...------------------------------------------------- Compensation Management Compensation Management is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. Compensation includes payments such as bonuses, profit sharing, overtime pay, recognition rewards and sales commission. Compensation can also include non-monetary perks such as a company-paid car, company-paid housing and stock options. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness. Total compensation has three parts: Base compensation The fixed pay an employee receives on a regular basis, either in the form of a salary or as an hourly wage. Pay incentive A program designed to reward employees for good performance Benefits: sometimes called indirect compensation. Benefits encompass a wide variety of programs (for example, health insurance, vacations) Importance of Compensation Management A good compensation is must for every business organization and helps in the following way: * It tries to give proper return to the workers for their contributions to the organization. * It imparts a positive control on the efficiency of employees and encourages them to perform better and achieve the specific standards. * It forms a basis of happiness and satisfaction for the workforce that minimizes the labour turnover and confers a stable organization...
Words: 3752 - Pages: 16
...Preface: Conducting Performance Management; Developing an Approach to Total Compensation; Using Performance Based – Pay to Achieve Strategic Objectives; Providing Benefits and Services; Promoting Workforce Safety and Health; Understanding Unionization and Collective Bargaining. At this work we present scrupulous analyses of such aspects as Performance Management and its divisions, the definition of Total Compensation and the aspects based on it, the way of achieving Strategic objectives using performance based pay, Introducing benefits and services, maintaining the workforce and Safety and Healthy and finally understanding Unionization and Collective Bargaining. In this work we will describe and scrupulously analyze more chapters than usual, given in the book “Managing Human Resources” 10th Edition, by Susan E. Jackson, Randall S. Schuler and Steve Werner, as these are the last chapters, introduced to us by the authors. In this case we will try to give adequate interpretation and analyses to the main concerns that appear in the related book. And finally, at the end of the essay we will answer the questions, related to this exam. The questions are: 1 Should companies offer a uniform “package” of benefits, or should they move to a flexible plan that allows employees to choose the benefits that are most meaningful to them (up to a specific, pre-established dollar amount)? 2 What are some key issues to consider...
Words: 8579 - Pages: 35
...Scales 16 14 References 17 Performance Appraisal A performance appraisal (PA) is a systematic and periodic process that assesses an individual employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives. According to Michael R. Carrell and Frank E. Kuzmits “Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance”. To collect PA data, there are two main measures: Objective Measures Subjective Measures Figure: Methods of Performance Appraisal Compensation Determination Definition Employee compensation refers to all forms of pay going to employees and arising from their employment. Direct financial payments include wages, salaries, incentives, commissions and bonuses whereas financial benefits like employer-paid insurance and vacation. It has to main components: Figure: Employee Compensation Different types of compensation include:...
Words: 1900 - Pages: 8
...Length: 2507 words (7.2 double-spaced pages) Rating: Red (FREE) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Equity in Human Resource Management Introduction The effective Human Resource Management in an organization requires an exceptional standard set for motivation, job design, reward system and equity. Nowadays, people are more willing to avoid unfair treatment in the workplace than any other aspect. The fundamental concept behind Equity is an attempt to balance what has been put in and taken out at the workplace with a feeling of justice being served. Unconsciously, values are assigned to many various contributions made to the organization, hence causing an air of misbalance in the environment. There has always been a disparity in the view on the desirability or the cost effectiveness of policy measures. The importance of equity or reducing discrimination has gained a lot of attention in the labour market (Milkovich, Newman &ump; Ratnam, 2009). History The importance of Human Resource management is associated with the beginning of mankind. As the knowledge of survival had begun including safety, health, hunting and gathering, tribal leaders passed on the knowledge to their youth. However more advanced HRM functions were developed as early as 1000 B.C and 2000 B.C. Since the modern management theory took over, the working environment was transformed into a more friendly and safe work place. The workers were termed as most valuable resources...
