HRM Concepts

Gender Wage Discrimination

The term wage discrimination can be explained as a difference in the wage levels offered to male workers and female workers for the same level of work they do. It occurs when an individual in a labor market suffers from a decreased wage level for the same job and performance.

Gender wage differences seem to exist in many countries to some extent. Studies on wage differences shows that female/male earnings ratios are usually less than one, indicating that women usually earn less than men do. Depending upon the characteristics of their labor markets, factors producing wage differentials in those studies varied from race, gender, education, job status occupation, type of sector (public vs.… Read the rest

Abey Francis

Organizational Commitment

Organizational commitment refers to the “degree to which an employee identifies with a particular organization and its goals and wishes to maintain membership in the organization.”

Nowadays, organizational commitment is given lower importance. Organizational commitment is being replaced by “Occupational Commitment” where employees are more loyal to the occupation they are in and lesser to the organization they are in. This has resulted in a high employee turnover ratio in firms.

Organizational Commitment can be Affective, Continuance or Normative in nature.

  1. Affective Commitment which tells the emotional commitment and attachment to the culture, work place, location or the organization itself. It shows individuals working with dedication because they are more attached to the organization.
… Read the rest
Abey Francis

Extrinsic and Intrinsic Rewards – Impact on Individual and Organization Performance

In this competitive environment nowadays, organisations are predicted to be more aggressive on empowering the employees because the employees’ job satisfactions are important for the whole organizational performance. Because of this reason, in order to achieve the organization’s missions and goals, the effectiveness on managing the motivation of employees should not be excluded. The motivation such as employees’ satisfaction on their works or the rewards given to them leads to better performance in their organization. Rewards are the performance incentives that given by the company to the individuals due to their good work performance. There are two types of rewards that normally implemented by the organizations to motivate the employees, extrinsic rewards and intrinsic rewards.… Read the rest

Abey Francis

Variable Compensation Program – Types, Pros and Cons

Performance Related Pay is a kind of a payment system which relates the wages and salaries with the performance of an employee. It includes incentive payments, merit pay, etc. Performance Related Pay is also known as Variable Compensation. Variable compensation programs are customized in such an order that, as said before, the performance of the employees depicts their incomes. It does not depend on his/her designation in an organization. These programs are designed to motivate individuals and groups that contribute effectively, as they differentiate between performers and non-performers.

Many companies believe that a variable compensation program enhances productivity and motivates employees.… Read the rest

Abey Francis

Benefits of Pay-for-Performance Compensation Strategy

First and foremost, pay-for-performance plans are different to a set of salary. It is a method of compensation where the employees are paid based on their performance. Employers normally provide incentives to workers based on the work performance. The efficacy of pay-for-performance plan is it is able to be use to motivate employees. Sometimes the virtue of incentives plans are uncertainty, it is costly for company to implementing or unexpected problems may occurs. It will be time consumed and effort for company to search or design for suitable incentives plans. However, its contribution should not be neglect. There have several advantages of pay-for-performance plans and incentives plans for both employers and employees.… Read the rest

Abey Francis

The Importance of Human Capital in Business

Managers may ask the question what is the most important asset in their company? The greatest asset of a company is not its financial capital, the number of building or it’s properties, nor it is the equipment or products that the company own. The greatest asset that a company own is it employees. Then again, what exactly is human capital? The term human capital is recognition that people in organisations and businesses are important and essential assets who contribute to development and growth, in a similar way as physical assets such as machines and money. The collective attitudes, skills and abilities of people contribute to organisational performance and productivity.… Read the rest

Abey Francis