...Incentive Pay HR Management Foundations December 14, 2014 Determining Incentive Pay All organizations and companies have a pay structure. This pay structure is often very rigid and dependent upon many factors. This pay scale is something that applies to all employees and helps dictate base pay and any future raises. While this pay scale is not adjustable, setting performance-related pay is often at the discretion of the company. This is called incentive pay (Noe, 2011). Often, incentive pay is tied to performance or other metrics set by the company. In general, incentive pay is a way to bolster employee production while helping the company meet profit goals. However, the incentive pay must comply with HR policies and standards. According to Noe (2014), a study of 150 companies and organizations revealed that the way a company paid their employees was strongly linked to employee satisfaction and their level of profitability. As mentioned before, incentive pay is monetary compensation beyond the employee’s regular salary. It is often used to energize or direct an employees’ behavior as it is often linked to predetermined behaviors or outcomes (Noe, 2014). Incentive pay can be found as a commission for those in sales, or a bonus for those in other fields. Offering incentive pay can be beneficial to the company for many reasons. Employees are often willing to work harder or find creative ways to problem solve when money is on the line. In addition, incentive...
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...Project Management Plan Employee Incentive Program CPMGT/301 October 13, 2014 Project Management Plan Attracting skilled employees is often important and often difficult. Employers face major challenges when they consider the increasing difficulty of finding skilled people every company should have an employee incentive program if it is sales and especially for university enrollment advisors because they are the ones that bring business into the university. The project scope of Title IV of the Higher Education Act of 1965 strict accreditation regulations and laws prevent the university from offering bonuses to employees who enroll students. The work breakdown structure for the employee incentive program consists of activities/attributes, milestones stakeholders, stakeholder’s needs, tools and techniques. • Activities/attributes – Create a list of creative ideas o Have employees take a survey once a year o Boost employee morale and set a goal for employees o Provide a positive working environment o Retain employees o Diversity of activities o Develop skills and potential o Employees need to be more involved and engaged o Communication to employees • Milestones – o Approval of incentive program o Incentives must follow rules/regulations ...
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...Chapter 1- The Pay Model Compensation: Does it matter? Compensation is one of the most powerful tools organizations have to influence their employees. General Motors (GM), like Chrysler, has, for decades, paid its workers well—too well perhaps for what it received in return. Having labor costs higher than the competition, without corresponding advantages in efficiency, quality, and customer service, does not seem to have served GM or its stakeholders well. On the other hand, Nucor Steel pays its workers very well relative to what other companies inside and outside of the steel industry pay. But Nucor also has much higher productivity than is typical in the steel industry. Wall Street financial services firms and banks used incentive plans that rewarded people for developing “innovative” new financial investment vehicles and for taking risks to earn themselves and their firms a lot of money. Troubled Asset Relief Program (TARP), which included restrictions on executive pay designed to discourage executives from taking “unnecessary and exces-sive risks.” In an opinion piece in The Wall Street Journal, entitled “How Business Schools Have Failed Business,” the former director of corporate finance policy at the United States Treasury wrote that “misaligned incentive programs are at the core of what brought our financial system to its knees.” 7 He says that we “should ask how many of the business schools attended by America’s CEOs and directors educate their students about the...
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...competitors (Bauer & Erdogan, 2009). In this regard, firms must ensure that they appreciate their employees’ efforts in attaining the set goals of the organization. This presentation, thus; seeks to elaborate on the process of recognizing employee contribution that firms can utilize. Methods to Determine Incentive Pay Incentive is the one of the ways through which companies motivate their employees in order to increase productivity. There are diverse incentives that companies can employ, although the most commonly used is the pay for performance incentive. A research conducted in a number of firms in the United States of America established that 86% of employees participating in the survey increased their productivity following provision of monetary incentive. the remaining 14% increased their productivity following the announcement of an upcoming promotion, a well as the promise of long employment tenure (Brun & Dugas, 2008). This is an illustration that adoption of incentive pay is vital for the enhanced performance and productivity of employees. In essence, it is the duty of the human resources manager to device methods through which incentive pay will be...
