Human resource and employees

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Human Resource

Human Resource is a term which is always used to define how employees of the organization are being managed. Human resource has moved up the ladder as first it was use traditionally for administrative functions but now it endured and has became more strategic as know it recognizes the link between talented and engage people and organizational success. The term Human Resource is derived from two points political economy and economics, where traditionally it was called as labour one of the four factors of production. But it has grown into a more strategic approach in national levels. The first usage is called more as ‘Human Resource development'.  The more traditional usage within corporations and businesses refers to the individuals within a firm or agency, and to the portion of the organization that deals with hiring, firing, training, and other personnel issues, typically referred to as 'human resources management'

Role Of HR

HR functions enable organisations to maximise the contribution of people to delivery of the organisation's goals. These are the set of roles which a HR department handles -

  • Recruitment and Selection - This is the basic role of HR recruiting and selecting the best man for the job.
  • Redundancy - One of the most important functions of HR is FIRING as well as it requires a lot of thought process as well as calculations.
  • Industrial and employee relation - HR also looks after the company and employee relationship as it creates a healthy environment to work in , this improves the working condition as well and can result in industrial success.
  • Record keeping of all personal data- HR Department takes care of all the records of the company may it be past or present.
  • Conflict handling -  This again creates a healthy environment as working in conflict free place makes the employees happy and work to their full potential.
  • Career Development - An Employee always wants to grow in a particular company or an organization. Another function of HR is to conduct training and career development programs.
  • Competency Mapping - Competency mapping is a process an individual uses to identify and describe competencies that are the most critical to success in a work situation or work role.
  • Performance Appraisal - HR looks after the performance appraisal of an employee after carefully assessing the criteria's and performance of the employees.

Other Role Of HR Include-

1. Equal participator in the cooperate strategy process

2. Facilitator of human resource management strategy

3. Performance consultant

4. Advisor to top management

5. Change agent

6. Facilitator of stake holder management

7. Consular to staff

8. System and process designer

9. Compliance manager

10. Leader of people

11.   Administrator



Reward of employment as pay, salary, or wage, including allowances, benefits (such as company car, medical plan, pension plan), bonuses, cash incentives, and monetary value of the non-cash incentives

Payment received for services or employment. This includes the base salary and any bonuses and other economic benefits that an employee or executive receives during employment.

Remuneration is divided in to two benefit methods financial and non financial benefits.

Financial benefits include - Basic pay, Commission, Bonuses, Share, Pension, Car, Mobile Phones, Child care vouchers, Living Accomodation.

And minor benefits such as- Loans, Staff discounts, Free Meals, Long service awards,  Annual parties.

Non Financial Benefits include - Holliday, Flexible Working hours, Training etc.

Motivional Factors

Building Confidence For Motivation

Learning something new and completely different entices the mind to keep interest in the job given. Facing a challenge, meeting it and mastering it helps build confidence.

Motivational Team Building

When you break down barriers, misunderstandings, insecurities, divisions, territories and hierarchies - you begin to build teams. There is unity in the team and work together when they identify a common purpose - whether the aim is the tallest tower made out of newspapers, or a game of rounder's on the park. Competition in teams or groups creates teams and ignites team effort.

Personal Motivation Styles And Learning Motivation

Everyone is not the same. Taking part in new games and outside activities of the work situation shows what the person's different strengths and working style preferences. Mutual respect develops when people see skills and attributes in others that they didn't know existed. Also, people work and learn in different ways.

Motivation And Creativity

Creativity and initiative are crucial capabilities for modern organizational effectiveness. Juggling and other games activities dispel the notion that actions must be according to convention, and that response can only be to stimulus. Successful organizations have staff that initiate, create, innovate, and find new ways to do things better, without being told. Using mind and body together in a completely new way encourages pro-active thought and lateral thinking, which opens people's minds, and develops creative and initiative capabilities. There are also brainstorming process carried out in a company to make the employees sharper.


Training is something which an employee will always require. For some reasons, too many people feel "My people have already been trained" or "I've got good people...they only need a little training." But training never ends. Schedule "tune- up" training sessions. These trainigs should be led by you or by a supervisor with help from specific employees who show a particular strength in the skills taught. I know this takes time, but these types of training sessions will continually enhance the performance of your people and the productivity of your business.

Career Path.

The employees in the company need to know what is potentially ahead for them, what opportunities there are for growth. This issue is a sometimes forgotten ingredient as to the importance it plays in the overall motivation of people.

Set career paths with in your organization. Do you promote from within? I hope you can answer yes to that. Although specific circumstances require you to look for talent outside your company you should always first consider internal personnel. If you do this you are sending a very positive message to every one that there are indeed further career opportunities within your organization.

Job Titles

When you talk about job titles you are addressing the self-esteem of people. How someone feels about the way they are looked at in the workforce is a critical component to overall attitude and morale. Picture a social gathering that includes some of your employees. The subject of work always comes up. Will your people be proud, or embarrassed, to share their title and workplace? The importance of feeling proud of who you are and what you do is monumental.

