Developing a Reward Strategy for Your Organization

Reward is an important part of managing organization and the management of employees. It can be defined as an organization is ready to pay for to accomplish its strategic objectives. Therefore the review of reward system starts from understanding of organizational strategy and HR strategy supports this. Strategic reward objectives should be aligned with business objectives in the same way as other key business areas such as finance, marketing, administrating and IT.

In the broad way, there are two ways of reward such as tangible and intangible. The definition of these two rewards are in a way ambiguous as it could vary according to the viewers’ standpoints, but most of rewards can be classified as the tangible, which includes competitive salary, promotion, good benefits, incentive, better working environment, recognition awards and all other fringe benefits for higher performance. Whereas, intangible rewards is none monetary reward for high performance, not always requiring recognition of others in the workplace. Examples are when a sales manager gives the sales person recognition by a “pat on the back, send an appreciation e-mail and usage of bulletin board” to show appreciation for job well done.

In order to implement the reward system the most appropriate way, performance appraisal, evaluation, accomplishment rating should be done the most fair and objective way, but it is sometimes easier said than done. Due to the unfair or unreasonable evaluation, employees get depressed over the total reward system of the organization. In addition, the subjective appraisal is often taking place because of the managers’ personal preference or subjective views on some employees in particular.… Read the rest

Electronic Human Resource (e-HR)

e-HR stands for Electronic Human Resource. The term e-HR refers to deal Human Resource Management transactions using an internet. E-HR aims to keep information available to employees and managers at anywhere at any time. E-HR may include organizations HR portals and web applications, Enterprise Resource Planning, HR service centers and interactive voice response. There are three identified levels of e-HR such as publishing of information (delivered by intranet medium), automation of transactions with integration of workflow (intranet or extranet used) and transformation of the HR function (redirect HR function towards a strategic one). E-HR is characterized in field of HRM as having numerous innovations in Technology and it provides wider potential in term of usages including employee self service, information sharing, functions administration and production of reports.

e-HR make use of technology to create a real-time, information-based Self-service, interactive work environment. With e-HR, managers can access relevant information and data, conduct analyses, decision making and communicate with others and employees are able to control their own personal information like update their records when it changes and make any decision on their own without consulting with any professionals help.

e-HR will effect both efficiency and effectiveness of Human resources function in such a way that the efficiency of the human resource process can be effected by reducing cycle time for paperwork, improvements is data accuracy and reducing manpower requirement. In similar way the effectiveness of human resource process will be effected by improving the capabilities of both employees and managers to make a better and accurate decisions.… Read the rest

New Roles of Human Resource Managers in Business Development

A great team of working professionals in an organization cannot be possible without the human resources. The main contribution of HR management to organizations are hiring and training the workforce, takes care of the performance management system, helps in building culture and values, manages conflict, and most importantly developing good relations. Human resources managers promote, recommend on, and implement plan associated to the usage of employees within an organisation effectively.  They are the most qualified and skilled people into the organisation to make a difference in enhancing the productivity of the employee and the organization. Their desire is to assure that the organisation hires the suitable people in terms of skills and experience, and that training and development opportunities are accessible to personnel to boost their achievement and attain the goals in the organization. HR officers are responsible in a range of activities needed by the organisation such as working ethics, recruitment, salary, terms of employment, external negotiation, and equality and diversity.

Since time immemorial, human resources have played a vital role in managing people and magnifying their full potential. There are key insights to surpass in any inevitable business growth, decline or any dynamic changes in a management.

Business Growth

First, managers should have a clear comprehension of where the organization is headed. In order for HR to anticipate fundamental stages of improvement, transition and deal with necessary shifts, they need to be genuinely familiar with the strategy, values and vision. Secondly, values and goals should be the bedrock of the business.… Read the rest

Human Resources as a Strategic Partner in an Organization

The general scenario in most companies is as follows. HR management teams have well-developed visions of their departments, their roles and responsibilities. But, the senior management is generally skeptical of HR’s role in the firm’s success. They generally consider HR to just be another necessary appendage but not something that can contribute to the success of the company. Even if the senior management does believe that human capital is their most prized possession and asset, they cannot understand how the HR team can make this belief come alive.

There is one reason for all of this. Human capital is an intangible asset and HR’s influence on firm performance is difficult to measure. The standard elements of a firm’s resource architecture that are measured include total compensation, employee turnover, cost per hire, percentage of employees that undergo performance appraisals and percentage employee satisfaction. The question to be asked is: Are these the measures crucial to implementing the firm’s strategy? This is clearly not the case. Interesting attributes would include a committed workforce, competency development programs, etc. But, it is very difficult to imagine measures for these quantities. Hence, in the current state of HR there is a clear rift between what is measured and what needs to be measured.

The role of HR is no more just administrative. It has a much broader, connected and strategic role to play. But, these statements must be substantiated. The reasons why HR must be considered as a strategic asset must be highlighted. A strategic asset is something difficult to trade or imitate.… Read the rest

The Strategic Role of HR

As people become the key competitive advantage in any industry, the human resource (HR) development function will and should play a more strategic role. It should go beyond its mere administrative support function to operations and front line departments. Whether or not company views HR strategically may decide whether market share, sales, or profits would increase or not. An effective HR strategy becomes equally decisive as the company‘s marketing strategy.

Technology too is changing HR roles. As industries, specifically the services sector, and the way they compete become knowledge-based, HR performance indicators will shift from manpower and man-hours supplied to brainpower and brain hours delivered. The key result areas in people management will also shift from production and quantity to productivity and quality. Capability, measured in employee ideas generated and implemented, and productivity gained, will be more important than capacity, measured in man-hours available, man-hours lost, absenteeism, etc.

The current HR function is very much configured like the company‘s purchasing department. People, like parts and supplies, are requisitioned by user departments based on depletion and growth rates of their operations. Both resources are screened for quality control and cost or budget constraints. The only slight difference is that unlike purchased parts, people are trained or prepared before they are sent to the requisitioning parties which may train them further before actual deployment or usage. HR is also involved in the replacement, termination and retirement process of unusable people assets, much like the handling of depreciated equipment. In short, most HR systems exist only for replenishment and maintenance of a resource called people.… Read the rest

HR Scorecard: A Balanced Scorecard for HR

The new economic paradigm is characterized by speed, innovation, quality and customer satisfaction. The essence of the competitive advantage has shifted from tangible assets to intangible ones. The focus is now on human capital and its effective alignment with the overall strategy of organizations. This is a new age for Human Resources. The entire system of measuring HR‘s contribution to the organization‘s success as well as the architecture of the HR system needs to change to reflect the demands of succeeding in the new economy. The HR scorecard is a measurement as well as an evaluation system for redefining the role of HR as a strategic partner.

Managers often use an HR Scorecard to measure the HR function’s effectiveness and efficiency in producing employee behaviors and thus in achieving the company’s strategic goals. The HR Scorecard is a concise measurement system. It shows the quantitative standards or “metrics” the firm uses to measure HR activities, and to measure the employee behaviors resulting from these activities, and to measure the strategically relevant organizational outcomes of those employee behaviors. In so doing, it highlights, in a concise but comprehensive way, the causal link between the HR activities, and the emergent employee behaviors and the resulting firm wide strategic outcomes and performance.

Brian E.Becker, Mark A. Huselid, David Ulrich in their book titled “The HR Scorecard: Linking People, Strategy, and Performance,”  explain the need for such a measurement system this way:

In our view, the most potent action HR managers can take to ensure their strategic contribution is to develop a measurement system that convincingly showcases HR’s impact on business performance.

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