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...factor whereby the process of advancing cultural intelligence and international cultural competence would be the deciding element for the success of managers and leaders especially those who perform human resource (HR) functions. Within the cultural context, common elements are to be found including shared and dynamic nature surrounding norms, values and beliefs which are expressed through different behaviors, artifacts and interactions. It is necessary then for HR managers like Wolfgang to fulfill profitable relationships vested on the capability to reconcile cultural dimensions of pay systems from the headquarters to subsidiaries. Within Healthcare, there are economic, political and cultural forces that are influencing the operation. As part of the external environment, there is the need for Healthcare to align national cultural values of the subsidiaries with that of the organizational work culture. There are culturally indigenous and culturally alien practices within any organization that shape the actions and performance of the employees. Culture is considered as the lens through which motivation occurs. Motivations to do work differ greatly across cultures hence whey employees are subjected to within-culture and between-culture workplaces the level of performance is significantly different as well. Cultural backgrounds of the employees largely define the personal work values of the people, and this is evident in the case of Japanese workers as well as the American workers...
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...factor whereby the process of advancing cultural intelligence and international cultural competence would be the deciding element for the success of managers and leaders especially those who perform human resource (HR) functions. Within the cultural context, common elements are to be found including shared and dynamic nature surrounding norms, values and beliefs which are expressed through different behaviors, artifacts and interactions. It is necessary then for HR managers like Wolfgang to fulfill profitable relationships vested on the capability to reconcile cultural dimensions of pay systems from the headquarters to subsidiaries. Within Healthcare, there are economic, political and cultural forces that are influencing the operation. As part of the external environment, there is the need forHealthcare to align national cultural values of thesubsidiaries with that of the organizational work culture. There are culturally indigenous and culturally alien practices within any organization that shape the actions and performance of the employees. Culture is considered as the lens through which motivation occurs. Motivations to do work differ greatly across cultures hence whey employees are subjected to within-culture and between-culture workplaces the level of performance is significantly different as well. Cultural backgrounds of the employees largely define the personal work values of the people, and this is evident in the case of Japanese workers as well as the...
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...................................................................................... 1 THE STANDARDS ~ AT A GLANCE ................................................................................................... 2 THE FIVE DIMENSIONS ..................................................................................................................... 3 THE THREE LEVELS OF HR PROFESSIONALS ............................................................................... 4 HR COMPETENCIES .......................................................................................................................... 6 HR CORE COMPETENCIES ............................................................................................................... 7 HR FUNCTIONAL COMPETENCIES .................................................................................................. 8 HR COMPETENCIES FRAMEWORK.................................................................................................. 9 HR COMPETENCY LEVELS ACCORDING TO DIMENSIONS......................................................... 10 HR BODY OF KNOWLEDGE............................................................................................................. 19 CONCLUSION ................................................................................................................................ 21 BIBLIOGRAPHY .............................................................................................
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...Attitude in the HR-Organization Performance Linkage Process Ramkumar, N., PSG College of Technology, Coimbatore ram_mba_stc@yahoo.co.in Krishnaveni, R., PSG College of Technology, Coimbatore kegi_4@yahoo.com There is a growing debate in the corporate arena regarding the level of contribution of the human resource practices to the bottom line of the organization. In line with this, researchers have conducted numerous studies to demonstrate the positive association between HR and performance and provide encouragement to the HR professionals with their empirical results. The present paper makes a critical analysis of such literature and adds value to the concept. Although such strong relationship exists, the mediating or intervening variable in the process was not dealt with. This review based work identifies the intervening variable and provides a convincing evidence and explanation to the linkage process. The theoretical background for a new direction in the HR-performance linkage research is put forth to the researchers associated in this field. Keywords: Human Resource Practices, Organizational Performance, Organizational Commitment. 1. Introduction Today across the globe, it is widely accepted that organization success depends on its people. It is clear that human capital and intellect drive business growth. Over the years, the profession of HR has developed around the assumption that human resource practices directly affect organizational performance. Their role is evolving...