Words: 2537 - Pages: 11
...summary The Main aim of this study is to show that the organisation culture actually influence the ability of a business in getting good outcomes by motivating the employees. INTRODUCTION TO ORGANISTION'S CULTURE It can be noticed that now organisation's culture have great importance in the management of human resources for having a growth in corporation or organisations performance and for the better achievements. In many developed countries organisation's culture has been recognised as main source of difference in performance practices. organisation's culture helps us to identify the organisation's beliefs, meanings, values, norms and rituals in which things are done in the organisation. The concept of culture is the environment and executions that organisation develop around their employees working, or to promoted values and statement of beliefs of an organisation (Schein, 2004). In short organisation's culture contains what it has been good at and what has worked in past. these executions and practices are easily accepted by the long term employees often called legends of organisation. these legends helps to new employees to learn things. apart from practices, norms have its own importance within organisation. A norm is a expected behaviour pattern that is part of culture. employees worked according these norms under a organisation. As personality and character shows a person's behaviour similarly, behaviour of a group through the shared norms of organisation shows...
Words: 1717 - Pages: 7
...an effective tool to determine hospital’s performance on several indicators such as ability to pay debt, capability to generate revenue, and sales performance etc. The objective of this paper is to describe role of different financial ratios in understanding organizational performance and in developing new strategy. The paper also presents comparative ratio analysis of local healthcare organization and industry norms. Financial Ratios Analysis and Comparison Paper Introduction Financial planning and effective management play a major role in success of healthcare business. Financial ratio analysis refers to an effective financial management tool that helps in understanding financial performance of the hospital over a period of time. Financial ratio informs about the financial trends and information on key performance indicators that helped in strategy making. Financial ratios can also utilize in comparing business performance of two or more hospitals, and also to assess effectiveness of management. Financial ratios utilized in measuring liquidity of the hospitals, profit evaluation, debt structure, management of cash flow, risk determination of corporate and competitor analysis (Curtis & Roupas, 2009). Financial ratio analysis helps hospital in achieving their ultimate goal of profitability. Thesis Statement: This paper intends to discuss the importance of different types of financial ratios and role played by them in comparing business performance...
Words: 1464 - Pages: 6
...Strategic Human Resource Management HRM325 Jay Perviz Dhanani Intel College, Nairobi ID: 119127768 Word count: 2594 Introduction: Strategic Human Resource Management is the process that entails having the right people at the right time in the right place at the right cost. It is also the process of responding and assessing the dynamic business environment and seeing the people of the organization as assets rather than cost or liability. Concepts of SHRM: Life cycle: The life cycle, for example, of a product can be defined into 4 main stages: Introduction, Growth, Maturity and Decline. The aspect of recruitment and Selection can be explained as follows: * In the Introduction stage, the recruitment and selection function would aim to attract the best technical and professional expertise to the organization, conduct the interviews based on open and closed-ended questions and carry out selection tests. * In the Growth stage, the recruitment and selection function would recruit the right number of qualified workers, plan the organization’s succession policies and manage rapid internal labour market movements. * In the Maturity stage, there is another aspect, RETENTION that is added to the function. This involves the minimization of layoffs by providing new opportunities and encouraging new mobility. The challenge becomes the internal assessment and deployment rather than external recruitment. * In the decline stage, the recruitment and selection function...
Words: 2565 - Pages: 11
...PETRONAS GAS BERHAD PETRONAS Gas Berhad (PGB) has been in business for 30 years and is still growing strong. Since its incorporation in 1983, PGB’s business has vastly expanded in spite of challenges faced. Today, PGB has prospered as Malaysia’s leading gas infrastructure and utilities with business presence throughout the country. ORGANISATIONAL STRUCTURE Definition of corporate governance “…is the process and structure used to direct and manage the business and affairs of the company towards enhancing business prosperity and corporate accountability with the ultimate objective of realizing long term shareholder value, whilst taking into account the interest of other shareholders”. The Board of Directors (Board) of PETRONAS Gas Berhad in this Corporate Governance Statement complies with paragraph 15.25 of the Main Market Listing Requirements (MMLR) and applied in full the Principles of Corporate Governance and the Best Practices in Corporate Governance as set out in the Malaysian Code on Corporate Governance. Principle 1: Establish Clear Roles and Responsibilities The chairman leads the Board, and the President and Group Chief Executive Officer (CEO) leads the executive management of the Company and provides direction for the implementation of the strategies and business plan as approved by the Board and the overall management of the business operations Groupwide. The Board of Directors (Board) of PETRONAS Gas Berhad recognizes that its primary...
