UNIT- IIIUNIT- III

STAFFINSTAFFINGG

It is important to have a good organization structure but it is even more important to fill the jobs with right people

STAFFING “The managerial function of staffing involves

maintaining the organizational structure, through proper and effective selection, appraisal, and development of personnel to fill the roles designed into the structure”

-Koontz and O’Donnell

Filling and keeping the positions provided by the organization structure filled with right people is the staffing phase of the management.

“The process involved in identifying , assessing ,placing , evaluating individuals at work .”

Nature of staffing Staffing is inherent(belonging to nature) in the

process of management. This function is performed by all the managers throughout the organization rather than the personnel department only.

Staffing is a pervasive(tending to pervade) function of management. It is performed by all managers at various levels in the organization.

It is a continuous and never ending activity People centered. Based on human relations

IMPORTANCE OF STAFFING

Effective staffing discovers the talented, experienced and qualified staff which provides to be an asset for the future.

It ensures greater production by putting the right man in the right job.

Staff is placed on the job for which they are the most suitable and have aptitude(tendency) for the same job.

It provides information to management for the internal succession of managerial personnel in the event of an unanticipated turnover.

SYSTEM APPROACH “A system may be defined as an assemblage or combination of things or parts forming a complex or unitary whole”

AN ORGANISATION,AS A SYSTEM, POSSESSES THE FOLLOWIN FEATURES: The system is goal-oriented.The whole is more than the sum of all parts in a system. A system is engaged in processing or transforming of inputs into outputs.Various components of a system are interrelated and interdependent.They interact with each other.

Human Resource Management(staffing) may be

viewed as a system which transforms personnel (i.e., inputs) into productive human resources (i.e., output). Human resource system must be an open and dynamic system if it has to achieve its objectives which include quality of work life, productivity, and readiness to change.

MANPOWER PLANNING

“It may be defined as a process by which the management ensures the right number of people and the right kinds of people at the right place at the right time doing the right things for which they are best suited for the achievement of organisational objectives,manpower planning is also known as “HUMAN RESOURCE PLANNING”

SCOPE OR ELEMENTS Listing of current manpower or preparation of manpower

inventory. Projecting the supply of different types of employees

after one year,two year and so on. Designing training programmes for different categories

of manpower. Evaluation of the effectiveness of the process of

manpower planning.

SIGNIFICANCE OF MANPOWER PLANNING:

Shortage or surplus of manpower in various departments will be revealed by manpower planning. Corrective steps can be taken in time. Manpower forecasting provides a basis of recruitment, transfer and training of employees. It serves as a tool to evaluate the effect of alternative manpower actions and policies. It reduces labour costs by avoiding surplus of manpower. Overstaffing can be known quickly and

steps taken accordingly.

JOB Analysis “Job analysis is a systematic collection and

compilation(collection) of data about each job in the organisation to redesign each job in such a manner so as to distinguish it from the other jobs”

SCOPE OF JOB ANALYSIS

Job identification. Nature of the job. Operations involved in doing the job. Materials and equipments to be used in doing the job Relation with other job.

Job description and Job specification are the immediate by products of job analysis.

JOB ANALYSIS

JOB DESCRIPTION JOB SPECIFICATION

JOB DESCRIPTION: A job description is an organised factual statement of job contents in the form of duties and responsibilities of a specific job.

Contents:• Job title or name.• Job location.• Job summary.• Duties to be performed.• Machines, tools, materials• Relationship with other jobs.• Working environment.

Job specification: a job specification is a document which states the minimum acceptable human qualities necessary to perform a job properly.

RECRUITMENT AND SELECTION Recruitment is the process of identifying the sources for

prospective candidates to stimulate them to apply for jobs in the organisation.

SOURCES OF RECRUITMENT: INTERNEL SOURCES:Transfer: It means shifting of an employee from one job

to another.Promotion: It means transfer of an employee to a job

that pays more money or that enjoys some preferred status.

Re-employment of employees: It refers to employing the employees who have left the employees.

