Incentives are those additions to regular pay to encourage and to recognize improved employee performance. Incentives generally are of two types; Short-term Incentives, and Long-term Incentives. Short-term Incentives Short time incentives are those additions to base pay provided to employees within the current operating year. They are also called variable pay as they depending on…
There are several ways to classify rewards. We have selected 3 of the most typical dichotomies: intrinsic versus extrinsic rewards, financial versus nonfinancial rewards, and performance-based versus membership based rewards. As you will see, these categories are far from being mutually exclusive, yet all share one common thread they assist in maintaining employee commitment. Intrinsic…
Sound wage theories address itself to questions such as adequacy of wages, fairness, and equity, hard working conditions and efforts, compensation against inflation, and additional commitment of employees as he grows up to rear family, etc. try to explain the major wage theories. Subsistence Theory. Wage Fund Theory. Surplus Value Theory. Residual Claimant Theory. Marginal…
Some non-monetary compensation are; Profit-sharing. Stock Ownership Plans. Gain Sharing. Pay-for-performance (PFP). Pay for Skills Sharing through Royalty Payments/ The plans include: Profit-sharing As the name suggests, profit sharing involves the employee receiving a share of the company’s profits. Employees receive a bonus that is normally based on some percentage (e.g., 10 to 30 percent)…
Compensation management, also known as wage and salary administration, remuneration management, or reward management, is concerned with designing and implementing total compensation package.
Processing and transmission of digitized HR information are called E-HRM or electronic human resource management.
GHRM is a new concept and is becoming popular all over the world. It has got different meanings to different people. There is no comprehensive definition of GHRM. It refers to making efforts to improve energy efficiency or reduce the pollution produced by our home, business, and general living habits. The main purpose of going…
5 Human Resource Accounting five models are; The Lev and Schwartz Model. The Eric Flamholtz Model Morse Model. Likert Model Ogan’s Model The Lev and Schwartz Model Lev & Schwartz advocated the estimation of future earnings during the remaining service life of the employee and then arriving at the present value by discounting the estimated earnings…
The purpose of human resource (HR) accounting is to assign a dollar value to either individual employees at a company or the company’s workforce as a whole. Because trained and productive employees are valuable to an organization, they are sometimes referred to as human capital. Because there is no definitive way to calculate the value…
Human Resources Accounting involved in identifying, measuring, capturing, tracking and analyzing the potential of the human resources of a company and communicating the resultant information to the stakeholders of the company. Human Resource (HR) is though one of the valuable assets of the organization, there is no statutory regulation to report it in the organization’s…