Executive employees, such as chief executive officers (CEOs), chief financial officers (CFOs), company presidents, and other upper level managers are often compensated differently than those at lower levels of an organization. Executive compensation consists of base salary, bonuses, long-term incentives, benefits, and perquisites. For the higher management, salaries are influenced by the size of a company, performance of the company, by the specific industry, and in party by the contribution of the incumbent to the process of decision-making. The more profitable the organization is the firm, the better is the compensation paid to the executives. Executive Compensation An executive is a person who is a member of the highest decision-making group in an organization. Chief executive officer (CEO), full-time directors and other senior managers fall in this category. Executive compensation includes base salary, bonus long-term incentives, and perquisites (perks) payable to executive. Executive compensation has become a hot topic in Continue reading
HRM Functions
Performance Management System – Purpose, Criteria and Implementation
Performance Management is a process that enables an organisation to evaluate and continuously improve individual, subsidiary unit and corporate performance, against clearly defined, pre-set goals and targets. There is a very important link between performance management strategies applied to individuals or units which contribute to the organisation be it for global profitability. This linkage is also important as an individual’s performance is evaluated according to expectations of appropriate outcomes and behavior that contribute to organizational goal attainment. Any concern would need to devise an effective system for managing the performance of its global operations that assists strategic cohesion and competitiveness but it is also important to keep in mind not to impose onerous methods for the same invading the local receptiveness. Examining performance and ensuring adherence to agreed standards are key elements of an organisation’s managerial control system. Success of a company depends very much on all the stages and Continue reading
The Concept of Occupational Safety and Health
Definition of Occupational Health Since 1950, the International Labor Organization (ILO) and the World Health Organization (WHO) have shared a common definition of occupational health. It was adopted by the joint ILO/WHO committee on occupational health at its first session in 1950 and revised at its twelfth session in 1995. The definition reads: “occupational health should aim at: the promotion and maintenance of the highest degree of physical, mental and social well-being of workers in all occupations; the prevention amongst workers of departures from health caused by their working conditions; the protection of workers in their employment from risks resulting from factors adverse to health; the placing and maintenance of the worker in an occupational environment adapted to his physiological and psychological capabilities; and, to summarize, the adaptation of work to man and of each man to his job.” The Changing Approach to Occupational Health and Safety The traditional approach Continue reading
Career Management – Definition and Meaning
Career is a general course of action, an individual chooses to pursue, all through his or her employment life. It may be represented as occupational positions a person has hold over so many years. Many people feel satisfied by achieving their career goals. At the same time, others have a strong feeling that, their careers, their lives and their potential has undergone unfulfilled. Employers too have a profound effect on employees’ careers. Some organisations have very formal career management processes, while others are very little concern about it. Career management is defined as the ongoing process of preparing, implementing and monitoring career plans. It can be undertaken either by the individual alone or can be a concerted activity along with the organisation’s career systems. Career management is a process that enables the employees to better understand their career skills, develop and give direction to it and to use those skills Continue reading
Contemporary Theories/Views on Motivation
Motivation is human psychological characteristic which shows the level of commitment towards a particular goal. Motivation shows that how employee think about his job, if he is motivated than productivity level will be high. Motivation linked with morale as well, if the morale is high it shows employees job satisfaction and they are dedicated and loyal for their works. But if morale is low it results low productivity, absenteeism, and the high staff turnover. In another words performance mainly depend on motivation. Contemporary Views on Motivation In this section we will be discuss about five motivation theories which can be a good example for the managers who are struggling with the low motivation of staff and the high staff turnover and these theorize can help to learn how to motivate the staff. 1. Need Theory of Motivation Concentrates on what people need to live satisfied lives. According to the need Continue reading
Methods of Workers Participation In Management
Worker’s participation is a system where workers and management share important information with each other and participate in decision taking. Workers’ participation in management is an essential ingredient of Industrial democracy. The concept of workers’ participation in management is based on Human Relations approach to Management which brought about a new set of values to labor and management. Workers participation in management implies mental and emotional involvement of workers in the management of Enterprise. It is considered as a mechanism where workers have a say in the decision-making. It is a process by which authority and responsibility of managing industry are shared with workers. Most important Forms / Methods of Workers Participation in Management are: 1. Participation at the Board level: This would be the highest form of industrial democracy. The workers’ representative on the Board can play a useful role in safeguarding the interests of workers. He or she Continue reading