EXTERNAL SOURCES: It includes…

Direct recruitment: This method is very useful for recruiting unskilled workers. Budli workers

Casual callers: qualified people apply for employment on their own initiative

Employment exchange: Advertising: Information about the job description

and job specifications can be given in the advertisement so that the candidates may apply.

Campus recruitment: Placement agencies: Professional bodies have

come into existence which provide their services to the enterprise for recruitment and selection of employees.

Labour contractors Web publishing

IMPORTANCE OF INTERNAL SOURCES Promotion will increase the morale of the

employees. The cost of internal recruitment is very low.

IMPORTANCE OF EXTERNAL SOURCES The enterprise can expect to get fresh, talented

candidates from outside. Internal candidates have to compete with outside

candidates for the higher jobs.

Selection

Selection is the process of choosing the best person for a particular job. It leads to employment of workers .

Selection is the process of choosing from among the candidates from within the organization or from outside , the most suitable person for the current position or the future position. Dale Yoder

Selection is the managerial decision making process as to predict which job applicant will be successful if hired. S.P.Robins

Preliminary interview

Screening of Application forms

Reference Checking

Selection or employment Test

Employment Interview

Medical Examination

Appointment letter or Job offer

Rejection Of

Candidate

Sele

ctio

n Pr

oces

s

Training and development

According to Edwin B.Flippo “Training is the act of

increasing the knowledge and skills of an employee for doing a particular job”

OBJECTIVES OF TRAINING To provide job related knowledge to the workers. To impart skills among the workers systematically so

that they may learn quickly To improve the productivity of the workers and the

organization. To reduce the number of accidents by providing

safety training to the workers.

NEED AND IMPORTANCENEED AND IMPORTANCE HIGHER PRODUCTIVITY: It is essential to

increase productivity and reduce cost of production for meeting competition in the market. Effective training can help increase productivity of the works by imparting the require skills.

QUALITY IMPROVEMENT: The customers have become quality conscious and their requirements keep on changing. To satisfy the customers, quality of products must be continuously improved through training of workers.

INDUSTRIAL SAFETY: Trained workers can handle the machines safety. They also know the use of various safety devices in the factory. Thus they are less prone to industrial accidents.

TECHNOLOGY UPDATE: Technology is changing at a fast pace. The workers must learn new techniques to make use of advanced technology.

BENEFITS OF BENEFITS OF TRAININGTRAINING

For organizationEconomy in operationsGreater productivity Uniformity of procedureLess supervisionHigher morale of employees For employeesAcquisition of new skills Higher Wages industrial safetyPreparation for promotion Higher morale Versatile utility

Types of trainingINDUCTION OR ORIENTATION TRAINING: Induction is concerned with introducing or orienting a

new employee to the organisation and its procedures, rules and regulation. When e new employee reports for work, he must be helped to get acquainted with the work environment and fellow employees. It is better to give a friendly welcome when he joins the organisation,get him introduced to the organisation and help him to get a general idea about the rule and regulation, working conditions.

APPRENTICESHIP TRAINING: Apprenticeship training involves imparting

knowledge and skills in a particular craft or trade such as printing, tool making, etc Earn while you learn.

TRAINING METHODSTRAINING METHODSON-THE-JOB METHODS…. The worker is given

training by his immediate supervisor.• Coaching: Under this method the supervisor imparts the

job knowledge and skills to subordinates . The emphasis is coaching or instructing the subordinate is on learning by doing.

• Understudy: supervisor gives training to his subordinates as his understudy or assistant .subordinate learns through experience and observation . This technique prepares the subordinates to assume the responsibilities of superior's job in the case the superior is absent or he leaves the organization.

• Vestibule training: V T is involves the creation of a separate training centre within the plant itself for the purpose of providing training to new employees. An experienced instructor is put in charge of this training. Machines and tools are also arranged in the training center so as to create working conditions similar to those in the workshop

• Job rotation: The trainee systematically transferred from one job to another so he may get experience of different jobs. Job rotation is used by many organizations to develop all round workers.

Simulators and Training Aids: simulators are used to provide trainees with physical equipments that resembles to some degree ,the equipment that is to be used on the job.

