Most traditional methods of performance appraisal emphasize either on the task or the worker’s personality, while making an appraisal. In order to bring about a balance between these two, modern methods have been developed. The modern methods of performance appraisal place more emphasis on the evaluation of work results, i.e. job achievements than the personal traits. Modern methods tend to be more objective and worthwhile. These methods are briefly discussed below. 1. Behavioral Anchored Rating Scale (BARS) The problem of judgmental evaluation inherent in the traditional methods of performance evaluation led to some organisations to go for objective evaluation by developing a technique know as BARS around 1960s. It is an approach that has received greater attention in recent years. Continue reading
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. 1. Rankings Method It is the Continue reading
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 Continue reading
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 Continue reading
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. The employers want to pay as little as possible to keep their costs low. Continue reading
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. These Continue reading