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UNIT 2: HUMAN RESOURCE MANAGEMENT, Rewards, Autocratic
Leader makes all…
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Rewards
Financial based
- salary: fixed annual rate paid on a monthly bases
- wages reward per labour services expressed as hourly or daily rate
- piece-rate: based on total output in a time period
- commission: receives a proportion of the sales he makes
- profit-related pay: linking pay to the firm's leve; of profits
- performance-related pay: based on individual performance and ability to meet goals
- employee share-ownership schemes: issuing company shares to employees at discounted prices
Non-financial based
- job enlargement
- job enrichment
- job empowerment
- purpose
- teamwork
- Autocratic
Leader makes all of the decision & does not delegate responsibility.
Advantages:
- Quick decision making on critical decisions.
- Appropriate for unskilled workforce
Disadvantages:
- Alienation of workforce (demotivation)
- High labour turnover & Absentee
- Democratic
Leader involves the employee in the decision-making process
Advantages:
- Participation encouraged
- Allow feedback from the staff
Disadvantage:
- Consultation can be time-consuming
- Some issues cannot be discussed amongst the workers (e.g: job losses)
- Not suitable for a large organization
-revolving around the assumption that workers are motivated by money and productivity (relating output with pay)
- division of labour: assigning different pool to different parts of the production process to improve efficiency and output.
- differentiated piecework: standard payment upto an output and bonus payment for exceeding that limit.
-focused on the emotional and mental needs of workers.Hierarchy:
- physiological: survival needs
- security needs: demands to make people feel safe and stable (job security etc)
- social needs: human desire to be part of a friendship or group
- esteem needs: desires for recognition and respect
- self;actualization: forces that drive people to do their best.
-factors cause satisfaction and dissatisfaction at work
- hygiene factors (physical aspects)
-do not motivate but can cause dissatisfaction
-organizational rules, policies, working conditions, pay.
-factors taken for granted (not motivate an employee to work any harder)
- motivation factors (psychological aspects)
-factors that lead to psychological growth of workers.
-achievement, recognition, responsibility and advancement
-lead to increased work satisfaction
how to motivate?
- using democratic leadership style.
- training: job enrichment (give more challenging tasks to exploit their potential), job enlargement (giving workers higher variety of tasks to make work interesting), job empowerment (entailing decision making powers to workers to boost morale)
- team work
- Paternalistic
Treating employees as family members and make decision according to subordinates' best interest.
Advantages:
- Workers become loyal & obedient
- Boost morale ( employees found a sense of belonging)
Disadvantages:
- Employees might not be satisfied with the decision made.
- Increasing dependency on the leader.
- Situational
Style of leadership will depend with the nature of the task
Disadvantage: Some worker might diffucult to accept different kinds of leadership styles.
- Laisses- Faire
Subordinates are delegated and given the freedom to make the decisions.
Advantages:
- High morale, workers feel (trusted and valued)
- Inspire creativity among employees.
Disadvantages:
- Lack of direct supervision
- Depends on the qualification of the employees
-workers naturally compare their efforts and rewards with others at workplace. Thus, employees should be remunerated based on his efforts and competence.
eg: managers get high packages due to skills
-intrinsic factors motivate workers at workplace and home, creativity is required from today's workforce.
-opposing taylor's theory
- autonomy: give employees control over their work and lives
- mastery: foster self-improvement by not giving too easy or to hard tasks
- purpose: self-esteem is boosted as employees contribute to a greater vision and purpose
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