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To get desired result or to do the right things at work is now the job of a manager. Managing human power at work place has become an important part of the management in any organization. This job is becoming more interested and complicated with the passage of time. To keep the employee motivated and to get the things done right with and through employees has become the challenge for every next manager. Businesses are changing and innovations are becoming the part and parcel of business.
Hiring the competent employees from the human capital market is not an easy job. It cost a lot in terms of finance and time. But in the end if wrong personnel hired, it can be destructive and costly for any organisation.
Now the job is becoming more complicated after hiring the best professionals the new challenge is to retain them and to keep them motivated. Many organizations are facing problem with their staff members regarding their promotions and reward issues. The managers are also very much conscience about conflict. In this discussion more focus is on promotion and merit issues.
Human capital is an important element of the intangible assets of an organization. The other intangible assets include copyright, customer relations, brands and company image. All these, but especially the know-how, imagination and creativity of employees, are as critical to business success as 'hard' assets. The significance of human assets explains why it is important to measure their value as a means of assessing how well they are used and of indicating what needs to be done to manage them even more effectively. (Baron, Armstrong, 2007)
"There are two things people want more than sex and money â€¦ recognition and praise." -Mary Kay Ash, Founder, Mary Kay Cosmetics (Bruce, Anne 2002)
Reward /Benefits Management
In reward literature the term compensation is used as an alternative to reward both are problematic and we consider that the new vocabulary of reward management best captures the current changes in management thinking on pay which emphasises employee flexibility and performance (Armstrong,1998) managers typically define reward as the package of monetary rewards(wages, salaries and benefits), but employees generally define reward even more narrowly as the wage of salary received from the employer for their work. To understand reward comprehends its crucial role in managing the employment relationship, it is however, necessary to conceptualize reward in its broadest sense.(Bratton,Gold, 2004)
In other words, reward refers to all of the monetary non monetary and psychological payments that an organization provides for its employees in exchange for the work perform.
Every organization must decide how to design a reward system. Regardless of any other rewards it offers to its employees it must make three basic decisions about individual group or collective basis and how much emphasis should be placed on monetary reward as part of the total employment relationship. Decisions must be consistent with the organization's goals, with society's values on notion of fairness and with government legislation. The literature suggests that there is no single reward system that fits all organizations. To help in understanding this compiles area, we provide a conceptual model for studying reward management this model identifies reward management on a more theoretical level we conclude with critical analysis of the position of rewards in the prescriptive model. Which reveal tension contradiction and ethical concerns?
The current challenge: Caution or Creativity?
Current conditions of incentives are a difficult task.Â For many customers, the answer to the wise: do not upset investors and to attract and retain the position deserves no incentive to active work, but that does not mean that existing structures cannot rely on savings or their most efficient use.Â For other customers, the extra creativity needed - in developing new agreements that satisfy both investors and managers who are challenging but achievable goals that can be implemented with minimal cost.Â
Employee's Promotion Techniques
If a manager does not take into account any of his employees may not be ready to improve, now is the time for him to think about it.Â Remember that experienced talent outside the company is not enough, so it is better to develop their people as much current as possible.Â Companies that can do this better than those who returned to the financial affairs are bad.Â The question is what happens in the promotion of employees?Â
Often, companies are turning to this kind of plan succession plan that establishes the recruitment process, develop their skills and abilities and prepare them to improve, retaining them to ensure profitability of the organization.Â Succession planning involves:
Understanding the organization's long-term goals and objectives
Promotion is a very critic kind of decision; most of the companies do practices it on a proper structure that what is very helpful for them in order to make a right decision. Promotion plan cannot be done or can only be acceptable if done by keeping in mind the organizations goals.
Identifying the workforce's developmental needs
These organizations identify, select and followers, who the right people with the right skills at the right time for management and other key positions.Â ". Each of these companies has learned to maximize their own talents. An important aspect to maximize his talent knowing that in it, so you can create with it, and when this should happen or in other words succession planning. (insla.com 2006)
Determining workforce trends and predictions
That all the team or project members must have the competitive advantages, education, skills and experienced in the relevant field. It is not easy to having good competent workforce because women are now increasing in the market and may alter the policies and strategies for organization.
