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ASSIGNMENT COVER SHEET
SurnameLASEINDE
First Name/s ABISOLA ABODUNDE
Student Number 113681
Subject HUMAN RESOURCE MANAGEMENT,Durban (MBA Year 1)
Assignment Number 1
Tutor’s Name
1
Examination Venue MANCOSA Campus, Aliwal street,Durban, South Africa.
Date Submitted 2nd April, 2010
Submission (√ ) First Submission Re-submission
Postal AddressP.O BOX 50477,MUSGRAVE 4062,DURBAN.
E-mail [email protected], [email protected]
Contact Numbers
(Work)
0312017322 (Home)
0780273718 (Cell)
Course/Intake MBA Year 1 – January 2010
Declaration: I hereby declare that the assignment submitted is an original piece of work produced by myself.
Signature: A.A laseinde Date:2nd april,2010
TABLE OF CONTENTS
TITLE
CONTENTS PAGE
INTRODUCTION 2
QUESTION 1.1 Linking HRM and company business objectives
Strategy formulation, Strategy implementation and Strategy
evaluation.
2-3
QUESTION 1.2 work that motivates and satisfies employees. 3-4
QUESTION 1.3 Linking customer service, quality and 4-6
2
√
productivity
QUESTION 2.1 HR requirement in an organization (The process
of planning recruitment and selection.)
7-10
QUESTION 2.2 Training and developing the employee 11-13
QUESTION 3.1 Performance management measurement at dell 13-15
QUESTION 3.2 Assessing and developing employee for future
roles.
15-16
QUESTION 4 Implementing effective compensation system 16-19
BIBLIOGRAPHY 20-22
3
QUESTION 1
How the Human Resource environment at Dell is managed.
1.1 Linking HRM practices to the company business objectives
INTRODUCTION:
It deals with linking the human resource environment at dell with the
company’s business objectives and how dell motivates its employees and
also process used in selecting and training their employees, the last question
focuses on compensation and it’s benefit.
Dell South Africa established itself as one of the leading vendors in the world
in the ‘90s. From the case study we can infer that dell has a highly efficient
HR Department with a managing director at the head. The level of integration
between the HRM function and the strategic management function is a type
Two-way linkage, because the HR function is informed of various strategies
which are being considered ,but might not be fully involved in strategic plan of
such programme (Noe et al ,2008:73).
Another component of dell HR strategy is succession planning. (Noe et al,
2008:555 )describes succession planning as a balance for employees need in
the organization by ensuring suitable supply of successors across current
and senior position arising from business strategy.
In linking HRM practice to the company’s business objective at dell, we will
consider the following:
MISSION: a company mission is the reason for it being. In strategy
formulation, the mission statement set the mood of where the company
should go.
OBJECTIVE: Are concrete goals that organization seeks to reach; they
should be challengeable but achievable.
SITUATION ANALYSIS: This involves analyzing of the internal and external
environment of the work place. The external environment has 2 aspects. The
macro environment and the micro environment. The macro environment
4
analysis include a political, economic, social and technological analysis.
[PEST analysis].Michael Porter devised a 5 force framework that is useful for
industry analysis which include barrier to entry ,customers(which dell has
considered as well),suppliers ( dell build it’s system to customer
specification),substitute products and rivalry among competing firms
INTERNAL ANALYSIS: considers situation within the firm itself, such as
company’s culture. Company image, organizational structure, market shares.
(dell also enjoys double digit growth rate in local PC market)in strategy
formulation, Michael porter, identified cost leadership, differentiation and
focus as three generic strategies that should be considered. He further
argued that only one of the generic alternatives should be pursued.
STRATEGIC IMPLEMENTATION.
It involves translation of detailed policies into action that can be understood at
the functional level of the organization. It should be translated into specific
policies such for functional areas, such as marketing, procurement, human
resources etc.
STRATEGIC CONTROL
After the strategic implementation, then results of strategy should be
measured and evaluated and changes made as required to keep the plan on
track. Incorporating all these dell as an organization will then be able to have
the competitive advantage.
1.2 Designing work that motivates and satisfies the employees as well as
Wikipedia, the free encyclopedia describes motivation as the activation or
energization of goal oriented behaviour. It can be intrinsic or extrinsic.
