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Human resource management chapter 1
Human resource management theoies
Human resource management chapter 1
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As the quantifiable characteristics of the composition in the workforce changes, employee motivations and expectations evolve too. It is up to the Human Resources department to understand what is revolving around people 's thoughts and happiness today in the work field environment, such as what is most valued by those workers and how work-life balance becomes one of the employers ' expectations. In many cases, HR will have to adapt their incentives, benefits and retention strategies for workers that are only driven by financial wages and compensation. Over the years, Human Resources function has changed with a clear goal in mind on figuring out the best practices and the best allocation of time. Companies will have to make sure that their people are committed and productive, so that they do not leave after a short period of time as well as incurring substantial turnover costs and wasting all the time spent investing in training newly hired employees. More companies and organizations are realigning the role of HR, so that they can better manage the organization as well as oversee …show more content…
The biggest objective and ultimatum for HR to make options and judgment about the use of these levers and where to focus their effectiveness and efficiency. Compensation and reward philosophy are one of the most important mechanisms. Human Resources can utilize the systems to inspire employees to perform in ways that are proper. Employees who think, act and behave in the proper way should be rewarded. Those who do not, should not receive rewards as a result, it will send mixed message to employees. HR must be careful when designing such pay for performance reward programs. To adequately and productively impact corporate culture, pay systems should reward not only job outcomes, but also behavioral expectations as
An incentive or reward system refers to a program designed by an organisation to reward high performance and motivate workers on an individual and group basis (Corby et al. 2009, p. 2). Rewards are useful to a company operating in a competitive market. Although used interchangeably, rewards and recognition where the former can be monetary or non-monetary but has a cost to the company, while the latter is meant to offer psychological reward, for instance, oral public recognition or end of the year award. While the company does not provide financial incentive, it provides non-financial in the form of cars for its Sales Division consultants. This improves the working condition of the employees, but it does not improve their financial stance. Wright (2004) notes that some employees are more concerned with status, for instance, an executive desk, attractive office or business card (p. 76). Such incentive make the jobs and company attractive.
Because reward distribution systems have major effect on the ability of organization for employing, generating and maintaining motivation in potential employees and consider as the main reason of access to great
Contents 1.0 EXECUTIVE SUMMMARY 2 3.0APPROPRIATE OF RESPONSE TO THE BUSINESS CONTEXCT( Internal and external) 4 3.1 INTERNAL FACTORS 4 3.2 EXTERNAL FACTORS 4 4.0 PROS and CONS OF PERFORMANCE RELATED PAY 6 6 4.1 Pros of Performance related pay 6 4.2 Cons of Performance related pay 6 5.0 EXTENT TO WHICH PERFORMANCE RELATED PAY CAN IMPROVE ORGANIZATIONAL PERFORMANCE 8 6. O ALTERNATIVE REWARD APPROCHES 10 7. O STUMBLING BLOCKS FRONT LINE MANAGERS EXPERIENCE IMPLEMENTING REWARD STRATEGIES AND HOW THEY MAY OVERCOME THESE 11 8.0 RECOMMENDATIONS 13 9.0 CONCLUSION 14 10.0 REFERENCES 15 People Management and Performance 15 The 7 Biggest Challenges of a Manager 15 1.0 EXECUTIVE SUMMMARY Strategic approach to reward management recognises that
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)
With the 21st century in motion human resource management will face some of the old struggles and HR will be forced to face many new challenges. The main objective of HR is to recruit, retain, train, retrain and keep workers satisfied. Indeed, these responsibilities can be challenging in the 21st century, especially with changing roles, a multi-generational workforce, and globalization.
Ulrich, D., Younger, J., and Brockbank, W. 2008. “The twenty-first century HR organization.” Human Resource Management, 47, pp.829-850.
