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Лекц 1

Хүний нөөцийн

менежментийн тухай

Хүний нөөц (ХН)

Хүний нөөц нь янз бүрийн ажил үүрэг

гүйцэтгэдэг байгууллагад ажиллаж байгаа

хүмүүс.


Хүний нөөцийн менежмент

(ХНМ)?


Хүний нөөцийн менежмент (ХНМ)

Байгууллагын үйл ажиллагааны үр

ашгийг нэмэгдүүлэхийн тулд

чадварлаг ажиллах хүчийг

ажиллуулах, хөгжүүлэхтэй

холбоотой удирдлагын үйл

ажиллагаа иж бүрэн багц.


Яагаад ХНМ-ийг судлах хэрэгтэй вэ?

• Хүмүүстэй үр бүтээлтэй ажиллах, ур

чадвар, мотиваци бүхий ажиллах хүчнийг

бүрдүүлэх

• Байгууллага дахь шинэчлэлт өөрчлөлт,

нөөцүүд нь ажиллагчдын мэдлэг, ур

чадвар, хандлагаар л бий болгож байдаг.


ХНМ бусад шинжлэх ухаантай

холбогдох нь

• Эдийн засаг (wages, markets, resources)

• Сэтгэл судлал (motivation, satisfaction)

• Социологи (organization structure, culture)

• Хууль (min.wage, labor contracts, Union)


ХНМ-н ач холбогдол юу вэ?


1. Байгууллагын түвшинд

a) Байгууллага дахь шилдэг ажилчдыг тогтоон барих

2. Хувь хүний түвшинд

a) Багийн ажлыг урамшуулах, дэмжих

b) Өсөх дэвших боломж олгох

c) Чадвартай, тууштай ажиллах

3. Нийгмийн түвшинд

a) Ажил эрхлэх боломжоор хангах

b) Авьяасыг нээн илрүүлэх, хөгжүүлэх


Бүх ажилтанд ХНМ яагаад чухал вэ?

• Хувийн алдаа гаргахаас сэргийлэх

• Ашиг болон гүйцэтгэлийг сайжруулах

• Зарим цаг хугацаанд HR менежер болж үзэх

• Жижиг байгууллагын HR– чи өөрөө HR

менежерийг хийх боломж нээлттэй


Хүний нөөцийн функц –Удирдлага & Үйл

ажиллагаа


Байгууллагын хүний нөөцийн

албаны бүтэц

Жижиг байгууллага дахь Хүний нөөц

Owner

Production

Manager

Personnel

Assistant

Office

ManagerAccounts

ManagerMarketing

Managers


Том байгууллага дахь хүний нөөцийн алба

Chairman

Deputy

Director

Training

Director

HRMDirector

R & DDirector

FinanceDirector

Production

Deputy

Director

Recruitment

Deputy

Director

Promotions

Байгууллагын хүний нөөцийн

албаны бүтэц


Ямар хандлага ХНМ-д гарч байна вэ?


• Лекц 2

Хүний нөөцийн стратеги

менежмент


Стратеги менежментийн тухай

Стратеги удирдлагын үйл явц:

• зорилгыг тодорхойлох /стратегийн зорилго/

• хэрэгцээнд зориулан нөөцийг хуваарилах буюу

тохируулах /нөөцөд суурилсан стратеги-resource based

strategy/

• корпораци болон үйл ажиллагааны стратегийн хооронд

стратегийн тэнцвэрт /strategic fit/ байдлыг хангах

• өрсөлдөх давуу талыг /competitive advantage/ бий болгох

• стратегийн менежментийн үйл явцаар дамжуулан

стратегийн төлөвлөгөөг боловсруулах, хэрэгжүүлэх

стратегийн зорилтыг тодорхойлох чадварыг багтаасан

байгууллагын стратегийн чадавхийг /strategic

capability/ хөгжүүлэх - стратеги нь өөрчлөлтийг удирдах,

төлөвлөх байдлаар хэрэгжүүдэг.

