Does performance related pay motivate or de-motivate employees?
Veit Muerz CB 519 HRM Assignment No. 2 Deadline 14th January 2002 Does performance related pay motivate or de-motivate employees? Performance related pay schemes aim at linking pay to a measure of individual, group or organisational performance in a company. Motivation can best be defined as the willingness to undertake certain kinds of action. Performance related pay (PRP) has three aspects to it. Paying the employee for output is an objective method of assesing performance. Likewise, paying the employee for input is a subjective method, since it is hard to value the effort. The third method is a hybrid of the two, where both in- and output are measured. "PRP schemes attracted considerable attention in Great Britain in the 1960s and 70s. At the firm and workplace level the focus was on eliciting effort and ensuring that the payment system was appropriate for the activities of the organization." ( Fernie, S. & Metcalf, 1999) The objectives of PRP schemes should ideally be laid out in a specific, measurable, achievable, realistic and time related manner by the management to stimulate performance (Fernie, S. & Metcalf, 1999) The financial rewards are basically of three types: 1. Profit sharing, where an organization distributes a share of the profits to groups or individuals. 2. Job evaluation, where an objective assessment of performance is taken and rewards given
Negotiating a Starting Salary
Negotiating a Starting Salary By Karl Brinkhoff Susan Gifford BU 330 Human Resource Management November 1, 2004 With internet access available to nearly everyone, job seekers are armed with more information than ever before. Information can be obtained for job openings, job descriptions, and even salaries. Sometimes when filling out an application, a box will ask for a salary desired. Some advertisements ask to send your resume with salary requirements. These are sometimes tough questions to answer. How much does that job normally pay? Is the job applicant worth the top pay? This paper will explore the various factors involved when attempting to negotiate a starting salary. Topics such as helpful internet sources will be introduced, along with salary ranges, and helpful interview techniques will be discussed to better position one self to obtain the salary desired. Some basic concepts should be understood before attempting to negotiate a starting salary. First of all realize that a job in New York City will most likely pay more than the same job in rural Ohio. Geographic locations and cost-of-living play a major role when determining salaries. For example, comparisons were made for an entry level job as a bank teller in Elyria, Ohio and New York, New York. The results were interesting. The median expected salary for a typical Teller in Elyria, Ohio is $20,913; with the
How does the production department help a typical manufacturing or serivce business to meets its objectives
Production is important within service industries as well. Although businesses such as bank, insurance companies and internet service providers do not supply physical goods that can be seen or held, they do have to organise their resources to meet customers demands as completely as possible. How the production department help the business to meets its objectives The production department at Marks and Spencer helps the business to buy materials and equipment at the right place to enable production to take place at the right place and at the right cost levels .The department decides on transport and storage arrangement helping Marks and Spencer to deliver its goods and service to customers on high quality. The production departments organise resources efficiently to offer efficiently to offer the final consumer the best value and quality. The production department sets targets for each section of the production process. The quantity and quality of products coming off a production line will be closely monitored If the standards are not meet Marks and Spencer aim the production department will make alterations to the inputs, filters or processes, to ensure outputs are of the expected quality and quantity. The human resources function Marks and Spencer's human resources management is now taking on the role previously carried out by personnel management. There is a very clear
Responsibilities of the Human Resources Department
Responsibilities of the Human Resources Department it is the responsibility of the human resources department to ensure that the organisation recruits the correct staff and that the staffs are trained to ensure that the business meets its aims and annual targets. Our function is absolutely central to the success of the business. Sometimes in human resources there has to be disciplinary for staff and termination of contracts. What is important is that all staff members are treated fairly and in line with company policy. The Human Resources Department are responsible for four main functions: > Human Resources Planning > Recruitment and Selection > Training and Development > Performance Management. (Needham and Dransfield, 2000) Human resources planning- is a critical part of any manager's job. To guarantee a fully staffed business of productive employees, managers must take the time to plan how their organisation should be structured, establish the grade level and types of employees needed to meet the organisation's aims, regard the employees' developmental requirements, and take into account probable changes due to workload shifts. (www.web.lmi.org/acqbook/planning/, 2003) To avoid staff losses a plan should be presented in advance for long-term absences due to training or medical needs and the time needed to fill important positions. Although it is difficult to
Introduction to how business works?
Introduction to how business works? In this project I will investigate how a business works, my project will cover the following areas: Aims and objectives Functional Areas Equal opportunities Organisational structures Communication Customer services For this project I will be focusing on one particular business, this is Philip Markham Ltd. It is a family run business supplying classic menswear since 1900. The company has 20,000 private customers that order directly from the company and the company also supplies its goods to department stores and exclusive menswear retailers across the country. All business customers have private accounts with the company. The main activities of Philip Markham are to make high quality clothing, and to sell clothing to its customers. Aims and Objectives What is an aim? An aim is a long-term goal. All businesses have these targets to help them develop and progress. What is an objective? An objective is part of an aim that has been broken down into smaller steps. This makes the aim easier to achieve and can measure how near the business is to achieving this aim. An Aim Objectives The purpose of aims and objectives The purpose of aims and objectives is to provide the business with an overall goal to reach; the objectives break down the aims into easier, shorter-term, targets for the company to reach. All departments
What is Human Resource Management?
