...International Human Resource Management: Chapter – 6: COMPENSATION MANAGEMENT Introduction: One of the key components of IHRM is the compensation administration in MNCs. Today, compensation and employee benefits contribute to 40-50% of the total costs. Compensation is strategically reported and monitored at the broad – levels and with the investors to assess the health of the organization. What is compensation management? Effective and efficient process of managing the earnings – financial and non financial rewards of the employees in an organization based on their performance towards organizational goal is called compensation management. International Compensation is an internal rate of return (monetary or non monetary rewards / package) including base salary, benefits, perquisites and long term & short term incentives that valued by employee’s in accordance with their relative contributions to performance towards achieving the desired goal of an organization. It influences: • • • Organizational culture Recruitment and selection of competent employees Motivation and performance Objectives of compensation: Compensation decisions are strategic decisions and play a key role in achieving performance and sustainable competitive advantages for national as well as international firms. Therefore the key objectives are: • • • • • Attract employees who are qualified , experienced and interested in international assignments. Facilitate the movement of expatriate’s from one...
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...Gartrell Student ID: XXX Due date: 6 November 2013 Leadership & People: Tutor: XXX Prepared by: Stephanie Gartrell Student ID: XXX Executive Summary Designing and implementing a compensation package that rewards all staff according to performance, and succeeds in appealing to their individual motivations is an enormous challenge for any organisation. Some find it easier to simply pay a percentage increase to all staff, irrespective of their performance. A literature review was undertaken to determine both the current and historical views of performance management. A vast amount of material has been written in journal articles and textbooks. All point to the complexity of the issue and the apparent inability to find a solution that will suit all. For the last 100 years, HR specialists, psychologists and economists have been collaborating to try and develop a system which would have broad appeal for both staff and employers. Many theorists contributed to the discussions, asserting that individual motivations for pay were based on the theory of agency, goal, control, expectancy, or reinforcement. Performance management systems are necessary to enable companies to enable them to attract, retain and motivate the best calibre of employees, thereby assisting companies to achieve their organisational goals. However, different people are motivated by different things. Some by money or other tangible rewards and some by the pleasure of completing tasks, intangible rewards...
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...Content 1.0 Introduction 2 2.0 Literature Review 3 2.1 Introduction 3 2.2 Reward 3 2.2.1 Designing a Reward Program 3 2.2.2 Types of Reward Programs 4 2.2.3 Journal 9 4.0 Methodology 13 5.0 Findings 14 6.0 Discussion 20 7.0 Limitation 22 8.0 Recommendation 24 9.0 Conclusion 28 References 29 Appendix 31 1.0 Introduction Understanding what motivates people is necessary at all levels of management. Deci, E., Koestner, R. & Ryan, R.M. (1999) had said that motivation is generally linked to reward, and it is widely recognized that reward management is central to the regulation of the employment relationship. The reward system varies from organization to organization, and comes in various and concrete forms, including monetary or non-monetary, tangible or intangible, and physical or psychological, and these are offered to the employees as compensation for the productive work they execute. According to Jean Christofferson and Bob King (WorldatWork-2006), an effective reward system can serve the strategic purposes of attracting, motivating, and retaining employees to achieve organizational goals. A formalized corporate reward system is necessary because it appeals to capable and skilled employees to fill the available positions in a specific organization. Additionally, such method helps retain employees in the organization, hence maintaining a stable workforce with an acceptable turnover rate. Lastly, an efficient reward system also motivates...
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...HRM LITERATURE REVIEW Most of the literature and research summarized below is fairly recent although some earlier seminal pieces of research and commentary are included. The selection is by no means exhaustive – a tremendous amount of research is carried out in HRM. ------------------------------------------------- Topics ------------------------------------------------- ------------------------------------------------- HRM general Strategic HRM ------------------------------------------------- The HR function Line managers and HR ------------------------------------------------- Human capital management Impact of HR on performance ------------------------------------------------- International HRM Corporate social responsibility ------------------------------------------------- Knowledge management Lean working ------------------------------------------------- High-performance work systems Psychological contract ------------------------------------------------- Organizational behaviour Motivation and job satisfaction ------------------------------------------------- Engagement Commitment ------------------------------------------------- Selection methods Retention ------------------------------------------------- Talent management Flexible working ------------------------------------------------- Balancing work and family life Learning and development ------------------------------------------------- Performance management...
