Category Archives: Human resource

Management of Incentive

Incentive is a special reward that drives an employee to perform beyond the normal level of performance. Also incentive can identify as something additional than base salary. Basically incentive pay for performance. This link reward cost and organizational performance. Incentive alternatively called as variable pay and contingent pay.

Management of incentives can defined as the process of development, implementation, and maintenance of a fair and adequate system of incentive.

If employee perform in normal level of performance or non performance in normal level both of those receive base salary and wages.


  • Provide real motivation for the employee.
  • Incentive payments are variable costs link to the achievement of result.
  • Good way to evaluate organization hard work prople1s performance.
  • Help to attract only top performances, when salary budgets are low.
  • Incentive encourage team work and unit cohesiveness. (When payments based on team result)

Types of Incentive Plan

Individual Incentive Plan

Focus on individual job performance. This discourage team work. This may develop “hostiled atmosphere” among employees some may be jealous on others. Performance threshold in minimum level of performance to qualified to meet incentive payment.

  • Piece work

– Straight peace work

Employee pay a sum for each unit produce by him.

Ex: organization pay 1$ per 1unit. Normal produce 50 units per 1hour if employee produce 60 units per 1hour. Other extra units also pay as using same peace amount.

– Differencial piece rate

Employee paid piece rate for each of the units upto standard outputs. Higher piece rate for each unit produce over the standard.

Ex: Upto 50 units per 1hour organization pay 1$ per 1 units. Extra units than 50 units per 1hour, each piece paid as 3$.

  • Standard hour plan

Employer pay incentive if employee complete the work in less than standard time. This method use service organizations.

  • Bonuses

One time payment usually per year. This is an additional income for the employee. Common among managerial and incentive employees.

2 ways of paying bonuses

– Certain Parentage of base salary.

– Monthly wise ( give monthly salary as bonus )

  • Merit pay

Paid based on employee individual performance measured through employee performance evaluation system. Usually become a part of employee base pay. This payment add for base salary. After that also calculate EPF and ETF amounts. Merit pay is cumulative.

  • Lum-Sum Merit pay

This not add to the base salary. This is not cumulative. After job performance review, calculate this amount.

Team Incentive Plan

Focus on group job performance and paid collectively. For high performance organization pay high incentive. This motivate employees to engage with team work.

  • Team incentive plan

Organization give time frame for team, if they achieve target within the given time period then they receive incentive.

  • Gain sharing

Advantage which have obtain by effort of employees.

Advantages- Increase cohesiveness

Increase employee motivation

Organization team culture will be develop

Knowledge sharing will happen

Disadvantages – Free-write effect ( some people are gain incentive without performing)

Inter group conflicts happen

Low performance people become demotivate

Complex payout formula difficult to understand for everyone

Organizational Incentive Plan

Focus on entire organizational performance. Incentives are paid organizationally. This reduce competition among employee. Encourage all employees work together to generate better organizational outcomes. Based on hierarchy incentive amount will depend.

  • Profit sharing

Shares profit among all the employees within organization.

  • Stock options

This is the way of achieving employee ownership. This give employees the opportunity to buy a company shares at a previously fixed price.

  • Employee stock ownership

That gives employees certain tax and financial advantages when stock is granted to employees.


What are the Strategies for improving Helath & Safety?

Strategies for minimizing Occupational Accident

  • Environment design Have to design work environment in safety manner. In here we should store dangerous equipments and tools in a separate place. Request employees to use safe equipments. Such as helmet, eye guard, boots, gloves and nail guard.
  • Floor cleaning should maintain clean floor. It should not be wet. It is best to follow daily floor cleaning method.
  • Maintenance. Should do reapair and maintain machines frequently. Should follow maintenance plan. Through that can avoid corrective maintenance and accidents to the employees.
  • Continues Inspection. Before and after working, regulatory should check machines to identify whether those machines are working or not. As an example cleaning dust, check oil level and so on.
  • Safety Training and Education. HR division can provide training to prevent from accident. Such as fire training. In here can take machine operators involvement to do machine maintenance work. Because of that they will operate machine more carefully.

Strategies for minimizing Occupational Diseases

  • Medical Examination. can conduct medical test annually, semi annually, quarterly and so on. Participation of every workers are very important.
  • Physical fitness program. Conduct various exercise sessions for workers. Such as jimnasium, yoga classes and etc.
  • Health Education. Through doctors conduct seminars and workshops provide health education for workers.
  • Enclosure keeping such hazard thing keep away from every employees. It is good to use separate place for that.
  • Maintain Sound Physical Working Conditions such as ventilation, lightning, air conditions.

