Performance Management for Organizational Success...

Performance Management for Organizational Success Performance management in an organization includes activities which ensure that goals are consistently being met in an effective and efficient manner. It focuses on the performance of the organization, department, employees, or even the production processes which produces the product or service, as well as many other areas. It is also known as a process by which the organization aligns the resources, systems and employees to strategic objectives and priorities. An organization aspiring for success needs in place the process of performance management. Aims of the performance management in the organization are (i) to make the performance of the organization visible, (ii) to drive the management and the employees to take actions, and (iii) to provide timely feedback on the effect of the actions for taking corrective measures. Performance management highlights the visible performance gaps in the organization. It creates increased pressure on the management and the employees for improvement in the performance level. It identifies the areas of improvement in the organization. It helps the organization for sustaining the continuous improvement in quality, cost, safety, and in meeting the customer requirements. Performance management is a structured visual approach to monitoring of the organizational performance, highlighting issues and reacting to them in a timely manner. Performance management system is required in the organization for the purpose of meeting obligations to customers, employees, shareholders and other stakeholders. Collection and analyzing of data is an important necessity in the process of the performance management. Accuracy of the data for the performance indicators is necessary for the stimulation of the improvement activities in the organization. The data-improvement cycle is given below in Fig 1. Fig 1 Data improvement cycle Performance management is a tool to ensure effective management in the organization. It is the process...

Employees Loyalty and the Organization...

Employees Loyalty and the Organization It is often said that it is extremely important for the organizations to provide a healthy work environment, in order to attract and retain qualified, highly committed, and loyal workforce, because committed and loyal employees reinforce employees’ motivation to act in the best interest of organizations they work for. Employees’ loyalty is important for the organization because employees are a vital resource for the organization, especially since they represent a significant investment in term of locating, recruiting, training let alone salaries, welfare plans, bonuses and rewards etc. Loyalty, as a general term, signifies a person’s devotion or sentiment of attachment to a particular object, which may be another person or group of persons, an ideal, a duty, or a cause. It expresses itself in both thought and action and strives for the identification of the interests of the loyal person with those of the object. Employee loyalty can be defined as a psychological attachment or commitment to the organization and develops as a result of increased satisfaction. Satisfaction results from a process of internal evaluation, and if an employee’s expectation level is met or exceeded, then satisfaction grows. Employee loyalty then develops into a generalized emotional attitude towards the organization. In other words, the more satisfied an employee is regarding his working environment, the more likely that he develops a sense of commitment towards the organization in general. Employees’ loyalty towards organization is often referred as organizational loyalty of the employees. It is the most important factor that determines the effectiveness and efficiency of the organization. It is the one of the key elements that measures the compatibility between employees on one hand and the organization on the other hand, since if this compatibility increases, the organization achieves a...

Compensation Management...

Compensation Management The success or failure of an organization hinges on the ability to attract, develop, retain, empower and reward a diverse array of appropriately skilled employees. Compensation is a systematic approach for     providing monetary value to the employees in exchange for work performed by them. It may achieve several purposes such as assisting in recruitment, job performance, and job satisfaction etc. It also supports the achievement of the organizational objectives and is strategic in the sense that it addresses long term issues relating to how employees are to be valued for what they want to achieve. The focus on managing the effectiveness and maximizing the value of employees is a critical management necessity of the present time for the organizational performance. This, in turn, requires a focus on the fundamentals and management of compensation. Managing compensation is not an easy task, since it involves a variety of job categories and goes far beyond just doling out merit pay. It must address the planning for and management of the many categories of variable compensation used in a modern organization to incentivize improved performance of the employees. Compensation management, also known as wage and salary administration, remuneration management, or reward management, is concerned with designing and implementing total compensation package. The traditional concept of wage and salary administration emphasized only on the determination of wage and salary structures in organizational settings. However, over the passage of time, many more forms of compensation entered the field of running an organization and this necessitated to take wage and salary administration in comprehensive way with a suitable change in its nomenclature. Compensation management is based on a well articulated philosophy,  a set of beliefs and guiding principles which are consistent with the values of the organization. It recognizes the...

Delegation of Power

Delegation of Power  Delegation of power (DOP) is also known as ‘Delegation of Authority’ (DOA). It is one of the vital processes for any organization. It is inevitable along with the expansion and growth of the organization. Delegation means assigning of certain responsibilities along with the necessary authority by the management of the organization to the employees. Delegation does not mean surrender of authority by the management. It only means transfer of certain responsibilities to the employees and giving them the required authority, which is necessary for the discharge of the responsibility properly. DOP is defined in many ways. Some of the definitions are given below. “Delegation means assigning work to the others and giving them authority to do so” “Delegation takes place when one person gives another the right to perform work on his behalf and in his name and the second person accepts a corresponding duty or obligation to do that is required of him. “Delegation is the dynamics of management, it is the process a manager follows in dividing the work assigned to him so that he performs that part which only he, because of his unique organizational placement, can perform effectively, and so that he can get others to help him with what remains. “Delegation is the assignment of responsibility or authority to another person (normally from a manager to a subordinate) to carry out specific activities. It is one of the core concepts of management leadership.” “Delegation of authority can be defined as subdivision and sub-allocation of powers to the subordinates in order to achieve effective results.”  Characteristics of delegation of power The following are the characteristics of DOP. It involves transfer not surrendering of authority. It is a process of sharing work, granting authority and creating accountability. Delegation takes...

Interpersonal Relationship at Workplace...

Interpersonal Relationship at Workplace  Human beings need company most when they are afraid, anxious, or unsure of themselves and want to compare their feelings with those of others. Relationships help people to confirm and validate their ideas and feelings as well as to value themselves. Employees like common people are also social animals. They seek the company of others. An employee feels secure when there is a company of a co-employee, and he feels anxious when that co-employee is absent. This desire for human contact can be thought of as a two-pronged need; the need for attachment and the need for affiliation. These are two distinct, yet interrelated needs. Attachment – It is the need to form special close relationships Affiliation – It is the need to be with other people in general – a sense of belonging to a larger group. A strong association between employees working together in the same organization is called interpersonal relationship. Employees must get along well for a positive and healthy work environment at the workplace. An employee spends around eight hours at his workplace and it is practically not possible for him to work all alone. He needs co-employee to talk to and discuss various issues at the workplace. It is a common fact that the productivity increases manifold when employees work together in groups as compared to an individual employee working alone. Interpersonal relationship at workplace is nothing but close relationship between two employees working at the same place. Interpersonal relationships require good effort from the employees to nurture and maintain. A healthy interpersonal relationship gives an employee the most joy and satisfaction. An interpersonal relationship is an association between two or more people that may range from fleeting to enduring. This association may be based...