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...to financial incentives. The HR manager is responsible for recruitment, the fundamental role, ensuring each department within the organization is adequately staffed, compensation, and benefit packages, and keeping employees motivated. While monetary rewards have been linked to motivation so have non-monetary rewards. Some non-monetary rewards include; recognition, communication, flexible working hours, wellness programs, and education and development programs. Introduction A Forbes article investigating the significance of positive work environments mentions, a fundamental benefit creating a favorable environment is the effect it has on motivating employees. The article continues by stating, ‘Employees that are happy tend to be more productive, which is better for a business’ (Forbes, 2013). Showing that there is a correlation employee satisfaction/perception and a company’s success. Rahimli in an article refers to the changing environment, and how critical it is to keep abreast with changes in innovation, to be effective and efficient. Rahimli further remarks, if organizations aid in enhancing the skills of their employees with training, the author alleges the employee’s performance will improve. Training is indeed one way non-monetary way to motivate employees, the skills they learn can be used where ever they may go. Key words Human Resources, Human resources in Health Care, 'the function or role', (non-financial) and (non-monetary), 'motivation or incentive', motivation...
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...employees receive for performing their jobs.” Martocchio, J.J. (2013) A Human Resource Management Approach. Compensation as most know is the hourly or annually paid. Compensation consist more of just hourly or annually pay. Organizations create monetary compensation process to reward their employees for their job performance. Monetary compensation is the core of compensation. A nonmonetary reward includes benefits such as medical insurance, paid time off and other services. Employees receive a base pay for performing their jobs. Base pay is recurring based on the company pay schedule. Companies distribute base pay to their employees in one of two forms: hourly pay or as salary. Employees earn hourly pay for every hour worked and salaries regardless of the number of hours worked. Understanding compensation’s goal in an organization takes understanding the role of HR and how compensation function fits into HR. Compensation Philosophy A compensation philosophy is a formal statement providing information on the company’s position about employee compensation. Compensation philosophies are usually created by the human resources department with feedback from executives. “The philosophy is based on a number of factors such as the company’s financial position, the size of the company, the industry, business objectives, salary survey information, and the level of difficulty in finding qualified talent based on the economy, as well as the unique circumstances of the business...
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...EXECUTIVE SUMMARY Since the last decade, the importance of Human Resource Management has been acknowledged. Humans are considered to be an important aspect in every part of the organization. Humans make the organization and they run the organization. One of the top priority areas of Citibank corporate reform is Human Resource Development. The Bank has undertaken several initiatives to ensure induction and training of professionals with the objective of ensuring high level of professionalism and productivity at all levels of its employees. Through computer training, various in-house courses, sponsorship of staff for studies at professional institutions and seminars, the Bank is providing its employees the opportunities for continuous development and learning. Effective implementation of corporate reform and business development strategies in line with best international practices has enabled Citibank to maintain its position in a highly competitive business environment. Citibank also stresses on workforce diversity and encourage specially women to join the organization. Codes of conduct and ethical issues are also regularly reinforced to the employees. INTRODUCTION Citibank Pakistan's Milestones of the 90's The nineties were a decade of domination and leadership for Citibank in the Pakistani marketplace and the trend continues into the new millennium. 1990-1996 Consumer Bank was established • Consumer Asset Business is launched...
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...Is Human Resource Management? 30 Why Is Human Resource Management Important to All Managers? Line and Staff Aspects of Human Resource Management 32 Line Managers' Human Resource Duties 33 Human Resource Manager's Duties 33 New Approaches to Organizing HR 35 Cooperative Line and Staff HR Management: An Example Globalization and Competition Trends 37 Indebtedness ("Leverage") and Deregulation Technological Trends 38 Trends in the Nature of Work 39 35 WHAT IS HUMAN RESOURCE MANAGEMENT AND WHY IS IT IMPORTANT? 31 THE TRENDS SHAPING HUMAN RESOURCE MANAGEMENT 38 36 • HR AS A PROFIT CENTER: Boosting Customer Service Workforce and Demographic Trends 40 Economic Challenges and Trends 42 40 THE NEW HUMAN RESOURCE MANAGERS 43 Human Resource Management Yesterday and Today 43 They Focus More on Strategic, Big Picture Issues 43 • THE STRATEGIC CONTEXT: Building LL.Bean 43 44 They Use New Ways to Provide Transactional Services They Take an Integrated, "Talent Management" Approach to Managing Human Resources 45 They Manage Ethics 45 They Manage Employee Engagement 45 They Measure HR Performance and Results 45 They Use Evidence-Based Human Resource Management They Add Value 46 They Have New Competencies 47 HR Certification 48 46 THE PLAN OF THIS BOOK 48 48 The Basic Themes and Features CHAPTER CONTENTS OVERVIEW 49 49...
