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
Human Resource Management
Human Resource Management (HRM) is branch of management that deals with people at work, it is concerned with the human dimensions of management of the organization. As organization consists of people, therefore acquiring them, developing their skills, providing them motivation in order to attain higher goal and ensuring that the level of commitment is maintained are the important activities.
Equity and Fairness of Employee Compensation Systems
Compensation is key to organisational strategy. It has an impact on attracting and retaining employees and ensuring optimal performance in meeting the organisation’s objectives. The economic importance of compensation is that it should allow the organization to maintain a cost structure that enables it to compete effectively and efficiently in its markets. Adams equity theory suggests that once an individual has chosen an action that is expected to satisfy his or her needs, the individual assesses the equity or fairness of the outcome. Three attitudes are possible; an individual may feel equitably rewarded, under rewarded, or over rewarded. When individuals feel under rewarded or over rewarded, they will do something to reduce the inequity. A further development ‘Fairness theory’ takes into account the notion of accountability and blame. When people identify an instance of unfair treatment, they are holding someone accountable for an action that threatens another person’s material or 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
Pluralist Perspective of Industrial Relations
The Pluralist perspective of industrial relations is just as the name suggests, they see organisations as constellations of different groups. The organisation is seen as multi-structured in terms of groups, leadership, authority and loyalty. A miniature democratic state composed of sectional groups with divergent interests over which the government tries to maintain some kind of dynamic equilibrium. The main groups within this perspective that find themselves at the opposite ends of the scales often are the workers and managers. This can be down to a number of issues such as pay, working conditions, bonuses and working hours and it is over issues like these that conflict often occurs. The pluralist perspective during the twentieth century include a widespread distribution of authority and power in society, ownership separation from management, political separation and industrial conflict and an acceptance and institutionalization of conflict in both spheres. The priciple assumption of pluralist perspective Continue reading
Necessity for Alignment between Corporate Strategy and HR Strategy
Current business environmental forces such as competition, innovation, globalization, technological advancement etc has created major impact on organizational behavior. These changes come in different forms. Sometimes it required to reorganize the structure of the organization and due to this organization may have to introduce new roles and new people. Sometimes it may require to change the culture of the organization. In all these situations HRM function plays a major role. Further recent development of new concepts such as knowledge workers has increased the complexity of HRM function. Nowadays HR has become strategic assets for organizations. From an IT company’s view point intellectual property that is knowledge of the software developers is crucial for their business than the physical asset of the company. This importance has heightened due to the transition of old economic conditions to knowledge based economy where it considers the intellectual property as one of key success factors Continue reading
Career Development – Meaning, Definition and Stages
The concept of career development is of growing concern to organizations since it matches the needs of a business with the career goals of employees. Formulating a career development plan can help employees to do their jobs more efficiently. Additionally, these plans can be beneficial for employees who might want to move up in a company or look for other jobs in the future. Today, challenging organizations have developed new concerns for the career development of their employees. They put greater emphasis on ‘career’ with coherent induction, training and development, increased job security by the accrual of experience and qualifications valued in the labor market. Since a high majority of workers change their careers at midlife, it becomes evident that career development programs are needed throughout the life cycle. Other major reasons for this concern are: The growth and productivity of organizations depend on the effectiveness of employee performance. A Continue reading