Стратегийн түвшин


Корпорацийн стратегийн төрөл

Concentration

Төвлөрөх

Vertical

integration

Босоо

интеграц

Diversification

Төрөлжүүлэх

Corporate Strategy

Possibilities

Consolidation

Бэхжүүлэх

Geographic

expansion

Өргөжих


Бизнесийн буюу өрсөлдөөний

стратегийн төрөл

Cost leadership

Зардлаар манлайлах

Differentiation

Ялгарах

Business-Level

Competitive Strategies

Focus/Niche

Төвлөрөх


Стратеги төлөвлөлтийн

менежерүүдийн үүрэг


Стратеги төлөвлөлтийн

менежерүүдийн үүрэг

Help devise

the strategic plan

Төлөвлөгөө

боловсруулах

Supporting

functional/

departmental

strategies

Дэмжлэг

үзүүлэх

Department Managers and

Strategy Planning

Execute

the strategic

plans

Хэрэгжүүлэх


Хүний нөөцийн стратеги менежмент

• ХН-н онцлогийг ашиглан өрсөлдөх давуу тал олж

авах түүнээ хадгалах байгууллагын үйл

ажиллагаа юм.

• ХН-н стратеги нь ажилд авах, сургалт, хөгжүүлэлт,

гүйцэтгэлийн менежмент, шагнал, ажиллагсдын

харилцааны стратеги, бодлого, дадал, ажил

эрхлэлтийн харилцаа зэрэг байгууллагын шийдвэр,

төлөвлөгөөтэй холбоотой шийдвэр гаргахад чиглэсэн

арга зам юм.

• ХН-н стратеги нь бизнесийн стратегитай, өөр

хоорондоо давхацдаг. Хүний нөөцийн стратеги нь

байгууллагын бизнесийн стратегийн стратегийн

бүрэлдэхүүн хэсэг юм.


Дөрвөн зүйлийг агуулдаг:

1.Төлөвлөлтөнд ашиглах

2.Хөдөлмөр эрхлэлтийн бодлогыг тодорхойлох

3.ХН-н стратегийг бизнесийн стратегитай

уялдуулах

4.ХН-ийг стратегийн нөөц гэж үздэг учраас

өрсөлдөх давуу талыг бий болгох

Хүний нөөцийн стратеги менежмент


Стратегийн шинжилгээ

Analysis

• What is the business strategy and the business needs emerging from it?

• What are the cultural and environmental factors we need to take into

account?

• What are the key HR weaknesses and issues?

• What are the gaps between what we are doing and what we ought to do?

Diagnosis

• Why do the HR issues and weaknesses exist?

• What is the cause of any gaps?

• What factors are influencing the situation (cultural, environmental,

competition, political etc)?



Conclusions and recommendations

What are the conclusions from the analysis and diagnosis?

What do we need to do to fill the gaps?

What alternative strategies are available?

Which alternative is recommended and why?

Action planning

• What actions do we need to take to implement the proposals?

• What problems might we meet and how would we overcome them?

• Who takes the action and when?

• How do we ensure that we have the committed and capable line

managers we need?


Resource planning

• What resources do we need and, how will we obtain them and how

will we convince management that they are necessary?

• What supporting processes are required?

Costs and benefits

• What are the costs and benefits to the organization?

• How will employees benefit?

• What business needs will the strategy satisfy?



ХН-н тэнцвэрийн загвар

1984 онд уг загварыг Fombrun, Titchy and Devanna нар гаргасан.

SelectionPerformance

management

Rewards

Development

Performance

Adapted from Fombrun et al (1984) Strategic Human Resource Management, Wiley


HARVARD-н зураглал

"Өнөөдөр байгууллагын HR-тай холбоотой маш их дарамж шахалт эрч хүчээавч ихсэж

байгаа тул илүү өргөн хүрээтэй, цогц хэлбэрээр стратегийг харж ажилтнудыг хувьсах зардал

гэхээсээ илүүтэй байгууллагын үнэт хөрөнгө гэж анхааралдаа авах хэрэгтэй байна” гэж

Харвардын их сургуулийн эрдэмтэд Michael Beer болон түүний нөхөд үзэл баримтлалаа

болгон дараах зураглалыг гаргасан.

Stakeholder

interests:

• shareholders

• management

• employees

• government

• unions

Situational factors:

• work force

characteristics

• business

strategy and

conditions

• management

philosophy

• labour market

• unions

• task technology

• laws and social

values

HRM policy

choices:

• employee influence

• human resource

flow

• reward systems

• work systems

Long-term

consequences:

• individual well-

being

• organizational

effectiveness

• societal

well-being

HR outcomes:

• commitment

• congruence

• cost-effectiveness

Source: Beer, M et al (1984) Managing Human Assets, The Free Press


ХН хэрхэн байгууллагын гүйцэтгэлд

нөлөөлөх вэ?