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... Independent Retail Outlet (IRO), General Practitioners’ OTC (GP OTC) and the Lower Trade (Chinese Druggist and Wholesalers). Just before the integration took place, the management of CCMD promoted most of their employees in terms of job grades and some with job titles as well. Adjustments were made to the salaries of their employees whereas at CCMP nothing was being done. As employees of CCMP and not being aware of what was happening at the CCMD, we just ‘let nature take its cause’. As integration began to take place, the sales staffs from both the companies were slot into the 4 different teams with each team having at least one member from the other company and vice-versa. Of the 4 teams, 3 of the team managers were from CCMD, the company in which CCMP acquired. Part of the integration process also involved a change in the rewarding system whereby the management decided to adopt to the commission scheme of CCMD where all sales staffs were no longer entitled to any claims and allowances but instead being compensated based on the individual’s performance. Obviously, as employees of CCMP, we were unhappy and de-motivated by the whole situation. Some employees started to leave the company while those of us who are still remaining suffer from low job satisfaction, low productivity and have...
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...inspiration and job satisfaction that employees get from doing meaningful work and performing it well. Hence, it is critical for organizations to examine and have an in depth understanding of these effects towards employee's motivation. 2. Effects contributing to extrinsic rewards Extrinsic rewards are appreciation through compensation which an organization pays to its employees for better performance, commitment and efficiency at work (Muhammad Ehsan Malik, 2010). Extrinsic reward is highly related to company policies and administration, supervision, interpersonal relationships, working conditions, salary status and security (Herzberg, 2003) (Gkorezis, 2008). Other example of extrinsic rewards are financial rewards, training, promotion or advancement opportunities within organization, the social climate, and physical working conditions, extra vacation time (O'Driscoll, 1999) (Panagiotis Gkorezis, 2008) (Resnick, 2009). (Herzberg, 2003) proposed two factor theory of motivation, hygiene factors are extrinsic factors that caused dissatisfaction and motivators are intrinsic...
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...TRAINING 8 Importance of training 8 Training options 9 Training content 10 RENUMERATION 11 Importance of remuneration 11 Remuneration package for sales staff 12 Remuneration package for technical staff 12 MOTIVATION 13 Motivation theories 13 Applicable theory 14 Practical strategies to motivate the manager 15 Practical strategies to motivate sales staff 15 Practical strategies to motivate technical staff 16 For all staff 16 Summary 18 References 19 Appendices 20 INTRODUCTION Elevate IT is a London-based technical solutions provider. The company specialises in supplying, installing and complete maintenance of computers, software, hardware, networks and cloud computing for small and medium Irish businesses across the country. The company has been in business since 2009 and has been steadily growing and expanding. The business employs 3 technical specialists who install and provide post-installation technical support and 6 sales consultants who provide professional advice to company’s potential and current clients on the most suitable and cost-effective solutions for their businesses. The company is now providing high-tech solutions to over a hundred businesses all over the country. Elevate IT are looking at possibilities of further expansion in the future by employing more technical and sales staff to accommodate for the growing demand for company’s services. However, while company’s rapid growth over the last three years has been a great success, it created...
