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Managing Human Resources
Ashish Jain, email@example.com
equitably and consistently in accordance with their value to the organization” (Armstrong and Murlis 2004) Ashish Jain.com . ashishsjc@gmail.Definition of Reward Management “Reward Management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly.
incomes policies 1980 & „90s – service/knowledge workers. PRP. measured day work. 2004 32%. ashishsjc@gmail. 36% 2007 Ashish Jain.com – “Total Reward” . piece-rates/wage drift. shares 2000s – Reward management – PRP 1998 20%.Shift in Jobs & Reward Systems 1960s & „70s – manual workers.
com Efficiently administered .Objectives of Reward Management Recruit & retain Motivate employees Support the organisation‟s strategy Internal & external equity Strengthen psychological contract Financially sustainable Comply with legislation Ashish Jain. ashishsjc@gmail.
conditions. firstname.lastname@example.org .Basic Types of Reward Extrinsic rewards – satisfy basic needs: survival.development Ashish Jain. treatment Intrinsic rewards – satisfy higher needs: esteem. security – Pay.
non-cash. non-pay. qualification Premia/Overtime Performance related pay Indirect pay--benefits. shares Non-monetary: recognition.com . advancement “Total Reward” Pay. cafeteria benefits Ashish Jain.Reward Options Base pay--fixed or minimum wage/salary Plussage--capability. ashishsjc@gmail. flexible hours.
Team. incentives. rewards group cooperation Organisation – profit-sharing. Organisation Individual: base pay. gain-sharing Ashish Jain. performance. shares.Rewards by Individual. benefits – rewards attendance.com . ashishsjc@gmail. competence Team – team bonus.
. selfactualisation Herzberg – Hygiene.g. email@example.com . esteem.Motivation theories I Maslow‟s hierarchy of needs – Physiological. motivators (e.sense of achievement) McClelland – Learned needs Ashish Jain. safety. social.
com . external Ashish Jain. ashishsjc@gmail.Motivation theories II Vroom‟s expectancy theory – Valance: attractive outcome – Instrumentality: performance results in desired reward or achievement – Expectancy: effort will lead to level of performance Equity theory – fairness judged by comparison--internal.
factors. firstname.lastname@example.org . job classifications Analytical • components..Determining Reward: Job Evaluation Ranking of jobs by relative worth to the organisation Non-Analytical – whole jobs.g. competencies • points rating(e. paired jobs (matrix). 1-10) Ashish Jain.
Pay & SHRM Achievable organisational objectives Clear link between pay and objectives Contingency model: – Vertical fit--alignment of pay systems & business objectives – Horizontal fit--pay and HR practice support one another Ashish Jain. email@example.com .
22% 53% 44% .com 33% 29% 31%.Use of Reward Management (CIPD 2008) Written Reward Strategy Total rewards approach Key factor in salary level – market rates – ability to pay Key factor in pay review – organisational performance – inflation Ashish Jain. ashishsjc@gmail.
firstname.lastname@example.org .Incentive plans (CIPD 2008) Individual Business results Combination Team-based 60% 51% 50% 27% Ashish Jain.
Performance appraisal: MAJOR GOALS Improve performance Increase motivation identify training/development needs manage careers set levels of reward control Ashish Jain.com . ashishsjc@gmail.
APPRAISAL METHODS OUT “Rank & Yank” Critical Incident IN Psychometric Scales 360º Appraisal Frequent Review Role of line manager Ashish Jain. email@example.com .
com Customers (540º) .WHO DOES APPRAILSAL? “…owned and driven by line-manager” (Armstrong. ashishsjc@gmail. 2006) 360º Appraisal – – – – – – Managers (alone 180º) HRM personnel Peers Subordinates Self Ashish Jain.
PSYCHOMETRIC SCALES BARS--Behavior Anchored Rating Scale – Anonymous questionnaire – 1-7 “unacceptable” to “excellent” behavior BOS--Behavioral Observation Scale – Anonymous questionnaire – 1-5 “never” to “always” behavior traits Ashish Jain.com . ashishsjc@gmail.
Use by HR Practitioners Annual Appraisal 83% Personal development Twice-yearly appraisal 68% Self-appraisal 45% Coaching 39% Competence Assessment 24% Subordinate Continuous assessment 360° appraisal 20% 17% 11% 31% Ashish Jain.com . ashishsjc@gmail.
com . ashishsjc@gmail.Problems with PRP Objectivity Psychological contract & equity Inhibits open discussion of training needs Time consuming short-termism “PRP is not a silver bullet” (CIPD) Shift from „performance” to „contribution‟ Ashish Jain.