Developing a Reward Strategy for Your Organization

Reward is an important part of managing organization and the management of employees. It can be defined as an organization is ready to pay for to accomplish its strategic objectives. Therefore the review of reward system starts from understanding of organizational strategy and HR strategy supports this. Strategic reward objectives should be aligned with business objectives in the same way as other key business areas such as finance, marketing, administrating and IT.

In the broad way, there are two ways of reward such as tangible and intangible. The definition of these two rewards are in a way ambiguous as it could vary according to the viewers’ standpoints, but most of rewards can be classified as the tangible, which includes competitive salary, promotion, good benefits, incentive, better working environment, recognition awards and all other fringe benefits for higher performance. Whereas, intangible rewards is none monetary reward for high performance, not always requiring recognition of others in the workplace. Examples are when a sales manager gives the sales person recognition by a “pat on the back, send an appreciation e-mail and usage of bulletin board” to show appreciation for job well done.

In order to implement the reward system the most appropriate way, performance appraisal, evaluation, accomplishment rating should be done the most fair and objective way, but it is sometimes easier said than done. Due to the unfair or unreasonable evaluation, employees get depressed over the total reward system of the organization. In addition, the subjective appraisal is often taking place because of the managers’ personal preference or subjective views on some employees in particular.… Read the rest

What is E-Recruitment?

Organisations use a variety of recruitment sources to attract applicants like direct applications, employee referrals, newspaper advertising, employment agencies, and executive search firms. Recruiting the right person to the right position is of crucial importance to the performance of every company. At the same time recruitments are expensive, difficult and time-consuming. Web based recruitment tools can be used to publish job postings, administrate applications, including spontaneous applications, and build up a CV Database.

This recruitment strategy includes identification of the right channels with a campaign that effectively summarizes the job requirements, company and community. A simple job posting in a publication or online career center is no longer enough – the employer also needs to market itself as a place the candidate would want to work and its community as a place the candidate would want to live. Companies often adopt online systems because they believe e-recruitment is more likely than traditional recruitment sources to uncover individuals with unique talents and skills. The logic here is that online recruiting systems permit firms to cast a wide net across a broad labor market and, therefore, may be more likely to reach high quality applicants than other sources.

Now job applicants are using online systems to search for jobs and gather information employment opportunities in organisations. Furthermore, e-recruiting may be particularly effective as we are searching for personnel assistant proficient with computer systems. Also, online systems can be used to attract passive job seekers who are currently employed, but are secretly searching for new and better employment opportunities.… Read the rest

The Art of Managing Human Resources in an Organization

Organizations and corporations are multifaceted. Such complexity within a business necessitates the need to strategic approach to the management of the employees, whose task is to enable the business to achieve its objectives. Human capital is an imperative asset of an organization and proper use of a potent assent can construct a successful and resourceful organization. In an organization, human capital can make or break an objective or a strategy. The human resource department is the most important department of an organization. Almost all activities directed at attracting, developing, and maintaining effective workforce are implemented in this department. The functions of human resource management are, but are not limited to, hiring the right candidates, at the right time, and at the right price. It also involves training the existing employees, motivating them to give the best to the organization, resolving conflicts, discipline the employees who violate the organization’s rules and regulation, as well as downsizing of the staff strength. Managing human resource is difficult as the job deals with solely installing the organizational culture into employees and keeping them happy in the work environment. In essence, this can be accomplished in theory, but is quite difficult in practice.