Intrinsic Motivation: This occurs when people are internally motivated to do
something because it either brings them pleasure.
Extrinsic Motivation: This occurs when a person is compelled to act in a certain
way because of factors external to him or her like money, etc.
5
The case study describes the profile of a typical dell employee as a driven
professional who thrives in an environment where pressures and rewards are
both high. In relating this to the Incentive theory of motivation...
A reward when presented after occurrence of an action will elicit a person to
perform the same action again. if such an action is rewarded immediately ,the
effect is greater as the duration decreases ,the effect is lesser.
Another way the human resource environment at dell motivates it employees is
by meeting the managing director and discussing their views and concerns as
well as making suggestions.Maslow needs theory states that people will
continuously want things ,as soon as one need is satisfied, another need takes it
place. Therefore people need can never be fully satisfied.(nel et al,2008:337).In
his self actualization theory, when people needs are met ,then can then apply
their skills to the best of their ability. self –actualization needs now become
uppermost.
Social needs may be satisfied to a large extent in the work situation, but it can
be difficult to develop a strategy that will translate these needs into an incentive
for improved individual performance. The work people do, and their work
environment may be designed in a way that increases employee interaction., the
disadvantage is the excessive socialization may lead to a negative effect on
employees’ work output.(Nel et al 2008:338).
In conclusion, workers in an organization need something to keep them
motivated, if this is absent, then employees quality of work will
deteriorate .Motivation is the key factor that keep an employee working at his or
her best.
1.3 Maximizing customer service, quality and productivity.
Wikipedia .org defines customer service as the provision of services to customer
before during and after a purchase. Element of dell philosophy include
establishing good customer relationship and providing a superior customer
experience for their clients. Meeting customer expectation of service is a very
important aspect of any organization function.
6
Steve.k and Sarah .C. (1995:23-28) in their article link the HR dept to customer
service delivery. The human resource dept have a key role to play in the
development and delivery of customer service strategy. Their unique contribution
is their ability to keep a finger on the pulse of their organization and to
understand what will work and what will not and to be a valuable part of
information flow to ensure things are working the way they should.
Increasingly,HR professionals take on the role of internal consultant to any
organization, their role is to provide guidance and facilitate progression moving
through the key stages of designing and implementing a customer service
strategy. In integrating customer service with culture, we know that all
organization has it own culture, that is the way things are done around here. In
the case study, Dell also has an excellent culture which is codified into the soul of
their organization.
For customer service to become a way of life, there is need for integration into
every aspect of an organization,HR professionals can shape this though the
development of policies such as recruitment ,training, development ,team
briefing and reward which have customer service at it core.
Quality assurance: Can be said to be a behaviour inclination of an organization
as a whole (organizational cultural dimension and individual employee behaviour
motivation) as part of any process used to pursue Quality in the products or
services of Organization.(Nel et al 2008:54).( Marilyn .m and George .l.1996:5-
10)describes how quality and productivity can improve a firm competitive
advantage. Organization must increase their quality or loose their market shares.
Firms must have an understanding of the level of quality desired by consumers,
also management should be aware of the exact level of quality necessary to
meet or exceed the quality standard of competition.
STEPS IN IMPLEMENTING GOALS OF QUALITY AND PRODUCTIVITY.
1. Top Management should be convinced of need for an overall emphasis on
a manufacturing strategy for the entire organization.
2. Training and orientation of all workers in the department about new
strategic orientation. Engage in team building and goal setting activities
7
which will improve communication and working relations among
departments.
3. General survey of customers to the products be sure that they are
offering the products and benefits the customers seek. Customers
perception and priorities do change over time.
4. Company must improve the work flow and make the design of
manufacturing system more flexible and effective to new products
demands.
5. Continue to gather information ,after sales on user attitude and conduct a
customer service audit where they compare the company service to its
competitors.
6. Encourage worker suggestion and reward good idea and productivity with
positive feedback and recognition.
In conclusion as employees get involved in quality and productivity, their
satisfaction will increase. Customer survey will also show a company the level
of satisfaction of their customer.
Question 2
The process involved in the acquisition and preparation of potential
employees at dell.