Source: John Purcell et al (2003) Inside the Box: How people management impacts onorganizational performance, CIPD

• Байгууллага нь маш тодорхой эрхэм зорилго, үнэт

зүйлсийг (“том санаа”) тодорхойлж, түүнийг ажилтнуудад

суулгаж, тэвчээртэй, нэгдмэл байдлаар, хэмжиж, удирдан

зохион байгуулах

• Сэтгэл зүйн эерэг гэрээг хөгжүүлэх замаар ажиллагсдын

хүсэл эрмэлзэл, итгэл үнэмшлийг бий болгох

• “Ажиллахад таатай газар байгуулах“ замаар хувь хүний

хэрэгцээг хангах бодлогыг боловсруулж, хэрэгжүүлэх

• ХН-н менежерүүдэд хүний нөөцийн бодлогыг

хэрэгжүүлэхэд гүйцэтгэх үүргийнх нь талаар дэмжлэг

үзүүлэх, зөвлөгөө өгөх

• Өөрчлөлтийг үр дүнтэй удирдах


• Лекц 3

Competency based HRM

Competency-based HRM uses the concept of competency and the results of

competency analysis to inform and improve the processes of recruitment andselection, performance management, employee development and employee reward.

COMPETENCY-BASED HRM DEFINED

Competencies represent the language of performance. They can articulate both the

expected outcomes from an individual’s efforts and the manner in which these

activities are carried out. Because everyone in the organization can learn to speak

this language, competencies provide a common, universally understood means of

describing expected performance in many different contexts.

Source: Rankin, N (2002) Raising performance through people: the ninth competency survey, Competency &

Emotional Intelligence, January

COMPETENCY AND PERFORMANCE

Behavioural competencies (soft skills) – how people are expected to behave in

order to perform their work well. ‘Competency is a person-based concept which

refers to the dimensions of behaviour lying behind competent performance.’

(Woodruffe, 1991)

Technical or functional competencies (hard skills) – what people are expected to

know and be able to do to perform their work well. They can also be described as

work-based or occupational competencies which refer to expectations of workplace

performance and the standards and outputs that people carrying out specified rolesare expected to attain. The term ‘competences’ is sometimes used as an alternative

to technical competencies. Woodruffe (1990) defines competence as: ‘A work-related concept which refers to areas of work at which the person is competent’. It is

what people have to know and be able to do to work well.

Competence framework – this contains definitions of all the competencies used in

the whole or part of an organization (a function or occupation). It provides the basis

for the use of competencies in such areas as recruitment, employee development

and reward.

COMPETENCY DEFINITIONS

Contribution-

related pay

Career family

structures

Organization

design and

development

Job and

role design

Recruitment

and

selection

Assessment/

development

centres

Performance

managementTraining

needs

analysis

Personal

development

Competence

framework

APPLICATIONS OF COMPETENCY


• Лекц 4

Why emotional intelligence is

important for HRM?


Emotional intelligence is…

• “…your ability to acquire and apply knowledge of your

emotions and the emotions of others” (Stock, 2000).

• "…a type of social intelligence that involves the ability to

monitor one's own and others' emotions, to discriminate

among them, and to use the information to guide one's

thinking and actions" (Mayer & Salovey, 1993, p. 433)


EI in the workplace is… EI is not…

Your Values and Beliefs Your Products and Services

Generally Unspoken Promoted Externally

Your Style Your Policies and Procedures

The Types of People You Hire Your Recruiting Process

What Behaviors You Reward What Behaviors You Want

(Dunn, 2003)


Where Did EI Originate?

EI has its roots in the concept ofsocial intelligence, first identified byE.L. Thorndike in 1920 whodefined social intelligence as "theability to understand and managemen and women, boys and girls -- toact wisely in human relations”(Thorndike, 1920, p. 228).

http://www.indiana.edu/~intell/ethorndike.shtml


Daniel Goleman

Daniel Goleman popularized EI in hisbook, Emotional Intelligence: Why ItCan Matter More than IQ for Character,Health and Lifelong Achievement (1995).

In the book, he posed the theory that empathyand communication skills, social and leadershipskills are central to success in life and personalrelationships. Rather than a high IQ, it is farbetter to have a high E-IQ, emotional intelligence,if you want to be a valued and productivemember of our society.

Photo Source:

http://www.roycecarlton.com/pdf/Goleman-Kit.pdf




Core Competencies Associated with EI

Emotional intelligence

"is a type of social intelligence that involves the ability to monitor

one's own and others' emotions, to discriminate among them,

and to use the information to guide one's thinking and actions"

(Mayer & Salovey, 1993, p. 433).