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...Compensation Management Q1.a. What is the role of compensation and rewards in modern organization? What arethe advantages of a fair compensation system? Ans1a. Role of Compensation and Reward in Organization: Compensation and Reward system plays vital role in a business organization. Since, among four Ms, i.e Men, Material, Machine and Money, Men has been most important factor, it is impossible to imagine a business process without Men. Land, Labor, Capital and Organization are four major factors of production. Every factor contributes to the process of production/business. It expects return from the business process such as Rent is the return expected by the Landlord. similarly Capitalist expects Interest and Organizers i.e Entrepreneur expects profits. The labour expects wages from the process. It is evident that other factors are in-human factors and as such labour plays vital role in bringing about the process of production/business in motion. The other factors being human, has expectations, emotions, ambitions and egos. Labour therefore expects to have fair share in the business/production process. Advantages of Fair Compensation System: Therefore a fair compensation system is a must for every business organization. The fair compensation system will help in the following: 1. If an ideal compensation system is designed, it will have positive impact on the efficiency and results produced by workmen. 2. Such system will encourage the normal worker to perform...
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... C la s s of 09 Principles of Management Control Systems 20 Fo rI B ICFAI Center for Management Research Road # 3, Banjara Hills, Hyderabad – 500 034 S U se O nl y C la s s of 09 The Institute of Chartered Financial Analysts of India, January 2006. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means – electronic, mechanical, photocopying or otherwise – without prior permission in writing from Institute of Chartered Financial Analysts of India. Fo ISBN 81-7881-995-3 Ref. No. PMCS/A 01 2K6 31 For any clarification regarding this book, the students may please write to ICFAI giving the above reference number, and page number. While every possible care has been taken in preparing this book, ICFAI welcomes suggestions from students for improvement in future editions. rI B S U se O nl y C la s s of 20 09 Contents PART I: AN OVERVIEW OF MANAGEMENT CONTROL SYSTEMS Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Introduction to Management Control Systems Approaches to Management Control Systems Designing Management Control Systems Key Success Variables as Control Indicators Organizing for Adaptive Control Autonomy and Responsibility Transfer Pricing 3 15 28 42 57 71 87 PART II: MANAGEMENT CONTROL ENVIRONMENT Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter...
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...Seminar – 7 Chapter 7 Financial Responsibility Centers Financial Result Control System Financial Result Control System results are defined in monetary terms, most commonly in terms of accounting measures such as revenues, costs, profits, and returns. Advantages of Financial Result Control System Financial objectives are paramount in for-profit firms. Financial measures provide a “summary” measure of performance by aggregating the effects of a broad range of operating initiatives across a possibly broad range of markets, products, or activities into a single or a few measures. Most financial measures are relatively precise and objective. The cost of implementing financial result controls is often small relative to that of other forms of management control. Types of financial responsibility centers Investment centers Investment centers are responsibility centers whose managers are held accountable for the accounting returns on the investment made to generate those returns. Profit centers Profit centers are responsibility centers whose managers are held accountable for profit which is a measure of the difference between the revenues generated and the costs of generating those revenues. The goal for not-for-profit organization is to break even, or perhaps even incur limited losses. However, for-profit entities is normally not considered desirable to generate higher profits than those budgeted. Two limited forms: When sales-focused entities are made into...
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... C la s s of 09 Principles of Management Control Systems 20 Fo rI B ICFAI Center for Management Research Road # 3, Banjara Hills, Hyderabad – 500 034 S U se O nl y C la s s of 09 The Institute of Chartered Financial Analysts of India, January 2006. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means – electronic, mechanical, photocopying or otherwise – without prior permission in writing from Institute of Chartered Financial Analysts of India. Fo ISBN 81-7881-995-3 Ref. No. PMCS/A 01 2K6 31 For any clarification regarding this book, the students may please write to ICFAI giving the above reference number, and page number. While every possible care has been taken in preparing this book, ICFAI welcomes suggestions from students for improvement in future editions. rI B S U se O nl y C la s s of 20 09 Contents PART I: AN OVERVIEW OF MANAGEMENT CONTROL SYSTEMS Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Introduction to Management Control Systems Approaches to Management Control Systems Designing Management Control Systems Key Success Variables as Control Indicators Organizing for Adaptive Control Autonomy and Responsibility Transfer Pricing 3 15 28 42 57 71 87 PART II: MANAGEMENT CONTROL ENVIRONMENT Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter...