2.1 identifying HR requirements-HR planning, recruiting employees and selecting
employees.
INTRODUCTION
The process used in planning, recruiting and selecting employees will be
evaluated .The advantages and disadvantages mentioned .
In identifying the HR requirement ,we will examine how the HR dept plans and
recruits.
Planning is the process of anticipating and providing for the movement of
people into ,within and out of an organization.(Snell and Bohlander 2007:48) .
Workforce planning is therefore an integrated and holistic resourcing planning
8
process that ensures that the right people are in the right roles to meet the
current organizational profit plan.(Nel et al 2008:216).It involves the
vision ,mission, goals, and objectives of both HR and the organization being
implemented in an organization.
Human resource planning is important because, it allows for:
1. More effective and efficient use of people at work
2. Greater employee satisfaction
3. Better developed employees
4. More effective employment equity planning.(kleynhan et al,2007:69).
The Process of HR Planning
Phase 1: Forecasting
The first activity of HR planning involves forecasting so as to determine labour
demand and supply. Techniques used include sophisticated and powerful
software packages that large and small companies can easily use.(Nel et al
2008:220).
Phase 2: Goal setting and Strategic Planning
The forecasted labour surplus and labour shortage will be used to determine
measurable goals for each particular skill area or job category. The organization
will then choose a strategy which will provide for the achievement of the set
goals.(Noe et al, 2008:185)
Phase 3: Programme implementation and Evaluation.
It involves the implementation of strategy so as to achieve the goals in phase 2.It
also involves evaluation of results of planning process.(Noe et al 2008:192
1. Actual staffing levels against forecast staffing requirement are comparison
that need to be made.
2. Actual levels of labour productivity against anticipated levels of productivity.
3. Actual programme implanted against action programmes planned.
Recruitment: The case study states that dell makes use of recruitment
agencies as well as search and selection specialist to source its staff. It also
advertises all available job internally and post them on it website. People can
also approach dell directly to find out about the current oppournities. Dell uses
9
both internal and external method to recruit. www.the free library.com (most
important aspect human resource management); Recruitment is almost central to
any management process and failure in recruitment can create difficulty for any
company including an adverse effect on its profitability and inappropriate levels
of staffing or skills.
INTRENAL RECRUITMENT. Can be said to be the practice of choosing amongst
the current company workers to fill a position that falls vacant over time. Methods
used in internal recruitment include, internal job sheet, company notice board,
and company intranet.
SOURCES OF INTERNAL RECRUITMENT
1.Job advertisement circulated to present employees.
2. Personnel records to identify present employees with potentials
3. Referrals from current employees.
4.Formal employees which include those who were laid off previously or have
worked seasonally.(Nel et al,2008:226)
EXTERNAL RECRUITMENT:
Is when a business recruits new staff from outside the business
SOURCES OF EXTERNAL RECRUITMENT.
1.Advertisment (placed in Newspaper, Magazines and internet)
2.Employment Agencies
3.Campus Recruitment
4.Direct mail
5. Customer: Who are often neglected, because they are familiar with the
organization and their products.(Nel et al,2008:227)
The advantages and disadvantages of internal and external Recruitment.
INTERNAL RECRUITMENT
Advantages Disadvantages
4. Provides greater motivation for
good performance
1. Creates `inbreeding and stale
ideas.
10
5. Provides greater promotion
oppournities for present
employees
2. Creates political infighting and
pressures to compete
6. Provides better oppournities to
assess abilities
3. Requires a strong management
development programme
7. Enables employees to perform the
new job with little lost time.
4. Creates a homogenous
workforce
EXTERNAL RECRUITMENT
Advantages Disadvantages
1. Provides new ideas and insights 1. Loss of time owning to adjustment.
2. The existing organizational hierarchy
remains relatively unchanged.
2. Present employees cease to strive
for promotion
3. Provides greater diversity 3.individual may not be able to fit with
the rest of the organization
Table 1(Nel et al table 8.4, 2008:225)
E-RECRUITMENT: Is a type of online recruitment; refers to the process of
recruiting via the internet(externally) and intranet(internally).(Nel et al
2008:227).Dell also makes use method in recruiting.