Core Competencies (cont’d)

According to Salovey & Mayer (1990), EI can be categorized into five domains:

1. Self awareness

2. Self management

3. Self motivation

4. Recognizing emotions in others

5. Relationship management


Self Awareness is…Observing yourself and being able to recognize a feeling as

it happens. The ability to accurately perceive and be

cognizant of your emotions as you interact with others.



Self-Management is…

Transforming your emotions. The ability to use emotional

awareness to positively and purposefully manage and

direct your emotions and behavior. Finding ways to handle

fears and anxieties, anger, and sadness.



Self-Motivation is…

The ability to manage and control your emotions by calling

up feelings of confidence and enthusiasm in yourself.

Delaying gratification and stifling impulses.



Empathy is…

The ability to read and understand the emotional cues of

others and determine what causes them to respond

favorably or adversely to a common point of reference.

Appreciating the differences in how people feel about things.



Relationship Management is…

Setting a positive tone of cooperation. The ability to use

emotional awareness to direct and manage interactions

with others to build more effective, purposeful and mutually

beneficial relationships.



• EI as Leadership Competencies

• EI as Personality Traits & Characteristics

• EI as Intelligence (Ability)

more…

Here are three models of EI for you toconsider:


• Лекц 5

Job Analysis, Talent

management and Employee

selection process

Business strategyResourcing

strategy Role

Management

development

Management

succession

The talent

pool – a

skilled,

engaged and

committed

workforce

Career

management

Continuing talent audit

External

resourcing

Internal

resourcing

Performance

management

Talent

relationship

management

Total

reward

Attraction and

retention

policies

Learning and

development

Engagement/

commitment

THE ELEMENTS OF TALENT MANAGEMENT

Vacancy

Internal

resourcing

External

resourcing

Induction

Succession

planning data

Potential

review and

discussion

Performance

management

review and

discussion

Competency

profile andachievement

of results

Development

interventions:

• internal

transfer

• job

enrichment

• coaching

• mentoring

• project

• 360 degree

• courses

• seminars

Development

plan and

review of

potential

and

performance

• new role

• promotion

• secondment

Resourcing Talent management Talent development

TALENT ACQUISITION AND DEVELOPMENT AT CENTRICA


The Basics of Job Analysis

• Work activities

• Human behaviors

• Machines, tools,

equipment, and work aids

• Performance standards

• Job context

• Human requirements


What Is Job Analysis?

• Job Analysis – is the procedure through which

you determine the duties and skill requirements of

a job and the kind of person who should be hired

for it.


Uses of Job Analysis Information

• Recruitment

and selection

• EEO

compliance

• Performance

appraisal

• Compensation

• Training

FIGURE 4-2 Uses of Job Analysis Information


Conducting a Job Analysis

1. How will information be used?

2. Background information

3. Representative positions

4. Collect and analyze data

5. Verify

6. Job description and specification


• Лекц 6

Performance Management


Basics of Performance Appraisal

• The performance appraisal process steps

1. Sets work standards

2. Assesses performance

3. Provides feedback to the employee


Why Appraise Performance?

Five reasons:

1. Used for pay, promotion, and retention decisions

2. Links performance management to company

goals

3. The manager can correct deficiencies and

reinforce strengths

4. With appraisals employee’s can review career

plans

5. Training needs are identified


Defining the Employee’s Goals and

Performance Standards

1. Goals

2. Job dimensions or Traits

3. Behaviors or Competencies


Techniques for Appraising

Performance (1 of 2)

1. Graphic Rating Scale

2. Alternation Ranking

3. Paired Comparison

4. Forced Distribution

5. Critical Incident Method


Techniques for Appraising

Performance (2 of 2)

6. Narrative Forms

7. Behavior Anchored Rating

Scale

8. Mixed Standards Scales

9. Management by

Objectives (MBO)


• Лекц 7

Employee motivation


Motivating the Workforce

What motivates employees to perform?

How can managers boost morale?

How do you maximize worker performance?

How can you encourage creativity and innovation?

Nature of Human Relations


Determining what motivates employees to

perform on the job is the focus of human

relations.

Nature of Human Relations



•Motivation is an inner drive that directs a person’s behavior toward goals.

•A goal is the satisfaction of a need

•A need is the difference between a desired state and the actual state.

What is motivation?



The basic model of motivation

shows that when a need exists, an

individual engages in goal-directed

behavior designed to satisfy that

need.



Morale – an employee’s attitude toward his or her job,

employer, and colleagues.

