Hrm Management

1.0 Abstract

Human Resource Management is core area of an organisation that focuses on recruitment, management, and providing strategic direction for the people who work in an organisation.

HRM within an organisation deals with issues relating to people such as remuneration, hiring, performance management, organisation development, safety, wellness, benefits, employee motivation, communication, administration, and training.

2.0 Executive Summary

This report is based on the Chapter 11 of textbook “Managing Human Resources” and primarily focuses on:

* Understanding why there is a need to link an organisation’s remuneration policies and practices to its strategic goals;

* Identify key objectives of employee remuneration;

* Explaining the mechanics of common job evaluation systems;

* Describing the concept of incentive remuneration and why its use is spreading; and

* Explain why an organisation provides benefits to its employees.

The chapter’s learning objective are summarized herewith.

2.1 The need to link an organisation’s remuneration policies and practices to its strategic goals

Remuneration is an integral part of HRM activity. The basic reason people work is arising from the need to earn money to satisfy an individual’s physiological, security needs, social, esteem and self-actualisation needs.

Remuneration can be financial (involves cash) and non-financial (non-cash rewards).

Remuneration should not be looked at in isolation if a high performance environment is to be created. Organisations must be able to answer immediate questions (such as how much should it pay or how should the remuneration be packaged) as well as strategic questions (such as what does the organisation want in return or how can remuneration polices and practices be used to achieve organisations goals and objectives).

It is important that the formal remuneration policy should reflect the organisation’s strategic business objectives and culture...