OFF-THE-JOB METHODS : The worker is required to undergo training for a specific period away from the work place

• Special lectures-cum-discussions: Training through special lectures Also known as class room training . It is more associated with knowledge than skills

• Conference: is a group meeting conducted according to organized plan in which member seeks to develop knowledge and understanding of a topic by oral participation. A person can learn from others by comparing his opinions with those of others

• Seminar: A seminar is organized like a conference , but it is comparatively on a smaller scale . It is generally on smaller theme such as ‘Emerging issues in Human resource development’ etc. The theme is examined in great detail by different experts in concerned field.

Role playing: This technique is used for human relation and leadership training . Its purpose is to increase the trainee’s skills in dealing with others. In this method two trainees are assigned two different role to play . Like one is to play role of sales executive and other that of a customer.

development “The term development refers broadly to the

nature and direction of change induced(persuade) in employees, particularly managerial personnel, through the process of training and education”

A planned process of learning and growth designed to bring behavioral change among the executives.

OBJECTIVES OF DEVELOPMENT To encourage managers to grow as persons and in

their capacity to handle greater responsibility. To improve the performance of managers at all levels

in the jobs that they hold now. To sustain good performance of managers throughout

their careers.

NEED FOR MANAGEMENT NEED FOR MANAGEMENT DEVELOPMENTDEVELOPMENT

There is a shortage of trained managers .Management has to be developed for

handling problems arising out of increasing size and complexity of the organizations.

Business and industrial leaders are increasingly recognizing their social and public responsibilities which call for a much broader outlook on the part of management.

Method of executive development

1.Special courses : 2. Special projects3.Committee Assignments:4.Case study:5.Management games ;6. Sensitivity training:

Performance appraisal According to Yoder, “Performance appraisal refers to

all formal procedures used in working organisations to evaluate personalities and contributions and potential of group members.”

OBJECTIVES OF PA To provide a record of each employee’s performance

for the purpose of determining wages and incentive pay.

To identify the employees who have been placed on the wrong job to transfer them to the jobs for which they are better used.

To design training programme for the improvement of the quality of personnel.

It helps the supervisor to evaluate the performance of his employees systematically and periodically.

The ability of the staff is recognised and can be adequately rewarded by giving them special increment.

PA can be used as a basis of sound personnel policy in relation to transfer and promotion, if the performance of an employee is better than others, he can be recommended for promotion, but if a person is not doing well on a job, he may be transferred to some other job.

Performance appraisal

LIMITATIONS OF LIMITATIONS OF PERFORMANCE APPRAISALPERFORMANCE APPRAISAL

If the factors included in the assessment are irrelevant, the result of merit rating will

not be accurate. Different qualities to be rated may not by

given proper weightage in certain cases. Some of the factors are highly subjective

like initiative and personality of the employees, so the actual rating may not be on sufficient lines.

METHODS OF PERFORMANCE METHODS OF PERFORMANCE APPRAISALAPPRAISAL

UNSTRUCTED APPRAISAL: Under this, the appraiser is required to write down his impression about the person being appraised in an unstructured way.

RANKING: Ranking is a simple process of placing employees in a rank according to their job performance

FORCED DISTRIBUTION: The FD system is devised to force the appraiser into predetermined range of scale. This system is based on the presumption that employees can be divided into five points scale of outstanding, above average, average, below average and poor.

GRAPHIC RATING SCALE: Under this method, scale are established for a number of specific factors and qualities. The selection of factors to be measured on the graphic rating scale is an important point under this system.

CHECKLIST APPRAISAL: The weighted checklist is prepared by the persons thoroughly acquainted with the job and perfect at preparing and weighing statements. when this process is complete, rating are placed on separate cards for future reference.

CRITICAL INCIDENT: A CI means a significant act by an employee exceeding or failing any of the requirements of his job

directingAccording to William Newman “Directing deals with the steps a manager takes to get subordinates and others to carry out plans”

ELEMENTS OF DIRECTION Communication Leadership Motivation Supervision

NATURE OF DIRECTION Direction is a managerial function performed by all the

managers at all levels of the organization. Through directions management initiates actions in the

organization. Direction is a continuing function, it continues throughout

the life of the organization

Better human relation are achieved: Direction is an important function of management, because it deals with human being, an essential and sensitive factor of production. Effective direction gets work done smoothly.