Words: 5566 - Pages: 23
...I. Classical Management Theory The Evolution of Classical Management Theory The Industrial Revolution was a time where innovation really began to change the way that products were produced and sold. The invention of machines to produce goods in the 19th century drastically improved productivity, which in turn lowered the cost to the consumer. The lower price resulted in a greater demand for products and thus a greater need for more factories and workers. Responsibilities of a manager As factories increased in number, managers continued to search for ways to improve productivity, lower cost, increase quality of their products, improve employee/manager relationships and increase efficiency. The focus shifted from using machines to increase productivity to how they could increase employee productivity and efficiency. When they did this, they began to notice some new problems inside their factory systems. Employees were dissatisfied with their current working conditions, and many lacked the necessary training for how to do their work efficiently. Managers then began to formulate and test possible solutions, one of which was to find the best possible way for workers to perform and manage their tasks. The research resulted in the development of classical management theory. Factory workers must be placed in suitable job roles. Expansion of Classical Management Theory Classical Management theory expanded throughout the first half of the...
Words: 1390 - Pages: 6
...used in a firm. It talks about the importance of using a Dividend Policy which is giving a share to the stockholders. A dividend policy is first known as a heavy factor in a company’s stock value and is a set of company rules and guidelines used to decide how much the company will pay out to its shareholders. The report then highlights the common theories and models used in dividend policy decision in an organization. The feasibility of the concept had been further exemplified with the case study of City Lodge Hotels Limited and Microsoft vs Berkshire Hathaway which depicts two companies that do not believe in using a dividend policy and a lodging company that believes in keeping dividends. Keywords Dividend Policy, Residual Dividend Policy, Shareholders, Walter Model, MM Model, Dividend Irrelevancy. INTRODUCTION Dividend policy is the policy used by a company to decide how much it will pay out to shareholders in dividends. In financial accounting course, it is said that after deducting expense from the revenue, a company generates profit. Part of the profit is kept in the company as retained earnings and the other part is distributed as dividends to shareholders. From the share valuation model, the value of a share depends very much on the amount of dividend distributed to shareholders. Deciding on the amount of earnings to pay out as dividends is one of the major financial decisions that a firm’s managers face. U.S. corporations pay out about 50% of their net income...
Words: 4205 - Pages: 17
...to evaluate the effectiveness of rewards on performance of Starbucks Corporation; it contains the evaluation of two main sides of motivation strategy: Extrinsic rewards and intrinsic satisfaction. Motivation is one of the main causes for industry in the process of making their production. In order to find the ways that Starbucks used to motivate their staff, research has to be done during investigation. I have collected several types of data, which are Primary data and secondary data. Normally, I will get the articles from the hunt library and Internet. In the process of analyzing the information, some essential methods will be used, such as Motivation Strategy analysis, Equity Strategy analysis and Goal-setting Strategy analysis. The issue is to investigate and to analyze the rewards and performance structure of Starbucks Corporation. Starbucks Corporation, one of the most famous retail coffee shops chain in the world, specialize in grinding, roasting, and selling special coffee beans and a variety of coffee or tea drinks. Starbuck publicize they are the “third place” between home and company, where you can get together with families and friends, or just take pleasure in a quiet moment alone with fresh coffee, book and music. Starbucks always meet its customer’s requirements; they achieve a good motivation staff which will be beneficial on its internal and external customers. Its internal customers includes its shareholders, managers and staff, whereas its external customers...
