Family business can be describe when business own by one or more families members directly or indirectly and have significant ownership and commitment toward the business well being. Family business can be consist of numerous combination of family members such as husband and wife, parents and child, extended family and also multiple generations such as grandfather, father and son. These family members also play roles as stakeholder, board members, working partners, adviser and employees for the company. Generally there are three different stages of family business had gone through in order for the business to growth from inception to maturity. Different skills are required in each stage and family issues might happen when the business moving from one stage to another stage. The first stage is called as start up stage where the business is still new and varies from 1st to 5th year after the company started to ventureContinue reading
HRM Functions
The Cultural Web – Johnson and Scholes’s Model of Organizational Culture
Organizational culture can be simply identified as the own unique personality that the respective organization practices. The group of people who works for the organization shares a system of Assumptions, Beliefs, and Values which governs them both individually and with the organizational needs. The cultural web model developed by Johnson and Scholes in 1993 is an important one, in which six dimensions of the organization culture are defined. The corporate culture consists of six major components, as structure, power structure, symbols, stories, rituals and control systems. They provide clear guidelines for the employees, about how things are performed within the organizational context; providing influences for the better change management. Cultural elements can be organized in the company to achieve productivity is described accordingly. Structure – Mainly refers to the structure of the company, in terms of the management layers and supervisory control. Modern organizations is thereby advised in adjusting to more flat type organization,Continue reading
The Strategic Role of Human Resource Management
Human resource development is the process of assisting employees in a certain organization to improve their personal and organizational skills, their abilities, and use of knowledge. This includes helping them through taking them for training, career development courses, organizational and performance management. The main aim of human resource development is to develop an advanced workforce that will enable the organization to achieve its goals and offer the best to its customers. Human resource development can be done from within the organization or from outside the organization. It can also be done formally such as a planned organizational change, offering classroom training to employees or taking them through a certain college course, or informally where a manager may decide to coach the employees on a particular issue. Human resource development in any organization is the role of human resource management. This deals with all the matters of the employees. This article,Continue reading
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 orContinue reading
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 thanContinue reading
Soft Skills – Meaning and Importance
The term personality is derived from Latin word persona, a mask worn by actors in classical dramas. Behaviorist psychologists feel that if a person has some kind of impact or makes a certain impression on others, it must be because of his actions. The simplest meaning of personality, therefore, is “the pattern of responses” which characterizes the individual. An individual’s personality is invariably revealed through interactions in the personal, social and the professional arena, for the act of communication determines how one views and in return is viewed by the world around. In the modern world of professional rivalry and competitive business, obsessed with power and achievement, personality becomes the byword for success. There are qualities that enable one to evolve and grow into an empowered and well-balanced personality, a choice that proves to be a wise investment for long-term achievements. Such qualities along with the ability to effectively communicateContinue reading