Human Resource Management: UNIT-4 Sustaining Employee Interest

HUMAN RESOURCE
MANAGEMENT
UNIT-4
Sustaining Employee Interest
• Compensation Plans
• Rewards
• Motivation
• Theories of motivation
• Career Management
• Developing Mentor
• Portage Relationships
Compensation Plans
• Compensation is defined as the money received by employees from the

organization on account of the performance they render.
• When the employee receives the money in terms of salary or wage, it is known
as direct compensation.
• An effective compensation plan fulfils the expectations of the employees and
satisfies them.
• The goal of a compensation plan is not only to attract people, but to retain
them.
• Most of us, no matter how much we like our jobs, would not do them without
a compensation package.
• When we think of compensation, often we think of only our paycheck, but
compensation in terms of HRM is much broader.
• A compensation package can include pay, health-care benefits, and other
benefits such as 401(k) plans, which will all be discussed in this chapter.
Rewards
• The achievement and benefit received by employees for their job

performance in an organization are known as reward.
• Employees join the organization within certain expectation of reward.
• Some may be expecting for better salary and wages i.e., economic
rewards while other may be seeking for facilities like accommodation,
transportation, health, safety and other benefits as reward.
• Thus, economic and non-economic benefits provided by organization
to employees for their job performance regardless of their expectation
is known as reward.
• Employees must be communicated about the reward provision in an
advance
• Types of Rewards in HRM:
• Rewards can be classified on the various bases. Some of them are
discussed as below:
• Classification on the basis of feelings:
– Intrinsic reward
– Extrinsic reward
• On the basis of Economic value:
– Financial reward
– Non -Financial reward
• On the basis of evaluation:
– Performance based reward
– Membership based reward
Motivation
• Motivation is defined as the act of inspiring the employees to work or

not to work hard to attain the predetermined goal. It is the state of
activating the person to do something better.
• Motivation directs the acts and behaviors of person which drives the
people to act with full effort to achieve goals.
• The term motivation has been derived from the work motive, which
means urge to do or not to do something.
• Motivation is the psychological process of creating willingness to work
and cooperate for the achievement of organizational goals.
• Hence, motivation is an inner state that energies, activates and directs
behavior towards achieving organizational goals.
• So, motivation always helps the people to work effectively and efficiently
to achieve the goal.
Theories of motivation
• Many theories seek to explain how motivation works in

attaining the best results from workers.
• Abraham Maslow's Hierarchy of Needs Theory
• Maslow’s theory explains that an individual is motivated
according to the level of needs, and he will progress
depending on how well these needs are addressed at each
level.
• Needs at a basic level include security, social needs,
psychological needs and favorable working conditions.
• The needs are addressed by ensuring there is security at the
workplace and workers are friendly and respectful.
• Herzberg's Two-Factor Theory
• The Two-Factor theory argues that that there are two
factors that motivate workers: hygiene and satisfiers.
• These factors are not determinants of success, but
their absence results in under performance.
• Hygiene factors in this case refer to job security,
salary, organizational policies and working conditions.
• Satisfiers, also known as motivators, include growth
opportunities, responsibility and recognition.
• McClelland's Acquired Needs Theory
• The Acquired Needs theory recognizes that
each individual prioritizes needs differently and
that some needs are not hereditary but
acquired in life.
• A high achiever for example, has a need for
achievement and power; this means that his
preferred workplace environment might differ
from the average worker.
• Alderfer's ERG Theory
• Alderfer's ERG (existence, relatedness and growth)
theory is built on Maslow’s theory.
• However, it groups an individual’s needs into three:
existence, relatedness and growth needs.
• The needs are material and deal with an individual’s
physical and social needs that cover interpersonal
relationships and development needs that involve a
person’s development and psychological growth.
Career Management
• It is the combination of structured planning and the active

management choice of one's own professional career.
• "Lifelong, self-monitored process of career planning that
involves choosing and setting personal goals, and
formulating strategies for achieving them".
• Career management as a process for enabling employees
to better understand and develop their career skills and
interests, and to use these skills and interests most
effectively both within the company and after they leave
the firm.
• Benefits to the organisation
• Well-planned and executed career programmes will benefit both the
organisation and the employees in a number of ways. These include the
following:
• Staffing inventories. Effective career management will help ensure a
continuous supply of professional, technical and managerial talent so that
future organisational goals may be achieved.
• Staffing from within. Because of the many potential advantages of promotion
from within, most organisations like to promote employees when positions
become available.
• But recruitment from within requires a strong career management programme
to guarantee that employees can perform effectively in their new jobs.
• Promoting employees before they are ready to assume their new jobs will
result in unsatisfactory performance, as predicted by the Peter Principle.
Developing Mentor
• Mentoring is a partnership between two people which supports personal

and/or professional development between a less experienced individual, called
a mentee, and a more experienced individual known as a mentor. Over the
course of your career, you may have many mentors and mentees. These
relationships may last years, months, weeks or days.
• Responsibilities of a Mentor
– Assist the employee in developing talents.
– Maintain objectivity and balance.
– Allow the employee to grow and become more independent.
– Foster a sense of risk-taking and independence.
– Balance the responsibilities you take on for the employee.
• The additional responsibilities of mentors in a formal program:
– Listen to and acknowledge the employee without undermining the role of the manager.
– Encourage the employee to resolve problems directly with the manager
• Objectives of a Mentoring Program
– To retain and advance talented employees.
– To retain and advance women and minorities.
– To give mentors satisfaction and a rewarding experience.
– To open up new channels of communication,
information, and education.
– To demonstrate that the organization invests in people
and encourages opportunity for a diverse workforce.
– Non-goal: The program is not intended for sponsoring
anyone for a particular position in the organisation.
Portage Relationships
• An experienced person who advises and help to an less

experienced person Protégé.
• One whose welfare, training, or career is promoted by an
influential person.
• Protégé also an individual who receives guidance, coaching
and support from the mentor Mentor are usually in Mid
career stage Protégé are in their early career stages.
• Mentor provide support that engage talented protégés to
increase job satisfaction and work effectiveness.
• Protégé contributes the success of mentoring.
THANKS

Human Resource Management: UNIT-4 Sustaining Employee Interest

Uploaded by

Copyright:

Available Formats

Human Resource Management: UNIT-4 Sustaining Employee Interest

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Human Resource Management: UNIT-4 Sustaining Employee Interest

Uploaded by

Copyright:

Available Formats

HUMAN RESOURCE

• Compensation is defined as the money received by employees from the

• The achievement and benefit received by employees for their job

• Motivation is defined as the act of inspiring the employees to work or

• Many theories seek to explain how motivation works in

• It is the combination of structured planning and the active

• Mentoring is a partnership between two people which supports personal

• An experienced person who advises and help to an less

You might also like