Direction initiates actions: All activities of any enterprise are initiated when the direction function is performed . Planning and organizing is preparatory functions .It is the direction that initiate the action .

Direction is means of motivation: In order to get the best result from organization it is necessary to motivate the workers to contribute their best energies and abilities.

Direction integrates employees efforts: Direction, as heart of management-in-action integrates the efforts of individual and groups and leads it towards attaining the goal of the business.

IMPORTANCE OF DIRECTION

Principles of Direction

1. Principle of Harmony of objectives: Manager must try to reconcile the personal goals of his subordinate with those of the organization.

2. Principle of maximum Individual contribution :Direction should be such which inspire the people to contribute fully for the well being of the organization .

3. Principle of unity of command:4. Principle of Direct supervision: Direct supervision by the boss and

his direct advice to the subordinates boosts their morale resulting into renewed and vigorous efforts . This also increase loyalty among the subordinates which is better for the direction .

5. Principle of effective communication: A good system of communication between the boss and the subordinate is better for coordination.

6. Principle of effective leadership: The boss must posses the quality of good leader if he is to get the work done from the workers. It is required to win the confidence of subordinate

supervision According to Terry “Supervision as “guiding and directing”

efforts of employees and other resources to accompolish stated work outputs”

PRINCIPLES OF SUPERVISION The effective utilization of supervision ensures the

achievement of the objectives of organization. Effective supervision is a function of the supervisor. The success of any supervisor depends upon the

effective fulfilling of group needs.FUNCTIONS OF SUPERVISORS• Planning the work: The supervisor has to determine

work schedule for even and steady flow of work.

FUNCTIONS OF SUPERVISORSPlanning the work: The supervisor has to determine work

schedule for even and steady flow of work.Issuing orders and instructions: The supervisor orders

and instructions to the workers for achieving coordination in his section.

Providing guidance and leadership: The supervisor fixes production targets for the workers and provides them and the necessary guidance for doing the work assigned to him.

Motivation: The supervisor motivates his subordinates by providing financial and non-financial incentives.

Preserving records: The supervisor keeps records of output and other related aspects of each employee. He also sends the necessary information to the top management.

MOTIVATIONAccording to S.P.Robbins, “Motivation is the willingness to exert high levels of effort toward organizational goals, conditioned by the effort and ability to satisfy some individual need”“Motivation is the process of channeling a persons inner drives so that he wants to accomplish the goals of the organization”Motivation in an organization is the willingness of an employee to respond to organization requirement. NATURE/CHARACTERISTICS Goal oriented process: The motives of a person drive him to achieve goal to relieve his tension. Used to enthuse the individual: Motivation can be used to enthuse the individual completely by developing his outlook and personality. Motivation can be positive or negative: Positive motivation implies use of incentives like increase in pay,r eward,promotion. Negative motivation like threat of demotion, fear of loss of job.

Inspiring employees to work: Effective motivation inspires the employees to contribute their worth to the organisation,by giving monetory and non-monetory incentives.

Maximum utilisation of resources: Motivated employees work efficiently with a sense of responsibility and belongingness. It enables minimum wastage of resources and maximum utilisation of the factors of production.

Improving worker’s efficiency: The motivated employees feel pleasure in performing their duties. As such the output in terms of both the quality and quantity improves,resulting in overall efficiency of the workers

IMPORTANCE

MASLOW’S NEED THEORY A.H.MASLOW defined a person’s effectiveness as a

function of matching man’s opportunity with the appropriate position of hierarchy of needs. Process of motivation begins with an assumption towards the achievement of satisfaction needs.

Self Fulfillment needs

Esteem Needs

Social Needs

Safety and Security Needs

Physiological Needs

Basic Physiological Needs: It includes human requirements for survival, such as food, water, clothes, shelter etc.

Safety and security needs: After satisfying the physiological needs, people want the assurance of maintaining a given economic level. They want job security, personal bodily security, security of source of income,insurance against risks,etc

Social Needs: It includes desire for receiving and giving love,affection,friendship and sense of belongingness, etc.