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...Chapter 12 Pay for Performance & Financial Incentives Motivation, Performance, and Pay 1. Financial Incentives- Financial rewards paid to workers whose production exceeds standards. 2. Frederick Taylor- scientific management & use financial incentives in the late 1800s 3. Systematic soldering- employees work at the slowest pace possible an produce at the minimum level 4. Fair day’s work- output devised for each job based on careful, scientific analysis 5. People reacted to different incentives in different ways Employee Preference for Noncash Incentives 1. 40% A trip of your choice 2. 20% shopping spree 3. 19% Home Improvement 4. 10% Tickets 5. 4% Electronics Employee Incentive Plans- Pay for Performance Plans 1. Individual Employee Incentives & Recognition 2. Sales Compensation Programs 3. Team/Group based Variable Programs 4. Organization wide Incentives 5. Executive Incentives Compensation Programs Individual Incentive Plans Piecework Plans- Oldest incentive plan, still used widely, these works are paid a sum (piece rate for each unit he or she produces Pros of Piecework 1. Easily understandable, equitable, & powerful 2. Rewards are proportionate to performance Cons of Piecework 1. Employee resistance- to change in standards or work processes affecting output 2. Quality problems-when employees concentrate on output 3. Employee dissatisfaction- when incentives cannot be earned...
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...Running head: PROBLEM SOLUTION: RIORDAN MANUFACTURING Problem Solution: Riordan Manufacturing University of Phoenix Problem Solution: Riordan Manufacturing Over the last couple of years Riordan Manufacturing has seen a steady decline in their sales which has affected their bottom line. Michael Riordan, the CEO and founder, would like to transition into a CRM system, Customer Relationship Management System. With this goal in mind the decision makers of the organization have started to embark on determining what course of action the company needs to take to ensure that the transition is smooth. Currently the company has operations in three different areas. Michigan, California, and China are the areas the company is located in. The future of the company is based upon whether or not the CRM is implemented. For this to happen the Riordan management and leadership team has to not only address the issues and opportunities, but they will need to implement a strategic plan and follow through to ensure that the plan is successful. Situation Analysis Issue and Opportunity Identification As with any organization there are always challenges and opportunities that have to be acknowledged and addressed. Riordan is in the process of analyzing the areas of opportunity, and the opportunities available so they can create a strategic plan going forward. When going through the steps to analyze these areas, it is imperative to the organization...
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...Is Human Resource Management? 30 Why Is Human Resource Management Important to All Managers? Line and Staff Aspects of Human Resource Management 32 Line Managers' Human Resource Duties 33 Human Resource Manager's Duties 33 New Approaches to Organizing HR 35 Cooperative Line and Staff HR Management: An Example Globalization and Competition Trends 37 Indebtedness ("Leverage") and Deregulation Technological Trends 38 Trends in the Nature of Work 39 35 WHAT IS HUMAN RESOURCE MANAGEMENT AND WHY IS IT IMPORTANT? 31 THE TRENDS SHAPING HUMAN RESOURCE MANAGEMENT 38 36 • HR AS A PROFIT CENTER: Boosting Customer Service Workforce and Demographic Trends 40 Economic Challenges and Trends 42 40 THE NEW HUMAN RESOURCE MANAGERS 43 Human Resource Management Yesterday and Today 43 They Focus More on Strategic, Big Picture Issues 43 • THE STRATEGIC CONTEXT: Building LL.Bean 43 44 They Use New Ways to Provide Transactional Services They Take an Integrated, "Talent Management" Approach to Managing Human Resources 45 They Manage Ethics 45 They Manage Employee Engagement 45 They Measure HR Performance and Results 45 They Use Evidence-Based Human Resource Management They Add Value 46 They Have New Competencies 47 HR Certification 48 46 THE PLAN OF THIS BOOK 48 48 The Basic Themes and Features CHAPTER CONTENTS OVERVIEW 49 49...
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