Compensation and Benefits

Compensation includes topics in regard to wage and/or salary programs and structures, for example, salary ranges for job descriptions, merit-based programs, bonus-based programs, commission-based programs, etc. (Also see the Related Info (including Benefits).)

Compensation is payment to an employee in return for their contribution to the organization, that is, for doing their job. The most common forms of compensation are wages, salaries and tips.

Compensation is usually provided as base pay and/or variable pay. Base pay is based on the role in the organization and the market for the expertise required to conduct that role. Variable pay is based on the performance of the person in that role, for example, for how well that person achieved his or her goals for the year. Incentive plans, for example, bonus plans, are a form of variable pay. (Some people might consider bonuses as a benefit, rather than a form of compensation.) Some programs include a base pay and a variable pay.

Organizations usually associate compensation/pay ranges with job descriptions in the organization. The ranges include the minimum and the maximum amount of money that can be earned per year in that role.

Performance Appraisal

Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. 
According to Flippo, a prominent personality in the field of Human resources, “performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job.”
In the words ofYoder, “Performance appraisal refers to all formal procedures used in working organizations to evaluate personalities and contributions and potential of group members.” Thus performance appraisal is a formal programme in an organization which is concerned with not only the contributions of the members who form part of the organization, but also aims at spotting the potential of the people.”

Executive Development

Executive development is the whole of activities aimed at developing the skills and competencies of those that (will) have executive positions in organisations. While "executive" and "manager" and "leader" are often used interchangeably, "executive" is commonly used to signify the top 5% to 10% of the organization. Similarly, "development" and "training" and"education" are often used as synonyms, however "development" is generally seen as the more encompassing of the three in terms of activities that build skills and competencies.

While it is typical to find organizations that have dedicated corporate training & development people and processes, it is not always the case that an organization will have a dedicated executive development set of activities. In some organizations (typically large multi-nationals), there is a separate executive development team, in other organizations executive development is handled as one of many activities by the larger corporate training group, and in yet other scenarios there is no executive development activity to speak of.

Training and Development

 Training refers to the imparting of specific skill, abilities and knowledge to  employee ( development of those employees who do not supervise activities of others, operative level)
System and practices get outdated due to new discoveries in technology, including technical, managerial and behavioral aspects. In this context training enhances the knowledge, skills and attitudes of employees to increase efficiency and effectiveness on the prsent job as well as expected future job.
The objective of training is to achieve a change in the behavior of those trained. It is expected that employees apply their newly acquired knowledge & skill on the job in such a way as to aid in the achievement of organizational goal.

Recruitment and Selection Process

One of the significant roles of HRM is to select suitable staff and decide to hire right professionals or employees to fill recruitment needs, and provide training the best employees and, make certain that these selected candidates can give better performance, deal with performance issues and follow the rules to diverse system. Recruitment is of the fundamental job of Human Resource management. Fundamentally, recruitment is the process of attracting, assessing, and hiring employees for companies. Once HRM requirements are understood, the next step of HRM is to employ workers. Recruiting and staffing is a complicated activity in competitive business surroundings. Earlier, HRM employees were dependent on recommendation from existing employees. At present, the major challenge is to fill suitable positions and equal employment opportunity which requires more complicated procedures to distinguish and select potential employees. There is difference in enrolment and selection practices reflecting an organizations strategies and perspective to manage workforce. Talented employees represent the core workforce of organization. Applicants are employed on the basis of their ethical level and skills (Guest, 1989). In many organizations, skill framework have been developed and utilized to recognize the talent and qualities essential from potential employees (Roberts, 1997). Such criteria are important to implement many recruitment and selection procedures to classify and select suitable people.

Recruitment is the process of searching for and obtaining applications so as to build a pool of job seekers from whom the right people for the right jobs may be selected.

Job Analysis

Job analysis is the process of gathering and analyzing information about the content and the human requirements of jobs, as well as, the context in which jobs are performed. This process is used to determine placement of jobs. Under NU Values the decision-making in this area is shared by units and Human Resources. Specific internal approval processes will be determined by the unit's organizational leadership.

Job analysis defines the organization of jobs within a job family. It allows units to identify paths of job progression for employees interested in improving their opportunities for career advancement and increasing compensation.

A relative value is placed on the differing factors described in the Zone Placemnet Matrix. All new and existing positions will be assigned to a job family and zone using the job analysis process. This process is designed to place positions into families and zones based upon assigned duties, qualifications and competencies as measured by the five criteria found in the Zone Placement Matrix.

Job specification
A statement of the minimum acceptable human qualities necessary to perform a job properly. It is a standard of personnel and designates the qualities required for acceptable performance.