Esteem Needs: It includes our desire for respect, independence, reputation, prestige, self-confidence and recognition etc.

Self-actualisation Needs: These needs are concerned with achieving what a person considers to be his mission in life.

HEZBERG’S TWO FACTOR THEORY According to Fredrick Hezberg “Attitudes and

behaviours of workers are influenced by the two major categories of job factor:

Hygienic factors: Hygienic factors refer to working conditions and environment such as wages, salaries, perquisites, job security, relationship with superiors, peers and subordinates, policies and rules of the organization.

Motivational factors: It includes achievement, recognition, status, praise, promotional avenues etc.

Bottom Line: Satisfaction and dissatisfaction are not opposites of the same thing!

Separate Constructs– Hygiene Factors—

Extrinsic and Related to Dissatisfaction

– Motivation Factors—Intrinsic and Related to

Satisfaction

Hygiene Factors

•Salary

•Work Conditions

•Company Policies

•Good Relations

•Job security

Motivators

•Achievement

•Responsibility

•Growth

•Recognitions

David McClelland’s Theory of Needs

Need for Achievement

The drive to excel, to achieve in relation to a set of standards, to strive to succeed

Need for Affiliation

The desire for friendly and close personal relationships

Need for Power

The need to make others behave in a way that they would not have behaved otherwise

Bottom Line

of needs in each of Individuals have

different levels these areas, and those levels will drive their behavior.

Theory XManagers See Workers as…

Disliking Work

Avoiding Responsibility

Having Little Ambition

Theory Y Managers See Workers as…

Enjoying Work

Accepting Responsibility

Self-Directed

Appraisal of Theory X and Theory Y

Theory X is applicable to uneducated and unskilled operated workers, whereas Theory Y is more applicable to skilled and educated employees who are motivated enough and understand their responsibility

McGregor’s believe that theory Y assumption were more valid than theory X

He proposed ideas such as participative decision making, responsible and challenging jobs and good groups relations, as means to maximize employee motivation

Implications David McClelland’s Theory of Needs (Need for Achievement)

Individuals with a high need for achievement generally will take moderate risks, like situations in which they can take personal responsibility for finding solutions to problems and want concrete feedback on their performance.

No matter how high a person’s need to achieve may be, he cannot succeed if he has no opportunities, if the organisation keeps him from taking initiative, or does not reward him if he does.

From Theory To Practice

Recognize Match people individual to jobs differences

Don’t ignore Use goals money Suggestions for

Motivating Ensure that goals Check the system Employees are perceived as for equity attainable

Link rewards Individualize to performance rewards

Motivation and Performance

Challenging and

interesting work

Desired rewards

Opportunity for

participation and self -

management

Job performan

ce

Individual motivational factorsNeedsSatisfactionExpectationgoals

Ability to get the job done

Individual motivation and job performance

Job performance is the product of a combination of an individuals motivation and ability

Ability and skills , acquired through training and on job experience are also required

Individual motivational factors – Need , satisfaction , expectation , goals – affected by challenging work rewards and participation

All the motivation in the world for examples will not be enable a computer illiterate person to sit down and create a computer spread sheet (i.e. ability to get job done)

Approaches for improving motivation

A. FINANCIAL INCENTIVES

i. Pay and allowanceii. Productivity linked wage incentivesiii. Bonusiv. Perquisites: such as car allowance, housing,

medical aid and education to the children.v. Profit sharingvi. Retirement benefits

B. NON-FINANCIAL INCENTIVES

i. Statusii. Organisational climate: It refers to relations between

superiors/subordinates.iii. Job enrichment: Job enrichment means increasing the

contents of a job leading to upgradation of responsibility scope and challenge in its performance.

iv. Opportunity for promotion or career advancementv. Security of servicevi. Suggestion scheme

Special Motivational Techniques

1.Money2.Participation 3.Reward systems4.Quality of work life5. Job enrichment6.Morale building

MoneyMoney is a powerful motivator even in modern society. It is believed that social status, position, power, prestige , recognition etc are associate with money .