Good Work Environment

A recent industry study reveals just how inaccurate your results can be. Employers were asked to rank what they thought motivated their people and then employees were asked to rank what really did motivate them.

Employers felt "working conditions" was a nine (or next to last) in terms of importance. What did the employees say? Number two! Working conditions are important to the way employees feel about where they work.

Leadership Roles

Give employee leadership roles to reward their performance and also to help you identify who can be  promoted in future. Most people are stimulated by leadership roles even in spot appearances. For example, when visitors come to your workplaceuse this opportunity to allow an employee to take the role of visitors guide.

A great place to distribute leadership roles is to allow your people to lead the brief meetings. Utilize your employees' strengths and skills by setting up "tune up" training sessions andlet one of your employees lead the training. The best time to do this is when new people start.

Executive Recognition

This is the secret weapon. And like any secret weapon, timing is most critical. If this is used too often the value is diminished. And if it is used only for special occasions and rare achievements the value is escalated. We talked earlier about general recognition and the positive impact that has on your people. That will go up a few notches when it comes from an executive. To add yet another level of stimulation, have an executive either personally call to congratulate someone (or a group) or even show up in person to shake hands and express his or her appreciation.

Social Gatherings

Scheduled offsite events enhance bonding which in turn helps team spirit, which ultimately impacts employee positive work environment. Halloween costume parties, picnics , Memorial Day or Labor Day, and Christmas parties are only some of the ideas that successfully bring people together for an enjoyable time. Some others that can be used with equal success are softball games (against other companies or among employees, depending on staff size), groups going putt-putt golfing or movie madness.

Additional Responsibility

There are definitely employees in your organization who are begging for and can handle additional responsibility. Our job as managers is to identify who they are and if possible match responsibilities to their strengths and desires.

Stress Management.

If possible, have an in-house seminar on stress management techniques. So that production time is not lost, you might consider having a brown bag luncheon with a guest speaker on this subject. Because stress is an ongoing concern, anytime is a good time for a seminar like this to take place.

Remuneration Policy

A particular company always has got a particular policy for providing the employees their remuneration. It is very important to provide the employees of what they deserve as it acts as great motivational tool. There are different policies used by different companies and different sectors. Following are the examples for Service sector and industrial sector on how they device there remuneration policy.


Remuneration at Ericsson is based on the principles of

  •  performance,
  •  competitiveness and
  •  fairness

Their remuneration policy, together with the mix of several remuneration elements, is designed to reflect these remuneration principles in a balanced way by creating an integral remuneration package.

For the senior management of this company, total remuneration consists of

  •  fixed salary,
  •  short-term variable remuneration,
  •  long-term variable remuneration,
  •  pension and
  •  other benefits

If the size of any of these elements should be increased or decreased, at least one other element has to change where the competitive position should remain unchanged.

This section outlines with specific references to senior management how the company implements their remuneration policy throughout Ericsson in line with corporate governance best practice.

For details of Board Directors' fees and remuneration of senior management comprising the Group Management Team, including the CEO, hereafter referred to as “Group Management”
The Company is required to submit the formal remuneration policy for senior management for shareholder approval at the Annual General Meeting (AGM).
The Board of Directors proposal for 2009, which remains materially the same as the 2008 policy, was resolved by the AGM.
The remuneration policy, together with resolutions relating to the Company's long-term variable remuneration plans are included in the Minutes kept at the Annual General Meeting.

The auditors' opinion on how they have followed their policy during 2008 is alsoincluded in the Minutes kept at the AGM 2009.


This is the director's cut for the remuneration policy for 2009 and he stated. The remuneration committee had already started a review of executive remuneration during 2008 prior to the announcement of the HBOS acquisition. This was in the light of concerns about the competitiveness of the package, which had led to the committee making long-term incentive awards of 375 per cent of salary in 2008, above the normal maximum of 300 per cent. The scope and context of this review was naturally altered by the acquisition of HBOS and by the rapidly evolving environment in the financial services sector.

The changes introduced as a result of this review are summarized in the policy below-

Base salary

Set competitively relative to FTSE 20 and banking sector

Meet essential commitments of executive

No increase for 2009 compared with 2008


Annual incentive

200 per cent of salary maximum (225 per cent for CEO), as for 2008

Alignment with Group performance

Based 50 per cent on Group financial targets relating to profit before
tax and economic profit

Alignment with sound risk management

Based 50 per cent on balanced scorecard covering, customers,
people, risk and build franchise

Motivation of executives

Subject to deferral with the first tranche released in 2011

incentive plan

200 per cent of salary maximum, 175 per cent of salary less than the
maximum award level in 2008, split as follows:

Alignment with shareholder interests

120 per cent of salary Normal LTIP Award based:

Alignment with sound risk management

- 50 per cent on Earnings per Share

- 50 per cent on Economic Profit

80 per cent of salary Integration Award based:

Motivation and retention of executives

- 50 per cent on financial synergy savings

- 50 per cent on non-financial measures of the success of the HBOS integration


A mixture of final salary and defined contribution pension arrangements

Enable executives to build long-term retirement savings

From April 2012, executive directors with final salary pensions will move
to a defined contribution pension arrangement, with no compensation