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...Motivational and sales performance reports On Glaxo Smith line India Limited Mumbai- India Contents Introduction 3 Company background 4 Literature Review 5 Intrinsic Rewards 5 Extrinsic rewards 6 Hygiene factors 7 Current issues, solution Proposal and conclusion 10 Stability 10 Hidden policies 10 Security 11 Politics in pay increment and promotion 11 Delay in reimbursements of incentive and awards 12 Unhealthy competition 12 Expectancy and valance of awards 13 References 14 Appendices 16 Appendix -1 16 Appendix-2 18 Appendix-3 20 Introduction Modern organisation faces a lot of challenges in retaining and motivating the staff as human resources are vital part of any organisation. These challenges like recruiting developing and retaining sales staff must be taken care off to gain maximum outcome from employees. To retain the employee, company uses different motivational techniques. This report is provided to determine the importance of motivational techniques for retaining staff motivated. Based on literature and journal article, motivational factors are discussed in this report. And how these motivational factors motivate the employees in selected organisation i.e. Glaxo Smith line India Limited. Different Motivational theories are discussed here to help the organisation to develop and retain the sales force and also discussed the issues and risk of the same followed by proposed solution is also provided here (Ali & Danish...
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...Introduction An organization’s behavior determines by culture, structure, leadership, internal and external factors of organization; therefore, the manager must be able to recognize and react to the factors in order to achieve the organization’s goals. Human behavior in the organization is complex and it differs from every individual to another. Organizations face challenges to match the task, manager and subordinate in an efficient and effective way. Manager or Management in the organization should analyze the tasks, required skills and assemble a team that match each other skills; therefore the management can create an enrich and conflict free team which need to perform the job well. This report is based on XYZ Company’s challenges such as declining of Sales, low level of employee morale and low level of motivation. Also other behavioral issues observations such as conflicts in the work place, absenteeism, lack of trust and integrity between the superior and the subordinates, occasional sabotage, high temper people with severe stress. This report is primarily based on the study of the MARS model, type of individual behavior in organizations and ethics and values in the workplace. Also this report contains the solution for the above problem. Literature Review a. MARS Model MARS model is a model explain individual behavior as a result of internal and external factors or influences acting together. The name of the model is an acronym for individual...
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...help minimize and alleviate ailments associated with major chronic diseases and its risk factors. The plan identifies demographic groups affected by leading chronic diseases, specifies target stakeholders, and justifies how their contribution impacts the program. This plan outlines program case statement detailing the mission, goals, objectives, organizational history and structure as well as plans devised for fundraising. The plan does a thorough problem analysis to identify unmet needs necessitating this intervention plan. This P Plan presents a financial statement that describes the tax status of the P-Plan and reports a year’s budget estimate with relevant financial policies that justifies and strategically integrates budget with objectives, goals and mission to ensure fiscal accountability and responsibility. A human resource structure is illustrated in this P-Plan detailing list of positions and job descriptions with corresponding conflict of interest methodologies, employee training methods and effective ways of communicating to stakeholders. This P- Plan further demonstrates communication and marketing schemes that promotes plan’s mission, goals and objectives in a way that ensures branding and program’s success. ORGANIZATION Area of Emphasis: HICREP’s selected area of emphasis...
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...are acquiring companies all over the world, hence benefitting from expansion. This has directly affected the lives of many citizens in our country. For many, there has been a dramatic increase in the disposable income. The savings, consumption and investment patterns have changed in the past few years. This has meant that there has been an increase in demand for many financial services from different financial firms. The market has responded to this soaring demand with making attractive offers and services for the customers at affordable rates. Since the LPG reforms of 1991, there have been progressive reforms in the financial sector allowing for better and easier facilities and options to the consumer. An increasing financially aware middle class have realized the importance of financial services. Banks have streamlined and rationalized themselves to meet with the changing demands of the people. However, not all the reforms in the financial services sector have still been able to bring in the other half of India’s population who are un-banked. There are many reasons that are obvious for this kind of financial exclusion. Most of the un-banked or financially excluded population of India lives in rural areas; nevertheless, there is also a significant amount of the urban population of India who faces the...
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