Recognition is defined as a form of sincere praise or appreciation given to an individual by another and reward as the earned item of value presented to an individual for successful accomplishment of a particular service, task or mission. Recognition and reward programs has always been an effective strategy for retaining employees and it normally do not cost much and not very time-consuming. Informal recognition and reward program can recognize outstanding performance rather quickly while formal program develops the performance growth in a long term basis. Well planned recognition and reward programs builds comradeship within the team and makes employees feel valued and appreciated. Employees want to feel appreciated and seldom will they find compliments a surplus. Effective recognition and reward programs recognizes and appreciates the efforts of individuals while taking into account their individual needs, differences and personalities. As a leader, do not assume that the approach of one-size-fits-all Continue reading
HRM Concepts
Performance Related Pay – Definition, Objectives and Conditions
Rewarding performance is the element of the performance management process which seeks to give employees some kind of return for achieving their targets. This is wider than just financial recompense and includes such things as praise, greater opportunities for training and development, and promotion. Very often one of the things most sought by an employee is the recognition that he or she is doing a good job and where, for example, this is expressed in terms of bonus it is very often the recognition rather than the cash that really matters. It is only when money enters the equation that rewarding performance become very tricky and the emphasis her is therefore on the financial aspects. People very often consider performance management solely in terms of Performance Related Pay (PRP). PRP is a method of remuneration that provides individuals with financial rewards in the form of increases to basic pay or Continue reading
Understanding Cross-Cultural Communication in International Business
Cross-cultural communication exists when people from differing cultures have reached a certain degree of understanding regarding their differences. For understanding to take place, both people must have some form of knowledge or awareness regarding the norms or customs that exist in each other’s culture. Verbal and nonverbal communications can contain implied meanings, as well as certain degrees of symbolism. For successful communication to take place, background knowledge concerning values, norms and perceptions is necessary in order for clear, effective communication to take place. The key to effective cross-cultural communication is knowledge. It is essential that people understand the potential problems of cross-cultural communication, and make a conscious effort to overcome these problems and important to assume that one’s efforts will not always be successful, and adjust one’s behavior appropriately. For example, one should always assume that there is a significant possibility that cultural differences are causing communication problems, and be Continue reading
Objectives of Sound Compensation Planning
The most important objective of any pay system is fairness or equity. The team equity has three dimensions: Internal equity: This ensures that more difficult jobs are paid more. External equity: This ensures that jobs are fairly compensated in comparison to similar jobs in the labour market. Individual equity: It ensures equal pay for equal work, i.e. each individual’s pay is fair in comparison to others doing the same jobs. In addition, there are other objectives as well. The ultimate goal of compensation administration (the process of managing a company’s compensation program) is to reward desired behaviours and encourage people to do well in there jobs. Some of the important objectives that are sought to be achieved through effective compensation management are listed below: Attract Talent: compensation needs to be high enough to attract talented people. Since many firms compete to hire the services of competent people, the salaries offered Continue reading
HR Strategy Formulation: Organization Mission and Goals Analysis
Even similar organizations often pursue different goals; a thorough organizational analysis of the organization’s overall mission and goals is a second integral aspect of identifying human resource strategies. All organizations exist to accomplish something in their larger environments. The mission — the purpose of an organization’s existence — should guide its strategic thinking. For example, two similar electronics manufacturers may have varying missions. One may want to “be a successful organization in the entertainment business,” while the other may define its mission as “occupying a technological leadership position in the industry.” The associated strategies are likely to show significant differences. Apart from manufacturing electronic goods used for home entertainment, the former firm may acquire video and film production firms and get into the music industry (e.g., producing music DVD’s); while the second firm may be more committed to innovative electronic products through research and development. The associated human resource strategies Continue reading
Quality of Work Life (QWL) – Definition, Scope, Principles, and Techniques
The term Quality of Work Life (QWL) aims at changing the entire organizational climate by humanizing work, individualizing organizations and changing the structural and managerial systems. It takes into consideration the socio-psychological needs of the employees. It seeks to create such a culture of work commitment in the organizations which will ensure higher productivity and greater job satisfaction for the employees. Quality of work life refers to the favorableness or unfavorableness of the job environment of an organization for its employees. It is generic term which covers a person’s feelings about every dimension of his work e.g. economic incentives and rewards, job security, working conditions, organizational and interpersonal relationships etc. The term QWL has different meanings for different people. A few important definitions of Quality of Work Life (QWL) are as follows: According to Harrison: “Quality of Work Life is the degree to which work in an organization contributes to Continue reading