Compensation is a sub-discipline of Human Resources Management and has become even more critical for organizations in the 21st century. Compensation, of course, is the salary or pay an employee receives from an organization and may fall into four categories: 1) Guaranteed Pay (fixed), 2) Variable Pay (Performance or results based); 3) Benefits (Medical, etc.), and 4) Equity-Based Compensation (Stock or organizational programs). There are many forms of compensation, many philosophies as to motivational aspects of employees. . Managers tend to look at the compensation platform within their organization and are motivated to satisfy their own needs above the overall needs of the stakeholder contingent. However, in any organization, it is important to measure processes, successes, values, and employee contributions to the overall health of the organization. Certainly, for most organizations, salaries and benefits constitute their largest capital outlay after materials and equipment, and for some, even more than hard costs (Stevens, et al., 2006). With the advent of so much global competition, stakeholder expectations and expected transparency of operations, firms have increasingly begun to experiment with compensation programs. Market-based pay structures are now the most prevalent type of compensation, used by about 60% of American organizations over 50 employees. In general, when the market is as competitive as it has become, the pay structures of competitive organizations become part of the strategic human resource management (SHRM) process of analyzing what the external labor-market pays for positions that are similar in range (education, background, expertise, performance, etc.). Key to this philosophy is also the idea of geography (cost-of living, etc.) so that a position in New York City would understandably pay more for the same job than one in a small town in Wisconsin. However, that being said, the critical nature of the position is also taken into consideration for market-based compensation studies. If, for instance, there is...
Unless the target is specialized, though, a general rule is that most organizations concentrate on the 50th percentile of the market as the basis for their compensation management strategy -- the point in which half the organizations pay more, half less, for a specific job. One must also be aware of the value of the particular job for the organization -- if a job produces X$ for the company, then regardless of the skill and background of the individual, that job is worth Y$ within that industry, that market, or that organization (Costello, 2009).
Human resource management, whether specifically titled or not, has been a part of any organization's management since groups banded together for specific tasks. Ancient armies, projects, and even educational and religious institutions all had concerns about their ability to bring in the appropriate person for the positions at hand. Formally, Human Resource Management in the contemporary world is both the tactical and strategic manner in which an organization manages the
LO1 Human resources management applies the concept of hiring and developing employees so they ultimately contribute more value to an organization or business. As it applies to tourism, people hired by the tourism industry are often instructed to work low paying, low skill jobs that do not encourage better workers, nor improvement within the workplace. This can hurt the industry because it is important to understand that tourism as a whole
Human Potential "Nothing endures but change." Heraclitus Developing Human Development The "learning organization" is without a template. Writers have tried to give it an ideal form or a template in "which real organizations could attempt to emulate." (Easterby-Smith & Araujo 1999). The learning organization, however, can be best characterized by saying that it's an organization where both individual and collective learning are crucial. Donald Schon has come up with a theoretical framework associating
Human Resources Managing Organisational Culture The values and behaviors that contribute to the unique social and psychological environment of an organization make up the organizations culture. Organizational culture is the summation total of an organization's past and current suppositions, incidents, viewpoint, and values that hold it together, and is articulated in its self-image, inner workings, connections with the outside world, and future prospects. In dealing with the management of organisational culture, it is
The enablers include the competence of the people, the culture of the corporation, internal development, worker engagement, efficient and effective communication, and innovative learning. Becker, B. & Gerhart, B. (1996). The impact of human resource management on organizational performance: progress and prospects. Academy of Management Journal, 39 (4), pp. 779-801. The research attempts to advance debates on a nascent link between the human resource systems and the strategic impact of human
Motivation of workers is posing very big challenges to organizations. Herzberg ensures that an organization rewards its employees depending on the behaviors that the management would like to encourage.One of the widely known writers on motivation of workers is Frederick Herzberg. He is widely known for the two-factor theory that he came up with. The two factor theory is widely referred to as the hygiene motivation theory. As stated above,
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