Words: 1303 - Pages: 6
...forces that causes an individual to behave in a particular way. It is generally what energizes, maintains and controls behavior, it acts as a stimulus for desirable actions. Motivational concerns would be addressed if we were to ask, for example, What motivates employees to go to work each morning? Many people get great satisfaction from their work and take great pride in it; others may view it as a burden, and simply work to survive. This question of motivation has been studied by management theorists and social psychologists for decades, in attempts to identify successful approaches to management. From a manager’s viewpoint, the objective is to motivate people to behave in ways that are in the organization’s best interest. THE IMPORTANCE OF MOTIVATION What people want from an organization and how they think they can achieve it plays an important role in determining their motivation to work. Some people want money, some want challenge and some want power. The difference between highly effective organizations and less effective ones often lies in the motivations of their members. Managers strive to motivate people in the organization to perform at high levels. This means getting them to work hard, to come to work regularly and to make positive contributions to the organization’s mission. But job performance depends on ability and environment as well as motivation. This relationship can be stated as follows: P = M + A + E Where P = performance M= motivation ...
Words: 3941 - Pages: 16
...individual preferences and choices; and makes employees feel ‘important’ and with sense of dignity. The employer organization can offer “direct financial, indirect financial and non financial compensation” to the extent that will prove beneficial to all concerned. (Compensation Systems: Design and Goals). This paper discusses forms or manner in which incentives are offered by employers and how incentives affect, impress and prompt employee response. Challenge, struggle and chaotic times are upon society, affecting not only the indivuals but the organizations as well. During these times, the need to achieve meaningfulness, career balance as well as a purpose is a strong neccessatiy for both the organization and the individual. Compensation and pay are highly mistaken as being one in the same when in fact compensation is more than just the average monetary rewards provided by an employer to a deserving employee. The far reaching effects of an organization's compensation practices can be a long...
Words: 3580 - Pages: 15
...Introduction Making financial decisions involves balancing risks and profitability. Financial management is the operative way for a firm to organize and control financial resources of a firm in order to exploit profitability and ensure liquidity for a company. The three types of financial management decisions are capital budgeting, capital structure, and working capital management. It is important that the decisions being made in regards to financial management be concise, educated, and understandable. This paper addresses the three types of financial management decisions which guide companies in the direction for success, and will point out a few possible ethical problems company’s may face in their quest for that success. Part 1: Capital Budgeting Capital budgeting is the process of planning and managing a firm's long-term investments. “Evaluating the size, timing, and risk of future cash flows is the essence of capital budgeting” (Ross, Westerfield, Jordan, 2007, p. 5). The size, timing, and risk of future cash flows are the most important things to consider with capital budgeting. Formal methods that are used in capital budgeting include profitability index, valuation of future cash flows, and net present value. Profitability index is the present value of an investment’s future cash flows divided by its initial cost, also known as benefit-cost ratio. The index measures the value of each dollar invested in the company and is rationed from the present...
Words: 2760 - Pages: 12
...individuals, groups, organizations, and processes. Organizational behavior is an extensive topic and includes management, theories and practices of motivation, and the fundamentals of organizational structure and design. From the smallest nonprofit to the largest multinational conglomerate, firms and organizations all have to deal with the concept of organizational behavior. Knowledge about organizational behavior can provide managers with a better understanding of how their firm or organization attempts to accomplish its goals. This knowledge may also lead to ways in which a firm or organization can make its processes more effective and efficient, thus allowing the firm or organization to successfully adapt to changing circumstances. This chapter will help you better understand the theories and structures of organizational behavior. The chapter begins by discussing some of the basic characteristics of managers and management. It then Chapter 18 TLFeBOOK describes some of the popular theories and practical applications related to motivation and helps answer the question “What motivates employees and why does it motivate them?” The chapter then examines some of the fundamentals of organizational structure and describes ways in which organizational structures differ from one another. Finally it discusses a few methods by which organizations can control processes and outcomes. MANAGEMENT As discussed in the next chapter, “Leadership and Team Building,” management...
Words: 5912 - Pages: 24
