...This study examines the extent to which compensation management can be used as a tool for improving organizational performance in a typical public sector organization like the Anambra State of Nigeria Civil Service. Guided by the Vroom’s expectancy theory of motivation, this study seeks to ascertain if financial compensations have a significant relationship with employee performance in the public service using Anambra State Civil Service as a reference. It also aimed at finding out if efforts of the employees are commensurate with financial compensations and ascertain the extent to which reform programmes of the State Government have affected compensation policies and practices. In pursuance of the objectives of the study, the descriptive survey design was adopted. Pearson’s Product Moment Correlation was used for data analysis and Z-test was also used to test the significance of the coefficient of correlation at 5% level of significance. It was found that financial compensation for staff members in the public service do not have a significant effect on their performance and that financial compensation received are not commensurate with staff efforts. The study further found that reform programmes of the Government do not have a significant effect on the financial compensation policies and practices in the public sector due to poor compensation management. Based on these findings, it isrecommended that for any public service organization such as the Anambra State of Nigeria...
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...Name Institution Date Introduction Compensation in the organization takes a large share of costs in an organization. The compensation should be addressed from a strategic level since it constitutes the most important expense for any organization. In the long term, the organizational productivity and performance is influenced by the compensation system, and whether the system is effectively used. An adequate compensation in an organization can turn the unproductive employees and change the productivity in the organization. When the management uses the compensation as the subject of the performance, it facilitates into bringing out the best performance from the contribution of the employees (Brown et al.). The process of compensation in an organization based on the employee’s performance helps to increase the employee performance and motivate teamwork in the organization. The type of compensation differs with the type of organization, and the expected results against the individual employee’s contribution. The competitive organizations have compensation plans and systems and plans which are either written or not written that meet the organizational requirements. The compensation system enables organizations to achieve different goals such as attracting high quality employees, to retain the hardworking employees, or to motivate employees. All these are done to enable the employees add effort to achieve the organizational goals. Compensation plans differ with the goals and the...
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...IMPACT OF TRAINING AND COMPENSATION ON EMPLOYEE PERFORMANCE A CASE STUDY OF NILAI UNIVERSITY COLLEGE Introduction Employees are one of the most important and valuable resources of an organization which is needed to accomplish the objectives of an organization (Jiang et al., 2012, Soomro, Gilal, Jatoi, 2011). The importance of employee is more pronounced in a service organization. For a service organization like a college to accomplish its objectives, it must have the right kind of staff with appropriate skills to provide the service since the employees will be in direct contact with the customers (Soomro et al., 2011). Employees can be source of competitive advantage for an organization since they could effectively used the other resources to accomplish organizational objectives (Tiwari, 2011). Effective HR practices are important in motivating the employees to perform their functions well in order to achieve organizational objectives and reduce the number of employees leaving the organization (Soomro et al., 2011). Thus, good HR practices enhance performance of employees which in turn enhances organizational performance. Having the needed skills is not sufficient to ensure the organization maintains it competitive advantage but there is need for continuous training to upgrade the skills of the employees (Jiang et al., 2011). Apart from regular training of the employees, the organization needs to have a compensation package that will attract and maintain...
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...------------------------------------------------- MASTER IN BUSINESS ADMINISTRATION ------------------------------------------------- (GENERAL MANAGEMENT) ------------------------------------------------- ------------------------------------------------- MGT6033: COMPENSATION & BENEFITS MANAGEMENT ------------------------------------------------- ------------------------------------------------- COURSEWORK / ASSIGNMENT I ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Prepared By: Lim Chee Seong (IC: 661007-08-6109) ------------------------------------------------- (Student ID: PACE 024747) ------------------------------------------------- ------------------------------------------------- Lecturer: Dr. Perema Kumari S Ponnampalam ------------------------------------------------- ------------------------------------------------- a) Compensation management as one of the important link to the human resource management, has greatly...
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...Graduate School of Management Abstract This paper will explore the ways human resource management has evolved throughout the years and the importance of human resources in an organization. This paper will show a correlation of the components associated with the process of recruiting, hiring, evaluating, and compensation of employees. These steps are vital in selecting the right person that will benefit the organization and its objectives. It will also inform the reader of the types of compensations and how organizations make those compensation decisions. Human Resource Management The role of Human Resource Management (HRM) has evolved throughout the years, shifting from personnel department to human resources. The move was part of the effort to recognize the significance of employees as a structural resource. This change was accompanied by a call that allowed human resources to become a strategic partner with leaders of businesses to make critical and significant decisions. The role of the human resource professional has evolved in a way that they are doing more than just routine employment duties. These professionals are skilled with the ability to handle any and all areas of human resources. Human resource management is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human resource deals with many concerns associated with people; such as compensation, hiring, performance...
