated and give their best to the organisation. To increase employees morale and performance resulting in better productivity, organisations should undertake performance appraisal system. Performance management is one, which links organisations, individual and departmental Continue reading
Developmental Approach to Performance Appraisal
The developmental approach to performance appraisal has been related to employees as individuals. This approach has been concerned with the use of performance appraisal as a contributor to employee motivation, development, and human resources planning. The developmental approach contained all of the traditional overall organizational performance appraisal purposes and the following additional purposes: Provided employees the opportunity to formally indicate the direction and level of the employee’s ambition. Show organizational interest in employee development, which was cited to help the enterprise retain ambitious, capable employees instead of losing the employees to competitors. Provided a structure for communications between employees and management to help clarify expectations of the employee by management and the employee, and Provide satisfaction and encouragement to the employee who has been trying to perform well. Who are Appraisers? The appraiser may be any person who has thorough knowledge about the job content, contents to be appraised, standards Continue reading
DSMC/ATI Organizational Performance Improvement Model
Out of the organizational performance improvement planning process come specific performance improvement interventions, tactics and techniques. Note that these interventions happen at five checkpoints. Upstream systems, inputs, process, outputs and downstream systems. Quality management efforts must be defined relative to these five checkpoints. In effect, transformation and continuous improvement efforts are commitments to a practice of managing all five-quality checkpoints. The management team then develops, through the performance improvement planning process, a balanced attack to improve total system performance, not just system sub-components. After interventions are made to the system, measure, assess and analyze organizational performance at the five checkpoints to determine whether the expected impact actually occurred. Based on these data, make an evaluation relative to the business strategy, the environment (both internal and external), the vision, the plan and the improvement actions themselves. Note that the process of evaluation is separate from the process of measurement. In addition, Continue reading
Obstacles to Effective Organizational Performance
Over the past decade there is an abundance of evidence, which could be produced to say that successful organizations are managed by efficient managers. Success in the long run can be ensured only through effective management. Successful managers foster sustainable growth through their skills, attributes and personal qualities. There is a distinction between common sense and common knowledge. Knowing things is different from doing things. Being able to analyze a case, identify a problem, and suggest a correct solution makes a manager more effective. Out of all the characteristics that make an effective organization, the most important factor is the quality and alignment of the human resources. The main obstacles to effective organizational performance are discussed below. 1. Working Conditions Ergonomics does matter for job performance. Not only the furniture and fixtures but also the colors of the rooms and the objects with which people work influence people’s attitudes and Continue reading
Profit Sharing as an Incentive Scheme
Profit sharing is the most popular method rewarding the employees. Under profit sharing incentive plan, the employees are paid in addition to the regular wage, a particular share of the net profits of the business as incentive. Characteristics of Profit Sharing Incentive Plans The key features of profit sharing incentive plans may be stated as follows: It is based on an agreement between the employer and the employees. It is a payment made after ascertaining the net profits of the business. It is not therefore, a charge on profits. The amount paid to the employees is over and above their normal pay. The amount to the paid is determined based on some agreed formulas. The payments based on seniority and wage level of individual workers. Merits of Profit Sharing The advantages of profit sharing incentive plans are as follows: Better employer-employee relations – This is possible, as the employer is Continue reading