1. The benefits are lower advertising costs
2. Job advertisement receive local, national and international exposure.
3. Information about vacancies are accessible 24hrs a day.
4. Online communication device are used between organization and applicants
{Nel et al 2008:227)
SELECTION
Is the process of choosing the most suitable persons out of all participants. It
involves choosing the best of those recruited.(Nel et al,2008:239).The process of
selecting recruit was not enumerated in the case study. I will briefly consider
processes used to select below;
11
1. Preliminary Screening :This is the 1st step ,here individuals not qualified for
the job are quickly eliminated, if the minimal requirement are not met.(Nel
et al,2008:39)
2. Completion of application Form: The filled in application forms provide
pertinent information about the individual and are used in job interviews
and for reference check to determine the applicant suitability for
employment.
3. Interview: Is one of the most widely used tool, it is used to get information
from the applicant and to judge the applicant on the basis of the
information.(Nel et al 2008:244)
4. Employment Test: A test is basically a sample of a person
behaviour.Psychological tests are being used frequently in employee
selection, where it involves some aspect of an individuals
attitude,behaviour and performance.
5. Reference checking: A further selection method, it involves employees to
verify an applicants current position and salary, if he or she agrees and
knowing about his or her technical competencies.(Nel et al,2008:249).
6. Medical Examination: Applicants who have crossed the above stage are
sent for physical examination to determine if there are existing disabilities
and know the pre-employment status of the employees.
(Prasad .L.2005:242-243).
7. Employment: Is the final stage in the selection process, After the selection
steps have been taken, the human resource or management can then
take on the decision of employment. Employment can be offered in form
of an employment menitoring.The post, the rank, the salary grade, the
date and other terms and conditions and other contractual agreement
mentioned.(Prasad .L.2005:243).Appointment is made on probation of one
or two years, where upon satisfactory performance during the period, the
candidate is confirmed on the job.
2.2 TRAINING EMPLOYEES
12
Training can be defined as the planned effort by a company to facilitate
employees learning of job related compentencies.These competencies
include knowledge, skills or behaviours that are critical for successful job,
(Noe et al,2008:267).Companies are now investing million of dollars in
training programme to gain a competitive advantage.
THE TRAINING PROCESS:
1. NEEDS ASSESSMENT: This is the 1st stage in training and will indeed
identify the problems which could be poor performance, new technology or
job redesign.(Noe et al,2008;271).
2. ENSURING EMPLOYEES READINESS FOR TRAINING: Employees
readiness for training are evaluated through self-efficacy ,understanding of
the benefits and consequences of training, awareness of training needs,
careers, interest and goal.(Noe et al,2008:280)
3. CREATING A LEARNING ENVIRONMENT
4. ENSURING TRANSFER OF TRAINING: Employers should try and allow
employees who go on training to apply such skills.(Noe et al 2008:286).
SELECTING TRAINING METHODS.
In the case study, Dell invests in ongoing online and classroom training for
staff as well as on-the-job training and mentoring. In selecting training
method, we must determine if it going to be employee related or programme
related. As far as employee related issues are concerned ,it entails where and
how employees are to be involved such as in or outside of working time. while
programme related involves on-the –job or off-the –job training. Some of the
method used in training will be briefly evaluated.
Classroom Training: It involves a trainer who lectures a group of people. it
may include question or answers question session, discussion and case
studies to provide for participation.
ADVANTAGES
1. Less expensive
2. Least time consuming
3. Large number of learners. (Noe et al,2008:291-294)
13
On-the-job-training : Is usually used to train new recruit and to upgrade
skills of experienced employees.(Noe et al,2008:294).It allows workers to
learn because they actually perform the task on the job.e.g of methods
used include coaching, job rotation, understudy .(Nel et al,2008:465-466)
Advantage
The learner learns at her own pace and receives feedback on learning
performance
On-line training: Training over the intranet or internet. It allows for learning
oppournities and support via training by computers online. It could be on-
the –job or off-the job.
Advantage
1. Ability to deliver training to, learners anywhere in the world
2. Ability to control what they learn and speed at which they progress
through a programme. (Nel et al 2008:469)
Mentoring: When a senior employee takes an active role in guiding role in
guiding another individual we refer to this as mentoring. This is support
system guided by a mentor vouches for the candidates, answers for the
candidates in the highest circles within the organization, it also makes
appropriate introduction and advises ,guide the candidate on how to move
effectively through the system.
