Meaning: Business ethics refers to the standards and principles which govern the business activities. It means doing business activities with rational thinking and honesty. A business requires ethics for its success. Now a days availability of proper safety measures for employees, satisfaction of consumers and protection of environment are modern business standards. Continue reading “Meaning and 6 Elements of Business Ethics”
The word social security originated in USA in 1935. It means to help the people when they are unemployed and exposed to risk such as sickness, accidents, old age, maternity etc.
Scope of Social security:
It is in form of maternity benefits, health insurance, voluntary and compulsory insurance, provident fund schemes. These social security programs vary from country to country but have the following three common characteristics: Continue reading “Concepts and scope of Social Security”
Definition of productivity:
Productivity means the ratio of output to input.
Higher productivity means the proper use of input and vice versa. Generally the productivity is the productivity of labour. It refers to output in ratio of input of labour. But in productivity, taking only labour as input is not right as it fails to take other factors of production. All of them, have combined influence on the total production or output. There are various steps to increase productivity.
Steps or methods to increase productivity:
- To reduce wastage and increase productivity raw material of right quality should be used.
- Working conditions should be proper to increase productivity.
- Prop[er selection of workers should be done and they should be given proper training in use of raw material, machines.
- Latest machines should be used to increase productivity.
- Cordial relations should be there between management and the workers.
- Workers having good record of productivity should be rewarded suitably.
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 “Relationship between Morale and Productivity”
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 “Methods to increase high employee morale”
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 “4 methods to measure the Employee Morale”
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 “Difference between performance appraisal and job evaluation”
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 “Theories for determination of wages”
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.