(International Journal of HRM pp.1318) The idea is that an employee evaluates his or hers compensation, rewards then compares it to his/her job requirements and outputs. The employee will compare the compensation equality against a worker with comparable duties both inside and outside an organization. This perception can have a positive or negative affect on the employees’ behavior, attitude and moral, based on the results of the comparison or how the employee believes that he or she is being compensated or treated in the organization. Positive and negative attitudes can also play an important role in an organization as a worker or employees’ attitude can affect his/her performance but will also affect other co-workers around the individual.
Organizations’ other resources can be hired, retained and discarded at any time but human resources needs special treatment. It needs to be carefully hired, deserve an extra effort to retain it and requires training & development to upgrade and improve its capabilities. Other resources depreciate with the passage of time but when the human resource gains more and more experience, it becomes more beneficial for the organizations. These characteristics have brought human resources to be the central element for the success of an organization. (Mohammed, Bhatti, Jariko, and Zehri, 2013, pg. 129, para. 2)
Human Resource Management (HRM) is build from numerous sectors within allowing better efficiency levels to be reached my organisations. Some believe that certain topics such as performance management and rewards are the most crucial topics in HRM. In this essay these areas of HRM will be critically analysed to see why they are the most significant in running a successful operation of HRM in organisations. Performance management is the scheme through which organisations lay down work goals, establish performance standards, allocate and assess work, offer performance reviews, decide upon training and development needs and issue rewards (Briscoe and Claus, 2008). Performance management is a vital tool used in HRM to ensure a similar vision is
Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.
According to our textbook Human Resource Management (HRM) is the policies, practices, and systems that influence employees’ behavior, attitudes, and performance. “The human resources management process involves planning for, attracting, developing, and retaining employees as the HRM planning provides the rights kinds of people, in the right quantity, with the right skills, at the right time (Lussier, 2012, p. 240).” According to our textbook the typical responsibilities of the Human Resources department fall into three categories, and they are administrative services and transaction, which handle hiring employees. The second involves business partner services that focus on attracting, evolving, retaining employees by having a clear understanding
Employee compensation and reward systems have undergone a couple of paradigm shifts since inception. Reward systems were traditionally compensation based and focused on the individual or the position (Beam 1995). After a recession in the early 1980's, employers turned to performance based models in an attempt to save money while still rewarding top performers (Applebaum & Shapiro, 1992). Today, the most successful organizations are using a total reward model, a hybrid of the performance based model combined with strategic human resource management planning to create reward systems that both benefit the employee and help organizations realize their operational goals (Chen & Hsieh, 2006).
In large organisation, competition is not only in the market for goods and services but also for the quality of employees. As such, a large organization can only become attractive to the most skilled and high quality workers if it has an effective compensation and benefit plan. The key purpose of an effective compensation and benefit system is to provide employees with the right rewards for their work and right behavior in the workplace. Typically, organizational success is determined by the quality of employees an organization has. In turn, the organization can only attract such quality workers and maintain them through effective compensation and benefit
Management spends a huge amount of time to design incentive systems and schemes to motivate their workers and to ensure they work in their best possible manner. Motivating workers by giving them decent pay helps in winning employees heart to make the work done efficiently, significantly and effectively. The most effective way to motivate people to work productively is through individual incentive compensation (Pfeffer, 1998). An attraction of getting more is a powerful incentive to people for high performance. While most people agree that money plays a major role in motivating people, in organizations there is a widespread belief that money may also have some undesirable effects on morale.
Reward systems in the work place are not a new idea in the workplace, but they are the key to having happy employees and happy employees mean better output. Reward systems are systems used by companies where employees who achieve particular results are paid more or get other advantages. Some employers offer pay as incentives, while others offer benefits, some use a combination of both types. Employees within a company want recognition for the time and effort that they have put into a task required of their job. The use of reward systems not only enhances the company but it gives the employee a feeling of personal connection and investment into the company. Building a reward system can be a great asset to the company, by allowing the employees to feel that they are a part of the company. Reward systems are an important tool and key concept to managing an organization effectively.