Human Resource Concepts

Traditional Methods of Performance Appraisal

Performance appraisal has been considered as a most significant and  indispensable tool for an organization, for the information it provides highly  useful in making decisions regarding various personal aspects at work place.  The performance appraisal activity is very much sensitive. It leads to very  positive side, if the system operated in a very systematic manner. The same  system also leads to destruction of the entire work lance, if proper care had not  been taken in the process of performance appraisal system.

Traditional Methods of Performance Appraisal

Traditional methods of performance appraisal  lay emphasis on the rating of the individual’s  personality traits, such as initiative, dependability, drive, creativity, integrity,  intelligence, leadership potential and so on.… Read the rest

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Wage Determination Process

Wages can be expressed in two ways. When they are expressed in terms  of money paid to the worker they are called nominal wages. But when they are  expressed in terms of their purchasing power with reference to some base year  they are called real wages. These wages are arrived at by making adjustment in  the nominal wages for the rise or fall in the cost of living.

How do we measure changes in the cost of living, or changes in the  prices that consumers pay? The measuring rod is the consumer price index  number. This index number is intended to show over a period of time the  average percentage change in the prices paid by the consumers belonging to the  population group proposed to be covered by the index for a fixed list of goods  and services consumed by them.… Read the rest

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Concepts of Compensation and Compensation Management

Concept of Compensation

The literal meaning of compensation is to counter-balance. In the case of  human resource management, compensation is referred to as money and other  benefits received by an employee for providing services to his employer. Money  and benefits received may be in different forms-base compensation in money  form and various benefits, which may be associated with employee’s service to  the employer like provident fund, gratuity, insurance scheme and any other  payment which the employee receives or benefits he enjoys in lieu of such  payment.

Cascio has defined compensation as follows:

“Compensation includes direct cash payments, indirect payments in the  form of employee benefits and incentives to motivate employees to strive  for higher levels of productivity”

Based on above description of compensation, we may identify its various  components as follows:

  1. Wage and Salary: Wage and salary are the most important component of  compensation and these are essential irrespective of the type of  organisation.
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Objectives of Compensation Management

The basic objective of compensation management can be briefly termed  as meeting the needs of both employees and the organisation. Since both these  needs emerge from different sources, often, there is a conflict between the two.  This conflict can be understood by agency theory which explains relationship  between employees and employers. The theory suggests that employers and  employees are two main stakeholders in a business unit, the former assuming the  role of principals and the latter assuming the role of agents.

Objectives of Compensation Management

The compensation  paid to employees is agency consideration. Each party to agency tries to fix this  consideration in its own favor.… Read the rest

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Talent Management Strategy

In simple terms Talent Management is getting the right people with the right skills into the right jobs. CIPD defines talent management as “the systematic attraction, identification, development, engagement/ retention and deployment of those individuals who are of particular value to an organisation, either in view of their ‘high potential’ for the future or because they are fulfilling business/operation-critical roles”. It is also told that talent management should begin with the identification of key positions that delivers sustainable competitive advantage to the organisation. This way there has to be more differentiation in the roles within an organisation which would create an exceptional impact by those individuals who would deliver sustainable competitive advantage to an organisation against the average backups.… Read the rest

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The Role of Human Resource Management in Organizations

Nowadays, Human Resource Management (HRM) has become one of the major partners of an organization. Human resource management deals with managing people in an organization that means recruiting efficient and skilled employees in the right jobs at the right time at the right cost. Human resource management plays a major role in achieving organizational aims and objectives. To achieve these aims and objectives, human resource management has to apply some strategies to the organization and organizational management and follow the strategic processes to face and overcome the completion of the outside world. Strategic human resource management is one of the parts of human resource management which links with the implementation of strategic goals and organizational objectives that improves business performance and development of the organization.… Read the rest

Abey Francis
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