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...Performance Management Terri Sleeth BUS681: Business and Compensation Instructor: Leo Smith September 7, 2014 Performance Management Page 1 Performance Management is a structured way for an organization to improve the effectiveness of their employees. In this paper we will examine aspects of performance management and how it effects organizations and their employees. When we think about performance on the job, we often consider productivity or we think of how well a person does their job. We don’t often realize just what is involved in seeing how a person’s performance is known, or examined. When we look at an organization, what makes it successful, what makes it grow and stay successful. We must realize it is the strength of good employees and their job performance. However, we may face supervisors or managers that will allow an employee to receive an increase so that they do not have to face a confrontation with the employee or with their superior. This is not fair to those who do a better job but receive the same amount of increase or bonus. With this being said, let us look at plans for a good performance management plan. Implementing a proper performance management plan can help an organization retain good employees, decrease poor performance, attract skilled and productive staff, and give employees reason to maintain or improve their good...
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...Muhammed Mughni Atique B.sc (Hons), Business Administration Gift University Gujranwala IMPACT OF HUMAN RESOURCE PRACTICES ONORGANIZATIONAL PERFORMANCE: A STUDY OF BANKING SECTOR OF GUJRANWALA Keywords: Organizational Performance, Employee Satisfaction, Recruitment &Selection, Training & Development, Performance Appraisal and Compensation Abstract: The purpose of this study is to evaluate HRM practices and their impact on organizational performance in banking sector. People believe that HR is not important it’s just a sunk cost and have no significant positive effect on org. performance. The aim of this study was to check the impact between Human resource management and organizational performance. The research was conducted in banking sector of Gujranwala .We have evaluated the impact of functions of HR like Selection, Training, Appraisal and Compensation (as Independent Variables) on Organizational Performance (Dependent Variables). We have done research with the help of questionnaires. The conclusion and results are presented at the end of this paper. The analysis showed the positive relation between the dependent and independent variables. Introduction: Our financial sector evolved very differently from banks in the developed world. For nearly a year after partition, Pakistan had no central bank. Habib Bank – established in 1941 – filled this gap initially, until the State Bank of Pakistan (SBP) was set up in 1948 under quasi-government ownership. Commercial...
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...Primary Components of Compensation Management By: Desteni Lawhorn HR434 Compensation Management Park University Submitted: April 24, 2011 Too much focus on trends and hot topics. Not enough focus on customizing programs and processes to address real needs. People have programs looking for an application rather than analyzing the issue and then determining what's the best program or process. Too many start at the end and work toward the beginning. Logically they should start at the beginning. -Bruce Ellig Compensation management is more than just remuneration to appeal or retain capable employees, it is the leverage an organization utilizes to obtain, and retain its human capital and provide competitive positions within the organization. Recently, Human Resource departments have focused on the latest compensation trends or are geared toward rewards without merit, relevance or fit. This is a common mistake as compensation management should be focused on primary components of job analysis, pay structure and salary surveys. Human Resource departments must apply these fundamentals in the compensation management system in order to integrate well in an organization. Compensation management affords an organization the ability to reward superior execution and maintain the top employees in a particular field that contribute to the overall success and profitability of an organization. Through utilization of the basic fundamentals, organizations can visibly assess the employee’s...
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...INTERNATIONAL HUMAN RESOURCE MANAGEMENT: Definitions of IHRM: Scullion (2005) tracked the evolution of definitions of IHRM. He observed that although there has been little consensus, definitions have broadly concentrated on examining the HRM issues, problems, strategies, policies and practices which firms pursue in relation to the internationalization of their business. Schuler et al (2009) similarly recently positioned the different views that have existed about the nature of IHRM. IHRM encompasses: ‘. . . the worldwide management of people in the multinational enterprise’ (Poole, 1990; p1) ‘. . . human resource management in an international environment . . . problems created in an MNC performing business in more than one country, rather than those posed by working for a foreign firm at home or by employing foreign employees in the local firm’ (Briscoe and Schuler, 2004; p1) ‘. . .how MNCs manage their geographically dispersed workforce in order to leverage their HR resources for both local and global competitive advantage’ (Scullion, 2005; p5) ‘. . . a branch of management studies that investigates the design of and effects of organizational human resource practices in cross-cultural contexts’ (Peltonen, 2006; p523) ‘. . . all issues related to the management of people in an international context [including] human resource issues facing MNCs in different parts of their organizations [and] comparative analyses of HRM in different countries’ (Stahl and Björkman...
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...AN INVESTIGATION ON THE INFLUENCE OF FINANCIAL COMPENSATION ON EMPLOYEES’ PERFORMANCE IN RETAIL OUTLETS. A survey of selected supermarkets in Meru Town By BUS-1-0622-2/2010 A Research project Submitted in Partial Fulfillment for the Requirement of a Degree in Business Administration of Kenya Methodist University. AUGUST, 2012 DECLARATION I hereby declare that this is my original work and has not been presented for any examination purposes in any university or institution for the award of a degree, diploma or certificate. SIGN…………….. NAME: MARY NGUGI DATE……………………………….. This research project has been submitted with the approval of the University Supervisor; SIGN……………… SUPERVISOR: MS. ROSELYN KINYAMU DATE……………………………. DEDICATION I wish to dedicate this to my parents Mr. and Mrs. Muriuki, my siblings George and Christine and to my friends for the great support they have given from the beginning and to the supervisor who was supportive and very encouraging. May God bless them. ACKNOWLEDGEMENT Special Thanks to the Almighty God for giving me wisdom, endless favors and the ability to do this proposal successfully. I would like to recognize the contribution of my supervisor, Ms Roselyn Kinyamu, for her time...
