Organizational Psychology holds that successful organizations focus not only on market realities and sustainable competitive advantages, but also on their human capital, which they consider as their most vital asset. In a sense, facts and figures are the quantitative elements of a successful management; yet, the qualitative cognitive aspects are those that may actually make or break an organization. This paper emphasizes on the challenges that Human Resources Management face as a success factor of modern organizations and on the controlling mechanisms used to anticipate these challenges effectively. Organizations are complex and as such they require convergence, combination of diverse organizational competencies, and collaborative efforts.
Keywords: human capital, human resources, employee motivation
[...] Compensation and Benefits Compensation is an activity of Human Resources Management related to rewarding motivation. Bonus, salary/wage, overtime paying, and vacation days are some examples of the compensation policies applied by modern organizations. Normally, bonus is given to all employees after six months and it is based on the departmental evaluation and on how long an individual is employed in an organization. Employees who work overtime are rewarded depending on how many hours they have worked. Salary increases are made according to law regulations except if the organization believes that a certain employee deserves more. [...]
[...] Performance Evaluation As competitive pressures increase employers are more and more interested in differentiating employee performance levels, addressing poor performance and using performance appraisals as constructively as possible. Performance appraisals are used for: Identifying a job performance that should be discontinued or reinforced Identifying employee training needs Providing a realistic assessment of an employee's readiness for promotion Serving as the basis for awarding merit pay Allocating organizational resources properly Facilitating communication between employee and administrator Some of the most commonly used performance evaluation methods are: Graphic Rating Scale (for existing employees) The most common form of performance appraisal for existing employees is the performance scale. [...]
[...] Human Resources Management follows methods such as celebrating the employees' name days and birthdays by sending a bottle of wine and flowers with the business card of the General Manager. Social Responsibility Policies Modern organizations apply a wide range of policies to ensure that the organization offers a safe and pleasant working environment consistent to the decisions and actions of its employees. Normally, these policies cover all aspects of business and are crafted based on discussions and surveys provided to the employees on a regular basis. [...]
[...] Financial rewards are a retaining rather than a motivating factor, given that they nevertheless keep employees satisfied thus leading to less creativity and innovation, which translates into inflexibility and routine. On the contrary, intrinsically motivated people enjoy going to work everyday because they derive happiness from their work and not because they are getting paid for it. Motivation boosts people by satisfying their basic needs for achievement, a sense of belonging, recognition and self-esteem (Kotter, 2001). Polarity management Polarity management refers to the situation when managers are fascinated by one side of a dilemma, and ignore the alternative. [...]
[...] Challenges in Human Resources Management Modern organizations operating in dynamic business environment require constant innovation and environmental scanning to ensure sustainable competitive advantage. The role of Human Resource Management is evolving as a strategic component of successful organizations. Organizations that do not emphasize on attracting and retaining talents may find themselves in terrible consequences, being outplayed by competition in the strategic employment of their human resources. With the increase in competition, locally or globally, organizations must become more adaptable, resilient, agile, and customer-focused to anticipate the challenges. [...]
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