Factors influencing wage and salary structure of an organization

The wage policies of different organization vary some what. Marginal units pay the minimum necessary to attract the required number of kind of labor. Often, these units pay minimum wage rates required by labor legislation, and recruit marginal labor. At the other extreme, some units pay well about going rates in the labor market. They do so to attract and retain the highest caliber of labor force. Some managers believe in the economy of higher wages. They feel that, by paying high wages, they would attract better workers who will produce more than average worker in the industry. This greater production per employee means greater output per man hour. Hence, labor costs may turn those existing in firms using marginal labor. Some units pay high wages because of a combination of a favorable product market demand, higher ability to pay and the bargaining power of trade union. But a largeContinue reading

Case Study: Human Resource Management at BMW

BMW (Bayerische Motoren Werke in German, or Bavarian Motor Works in English) is basically a German company with vast experience in the field of cars and was introduced in 1916. This company spends more money on its human inputs to add value and also its complex contribution of human resources creates its competitive advantage. BMW’s specialized staff which are able to offer superior quality of product and services in the market with the customer experience. Human resources plays important role in the BMW even in the time of recession as they have invest on the human inputs. But this depends on the financial condition and capabilities of the market as they had invested in training development and recruitment of the new management teams in their organisation. Earlier BMW was not giving importance to its customer services and its staff only focusing on its products and places for its expansion butContinue reading

Idea of Workers Participation in Management

Workers participation in management refers to the involvement of employees in the decision-making process and management activities of an organization. This approach to management is based on the belief that employees are valuable assets to the company and should be given a voice in the direction and operations of the organization. Workers participation in management can take various forms, including collective bargaining, works councils, employee representation on boards, and employee involvement programs. The concept of workers participation in management has its roots in the labor movement of the late 19th and early 20th centuries. During this time, workers were organizing to improve their working conditions and wages, and were calling for a greater say in the decisions that affected their lives. Over time, workers participation in management has evolved and become an important aspect of modern management practices. Today, workers participation in management is widely recognized as a way toContinue reading

Data Security and Employee Confidentiality in HRIS Systems

HR data are typically confidential and sensitive. Consequently, a key concern with HRIS is the potential for the invasion (and abuse) of employee privacy by both authorised and unauthorised personnel. It is important for ensuring employee and management confidence in a HRIS to thoroughly explore questions about user access, data accuracy, data disclosure, employee rights of inspection and security. Failure to do so may result in ethical, legal and employee relations problems of a magnitude which could destroy the credibility of the system. ‘Establishing security and end user privileges’, says O’Connell, ‘calls for a balance of incorporating HR policy, system knowledge and day to day operations.’ The HRIS security checklist is: Review all PC-based HR applications. Verify that all users are properly trained in the secure use and handling of equipment, data and software. Ensure that all users sign-off (log-off) before they leave the PC unattended, regardless of howContinue 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 aContinue 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 majorContinue reading