Disadvantages
1. It has the tendencies to perpetuate the current style and practices in the
organization
2. It relies on the mentor ability to be a good teacher. (David.A.,and
Stephen.P.2006:124)
INTERNATIONAL TRAINING: Dell employees are allowed to travel overseas to
further their training.
EVALUATION: This is the final phase in training. Snell and bohlander( 2007:311)
include four criteria for evaluation ie,Reaction,learning,behaviour and results.
While, Noe et al (2006:298) categorizes training outcomes as cognitive , skill-
based, Affective
14
outcomes and Result and return on investment. Skill-based, Affective and result
outcomes measured following training can be used to determine transfer of
training, i e the extent to which training has changed behavior, skills, or attitude
or directly influenced objective measures related to company effectiveness.
Question 3
Manager need to ensure that employees have the necessary skills to
perform current and future jobs through continuous
assessment ,development and management.
With regards to this statement, how the above is accomplished at dell. Your
discussion must consider the following:
3.1 Measuring employees` performance.
Performance can be measured through performance appraisal and performance
management.Perfomance appraisal is the process of evaluating and
communicating to an employee how he or she is performing the job and
establishing a plan for improvement (Iloyd.l.and Leslie. 2006:223).it should be a
future oriented activity. While, Performance Management is a holistic approach
and process towards the effective management of individuals and groups to
ensure their shared goals as well as organizational strategic objective.(Nel et
al,2008:493).Performance appraisal is a component of performance
management and it is usually measured on a short term basis.
The typical dell employee has a performance plan which is reviewed regularly,
as well as an individual development plan that is a working document…the
company identifies top performers every year and places them on an accelerated
development plan. This means that each dell employee is individually assessed
and also have individual development plan which they try to improve on,any
employee that is identified as being a top performer is placed on an accelerated
development plan, ahead of his or her peer. This development is to aid better
oriented results and serve as incentives to other employees at dell.
The case study also states that the company is a meritocracy where
employees are rewarded for good performance measured against a set of
metrics, this indicates that dell considers talent ,intellectual achievement and
15
excellence of performance worthier of reward than race or sex or social
status.Perfomance management can be measured through different approaches,
but before we discuss the types of approach used in performance management,
the purpose of performance management must be mentioned, this
are,Strategic,Administrative and development.(Noe et al 2008:332)
Strategic purpose: simply means linking employee activities to the organization
goal.
Administrative Purpose: it assist the organization with administrative decision
Development Purpose: This seeks to improve performance and develop
employees at their jobs.
TYPES OF APPROACH
1. Comparative Approach
2. Attributive Approach
3. Behavioral Approach
4. Result Approach
5. Quality Approach ( Noe et al,2006:340-359)
The approach used at dell can be said to be the result and quality approach,
the Result approach is based on the premise that results are the one best
indicator of how a subordinate performance has contributed to organizational
success (noe et al,2008:351).the technique used include:
a.) Management by objective(MBO) : Goal setting lies at the heart of
the MBO process, it involves long range objectives that cascade through the
organization department objectives and then to the individuals.
(Pieter.G ,Surrette.W,Michael.R and Norbert.F:2006:275)
16
Goal setting
Periodic review MBO Action planning
Self control
Figure1:
Action planning: It constitutes a road map for accomplishing their goals.
Periodic reviews: This mechanism allow the MBO measure progression towards
their goals. It allows employees discuss problems that they be having.(Pieter.G
et al,2006:276)
b.) Productivity Measurement and Evaluation System: It main goal is to motivate
employees to higher productivity.
2. Quality approach: It is aimed at improving customer satisfaction; it emphasizes
both internal and external customers in setting standard and measuring
peformance.the disadvantage include employees being held accountable for
good and bad results.(Noe et al,2008:354)
3.2 Preparing employees for future work roles:
Dell recruits top performers into their by offering sound career path, as well as
opportunity to develop their skills. Development is a formal education, job
experiences, relationship and assessment of personality that help employee
prepare for the future, it also involves learning that is not related to the
employees current job.(Noe et al,2008:383)
There are about three stages involved in creating a development programme.