Being aware of the skills and experience of current employees
Promotion also required knowing the abilities of the employees who is under consideration. What is he capable and skills in prescribed field and how long he is been working in this organization or has worked for any other organization. The much more focus is on his abilities and stamina rather than his work career.
Considering the impact not promoting would have on the current workforce
This is also an important practise that makes a lot difference in the workforce if a person being promoted can create an impact on the rest of the employees. Most of the time, these types of decision create ambiguity at workplace among others.
Analyzing the cost of recruiting and training
There can be another way to consider is to recruit a personnel from outside rather than promoting within the organization. By analyzing the cost of training and hiring a person may also help organization in making the right decision.
Factors to Considered At the Time of Promotion
In the past, succession planning typically targeted only key leadership positions. In today's organizations, it is important to include key positions in a variety of job categories and levels such as technicians, foremen, supervisors and managers. Â Â There are ten factors to consider before promoting anyone:
Develop a profile of key positions by benchmarking the job required competencies.
Identify the skills and experience of current employees.
Identify who in the organization is fit to be promoted. Ideally, having more than one good person available for a key job is important.Â Success happens most often when there are choices between two or more qualified people.
Encourage employees to grow by attending workshops and/or seminars, individually or as a team. Have them to share with the organization what they have learned and how it could benefit the company. If they aren't willing to develop they aren't promotion material.
To further determine their chances for success in aÂ managementÂ position, the employee should be expected to interview with top management and should be put through the paces to isolate behavioural tendencies that will give some indication about how they will handle various management situations. And the employee should be tested and assessed with professional assessment tools to determine the degree to which they match the profile of a manager/supervisor.
Have the candidate engage in the tasks of leadership to see what results they produce before you offer them a promotion.Â Job assignments prepare candidates for their new positions, as compared to a sink-or-swim approach.
Make sure everyone in your firm knows the parameters for promotion. Then monitor how employees match up, be it in formal annual reviews or on an ongoing basis as the situation dictates. Encourage your people to suggest others in the company they think fit those guidelines. It's important to have an open dialogue on an ongoing basis so that everyone knows where he or she stands pretty much all the time. Annual reviews are a good time to discuss promotion opportunities and reinforce criteria.Â It also gives employees who do not wish to be promoted a chance to indicate they don't want to be promoted, without embarrassment. Not everyone wishes to be a leader, nor can everyone be promoted.
Track the progress of individual participants by using meaningful employee appraisals and feedback.
Be aware of where there are shortages or gaps in talent and rectify these gaps quickly.
Walk the Talk! Make sure your incentives and bonuses are tied directly to the parameters for promotion.Â If they are not evaluated and compensated this way, people will not view the parameters as being meaningful.
Another factor to remember is that moving from buddy to boss isn't a transition that everyone can make. So make it clear to any candidate for a promotion that he or she is going to have to adjust to a whole different set of professional and social demands. Â Before promoting someone, ask them if they think they'll be able to objectively critique somebody with whom they used to work.Â
With good succession planning, employees are ready for new leadership roles as the need arises and when someone leaves. In addition, succession planning can help develop a diverse workforce, by enabling decision makers to look at the future make-up of the organization as a whole. (Forconstructionpros 2010)
Investment banks have been told that every bonus issued must comply with the regulatory guidelines or they face having their licences to operate in Britain revoked. (Telegraph 2010)
The approach for each company will be different - each will have a different cash position, growth prospects, current incentive position and most importantly a different attitude to future incentives. In many companies existing plans can be used to grant new awards at lower prices and with new performance targets and so existing plans are self-correcting. In others, new bespoke arrangements may be appropriate. In some companies, the loss of confidence in employee share schemes through share price falls which may never be recovered and employee over-exposure through personal investment may mean that those companies will not be as dependent on share schemes for some time and will need to look at alternative arrangements. There may also be legal obstacles and employment law/HR challenges in making changes (and investor relations issues) which should not be underestimated. However, in our experience most companies still see the value of share schemes and can extract more benefit from them and other forms of remuneration arrangements in the medium-term than they often perceive to be the case.