High Morale•High levels of productivity

•High returns to stakeholders

•Employee loyalty

Human Relations



High Morale•High levels of productivity

•High returns to stakeholders

•Employee loyalty

Low Morale•Absenteeism

•Lack of commitment

•High turnover




Morale Boosters:

•Respect

•Involvement

•Appreciation

•Compensation

•Promotion

•Pleasant work environment

•Positive organizational culture



Google’s focus on happy, committed

employees --•Massage therapy

•Laundry service

•Gourmet meals & snacks

http://www.google.com/




• Лекц 8

Managing Careers

and Retention


Careers Today


The Psychological Contract


Employee’s Role in Career

Management


Employer’s Role in Career

Management


Employer’s Career Management

Methods

• Training

• Planning Workshops

• Career Coaches


Diversity Counts (1 of 2)

Figure 10-2 Career Guideline Suggestions for Those with

Disabilities

Strategy Key Import of Strategy

Espousing a positive mind-set and

demonstrating extreme

persistence

Overcome worries and tocus on

tasks at hand

Sensitizing people to ability over disability:

• Signaling ability by learning new skills

• Signaling ability by helping coworkers

through newly gained skills

• Signaling ability by trying to enhance

performance through feedback seeking

Trounce stereotypes regarding

competence


Diversity Counts (2 of 2)

Strategy Key Import of Strategy

Engaging in disability advocacy:

• Awareness building

• Influencing organizational policymaking

with regard to accommodation

Sensitize others to performance

potential of all PWD and help all

PWD

perform

Building, leveraging, and contributing to

relevant networks:

• Forming networks comprising PWD

• Seeking mentors who have a disability

• Serving as role models or mentors to

other PWD

Aid general adjustment and career

growth of self and other PWD

Source: “Career Management Strategies of People With Disabilities,” Human Resource Management,

may - June 2014, volume 53, number three, page 455-456. Reprinted by permission from John Wiley &

Sons, Inc. Cleared via Copyright Clearance Center


The Manager as Mentor and Coach


Coaching and Mentoring

1. Set High Standards

2. Invest The Time

3. Actively Steer Protégés

4. Requires Trust

5. Professional Competence

6. Consistency

7. Ability to Communicate

8. Share Control


A Comprehensive Approach to

Retaining Employees

• Exit Interviews

• Attitude Surveys

• Open door / Hotlines

• Stay Interviews


• Лекц 9

Developing issues

IDENTIFYING LEARNING NEEDS

Analysis of business and human resource plans

Business and HR plans should indicate in general terms the types of skills and competences that may be required in thefuture and the numbers of people with those skills and competences who will be needed. These broad indicators have to be

translated into more specific plans which cover, for example, the outputs from training programmes of people with particular

skills or a combination of skills (multiskilling).

Surveys

Special surveys may be carried out, which analyse the information from a number of sources, eg performance reviews, to

identify corporate and group learning and training needs. This information can be usefully supplemented by interviewingpeople to establish their views about what they need to learn. But they often find it difficult to articulate learning needs and it

is best to lead with a discussion of the work they do and identify any areas where they believe that their performance and

potential could be improved by a learning or training programme.

An analysis should also be made of any areas where future changes in work processes, methods or job responsibilities are

planned and of any common gaps in skills or knowledge or weaknesses in performance that indicate a learning need.

Further information should be derived from training evaluations, as described later.

Performance and development reviews

Performance management processes, as described in sections 15 to 17, should be a prime source of information about

individual learning and development needs. The performance management approach to learning concentrates on the

preparation of performance improvement programmes and learning contracts, which are related to jointly determined action

plans. The emphasis is on continuous development. Every contact between managers and individuals throughout the year is

regarded as a learning opportunity.

Job, role and competency analysis

Job, role and competence analysis for identifying learning and training needs means:

• Describing the contentof jobs and roles by reference to key activities and outcomes.

• Defining the performance standards required in terms of quality and output.

• Defining the knowledge, skills and competencesneeded to perform the job in orderto meet the performance standards.

LEARNING NEEDS ANALYSIS:

IDENTIFYING THE TRAINING GAP

Training gap What should beWhat is

Actual performance

levels

Knowledge and skill

possessed

Performance levels

required

Knowledge and skill

required

Corporate Function Individual

Performance

reviews

Training

surveys

Business

plans

Human

resource plans

Job and role

analysis

LEARNING NEEDS MODEL

LEARNING PROGRAMMES:

SKILLS DEVELOPMENT

CIPD Survey 2005 – the views of organizations on the skills they needed

to develop in order of importance:

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

management and leadership

communication

business skills

customer service

advanced technical skills

broader skill sets

coaching and mentoring

innovation

IT skills

ability to adapt easily to change.


