HR Management assignment writing help online: Graphic PLC in England
Question??
Pay system in Graphic Plc??
Solution attached::
Graphic Plc is a medium sized company in England which provides the best and the specialized rigid and flexi rigid circuit boards. Such application provides engineers around the world to design different types of product, Cam engineering and different types of artistic equipment. This company also exports their products to various other countries and has been approved by various export licensing body. Its primary objective is to provide best circuit boards and customized one to the various manufacturing bodies. It employs around 1000 employees in one unit and it all depend on the human resource professional is Graphic Plc to keep them all motivated by proper method of compensation and salary structure.
Identification of Relevant Pay System for Graphic Plc
Creating job is not a big deal but managing job and other aspects like compensation, payoff, and other criteria is the main concern in front of managers. They need to make a number of research and survey to make a suitable and formulated compensation system for the adequate work and according to the performance and role of the employees. To make a competitive aspects and salary system, human resource managers need to make a suitable and effective salary and compensation system that will make a positive and strong viewpoint to the employees (Bernadin, 2007). Compensation is one of the most important and critical aspect that work as a catalyst of motivation within the employees. There are various steps which are required to be followed before the final decision regarding the compensation criteria. First stage is to collect data regarding the salary ranges from various sources such as primary and secondary sources. These collected data will help in analysis and formation of salary description that will again lead to the division of compensation as per the roles and responsibility of the employees. Human resource managers need to make an integrated management regarding the salary division and setting of salary as per the roles and profile of the employees to justify their work (Berry, 1997). Quartiles are also required to be followed to make a step wise growth among the employees. Everything should be managed and formed keeping all the aspects of the compensation system and its certainties and uncertainties in mind. These aspects will lead to successful management and setting up a perfect compensation system within an organization. Compensation system should be transparent for the employee satisfaction and accountability. They should also get the full information regarding the compensation criteria and division of compensation system that best suits them as per their performance, roles and responsibility. So they could be more competitive and effective that will finally lead to the competitive advantage for them and organization as well.
E compensation is an effective method of compensation planning used by the human resource department for effective management of the compensation system in the organization (Cascio, 2003). It gives the salary makers tool to develop a model for cash and non cash plans. This also the mangers to develop compensation plan and report which can be shown to the employees and thus it becomes a valuable tool for the retention of the employees.
Compensation system is the advanced technology for making the compensation formulation by the Hr department easier and faster
Its other advantages are:
1) Compensation alerts-Notifies managers when the compensation cycle is complete, work should be evaluated, changes hold be done, an all this is done without any human intervention
2) Global functionality-this feature enables that all text, date formaating, date elements can be used globally for all multinationals.
3) Merit matrix-it helps the measure the actual performance, define the appraisals
4) Convenient budget distribution-various compensation programs can be utilized for multi functional programs, effective distribution of budget by line mangers can be done
5) Simple and flexible setup-sources used for compensation management can be imported by the managers; straightforward menu system can be made, on the basic of which salary compensation scale can be developed
Categories of Compensation System:
Monetary payment is the mode of payment where payment is done by cash i.e. cash exchange. Goods and services are sold and then money is taken in return. It is the mode of compensation measured in terms of monetary benefits.
Whereas In kind payment is the mode of payment where a part of the goods produced is used as actual method of compensation. It is mostly used in industries and farming where farmers are given a part of the goods produced (crops) instead of the wages.
Compensation and non compensation subsystem of the reward system can be distinguished by the reward that is actually given i.e. it is tangible or non tangible (Bernadin, 2007).
Compensation reward system involves fringe benefits, incentives, bonus, gift packages and other tangible benefits whereas non compensation system includes recognition, flexible hours and opportunity for growth, praise, task enjoyment and friendships. This does not involve any monetary benefits.
Both monetary and non monetary method of compensation are the source of motivation as will both will stimulate the employee to work in better way by giving them a confirmation that their work is being recognized and appreciated (Cascio, 2003). Money, recognition, growth are essential for any employee because this is the basic purpose for his job, So anything which will satisfy him, he will be more and more inclined toward it and thus work more effectively and efficiently.
Benefits of centralized merit pay programs over decentralized merit pay program are:
1)Merit pay grades have the potential to undermine employee motivation is not a correct statement in fact the opposite is true which means the merit pay grids help to motivate employees.
Compensation includes not only the monetary part but also the pay, benefits, leaves, incentives and other services. It includes the tangible as well as intangible benefits. An intangible benefit includes the insurance, paid leave, sick leaves, insurance, and employee discounts and all these are an important component for motivating any employee.
2) Merit pay grades are the source of positive motivational factor in any organization because it motivates employees to work harder and become more effective and efficient. Any employee will lead an extra effort towards his work only if he receives something extra apart from his basic pay.