Strategies for minimizing low quality of work life

  • Redesign jobs by considefing both efficiency elements (standardization, specialization) and behavioral elements in order to ensure a proper balance.
  • Apply job enrichment. Give power to plan, do and control the job.
  • Obtain opinion, suggestions and comments from employee before making decisions.

Strategies for minimizing Organizational Stress

  • Ensure job security of the employees.
  • Provide training to reduce stress.
  • Ensure carrer development and give facilities for that. Carrer development is series of job that one person perform with his work period.
  • Give fair and sufficient usages of salaries.

Selection Process

Process of making the choice of the most appropriate person from the pool of applicants recruited to fill the relevant job vacancy.

Important of Selection

  • To get the right person for the job vacancy.

Continue reading Selection Process

What is Health and Safety Management?

A state of complete physical, mental and social wellbeing and not merely the absence of disease or infirmity.

Safety is the protection from the danger of accident.

Physical health – This is a state where physical deaseases do not exist within the employee. This is measurable.

Mental health – this is about psychological wellbeing of an employee. Thos related to human mind and emotions rather than human body.

Health and Safety Management refers to all the activities involved in protecting and promoting physical and mental health of the employees so that they can perform jobs efficiently and effectively.

Importance of HSM

  • Help for employee well being.
  • For higher job performance.
  • This help to make correct decisions and endure good expected behaviour.
  • Physical energy speed endurance persistance and flexibility to do correct functions.

Four major types of hazards

1. Occupational Accident

Sudden event which causes physical injuries to an employee or more employees working on the employement in an organization.

Types of occupational accident

1. Major accident

  • Fatial accident – death of the employee with in the working period.
  • Non fatial accident – because of the accident mployee not death but he become disable.

Permanent – disable for his life period.
Temporary – this has two types. They are partial disable and total disable.

2. Minor accident

Cost of occupational accident

  • Direct cost –

– Compensation given to the injuired employee or family members in case of death.
– Medical expenses for recovering the injuired.
– Expenditure repairing or replacing tool and equipment damaged due to the accident.
– Loss of production of the injuired employee due to accident.

  • Indirect cost

– Time spent by other employees to help the injuired employee.
– Time, energy and money needed to record accident and consequences.
– Cost of time, energy and money on invesigations of accident.

2. Occupational Diseases

An illness that catches an employee due to the reason of performing their job role.
Because of the job role some deseases are happen to the employee.

Ex: skin deseses
Trauma (maximum level of the stress)
back pain

Categories of cause of diseases

  • Chemical causes – by inhaling dust of poison, toxic metals and etc. They may enter the human body and may cause acute desease.
  • Biological causes – Bacteria, Viruses, Fungers may causes aome brain fevers and algies.
  • Physical causes – heat, radiation, lack of proper ventilation may result some causes.
  • Psychological causes – fear, shocks, frustration

3. Law quality of work life

quality of work life mean the degree to which employee expectation are met by the job and the job environment.

Reasons for law quality of work life

Poor job design
Law employee involvement
In effective pay system
Lack of job security

4. Organizational stress

This mean pressures that employees feel in their work life.
Stress may lead to that the employee suffer from headache, hi blood preasure, unrest and etc.


Poor supervision
Job dissatisfaction
Poor team functioning
Lack of privacy

Employee Performance Evaluation Process


EPE evaluation process has 10 steps. Will get idea about those steps in brief manner.

  1. Establish Objectives of EPE

Objectives of the performance evaluation should be clear, understandable and attainable.

Ex:  To measure the current level of job performance of each employee, To identify training needs of each employees, To identify strengths and weakness of each employees

Continue reading Employee Performance Evaluation Process

Employee Performance Evaluation

What is EPF mean…….

The systematic process of identifying, measuring, influencing and developing job performance of the employees in the organization in relation to the set norms and standard for a particular period of time in order to achieve various purpose.

Continue reading Employee Performance Evaluation

What is Training & Development

Training & Development is a formal process of changing employee behavior and motivation in the way that will enhance employee job performance and then organization overall performance.

T & D increase employee job related abilities by distributing job related knowledge, creating job related skills and improving positive attitudes.

T & D need = Desired performance – Actual performance Continue reading What is Training & Development