Implementing Training Programs

• Types of on-the-job training

‒ Coaching or Understudy

‒ Job rotation

‒ Special assignments


Steps in the OTJ Training (1 of 2)

Step 1: Prepare the learner

1. Put the learner at ease.

2. Explain why he or she is being taught.

3. Create interest and find out what the learner already knows about the job.

4. Explain the whole job and relate it to some job the worker already knows.

5. Place the learner as close to the normal working position as possible.

6. Familiarize the worker with equipment, materials, tools, and trade terms.

Step 2: Present the operation

1. Explain quantity and quality requirements.

2. Go through the job at the normal work pace.

3. Go through the job at a slow pace several times, explaining each step.

Between operations, explain the difficult parts, or those in which errors are

likely to be made.

4. Again, go through the job at a slow pace several times; explain the key

points.

5. Have the learner explain the steps as you go through the job at a slow pace.


Steps in the OTJ Training (2 of 2)

Step 3: Do a tryout

1. Have the learner go through the job several times, slowly, explaining each

step to you. Correct mistakes and, if necessary, do some of the complicated

steps the first few times.

2. Run the job at the normal pace.

3. Have the learner do the job, gradually building up skill and speed.

4. Once the learner can do the job, let the work begin, but don't abandon him or

her.

Step 4: Follow-up

1. Designate to whom the learner should go for help.

2. Gradually decrease supervision, checking work from time to time.

3. Correct faulty work patterns before they become a habit. Show why the

method you suggest is superior.

4. Compliment good work.


Apprenticeship Training

• Apprenticeship Training – a structured process by

which people become skilled workers through a

combination of classroom instruction and on-the-job

training.


Informal Learning


Job Instruction Training

• Job Instruction Training (JIT) – listing each job’s

basic tasks, along with key points, in order to provide

step-by-step training for employees.


• Лекц 10

Establishing Strategic Pay

Plans



Aligning Total Rewards with Strategy

• Aligned Reward Strategy - is creating a

compensation package that produces the

employee behaviors the firm needs to achieve

its competitive strategy.


Copyright © 2002 South-Western.

All rights reserved.

11–95

Think of Something that was unfair.

• Explore what it is and why it was unfair.




11–96

Critical Thinking Questions:

1. Why do most private firms choose to have a pay secrecy policy? Do they work?

Does pay secrecy fit with a high commitment HR system where employee

participation is a strong element of corporate culture?

2. Should a manager receive higher pay than the subordinates that she/he supervises?




11–97

Critical Thinking Questions:

3. What are the strategic advantages of paying below the market for pay? Can a firm

sustain this pay choice?

4. Why would a firm decide to pay above the market? Is this choice open to all firms in an

industry or sector?


Equity and its Impact on Pay Rates (1 of 2)

• Equity Theory of Motivation - is once a person

perceives an inequity a tension or drive will

develop that motivates him or her to reduce the

tension and perceived inequity.


Equity and its Impact on Pay Rates (2 of 2)

Type of Equity

1. External

2. Internal

3. Individual

4. Procedural


Equity Theory (cont’d)


Equity Theory (cont’d)


Why Pay Secrecy?

• The compensation employees get is privileged information to both the parties

• Pay secrecy diminishes an opportunity for comparison among employees and

organization's exposure to perceived inequality

• Though perfectly justifiable pay differences are complicated and difficult to explain

reasons, especially if people doing similar jobs are lined at different pay levels under

different market conditions


Why Pay Secrecy?

• Pay secrecy can prevent embarrassing situations by shielding under-paid and under-

performing employees.

• Managers enjoy more freedom in administering pay in a pay secrecy organization, as

the difference in the pay need not be explained to others.


Why NOT Pay Secrecy?

• Open communication and build trust

• An open pay system drives the point home to employees

that the management believes in fair and open policies.

• Open pay policies not only take power and control from the

managers but politics are also less likely to surface

resulting in merit getting rewarded.

• When pay information is kept as secret, employees make

inaccurate perceptions. Further more, those perceptions

work against increasing motivation.

– Hence, to maximise motivation employees need to know how

performance is defined and measured and finally rewarded.


Pay Polices

• Seniority-based

• Performance

• Other pay policies

• Geography

Documents

Human Resource Management, 15e - humanities.mnhumanities.mn/fileman/Uploads/MD_lecture/HRM strategy0223.pdf · Competencies represent the language of performance. They can articulate