RSS

#HRWord:#Pay Dispersion

Pay dispersion is a concept where employers pay different amount of wages or salaries to their employees for the same skills and the same type of work

Image credit: prosperio

Pay dispersion exists because of limited knowledge of employees about the wages of the other employees, and also because of employee experience, changing policies etc.

Pay dispersion takes into account several factors for determining the operationalization. They are like benchmarked pay levels, coefficient of variation, Gini Coefficient, etc.

Aspects:

1. Higher pay brings out better productivity, & the employees also puts in more effort

2. Differential inputs & marginal products, represents internal career & wage path that raise motivational levels & has effect upon the attitudes.

3. Greater pay dispersion generally is positively correlated with turnover, as and when the vertical pay dispersion is examined.

4. Organizations focusing on expectation enhancing are rather more successful than those focusing on pay dispersion.

 
Leave a comment

Posted by on December 20, 2017 in HR Word of The Day

 

#HR #Word:#OMD (#Outdoor #Management #Development)

Outdoor Management Development is a process of imparting learning and development for managerial cadre outside the four walls of an organizational setup

Image courtesy: Hula Hoppo


The objective of outdoor management development is to build a team, give leadership lessons etc. 

It includes residential programs conducted for building team cohesion, leadership development etc.

Purpose of Outdoor Management Development:

1. Team Building:

Many times managers at senior level meet only at important corporate events. Otherwise they are into their own functional activities. But there should be mutual understanding of others function in order to take decision as one company. In order to create common understanding at organizational level and create strong corporate team outdoor management development activities are conducted.

2. Leadership Developments:

As organization tries to build team of leadership, people coming from different functions who are top performers, comprises leadership team. When people come from different function, they may not be prepared enough to take role of leader at organizational level. In order to develop organizational understanding outdoor residential programs are conducted.

Issues in Outdoor Management Development:

1. Relevance of Such Program:

Many researchers consider the poor relevance of outdoor management programs to organizational challenges. Once these programs completed for week or so, people come back to same environment. It is at times not possible to bring change in actual work environments. Hence these programs could not be effective as they are supposed to be.

2. Ability to simulate challenges:

When adventure activities are planned for senior executives, they may not be able to perform. This does not mean they will not able to perform in their professional acts. They may be the rarest resource in their area of expertise.

3. Organizational climate:

Though people learn a lot at outdoor management development centres, its applicability depends on organizational climate. If organizational climate is not allowing change then impact of such developmental program does not last long enough. In order to practice learnings from outdoor management developments, organizational climate must be open, adaptable to change.

Outdoor management development can be effective if it practiced with due consideration of organizational climate i.e. to what extent practices can be improved.

 
Leave a comment

Posted by on December 19, 2017 in HR Word of The Day

 

#HR #Word:#Pygmalion Effect

The Pygmalion effect, or Rosenthal effect, is the phenomenon whereby higher expectations lead to an increase in performance

Image courtesy: WFED

The effect is named after the Greek myth of Pygmalion, a sculptor who fell in love with a statue he had carved.

A corollary of the Pygmalion effect is the golem effect, in which low expectations lead to a decrease in performance;  

Both effects are forms of self-fulfilling prophecy.

By the Pygmalion effect, people internalize their positive labels, and those with positive labels succeed accordingly. The idea behind the Pygmalion effect is that increasing the leader’s expectation of the follower’s performance will result in better follower performance. Within sociology, the effect is often cited with regard to education and social class.

Studies of the Pygmalion effect have been difficult to conduct. Results show a positive correlation between leader expectation and follower performance, but it is argued that the studies are done in an unnatural, manipulated setting. Scientists argue that the perceptions a leader has of a follower cause the Pygmalion effect. The leader’s expectations are influenced by their perception of the situation or the followers themselves. 

Perception and expectation may possibly be found in a similar part in the brain.

 
Leave a comment

Posted by on December 18, 2017 in HR Word of The Day

 

#HR #Word:#OCB (#Organizational #Citizenship #Behaviour)

Organizational Citizenship Behavior (OCB) is defined as the context or performance in which any job or task takes place. 

It is basically being a person who is ready to serve the organization in matters that is outside the scope of his/her job domain. 

It includes being helpful, caring towards other employees in the organization.

Example, Helping out a newcomer in an organization with his work, working overtime sometimes in order to get convert clients, etc

Advantages

1. People who engage in OCB often tend to receive better ratings, further it boosts the morale of others in organization.

2. People engaging in OCB, often faces lower risk of destaffing, as they are considered to be more valuable owing to their helpful nature.

3. OCB can further enhance productivity within a team, a group or by an employee in general, as people are there to support & help each other

4. Creation of better communication links & developing new networks, further boosting employee morale.

Ways to encourage OCB: From Workplace perspective

1. Maintaining the social environment in the workplace: Employees interact, connect & they develop bonding

2. Supervisory role: Training people about the implications of OCB will help them in this practice.

3. Hiring the right candidates.

 
2 Comments

Posted by on December 14, 2017 in HR Word of The Day

 

#HR #Word:#Paid #Time #Off

Paid time off (PTO) is a number of hours that employees can use to pool sick days, personal leave or vacation while being paid as a working day. 

