Desirable conditions for the success of an incentive scheme

A good wage incentive plan should have the following characteristics.

Administrative simplicity: The incentive system should be simple and must be easily understood by the workers and their representatives.   An incentives scheme, which can be understood, only by engineers and mathematicians or a scheme which involves the use of complex formulate or references and cross-references is sure to fail.   The incentive scheme should be such that workmen can calculate their own earnings easily and quickly.

Minimum clerical work: The system should fit into existing system of production and cost control.   It should not involve any significant addition to the clerical work.… Read the rest

Different Employee Training and Development Methods

Every organization needs well-adjusted, trained and experienced people to perform its activities. As jobs in today’s dynamic organizations have become more complex, the importance of employee education has increased. Employee training is a learning experience, it seeks a relatively permanent change in employees that improves job performance. Training involves changing skills, knowledge, attitudes, or behavior. This may means changing what employee know, how they work, or their attitudes toward their jobs, coworkers, managers, and the organization.

Managers, with HRM assistance, decide when employees need training and what form that training should take.

On-the-Job Training Methods 1. Job instructions:
  • It is received directly on the job, and so it is often called “on-the-job” training (OJT).
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Development of Human Resources in an Organization

Human resource development (HRD) is a sub-system that operated in the main system; the organization. In order for the organization to be successful the objectives and goals of the subsystems must be aligned towards achieving the set goals of the main system. For example, the primary objective of the organization would be to maximize return on shareholder investment. We may find that the objectives of training and development would be a level removed down, that is to maximize the capabilities of the employees, induce innovation, and produce high quality products and service. They may be different but a closer look at each of these objectives reveals that they serve a singular purpose; maximize the return.… Read the rest

Introduction to Organization Development

Organizations change from time to time. Changes with respect to continuous improvements, diversity, and work process engineering require the organization to move forward through a process called organizational development.

Definition of Organization Development:

Organization development is a process that addresses system wide change in the organization.

Change agent:

  • Change agents are individuals responsible for fostering the change effort and assisting employees in adapting to changes
  • They are may be internal employees, or external consultants.

What is change?

Organization development efforts support changes that are usually made in four areas:

  • The organization’s systems
  • Technology
  • Processes
  • People

Two metaphors clarify the change process.Read the rest

Factors influencing wage and salary structure of an organization

The wage policies of different organization vary some what. Marginal units pay the minimum necessary to attract the required number of kind of labor. Often, these units pay minimum wage rates required by labor legislation, and recruit marginal labor. At the other extreme, some units pay well about going rates in the labor market. They do so to attract and retain the highest caliber of labor force. Some managers believe in the economy of higher wages. They feel that, by paying high wages, they would attract better workers who will produce more than average worker in the industry. This greater production per employee means greater output per man hour.… Read the rest

Elton Mayo’s Hawthorne Experiment and It’s Contributions to Management

The term “Hawthorne” is a term used within several behavioral management theories and is originally derived from the western electric company’s large factory complex named Hawthorne works. Starting in 1905 and operating until 1983, Hawthorne works had 45,000 employees and it produced a wide variety of consumer products, including telephone equipment, refrigerators and electric fans. As a result, Hawthorne works is well-known for its enormous output of telephone equipment and most importantly for its industrial experiments and studies carried out.

Hawthorne Experiment by  Elton Mayo

In 1927, a group of researchers led by Elton Mayo and Fritz Roethlisberger of the Harvard Business School were invited to join in the studies at the Hawthorne Works of Western Electric Company, Chicago.… Read the rest