Human Resource Planning Process

Human resource planning is a process through which the company anticipates future business and environmental forces. Human resources planning assess the manpower requirement for future period of time. It attempts to provide sufficient manpower required to perform organizational activities. HR planning is a continuous process which starts with identification of HR objectives, move through analysis of manpower resources and ends at appraisal of HR planning. Following are the major steps involved in human resource planning:

1. Assessing Human Resources
The assessment of HR begins with environmental analysis, under which the external (PEST) and internal (objectives, resources and structure) are analyzed to assess the currently available HR inventory level. After the analysis of external and internal forces of the organization, it will be easier for HR manager to find out the internal strengths as well as weakness of the organization in one hand and opportunities and threats on the other. Moreover, it includes an inventory of the workers and skills already available within the organization and a comprehensive job analysis.

2. Demand Forecasting
HR forecasting is the process of estimating demand for and supply of HR in an organization. Demand forecasting is a process of determining future needs for HR in terms of quantity and quality. It is done to meet the future personnel requirements of the organization to achieve the desired level of output. Future human resource need can be estimated with the help of the organization's current human resource situation and analysis of organizational plans an procedures. It will be necessary to perform a year-by-year analysis for every significant level and type.

3. Supply Forecasting
Supply is another side of human resource assessment. It is concerned with the estimation of supply of manpower given the analysis of current resource and future availability of human resource in the organization. It estimates the future sources of HR that are likely to be available from within an outside the organization. Internal source includes promotion, transfer, job enlargement and enrichment, whereas external source includes recruitment of fresh candidates who are capable of performing well in the organization.

4. Matching Demand And Supply
It is another step of human resource planning. It is concerned with bringing the forecast of future demand and supply of HR.The matching process refers to bring demand and supply in an equilibrium position so that shortages and over staffing position will be solved. In case of shortages an organization has to hire more required number of employees. Conversely, in the case of over staffing it has to reduce the level of existing employment. Hence, it is concluded that this matching process gives knowledge about requirements and sources of HR.

Introduction to Human Resource Management

Human resources management (HRM) is a management function concerned with hiring, motivating and maintaining people in an organization. It focuses on people in organizations. Human resource management is designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals.

HRM is the personnel function which is concerned with procurement, development, compensation, integration and maintenance of the personnel of an organization for the purpose of contributing towards the accomplishments of the organization’s objectives. Therefore, personnel management is the planning, organizing, directing, and controlling of the performance of those operative functions (Edward B. Philippo).

According to the Invancevich and Glueck, “HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is the way of managing people at work, so that they give their best to the organization”.

Work Motivation

Definition of motivation

Motivation originally comes from the Latin root word movers, which means "to move". It is derived from the word 'motive'. Motive may be defined as an inner state of our mind that activates and directs our behaviour. It makes us move to act. It is always internal to us and is externalized via behaviour. Motive is an inner state that energizes, activates, or moves and directs or channels behaviour goals. It is the stimulation of any emotion or desire operating upon one's will and promoting or driving it to action.

Motivating

It is an act of stimulating emotion or desire and promoting it to action. It may be positive motivation (i.e., incentive motivation based on reward) or negative motivation or fear motivation (based on force). Positive motivation is achieved by the co-operation of employees and they have a feeling of happiness. Negative motivation is commonly used to achieve desired results.

Meaning of motivation

Motivation is one's willingness to exert efforts towards the accomplishment of his/ her goal. Let us consider a few important definitions on motivation that will help us understand the meaning of motivation in more clear sense.

Group Decision Making Techniques

Good decision making is an essential skill for career success generally and effective leadership particularly. If you can learn to make timely and well-considered decisions, then you can often lead your team to spectacular and well-deserved success. However, if you make poor decisions, your team risks failure and your time as a leader will, most likely, be brutally short.

The techniques in this section help you to make the best decisions possible with the information you have available. These tools help you map out the likely consequences of decisions, work out the importance of individual factors and choose the best course of action to take.

These techniques build on the tools discussed in the section on Problem Solving Tools, in that Decision Making follows on from an understanding of the situation. The section on Creativity Tools will help you to explore what alternatives that are open to you.

Measuring process, practices, behaviour and culture

Some aspects of supplier performance cannot be ascertained by asking them, as they may not be aware. Gordon (2008) states that a lot of insight is needed into not only supplier performance using quantifiable performance metrics but also the means by which this performance is achieved. This includes the supplier's processes, practices, behaviour and culture. However, if we accept that by forging the right relationship with certain important suppliers we can add value, then it follows that we must also measure processes, practices, behaviour and culture; theirs and those that are joint between us.

