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Components of Executive Remuneration

Components of Executive Remuneration For the purpose of remuneration, an executive is considered to be an individual who is in a management position at the highest levels. Specifically, this category includes presidents, vice-presidents, managing directors and general managers. Their remuneration generally comprises five elements. They are: 1. Salary 2. Bonus 3. Commission 4. Long-term incentives … Read more

Devising a Remuneration Plan

Devising a Remuneration Plan Any remuneration plan must be understandable, workable and acceptable. The remuneration scheme must have two components- a base rate and the scope for increasing the base rate. The remuneration plan must be determined keeping in mind the requisites and the components. The persons responsible for determining a remuneration plan are advised … Read more

Methods of Performance Appraisal

Methods of Performance Appraisal Numerous methods have been devised to measure the quantity and quality of employee’s job performance. Each of the methods could be effective for some purposes, for some organizations. None should be dismissed or accepted as appropriate except as they relate to the particular needs of the organization or of a particular … Read more

Types of Incentive Schemes

Types of Incentive Schemes Incentives schemes are many and varied. The International Labour Organization (ILO) classifies all the schemes of payment by results into four categories. They are: Incomes Varying in Proportion to Output The chief characteristic of the schemes where incomes vary in proportion to output is that any gains or losses resulting directly … Read more

Methods of Job Evaluation

Methods of Job Evaluation Job-evaluation methods are of two categories:- a) Analytical Methods Point Ranking Methods Factor Comparison Method b) Non-analytical Methods Ranking Method Job-grading Method Non-analytical Methods Ranking and job-classification methods come under this category because they make no use of detailed job factors. Each job is treated as a whole in determining its … Read more

What is Orientation and 3 Purpose of Orientation?

What is Orientation? Induction, also called orientation is designed to provide a new employee with the information he or she needs to function comfortably and effectively in the organization. It is a planned introduction of new hires to their jobs, their peers, and the company. Typically, orientation conveys three types of information – (i) general … Read more

Methods of Collecting Job Data

Methods of Collecting Job Data The methods of collecting job-related data are (i) observational method, (ii) interviews, (iii) questionnaire, (iv) checklists, (v) technical conferences, and (vi) diary. A combination of these approaches may be used depending upon the situation and the organization. A brief description of each method is in order. Observation In this method, … Read more

What is Job Design? And Various Factors Affecting Job Design

What is Job Design? And Various Factors Affecting Job Design The logical sequence to job analysis is job design. Job analysis provides job-related data as well as the skills and knowledge expected of the incumbent to discharge the job. Job design, then, involves conscious efforts to organize tasks, duties, and responsibilities into a unit of … Read more

The Employee Hiring and Selection Process

Selection Process Selection is a long process, commencing from the preliminary interview of the applicants and ending with the contract of employment. In practice, the process differs among organisations and between two different jobs within the same company. Selection procedure for senior managers will be long-drawn and rigorous, but it is simple and short while … Read more

Sources of Recruitment: Internal and External

Sources of Recruitment Broadly, there are two sources of recruitment, viz, internal sources and external sources. While internal sources allows a company to fill the vacant positions from those who are currently employed, external sources allows a company to hire employees through advertisements, employment exchanges, college/university/institute placement services, walk-ins and write-ins, consultants and contractors. Internal … Read more

Factors Influencing Recruitment Process

Factors Influencing Recruitment Process Given its key role and external visibility, recruitment is naturally subject to influence of several factors. These include external as well as internal forces. External Factors Of particular importance is the supply and demand of specific skills in the labor market. If the demand for a particular skill is high relative to … Read more

Stages of Recruitment Process

Process of Recruitment Recruitment refers to the process of identifying and attracting job seekers so as build a pool of qualified job applicants. The process comprises five related stages, viz (a) planning, (b) strategy development, (c) searching, (d) screening, (e) evaluation and control. The ideal recruitment program is the one that attracts a relatively larger number … Read more

Four Approaches to Job Design

Approaches to Job Design Four popular approaches to job design are job rotation, job engineering, job enlargement and job enrichment. Job design approaches has two dimensions: impact and complexity. The impact dimension, on the vertical axis, is the degree to which a job design approach is linked with factors beyond the immediate job, such as … Read more

Demand Forecasting in Human Resource

Demand Forecasting in Human Resource Human resource (HR) demand forecasting is the process of estimating the future quantity and quality of people required. The basis of the forecast must be the annual budget and long-term corporate plan, translated into activity levels for each function and department. In a manufacturing company, the sales budget would be … Read more

Factors Affecting Human Resource Planning

Factors Affecting Human Resource Planning Human Resource Planning (HRP) is influenced by several considerations. The more important of them are: (i) type and strategy of organization, (ii) organizational growth cycles and planning, (iii) environmental uncertainties, (iv) time horizons, (v) type and quality of forecasting information, (vi) labor market. Type and Strategy of Organization The type … Read more