Employees receiving higher salary can lead luxurious life and command respect from society

Organization use financial incentives to motivate employees Some of the financial approaches to motivate employees includes: Variable pay packages, Skill based incentives, piece rate plan , incentives based on performance , Profit sharing , Gain sharing schemes , knowledge based financial incentives plans, and flexible benefits

Morale building Morale refers to the spirit of the organisation. It represents the

attitudes of individuals and group in an organisation towards their work environment and towards voluntary cooperation to the full extent of their capabilities for the fulfilment of organisational goals.

Morale is an attitude of satisfaction with desire to continue in and willingness to strive for the goals of a particular organization.

Stimulates a feeling of togetherness , a sense of identification with job.It is important because performance and efficiency of

operations depends on employees morale

SIGNIFICANCE OF MORALE Willing cooperation towards the objectives of the organisation. Loyalty to the organisation and its leadership. Good discipline, i.e.,voluntary confirmity to rules and regulations. Pride in the organisation.

Factors effecting morale

1 The organization itself: Successes ,reputation, hr policies , management style .

2 Nature of work of employee: Job that match with needs, values , personalities.3 supervisory techniques:

4 Fellow employees interactions : co employees interaction influence the morale of the employees.

Evaluation of morale1 Attitude survey: employees indicate wide range of conditions related to their job

2 Morale interviews: The interviewer encourages the employees to speak freely and frankly in respect to of his job , his superiors, his felloe employees, and any other condition affecting his employment3 Spies and informers. indices of moraleA absenteeismB turnover C grievance D output level

Measures to improve morale

• Job Satisfaction

•Job training

•Recognition of Aspirations

•Counseling and interviews

•Opportunities

•Relation

•Facilities

BUILDING OF HIGH MORALE

Two-way communication: There should be two-way communication between the management and the workers as it exercises a profound influence on morale.

Incentive system: There should be a proper incentive system in the organisation to ensure monetory and non-monetory rewards to the employees to motivate them.

Welfare measures: Management must provide for employee’s welfare measures like canteens, credit facilities, sports club, etc.

It helps to prevent underutilization of personnel through over manning resultant high labour cost and low profit margins .

It helps in avoiding sudden disruption of an enterprise’s production by indicating shortage of personnel , if any, in advance.

Quality of work life

Quality of work life is relatively new concept . As motivation technique it includes:

Provision of adequate and fair compensation and safe and healthy work environment , provision for growth potential in the job, Protecting self esteem , Creating a sense of identity , Up keeping self respect, Equity and dignity of employee , and integration of job with family life.

Quality of work life is the degree to which the members of work organization are able to satisfy important personal needs through their experiences in the organization.--- j.Llyod suttle

SCOPE OF QWL

Fair and reasonable pay: QWL is basically built around the concept of equitable pay. The employees must be paid their due share in the progress and prosperity of the firm.

Favourable and safer environment: QWL provides for a work environment absolutely free from various hazards arising out of natural and unnatural things.

Employment benefits: Workers want a share in the profits of the organisation in addition to medical, housing and welfare facilities.

Job security: Employees want stability of employment. The workplace should offer security of employment.

Requirements for success of QWL

Employees must be given opportunities for advancement in the organisation.

Supervisor must be trained to function effectively in a less directive, more collaborative style.

Personnel should be selected and/or promoted for excellence in their performance.

Traditional status barriers between management and workforce must be broken to permit establishment of an atmosphere of trust and open communication.

Quality work life methods

•Flexi work schedules: Allows employees to choose their own Arrival and departure time within specific limits

•Family support service : companies recognize that employees have lives and priorities outside the work place and made appropriate accommodation•Wellness programmes: Featuring a wide range of offering among them ,stress reduction , healthy eating and living clinics, quit smoking and weight loss programmes, exercise facilities , health screening etc.