The different aspects of human resource management can be broadly categorized into recruitment and selection, performance management, benefits and compensation, disciplinary and grievances, labor relation, and manpower planning. Recruitment involves the process of advertising job through magazines, newspaper, headhunting, employment agencies, internal sourcing, and organization’s newsletter. The purpose of recruitment is to attract as many candidates as possible, to enable the organization pick the most talented and motivated workers.… Read the rest

Appraising Employee Performance

Need for Appraising Employee Performance in Organizations

There are several reasons to appraise subordinates performance. First, appraisals play, or should play, an integral role in the employer’s performance management process; it does little good to translate the employer’s strategic goals into specific employees’ goals, and then train the employees. Second, the appraisal lets the boss and subordinate develop a plan for correcting any deficiencies the appraisal might have unearthed, and to reinforce the things the subordinate does correctly. Third, appraisals should serve a useful career planning purpose by providing the opportunity to review the employee’s career plans in light of his or her exhibited strengths and weakness. And, last but not least, the appraisal almost always affect the employer’s salary raise and promotional decisions.

In reviewing the appraisal tools we discuss below don’t miss the forest for the trees. It doesn’t matter which tool you use if you’re less than candid when your subordinate is under-performing. Not all managers are devotees of such candor, but some firms like GE are famous for hard-hearted appraisals. GE’s former CEO,  Jack Welch is of the opinion that, for instance, that there’s nothing crueler than telling someone who’s doing a mediocre job that he or she is doing well. Someone who might have had the chance to correct bad behavior or find a more appropriate vocation may instead end up spending years in a dead-end situation, only to leave when a tough boss comes along.

There are many practical motivations for giving soft appraisals: the fear of having to hire and train someone new; the unpleasant reaction of the appraisee; or a company appraisal process that’s not conducive to candor for instance.… Read the rest

Strategic Human Resources Planning (SHRP) Process

Human Resource Management (HRM) and Strategic Human Resources Management (SHRM)

Human resource management (HRM) is that part of management process which makes, enhances, manages and develops the human element of the enterprise measuring their resourcefulness in terms of talents, abilities, total skills, creative, knowledge, and potentialities for effectively contributing to the organizational objectives. Human resources are precious and a source of competitive advantage. Human resources may be tapped most effective by mutually standard policies which promote promise and foster an inclination in employees to act flexibly in the interests of the adaptive organization’s pursuit of excellence. Human resource policies can be joined with planned business and used to reinforce appropriate culture. Human resources play a critical role in enabling the organization to effectively deal with the external environment challenges. The human resource management has been accepted as a strategic partner in the formulation of organization’s strategies and in the implementation of such strategies through human resource planning, employment, training, appraisal and rewarding the personnel.

Human resources of an organization can provide it with a reasonable advantage over its competitors in the fast changing environment. This calls for the strategic management of human resources for the accomplishment of corporate objectives. Strategic Human Resources Management (SHRM) facilitates creation of competitive advantage for the organization over its rival by building unique human resource based competence. An organization’s recruitment, selection, training, performance management process and compensation practices can have a strong influence on employee competence. Company output increase if the management can hire more experience well qualified candidate.… Read the rest

Outsourcing of Training and Development

Organizations now are using a unique approach to provide training internally by outsourcing their training departments. This they have found is a way that reduces costs improves productivity and relives them from the need of constant upgradation. Handing over the organizations training function over to “experts” in many ways also improves the quality of training. These experts have a lot of advantages; they are constantly upgrading themselves to differentiate themselves from the competition and add value to their clients, by virtue of the multiple clients they serve – they have an upfront feel of the best industry practices; training costs can be tracked more objectively and can help align your training’s with your strategic objectives in a far better manner.

Outsourcing of training and development activities means comprehensive, end-to-end outsourcing—from the management of the training function to the design, delivery and reporting. Training BPO refers to the transfer of management and execution of one or more complete ongoing training and development processes or the entire training function to an external services provider. For many companies, outsourcing employee training and development makes financial as well as business sense.

Outsourcing of training and development functions makes a lot of sense for most organizations. The training function is often a decentralized operation. Most companies are unsure of how much they spend on training across the enterprise, and don’t really know what or how much they need. Of course the process of identification, analysis, design, development, deployment and evaluation varies from group to group, department to department and division to division, even within an organization.… Read the rest