What is Human Resource Management? Human resource management includes a variety of activities. There are many key factors for any large organisation to focus on such as the following: * What staffing needs to have and whether to use independent contractors or hire employees to fill these needs * Recruiting and training the best employees, ensuring they are high performers * Dealing with performance issues and ensuring its personnel and management practices conform to various regulations. For the organisation activities also include managing its approach to employee benefits and compensation, employee records and personnel policies. Usually new business owners have to carry out these activities themselves because they can't yet afford part or full-time help. However, they should always ensure that employees have and are aware of personnel policies, which conform to current regulations. These policies are often in the form employee manuals, which all employees have. Staff is a major resource in any business. This is particularly true in a business like Boots, which has a very large amount of employees and which provides a range of services to its customers. Managing human resources effectively is vital to Boots for several reasons: * The business needs to employ the right number of staff. If it has too many employees it is not cost effective and if it has too few
Leadership is frequently defined as a social influence relationship between two or more persons who depend on each other to attain certain mutual goals in a group situation.
INTRODUCTION In a firm, management and leadership are important and needed. Leadership and management are similar. Actually, leadership and the management are totally difference. The leadership would influence the firm. The leader would have difference leadership styles to lead the subordinate. The manager has different functions, attributes and skills. Different subordinate needs to have different leadership style. Finally, difference powers would have difference use on leadership influence. MANAGEMENT DEFINED Management can be defined as the process of planning organising, directing, and controlling organisational resources in the pursuit of organisational goals. LEADERSHIP DEFINED Leadership is frequently defined as a social influence relationship between two or more persons who depend on each other to attain certain mutual goals in a group situation. STYLES OF LEADERSHIP An autocratic leadership style is one where the manager sets objectives, allocates tasks, and insists on obedience. Therefore the group becomes dependent on him or her. The result of this style is the members of the group are often dissatisfied with the leader. This results in little cohesion, the need for high levels of supervision, and poor levels of motivation amongst employees. A democratic leadership style encourages participation in decision making. Democratic leadership styles can be
business ownership and activity
Level 1 1A Describe the main activities, the main features of the ownership and the main aims and activities of each business. For my portfolio I have been investigating for a small business in my local area, the small business I have investigated about is called DECORIUM. I have visited the shop in person and asked the owner about their business which helps me to find out more information about the business. The main activity of decorium Decorium is a small business which operates in the tertiary sector. Tertiary sector means the sector where they sales goods. They sales good in three main areas these are cards, gifts and Turkish ornaments that suits for all occasions. They have some exceptional gifts such as hand made vases to silver plated frames and effective wrapping paper service. Their product includes soft toys, Me to you range, Glassware, Ornaments, Candles, Plates, Vases, Money boxes, Trinket boxes, Candle lights, Clocks and teddies. Decorium sells birthday cards, friendships and greeting cards, they also sales seasonal gifts such as charismas, mother day and Valentines Day. The accessories they sells its include Necklaces, rings, sets, sterling silver, bangles, fashion bags, evening bags, scarves, hats etc. Decorium open Monday to Saturday from 9 am to 6.30 pm and 10 am to 4 pm on Sundays. It doesn't have many employees, only the owner and two other
'The customer is king' is true in theory, but mostly an ignoble lie in practice.
Masters must be servants Failures in customer service are the fault of bosses, not staff, argues Robert Heller Sunday November 5, 2000 The Observer 'The customer is king' is true in theory, but mostly an ignoble lie in practice. The customers have moved to centre stage in management thought and talk, but in real life they remain, not monarchs, but second-class citizens. A whole new discipline, customer relationship management, or CRM, has been created and nourished by heavy corporate spending. Consultants plot 'value chains' backwards from the supposedly satisfied customer, and work out irresistible 'customer value propositions'. Call centres mushroom in unlikely locales to serve the customer better - and service just gets worse. In this customer-oriented culture, the internet is meant to reinforce the revolution by providing better, faster access and response. But companies actually selling over the net appear, according to a new survey, to be even less responsive in cyberspace than on earth. The PLAUT business and technology consultancy, investigating returns policy and performance, found that only 15 per cent of surveyed e-retailers offered excellent service. The rest provided after-sales treatment that ranged from mediocre to abysmal. Service failure is not skin-deep. Its causes go far into the heart of management performance. The mistakes are never isolated,
BAA Human Resources.
BAA HUMAN RESOURCES People BAA is committed to inspiring people to excel through demonstrating the highest levels of personal performance, clear leadership and recognition of significant achievement. They aim to create an innovate environment which encourages teamwork, sharing and learning, and open communications, and which produces measurable performance improvement. They are also committed to providing a healthy and safe working environment, and to giving safety and security the highest priority at all times. Recruitment BAA adapt a rigorous recruitment and selection process to ensure that successful applicants thrive within the organisation. This process will vary depending on the position, but will usually include the completion of an application form and a selection interview. For graduate recruitment the process also includes assessment centres and psychometric testing. A number of different skills are required for the different positions to which they recruit. In general terms, they look for motivated, enthusiastic individuals who will thrive in a continually changing environment. Motivation of employees BAA motivate employees in a number of ways, examples of which include giving staff the opportunity to develop their skills through training and development programmes. They operate a policy of internal promotion. Staff vacancies are advertised internally