Flexi 2 hours Arrival time

7:00 am to 9:00 am

Fixed 6.30 hrs core time

Flexi 2 hours departure range

3:30 to 5:30 pm

FLEXI WORK SCHEDULE

Participation

Participative management: Process of empowering employees to assume greater control of work place. Management scholars identified four Key Areas of participative management:1 Setting goal2 Decision making3 Problem solving4 Designing and implementing organizational change

Approaches to participationi. Quality circles: are voluntary problem solving groups

to improving quality and reducing cost . Each quality circle responsible not only for recommending solution but also implementing and evaluating those solutions.

ii. Open book management: Sharing key financial data and profits with employees who are trained and empowered.

OBM ask managers to correct three typical short coming by (A) BY displaying a high degree of trust in employees(b)Having a deep unwavering commitment to employees training (c) Being Patient while waiting for results

S T E P i.e. share teach empower pay employees

e.g. Wall martIii Self Manage teams: Also known as Autonomous

work group or high performance work teams is that assume that traditional managerial duties

such as staffing and planning.

Key to successful employee participation

i. Profit sharing or gain sharing plan

ii. Along term employment relationship with good job security

iii. A concerted efforts to build and maintaining group cohesiveness

iv. Protection of the individual rights.

Reward systemsRewards can be defined broadly as the material and psychological payoffs for performing tasks in workplace. Importance of rewards1.Reward system influences attraction & retention of employees2.The reward system in organization act as an strong motivation those skills that are perceived to lead promotion --- skill based pay3. Reward system contribute to over all culture and climate of an organization4. Reward system are often a significant cost factor in the organization.5. Reward system can motivate learning of skills and development of knowledge5. Useful to retain best performance in the organization

Organizations rely on reward system to achieve four things1.To motivate employees to perform effectively2.To motivate employees to join organization3.To motivate employee to come to work4.Motivate individuals by indicating their position in the organization. Type of reward1 Extrinsic rewards: Payoffs such as money , that are granted by others2 intrinsic rewards: Self granted , internally experienced payoff, such as a sense of accomplishment , self esteem and self actualization Qualities of a good reward system1.Reward must satisfy individual needs2.Employee must believe efforts will leads to rewards3.Reward must be equitable4.Reward must be linked with performance

Employee Reward Plans

Competence related paySkilled based payTeam based rewardsProfit sharingGain sharing Stock optionsCafeteria compensation(life cycle benefits) is plan that allows employees to select their own mix of benefits. each employee determine his or her benefit package because today’s non wage benefits are significant portion of total package

Principles for setting an effective reward system

-Give value to reward system . Employee’s a preferences for type reward being offered . Some employees like to see their name in the company’s news letter.- Make reward system simple to understand- Lay down the performance standard with in the control system of team.- Make reward system fair and effective-Ensure participation in reward system-Empower people in reward system process and empower them to do the needful.

Job enrichmentJob enrichment , as it practiced in the industry , is a direct out growth of Herzberg's two factor theory of motivation.

Job Enrichment is based on the assumption that in order to motivate personnel , job itself must provide opportunities for achievement, recognition , responsibility advancement and growth

Job enrichment is an attempt to build in to jobs a higher sense of challenge and achievement through vertical loading

Enrichment means “Building challenge and achievement in to worker’s job by changing their job content.”

Redesigning jobs to increase their motivational potential . Job enrichment: is redesigning of a job to increase its motivating potential . Job enrichment increases the challenges of ones work by reversing the trend towards greater specialization.

Vertical job loading entails redesigning job’s to give1.Greater job responsibility2.Greater autonomy3.More immediate feedback to individual or group. This might include transferring some of the superiors activities to subordinate

The job and it’s various

task’s

Add new task

Include work done before the job

Increase feed back on performance

Eliminate dissatisfying task’s from the job

Includes the work done after the job

Add new responsibility

Rearrange the existing task in to job

Sources of job enrichment

Core job characteristics.skill variety: the degree to which the job requires a variety of different activities in carrying out work

Task identity: The degree to which the job requires completion of a “whole” and identifiable piece of work

Task significance: The degree to which the job has a substantial impact on the lives of other people .

Autonomy: The degree to which job provides substantial freedom, independence, and discretion to the individual in the scheduling the work and determine the procedures to be used in carring out it

Job feedback : direct and clear information about the effectiveness of employee.

Thank you