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...

People Strategy for Excellence...

People Strategy for Excellence An organization is as good as the people who work in it. The continual success journey of the organization depends on the expertise, talent, interpersonal skills, and proactivity of its people. People are the lifeline of the organization. People strategy plays a very important role for the organization in its path  for achieving excellence. People are always necessary to the organization since they provide inspiration, creativity, vision and motivation that keeps the organization alive. They provide the skills and competencies necessary to make an organization work. And above all they provide the labour for the production of the goods and services that the organization supplies to its customers. People are a major and often the most important resource that the organization has. People and the intelligent use of their knowledge are the major determinants for the success for the  organization. The organization aiming for success through excellence develops and implements  its people strategy in a manner to attract, retain and fully engage its people and to ensure that they are empowered. Right type of people strategies are needed for making people of the organization to appreciate and to rely on each other for becoming ‘active citizens’ of the organization. With proper people strategies, people become committed to high performance and continuous improvement. They operate with high efficiency and with principles of fairness and integrity all the time.  They have opportunities to grow. They feel cared for since their efforts are recognized and appreciated. They feel proud of the organization they work in, the products and services they deliver and that they are making a positive contribution to the environment around them. Proper people strategies focus on the right combination and type of people and the level of performance required to...

Policy and Strategy

Policy and Strategy  The success of an organization is strongly linked to how the management perceives the goals to be achieved and the ways devised to achieve those goals. These are two different but interrelated concepts of policy and strategy. Organizational success or failure is largely dependent on how the various functional areas in the organization are combined to produce and deliver value to different stakeholders. This integration of functions is taking place in a continuously changing and complex environment. The formulation and implementation of policies and strategies is an important issue as the organization strives to remain successful and grow in an increasingly complex, competitive and globalised world. It is therefore interdisciplinary by nature and requires an understanding of all functional areas. Organizational policy refers to the roles and responsibilities of top level management, the significant issues affecting organization wide performance and the decisions affecting organization in the long run. Organizational strategy is the strategy developed and implemented to the goals set by the organizational policy. More specifically, organizational strategy can be defined as the way a company creates value through the configuration and coordination of its various multi activities. Organizational policies and strategy provide guidelines for action. Unfavorable and ambiguous policies or strategy may affect the functioning of the employees adversely and they may experience stress. Organization wide policies are designed to achieve major organizational objectives. If an organization think about achieving something as involving ways, means and ends – policy is often engaged with the ‘ways’; strategy is concerned with the ‘means’; and finally planning is focused on the delivery of the ‘ends’. Fig 1 shows relationship of policy and strategy as compared with vision and mission. Fig 1 Relationship of policy and strategy with vision and mission  Policy Policy is a...