Human Resource Development (HRD) as the vital section of modem business management, has the following components:
1. Organisation Development (OD) To ascertain the psychological health of the organisation, periodic employee surveys are conducted. Efforts are made to improve the organisational health through various means in order to maintain a psychological climate that is conducive to productivity. The management experts suggest certain measures to solve the problems such as absenteeism, low production, interpersonal conflict, or resistance to change. These experts mention certain revitable various systems within the organisations to improve their functioning.
2. Sufficient Rewards for Performance The performance and behaviour of an employee should always be rewarded by the organisation. Proper rewards not only recognise and motivate employees, but also communicate the organisations’ values to the employees. The innovations and use of capabilities are always rewarded in order to encourage the acquisition and application of positive attitudes and skills. The rewards include certificates of appreciation, newsletter announcements, increase in salary, bonus, special privileges and desired training. Promotions are generally not considered as rewards because promotion decisions are based on performance. Rewards may be given to individuals as well as to teams, departments, and other units within the organisation to encourage them. Among other things, the provision of rewards improves the morale of the employees towards the organisation.
3. Training and Development In the modem world the social, economic and technological changes are taking so rapidly that the organisations are finding very hard to adjust accordingly. In order to survive and grow in the fast changing world, the organisations have realised the role of training. Every organisation is now developing a systematic training programme to raise the skill levels and increase the versatility and adaptability of employees.
3. Need for Training In the recent years the importance of training has been influenced by growing competition, expansion of business and trade and the relative success of countries like Japan and Germany where due emphasis is laid on human resource development. The changes occurring in the business environment have made the employers realise that their organisation depends on the skills and abilities of their employees and therefore there should be continuous investment in training and development.
4. Wage and Salary Wages and salaries play a significant role in determining the conditions of employment. The relationship between employers and employees depends mainly on wages. Wage and salary administration refers to the framing and implementation of policies and practices pertaining to employee compensation. It includes development of wage structure, wage surveys, wage incentives, profit sharing, wage adjustments and other related items concerning payment. Wages and salaries constitute a major part of the total cost in most of the organisations. The control of wages and salaries is of paramount importance because it affects numerous factors such as productivity, prices, capital formation, employment and standard of living.
The objectives of wage and salary administration are as follows:
- To establish and maintain an equitable wage and salary structure;
- Cost control;
- Utilising wages and salaries as an incentive for higher productivity and
- Maintaining a satisfactory image within and outside the organisation.
There is a difference between wage and salary. Wage is a compensation to the employees for services rendered to the organisation. If the services cannot be quantified then the payment is called salary. Payment made to labour is referred as wages. The wage period is shorter than the salary period. According to Strauss and Sayles, “wage administration is a systematic procedure for establishing a sound compensation structure. Wage and salary surveys are designed to determine the general pay level in the community and industry, thus giving a company a base for setting its own rates. Job evaluation establishes the relationships between wages on various jobs within the organisation. Together, wage surveys and job evaluation set the base on minimum rates for each job”.
5. Performance Appraisal of Employees It is useful to understand the problems of the subordinates any try to sort them out periodically. Find out the strengths and weakness of the subordinates and help the subordinates to realise them. Assist the subordinates to become aware of their positive contributions. Motivate the subordinates to accept more responsibilities and challenges. Encourage subordinates to acquire new capabilities and utilise their talents.
It is the bounden duty of the superior to ensure the development of his or her subordinates in relation to the capabilities required to perform their jobs effectively. Usually, the supervisor schedules individual meetings with each employee to discuss the employment performance and communicate the performance areas that need attention.
For citing this article, use:
- Balasubramanian, P. (2005). Manpower planning and practices in selected spinning mills in Tirunelveli District of Tamil Nadu.
