Generally it is considered that there is a direct relationship between Morale and Productivity. It is assumed that the person having high morale will have high productivity but this is not always true.
An increase in 20% morale does not guarantee 20% increase in productivity. An increase in morale may lead to favorable or unfavorable shift in productivity as morale is just one factor which influences productivity. Therefore there may be chance that high morale related to low productivity and low morale related to high productivity. There are four types of Relationship between morale and productivity. Continue reading
It is very difficult to build and maintain high morale. Morale cannot be maintained at a high level forever. It is not static, it keeps on changing. But there are various methods which can help to increase a high employee morale:
- Fair Remuneration :- The pay of the workers should be fair otherwise it may lead to conflict among the workers and reduce the morale of the employees.
- Job Satisfaction : – There should be right person on the right job. Otherwise the workers will not be satisfied with the job they are working. Continue reading
To measure the morale of employee directly is difficult as it is an intangible state of mind of the workers. But there are four methods of measuring the morale of the employee indirectly. These are discussed below.
1.) Morale Survey :- In this method the management may conduct a morale survey to find out the morale of the employees. For this purpose the management may conduct direct interview or can use Questionnaires. In case of direct interview of each employee is interviewed separately and he is asked about his job while in case of questionnaire a certain questions are printed and a copy of these questions is given to every workers. Continue reading
One day I have seen the abbreviation CSW in my bank statement. I was not able to get the meaning of same and I searched a lot then found that the meaning of CSW is “cash withdrawal”. Then I decided to write an article about various abbreviations or terms used in banking industry and most of these you must have seen in your bank statement. Here is the list of various banking terms used: Continue reading
There are mainly two objectives or aims of performance appraisal they are:
1) Administrative objectives
2) Self improvement objectives
1) Administrative objectives: these objectives are further divided into five parts
i) Promotion: it is one of the main aims of performance appraisal. It is beneficial for both the management and the employee to promote the employee to the place where they can show their abilities effectively. Continue reading
There are many differences between performance appraisal and job evaluation. Let us discuss them:
1) Performance appraisal is concerned with comparative merit of individuals. While job evaluation analysis the job not take into account the individual abilities of the job holder.
2) It considers the individual abilities while job evaluation considers the requirement of the job in terms of job specification and job description. Continue reading
Performance appraisal means systematic evaluation of the personality and performance of each employee by his supervisor or some other person who is trained in such task. It is the formal procedure to evaluate the contributions of the persons working in the organization and to get the necessary information regarding the employees. Generally it is done by the immediate superior or an independent appraiser. Thus it is a rating technique for comparing the individual employees in the work group, in terms of personal qualities or requirement of their respective job.
There are different theories for the determination of wages and these are discussed below:
1) Subsistence theory for determination of wages: this theory was given by Ricardo and based on two assumptions:
i) Law of diminishing returns
ii) Rapid increase in population. Continue reading
Employee stock option plan was introduced in USA in 1910. But in India employee stock option scheme came in 1998. In this scheme the employees of the company are allotted the company’s shares below market price generally 10 to 20% or on the provision of installment buying. Under this scheme only permanent employees of the company can enter. This plan is generally for the executives. The employees feel committed to the organization and work for the growth of the organization. It helps in holding the talented employees. However, as per the SEBI guidelines only 5% of the new issue or maximum 200 shares per employee are reserved for the ESOS.
2 types or kinds or methods of incentive plans
1) Individual incentive plan
2) Group incentive plan
1) Individual incentive plan: it may either be time based or production based. Under time based plan a standard time is fixed for doing the job. A worker is said to be efficient if he completes the job in time and he is given the reward for his efficiency.
i) The time based individual incentive plans are: Continue reading