Human Resource Management: Development And Compensation Strategies (Research Paper Sample)
TASK: HUMAN RESOURCE MANAGEMENT
THE CONNECTION OF PERFORMANCE MANAGEMENT SYSTEM TO TRAINING AND DEVELOPMENT STRATEGIES AND COMPENSATION STRATEGIES AND EQUAL EMPLOYMENT OPPORTUNITIES AND AFFIRMATIVE ACTION.
1 The connection of performance management system to training and development strategies and compensation strategies
A performance management system has a role in ensuring that organisational objectives have been met by the employee. For the employee to perform optimally, there is a need for the prerequisite skills and competencies. The human resources department has to avail competent employees through hiring as well as training and development. While on the job the employee may come across some challenges in the present as well as in the future, problems which should be addressed. To equip the employee, the organisation may need to conduct seminars, workshops as well as the use of videos and job aids which will improve on the performance of the employee as they pick up the needed skills. The training and development department while analysing the performance of employees can pick up their performance gaps. Those gaps once identified need to be addressed appropriately ending up in improved performance of the employee (Cascio 2).
The performance management system helps the individual employee in setting their goals towards achieving organisational objectives. These are the goals that will be reinforced through training and development as revealed through the organisation appraisal systems. At times due to changing environment of doing business, there may need to shift individual competencies from one field to the next. The problem can best be handled when management has the individual's skills competence.
On the other hand, the management will make use of the performance management system to evaluate the performance of their employees' and compensate them appropriately.
Improvements within the organisation to better utilise the information received from the performance management system
The data obtained will help in developing training programs, sourcing for training and capacity development consultants where the organisation feels deficient, suggesting training referrals for its employees.
2 Effect of a compensation package on employee motivation and satisfaction
Compensation refers to the benefits that an employee gets from the organisation. The benefits can be both financial and non-financial. The economic benefit is the basic salary.
The performance of an organisation will depend on its workforce. To attract highly qualified personnel who will give the organisation a competitive advantage and improved productivity, the organisation will need to offer a better package to its employees. While some employees may be particular with the basic pay, others may be interested in other benefits provided by the organisation. A flexible working schedule is gaining momentum presently, and the organisation has to be alive to these new developments. It's, therefore, necessary to have prior information about an employee's former salary and thus evaluate their preferences (Hameed et al. 4).
The success in returns on investment of any organisation depends on the commitment of its employees to their assignment. An adequately remunerated employee will feel motivated to work more. This is because the employee feels like part of the organisation and as returns go higher for the organisation this is reflected in their compensation. Most organisations have a fixed remuneration and a variable one based on employees performance. At times the variable payment has exceeded the set remuneration as the employee had to devote more energies to the organisation. For example, where the employees are remunerated on the commission basis, or expect some bonus after a certain period, are motivated to work harder.
Practice makes perfect. If an organisation has an employee for a reasonable period, who have undergone the training and development programs of the organisation, the productivity and efficiency of such an employee tend to be high. Losing such an employee will be very costly for the organisation as this will mean fresh recruitment and training. Therefore better compensation indicates that the retention rate is high (Hameed et al. 6).
Other factors that will result in retained workforce include internal promotions where employees are given higher responsibilities and allowed to practice their skills which they have gathered over time. Other non-financial services are critical to an employee. Such services include health insurance and retirement packages. When an employee has such benefits, then the disposable income to invest in other things is higher. Otherwise, some of the revenue would be used in meeting health costs. For example, most employees prefer working for the government whose terms are permanent and pensionable so that after retirement, they can enjoy the pension.
3 Legally required benefits and why are they required by law
Legally needed benefits are statutory benefits to the employee that the employer is expected to contribute toward. These benefits include
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