There are measures we can develop for aspects of process efficiency and effectiveness, but practices, behaviour and culture are much more subjective. In a close personal relationship norms around practices, behaviour and even culture develop. There may not be a specific discussion around this but in a healthy relationship practices get agreed based on what works for both, behaviour gets shaped through parties agreeing what is mutually acceptable and where boundaries lie and if all these things happen the relationship takes on its own positive culture over time. Split up and meet someone new and the process begins over. The same happens with a supplier relationship, except companies rarely seek to agree what practices and behaviours are appropriate or expected, yet if we do this we then create the basis to measure it or at least check it feels right. In Chapter 11 we will explore the Relationship Charter, a means to define expected practices and behaviours and thus a basis to them measure the degree to which parties emulate this.

Collecting and analysing data

KPIs typically demand different data types, from different sources. Collecting data to create KPIs could be an automatic process in real time, perhaps using a corporate system or well-designed app, or perhaps it requires a regular or even irregular activity to produce the latest set of KPIs. We could do this or we could get the supplier to do this, or a combination of both.

Process of Organizational Development

(OD) Organization development process is a complex and long process. Sometimes it takes a year or more than a year to design, executes and gets end fruits. In some cases it can continue indefinitely.

Organization development process eaters to move the organization from present position to better future position. The process consists of five steps.

The model has been excerpted from Newstrom and Davis’s book Organization Behavior. The model is shown in the following figure and elements are discussed briefly in the points beneath the figure.

Organization development process

The Theory of Planned Behavior

The Theory of Planned Behavior (TPB) started as the Theory of Reasoned Action in 1980 to predict an individual's intention to engage in a behavior at a specific time and place. The theory was intended to explain all behaviors over which people have the ability to exert self-control. The key component to this model is behavioral intent; behavioral intentions are influenced by the attitude about the likelihood that the behavior will have the expected outcome and the subjective evaluation of the risks and benefits of that outcome.  

The TPB has been used successfully to predict and explain a wide range of health behaviors and intentions including smoking, drinking, health services utilization, breastfeeding, and substance use, among others. The TPB states that behavioral achievement depends on both motivation (intention) and ability (behavioral control). It distinguishes between three types of beliefs - behavioral, normative, and control. The TPB is comprised of six constructs that collectively represent a person's actual control over the behavior.

1. Attitudes - This refers to the degree to which a person has a favorable or unfavorable evaluation of the behavior of interest. It entails a consideration of the outcomes of performing the behavior.

Features of Organizational Behaviour

Organizational behaviour has emerged as a separate field of study. The nature it has acquired is identified as follows :

1. A Separate Field of Study and not a Discipline Only

By definition, a discipline is an accepted science that is based on a theoretical foundation. But, O.B. has a multi-interdisciplinary orientation and is, thus, not based on a specific theoretical background. Therefore, it is better reasonable to call O.B. a separate field of study rather than a discipline only.

2. An Interdisciplinary Approach

Organizational behaviour is essentially an interdisciplinary approach to study human behaviour at work. It tries to integrate the relevant knowledge drawn from related disciplines like psychology, sociology and anthropology to make them applicable for studying and analysing organizational behaviour.

3. An Applied Science

The very nature of O.B. is applied. What O.B. basically does is the application of various researches to solve the organizational problems related to human behaviour. The basic line of difference between pure science and O.B. is that while the former concentrates of fundamental researches, the latter concentrates on applied researches. O.B. involves both applied research and its application in organizational analysis. Hence, O.B. can be called both science as well as art.

Personality traits and organizational behaviour

Those personality traits which affect the organizational behaviour of a person are :

1. Authoritarianism : It was developed by the psychologist Adorno to measure susceptibility to autocratic, fascistic, or anti-democratic appeals. It was later extended to human personality. Authoritarians are oriented towards conformity of rules and regulation. They prefer stable and structured work environment. They believe obedience and respect for authority and blind acceptance of authority. They are conservatives. They are concerned with toughness and power, close minded and less educated. They make good followers, work better under directive supervision and are more productive within authoritarian organizational structure.

2. Bureaucratic Personality : It is based upon respect for organizational rules and regulations. Unlike authoritarian person, bureaucratic person's acceptance of authority is not total and blind. A bureaucratic person values subordination, conformity to rules, impersonal and formal relationships. These people are not innovative. They do not like taking risks. They are better supervisors when the type of work is routine, repetitive and proceduralized.

3. Machiavellianism (Mach) : Niccolo Machiavelli wrote in the 16th century on how to gain and use power. This personality trait named after Machiavelli are :

(i) A Mach man is pragmatic, maintain emotional distance and believes that ends can justify means.

(ii) High Mach people flourish when they interact face to face with others.

(iii) They have high self-confidence and high self esteem.

(iv) They are specially successful in exploiting structured situations and vulnerable people. We cannot conclude whether high Machs make good employees or not. The answer will depend upon the type of the job and whether moral and ethical values are considered in evaluating the performance of a person.