Management Education

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 →

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.

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.