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...Introduction Aim Currently, the compensation structure is based on divisional contribution numbers. This Compensation Report aims to analyse the potential problems within the existing compensation structure and recommend alternative compensation structures that Changing Motors can adopt. Rationale As Changing Motors embark on their expansion plans in the future, there is a greater need to improve overall efficiency. Employees’ efficiency stems from the effectiveness of compensation structure. It is critical for Top Management to constantly review and adjust existing compensation structure to detect and correct any ineffective performance measures. All these measures should, in turn, support the strategic objectives. An effective Management Control System should include effective performance measures and evaluation, which will also link to rewards or disincentives. Ideally, the compensation structure should promote goal congruence and employees motivation and exclude elements of uncontrollability. Potential Problems with Existing Compensation Structure Although the current divisional contribution margin compensation structure enables controllability and motivates each division to work hard, it lacks goal congruence throughout the company. When managers are compensated solely based on divisional contribution numbers, divisional managers only focuses on divisional profits so as to gain their bonuses. On the other hand, Changing Motors’ main company goal is to not only be...
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...CRITICAL ESSAY: COMPENSATION EQUITY IN CHINA Hou Guangjian ABSTRACT In China presently, employees receive different compensation according to all kinds of ad hoc definitions of external equity, internal equity and individual equity. Consequently, employee attitudes toward work and social status are affected. If the government would provide people with access to better education, legal measures that guarantee fair competition, and training opportunities to people who have need, the Chinese people would have greater reason to believe that improved compensation equity will be realized in the future. INTRODUCTION Two years after the death of late chairman Mao Zedong, Deng Xiaoping launched century. During the past twenty-five years, the country has witnessed tremendous gains in economy and social wealth in general. Although, on the average, people are leading a much better life, the gap between rich and the poor is becoming larger. As a large developing country in a transition period from a planned economy to a market economy, China at present has to adopt a de facto policy of “letting a few people get rich first” to stimulate enthusiasm and initiative for the rest of the population. Thus, the usual egalitarianism -- what Chinese term the “Large Bowl” -- has been smashed. People working at similar jobs receive different compensation. Various ad hoc definitions of external equity, internal equity and individual equity influence compensation and, consequently, employee attitudes toward...
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...Assignment on HR Manager Compensation Strategy Prepared to: Abdullah Iftikhar Prepared by: NAZIM (123051053) Compensation Management Course Code: 508 Deadline: 22 8th 2014 OBJECTIVE OF COMPENSATION: Acquire qualified personnel: compensation needs to high enough to attract applicant. Pay level must respond to the supply and demand of worker in the labor market. Retain current employee: employee must quit when compensation levels are not competitive, resulting in high turnover Reward desired behavior: pay should reinforce desired Control cost: a rational compensation system helps an organization obtain and retain worker at a reasonable cost. With effective compensation management workers might be over paid or under paid. Comply with legal regulation: A sound wages and salary system consider the legal challenges imposed by the government and ensure the employee compliance. Further Administrative Efficiency: Wages and salary should be properly designed to be managed efficiency PRINCIPLES OF COMPENSATION FORMULATION: Main factors affecting wage or compensation levels within an organization 1) Externals relatives 2) Salary 3) Individual worth REWARD VS RECOGNITION Employee reward system refers to programs set up by a company to reward performance and motives employees on individual and group levels. Employee recognition programs are often combined with reward programs the retain a different purpose altogether. DESIGNING A REWARD PROGRAN:...
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...objectives of the study, significance of the study, limitation of the study, scope of the study and assumptions. Job performance is influenced by many factors. According to Kreitner and Kinicki (2007), performance management is continuous cycle of improving job performance with goal setting, feedback and coaching, and rewards and positive reinforcement. In this study the focus is given to financial compensation. A research will be conducted at supermarkets in San Jose Del Monte to see how financial compensation affects job performance of the employees. The question that has prompted this research is what degrees at which the salary, bonuses, benefits and commissions collectively or individually have influence on employee performance? Job performance is a measure of compensation but it is only one part of it. Compensation generally is a key factor in productivity, organizational effectiveness as well as in the well being of people. The way people are compensated is an aspect of the organizations in different parts of the world; manage the disjuncture between life at work and life outside work. Financial compensation schemes based on pay are often developed in individualistic cultures, where the relationship with employees is seen as instrumental and contractual. This may be based on the achievement motive perspective ( McClelland, 1985). More sophisticated human resource management systems in many western countries emphasize a wider spectrum of incentives based on the design of jobs, levels...
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...STUDY OF COMPENSATION MANAGEMENT IN HDFC BANK | |TABLE OF CONTENTS |Page no. | | | Acknowledgement |4 | | | Certificate |5 | |1. |Introduction | | | |Objective |6 | | |Limitation | | | |Scope | | | |Research methodology |7 | | | | | |2. |Details of the Project | | | |2.1 Introduction to compensation management...
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