Human Resource Concepts

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

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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

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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

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Evolution of Human Resource Management (HRM)

Human Resource Management (HRM) is defined as the strategic approach to manpower management in an organization and also this is a function of the company which focuses on recruiting the management to provide further information to the employees, how to take the business to the top level. This process is really important to today’s businesses, it studied that employees working in teams or individually are the two main contributors which helps to succeed in the business objectives. The managers of the businesses in this generation are responsible in selecting employees, planning the goals of the company, planning how the business can use the resources in effective ways, assigning tasks for the employees, giving information to the employees how a task should be completed by using few resources, giving feedback’s how they can change their behaviors, introducing new technology to improve performance of the employees, taking responsibilities of the entire business and most importantly being a role model to the employees and working hard to give the best services to the customers.… Read the rest

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Characteristics of Effective Teams

Many authors have written various features that they believe are essential for team effectiveness. Having read them it can be suggested that the following are the features of an effective team:

  1. Clear Understanding of the Goals/Objectives:  Perfect understanding of what the goals of the team are, is very important. Every member of the team should be able to talk for the team on the progress of their project when called upon. However, this happens when every member of the team understands the team’s goal and can tell if they are making progress or not.
  2. Shared Values:  Effective teams share desires to succeed at whatever they do.
… Read the rest
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Characteristics of High Performance Culture

A high performance culture is a culture where the standout culture traits are can do spirit, pride in doing things right, no-excuses accountability, and a pervasive result oriented work climate where people go to the extra mile to meet or beat stretch objectives. In a high performance culture there is strong sense of involvement from the part of the company employees and emphasis on individual initiative and creativity. Performance expectations are clearly delineated for the company as a whole, for each organizational unit, and for each individual. Issues are promptly addressed- a strong bias for being proactive instead of reactive exists.… Read the rest

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