Image courtesy: Talent Development 360


Different companies offer different hours as paid leave depending on their policies, compensation plans and retention strategy. 

There is no government policy that regulates the number of hours companies must offer as paid time off.

Absences are also calculated under the Paid time off hours provided to the employee. 

Some companies allow employees to carry forward unused Paid time off hours into the next financial year whereas others dissolve the unused hours at the end of the year. However PTO does not cover sabbaticals or long term medical leave.

Most organizations provide around 2 weeks of Paid time off hours per year however some companies like Netflix and Virgin have no PTO limit. 

Employees of Virgin UK and US are allowed to take as many PTO hours off as they wish as long as the work is completed on time.

An advantage of using this plan is that employees would schedule their PTO in advance and hence the organization can plan around the absence of the individual. Another advantage is that employees feel that the organization cares about their work life balance and hence help retain the employees in the long term.

A disadvantage however is that employees are being paid even though they are not being productive. Furthermore many employees may want to cash in on their unused PTO hours near the end of the year hence resulting in lower productivity.

 
Leave a comment

Posted by on December 5, 2017 in HR Word of The Day

 

#HR Word :#Outplacement

Outplacement is a process of facilitating a terminated employee’s search for a new job by providing professional services, counselling, paid for by the former employer. 

It is done generally done by a downsizing company which pays for the services of a third-party company to assist their laid-off employee to seek new employment.

The assistance provided maybe in the form of resume writing, salary negotiation advice, resume distribution to employment agencies and head hunters, cover letter writing and career counselling.

As per Wikipedia , Outplacement is explained as

Outplacement is the support service provided by responsible organizations, keen to support individuals who are exiting the business (voluntarily or involuntarily) – to help former employees transition to new jobs and help them re-orient themselves in the job market.A consultancy firm usually provides the outplacement services which are paid for by the former employer and are achieved usually through practical advice, training materials and workshops. Some companies may offer psychological support.

  1. Outplacement is either delivered through individual one-on-one sessions or in a group format. Topics include career guidance, career evaluation, job search skills, targeting the job market, resume writing, interview preparation, developing networks, and negotiation.

    Consultants support individuals seeking a new job, and also those looking to start a new business, retire, or structure a portfolio of activities. Programs have time limits, ranging from a few months to more extended periods, such as 12 months and are offered at all levels of the organization, from workers to corporate employees.

    Outplacement provides former employees structure and guidance towards their new career option, and preserves the morale of those who remain in the Company who see that colleagues are given the necessary support when they leave the company.

    History of Outplacement

    The term outplacement was coined more than 30 years ago by the founder of Challenger, Gray & Christmas, a Chicago-based career consultancy.

    With the increased rates of downsizing, rightsizing, redundancies and layoffs, particularly during the 1980s and 1990s,businesses increasingly found a need for some form of assistance in reducing the trauma of redundancy for both departing employees and those who remain. Indeed, research shows that losing one’s job is one of the most stressful experiences a person can face other than death and divorce.


 
Leave a comment

Posted by on November 20, 2017 in Uncategorized

 

#HR Word:#Organizational #Configuration (#Mintzberg #Model)

Henry Mintzberg created five organizational configurations that act a framework to understand and design organizational structures. First of all, he stated that each configuration has 6 components: 

  • 1.Operating Core:The people directly involved in the production activities of products and/or services constitute the operating core.
  • 2.The Strategic Apex:This caters to the needs of the people involved in controlling the organization.
  • 3.Techno-structure: This essentially refers to the analysts who are involved in planning, designing and making amendments to the operating core.
  • 5.Support Staff:The experts who support the organization outside the realms of the operating core activities.
  • 6.Ideology:The unique traditions practiced by the organization and the existent beliefs constitute the Ideology.

Based on the importance of the components, coordinating mechanisms and design decisions (design of decision making, lateral linkages, superstructure and positions), five structural configurations were established:

  1. Simple Structure: The major coordinating mechanism used here is direct supervision. The key component of the organization in this case would be the strategic apex, and vertical and horizontal centralization is incorporated in this configuration.
  2. Machine bureaucracy: The coordinating mechanism here is standardization of work processes. The key component of the organization here would be the technostructure and limited horizontal decentralization is used.
  3. Professional bureaucracy:  Standardization of skills is the coordinating mechanism in this configuration. The operating core forms the key component and both vertical and horizontal decentralization is used.
  4. Divisionalized form: Standardization of outputs is the coordinating mechanism and the key component is the middle line. It is characterized by limited vertical decentralization.
  5. Adhocracy: Mutual adjustment is the coordinating mechanism in this configuration. The support staff (in an administrative adhocracy) or the operating core (in an operating adhocracy) forms the key component. Selective decentralization is used in this case.
 
Leave a comment

Posted by on November 16, 2017 in Uncategorized

 
 
%d bloggers like this: