Based on the match employees can apply for a job or consider other job opportunities. COMPETENCY BASED COMPENSATION Competency based compensation is compensation for individual characteristics, for skills and competencies over and above the pay a job or organizational role commands. Various elements are considered for arriving at compensation increase. Enhancement in competencies has to be one of them. There is a need for competency based compensation system •To attract more competent than average employees •To reward for results and competencies developed •To motivate employees to maintain and enhance their skills and competencies regularly.
As far back as 1911, Frederick Taylor and his scientific management associate described money as the most important factor in motivating the industrial workers to achieve greater productivity. Taylor viewed compensation and performance based pay as one of the major tools management had at its disposal to motivate personnel and to increase their productivity and reduce turnover Dulebohn, Ferris, & Stodd (1995). Money possesses significant motivating power in as much as it symbolizes intangible goals like security, power, prestige, and a feeling of accomplishment and success. Sinclair, et al. (2005) exhibits the motivational power of money with the process of job choice.
RBV could be considered as a tool to assess a firm’s strategic purposes to differentiate from its competitors and how this relates to its internal resources. As mentioned above, the RBV focuses on specific and unique human resources to exercise competitive advantage. However, there are two main criticisms about its explanatory power: (1) it is static as it does not explain how to develop these resources, and (2) does not respond to the environment. This approach might be to some extent insightful for researchers, however, this might be too abstract for firms as they would like more concrete evidence as how internal human resources could be developed for competitive
Let us have a look. After having grown its revenue by a 61% in 2015, the fuel cell system manufacturer expects its revenue to grow more than 50% to $150 million in 2016. Now, this rosy outlook looks more of realistic rather than a mere infer for two reasons. First, the growth of contract booking that grew a whopping 33% to $200 million in 2015, compared with $150 million in 2014. More importantly, the company expects its contract bookings to grow approximately 38% to $275 million in 2016 that should keep its revenue intact in the future.
Motivation is the word derived from the word ’motive’ which means needs, desires, wants or drives within the individuals. It is the process of stimulating people to actions to accomplish the goals. In the work goal context the psychological factors stimulating the people’s behaviour can be - desire for money success recognition job-satisfaction team work, etc One of the most important functions of management is to create willingness amongst the employees to perform in the best of their abilities. Therefore the role of a leader is to arouse interest in performance of employees in their jobs. The process of motivation consists of three stages:- A felt need or drive A stimulus in which needs have to be aroused When needs are satisfied, the satisfaction or accomplishment of goals.
Chand also mentions that compensation should be paid in accordance with the performance of the worker; as well as a letter of appreciation in order to keep up the morale of the people. This is considered to be fairly important since such feedback will have an impact on the work of the employees (Chand, n.d). So, according to Chand, it is essential for HR managers to make use of a high-quality scientific appraisal technique suitable for the changing needs. The online article Human Resource Management Challenges (2015) also mentions productivity "as the measure of the value that an employee can add to the final product or service of the organization." Thus, "maximizing profit and minimizing cost is the essence of productivity" (Maharjan, 2017).
According to Exhibit3, transparency aversion is one of the common features of SOE managers. By adopting measures like reviewing performance objectively and making result public, Haier’s employees would be more aware of the means to achieve their set goals and may rely less on “guanxi” to obtain promotion opportunities and rewards. Perceiving the system is bias-blind, employees may have greater motivation to work towards their set goals. However, the system may be overly performance-oriented and would bring negative impacts to Haier. Laying over emphasis on competitions may hinder collaborations and undermine staff morale.
There are two distinct aspects of compensation which impact on collegiality: one is the profitability of the firm and the other is how profits are distributed. If a firm cannot achieve reasonable profitability on a per partner basis, great pressure is placed on the distribution process. Management 's role is not only to encourage the steps which produce reasonable profitability, but also to manage expectations so that they will be in line with profitability. A compensation system should (a) motivate employees to perform in ways that maximize firm profits and to cause the firm to achieve its other objectives; (b) reward performance and contribution; and (c) solidify the ties with partners who are critical to the ongoing success of the institution. Fairness as an abstract concept is probably less important than rewarding (keeping happy) those partners who are vital to the preservation and success of the venture.
Nowadays different organizations or companies are facing dynamic and constantly competition pressures, employing suitable employees are quite necessary. Hence, the successful of compensations and benefits play a significant role in nowadays’ Human Resource Management, in other words, the appropriate compensations and benefits strategy makes the organization remain in an advanced competitive position in the labor market. Hence, the paper will first briefly discuss what compensations and benefits are; how the compensation and benefits are related to the employees, the importance of compensations and benefits management and the advantages of obtaining the management strategies in the workplace. Compensations and benefits However, Deadrick and
Critical review on employee commitment. Introduction Day in and day out, in every organisation, Employers are faced with the situation of securing employee commitment in order to optimise the use scarce resources at hand to maximise profit. Ideally, the aim of every firm is to attain a workforce which is fully committed to gain the highest possible amount of profit but the question is,” Is the quest for seeking full commitment realistic and also, by which ways and means can management secure employee commitment within an organisation?. The main purpose of this critical review is to critically evaluate and critique the forms of employee commitment within an organisation, identify the problems involved in gaining employee commitment within an