3) Pay system should always be based on merit because it will also motivate the less productive employee to work harder. Once an employee has worked long enough in a company he will see for his advancement which may be in his salary, promotions, and other intangible services.
As an example, we can see the increase in performance level by considering their hard work and providing them the required incentive, additional perks. This will also motivate other employees to increase the competition level to earn more and more by showing their hard work for the Graphic Plc.
Drawbacks are:
1) It may lead to wrong inferences if employs working for analyzing merits does mistake or have wrong perception.
2) It may be affected by the wrong relationship between the employs and the administration
3) Program, policies, procedures may be centralized, but their administration should be carried only by people who are close to the employees, and the policies should be based purely on merit and not on longetivity.
Merit pay system has potential to increases the employee motivation level because:
1)Merit pay grades have the potential to undermine employee motivation is not a correct statement in fact the opposite is true which means the merit pay grids help to motivate employees.
Compensation includes not only the monetary part but also the pay, benefits, leaves, incentives and other services (Cascio, 2003). An intangible benefit includes the insurance, paid leave, sick leaves, insurance, and employee discounts and all these are an important component for motivating any employee.
2) Merit pay grades are the source of positive motivational factor in any organization because it motivates employees to work harder and become more effective and efficient. Any employee will lead an extra effort towards his work only if he receives something extra apart from his basic pay.
3) Pay system should always be based on merit because it will also motivate the less productive employee to work harder. Once an employee has worked long enough in a company he will see for his advancement which may be in his salary, promotions, and other intangible services.
Pay for knowledge is the compensation strategy used by the organization to give pay to the employees on the basis of their knowledge and skills rather than their position in the organization. Pay increases are done on the basis of the number of duties and responsibilities the employee can perform in the organization.
Graphic Plc has effectively utilized this system to measure the employee performance:
1)Flexibility-this type of pay structure helps to achieve the employee flexibility and also the employee devotes himself more toward learning, growth and change flexibility leads to better output ha employees have fast knowledge and are flexible for different position in the organization (Balkin & Cardy, 2006).
2) Employee satisfaction n commitment-employees are more satisfied with this pay structure a their skills are recognized and they are more satisfied with salary and growth
Disadvantages:
1)costs-different costs are involved like training costs, hourly labor costs, administrative costs for keeping a record of every employees pay rate,
2) Organizational integration-this program is usably considered experiment for the origination because there is profanity attached with this. It depends on implementation of new ideas, acceptance do employees, but these types of program are often not supported by top management.
Objections
There are various kind of unethical practices being followed by the management in Graphic Plc. There were few students who were working as a part time employee with Graphic Plc. They were not being paid according to their work. There were lots of grievances related to the food. Apart of these there were number of issues related to the compensation structure of employee due to the ineffective and bad management in the company. There was no adequate training for the employees to retain them and the bad salary structure and lack of incentives also led to more and more attrition (Balkin & Cardy, 2006). There were problems and issues with the wages being paid to the employees that were highly unsatisfactorily. No morale boost for the employee. These practices were creating a bad impression to the employees of Graphic Plc and leading to the unethical practices within the organization. These all was due to the less control of management over the employees and the policies.
How to overcome
As a human resource professional, the management needs to handle these types of issues on a daily basis. These issues arise due to the less knowledge in the labors and workers. Rather than taking strict actions and harming the workers, they need to make a smarter decision to make them understand and need to train them to keep away from these all worthless activities that will only harm their career and growth (Judge & Patton, 2001). They need to make them realize about their prior work and objective for which they are working and spending their time, that should not go worth less and it should not be wasted in these kinds of bad and poor activities. The time and their efficiency should be utilized in a proper direction for the organization and their individual benefit.
This is the best way to deal with frivolous grievances of employees at levels related to their salary structure, bonus and incentives.
Implementation Plan
Implementation plan should be decided by the top management and the governing bodies and based upon all the facts and issues that relates with the human resource concern. This will help in implementing an effective pay structure system in the organization. The labour union should also be taken into consideration while deciding with the pay system. This will help in direct understanding of the employees requirement and needs, this way there will be less or even no chances for the grievances or the unethical practices within the organization.
The plan includes following steps:
- Finding the issues: In first stage the management needs to find the issues which is related with the salary and pay system in Graphics Plc. This will help in proceeding further to make an effective pay system in the organization.
- Analysis of the issues: To analyze the issue is again an important task for the management that will help in finding the solution for the issue.
- Formulating the plan: After the analysis the management needs to formulate the payment system and the plan that will consider the effective payment structure and bonus as well as incentives system in the organization.
- Reviewing the plan by top management and governing bodies: The top management and governing bodies will review the plan for the final implementation to the pay structure in the system.
- Final Implementation: After getting the green signal from the top management the payment structure is being implemented to the real world phenomenon.
- Feedback and Review: We also need to see the employee’s feedback and the satisfaction level for the same. This will help in further improvement of the plan.
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