1. The assessment phase
2. Direction phase.
3. Development phase.(Luis.R, Gomez. M, David.B, Robert.L,2003:300)
1. ASSESSMENT PHASE: It identifies employees strengths and weakness,
Common self assessment tools include, career workbooks, career planning
17
workshop. Tools used include, assessment centres,performance appraisal and
360degree feedback system, benchmarks, myers-briggs type indicator. (Noe et
al,2008;394)
2. DIRECTION PHASE: It involves the type of career employees want and steps
they must to realize their goals. methods used include
Individual counseling: One-to-one session with goals of helping employees
examine their career aspirations
Information service: It provides career development information to employees.
The most commonly provided information system are job-posting system, skill
inventories , career paths and career resource centers.(Luis.G et al,2003:304-
307)
3. DEVELOPMENTAL PHASE: It involves taking action to create and increase
skill to prepare for future job oppornities.Methods used includes mentoring,
coaching, job rotation and tuition assistance. Mentoring has been explained
above.(Luis et al,2003:309).Benefits of mentoring are advancement of the career
of the protégé by nomination for promotion or sponsorship, Counseling in both
work and personnel issues, there is usually better job performance and longer
service in organization who develop a protégé. (Pieter.G et al,2006:402).
Coaching: Is a peer or manager who works with an employee to motivate them to
develop their skills, provide reinforcement and feedback. Methods used an be
one-on-one sessions ie paring an employee with an expert.(Noe et al,2008:404)
Job rotation: Involves assigning employees to various job so they can acquire a
wider base skill.(Luis.R et al,2003:313).
Tuition assistance programme: Dell as an organization can do this to support
their employees education, it can range from seminars, workshop, degree
programmes to continuing education programmes.(Luis et al,2003:313).
The methods mentioned above can help the employees at dell to be prepared
for their future work roles.
QUESTION 4:
18
Dell is considered as an employer of choice because of its highly effective
compensation system. How can effective compensation system lead to
employee satisfaction or dissatisfaction, if they believe pay and benefits
are unfairly distributed.
Compensation refers not only to extrinsic rewards such as salary and benefits,
but also intrinsic rewards such as achieving personnel autonomy and more
challenging job opportunity . It also refers to all forms of financial returns and
tangible services and benefit employee receive as part of an employment
relationship.(Grobler et al, 2006:351). The table below shows the objective of a
good compensation system and how it can be achieved.
Compensation
objectives
Obtained by
1. Attract good
employees
Wage survey to determine the ongoing rate in the
labour market.
2.Retain good
employees
Job evaluation system.
Wage survey to determine the ongoing rate in the
labour market
3. Motivate employees Employees perceive as equitable
Reward good performance
4.Comply with the law Documentation of HR records.
Government legislation.
Table 2.(Adapted from Pieter Grobler et al,2006:351) figure11.2.
OBJECTIVE OF A GOOD COMPENSATION SYSTEM.
Boarse cited in Nel et al,2008:282 that the achievement of these objective is
influenced by several external forces.
1. labour market forces.
2. Collective bargaining
3. Government legislation
4. Top management philosophy regarding payment and benefits
5. Top management willingness to recognize individual ability and efforts.
19
The case study mentions that dell pays market related salaries, this indicates that
there is some level of comparison with the wages other PC company ,this also
indicate EQUITY. The equity theory argues that a person compares her own ratio
of perceived outcomes ( e.g pay, benefits, working condition) to perceived inputs
(e.g efforts, ability, experience )to the ratio of comparison with others. If equity is
perceived ,no change will occur in the employees behaviors, attitude and vice
versa. (Noe et al 2008:487)
Effective job compensation can lead to employee satisfaction, if employers
follow certain step in determining the value of job done within their organization,
These include
a. Conduct job analysis
b. Identify compensable factors
c. Develop job hierarchy
d. Construct Job grades
e. Carry out compensation survey.
f. Establish final pay policy. (Nel et al,2008:288)
a.) Conduct job analysis- The process of describing and recording the
purpose, task, and characteristic of job in a given organization setting to
determine match for individual skill, knowledge and need.(Nel et
al,2008:289)
d.) Constructing Job grades: All the job in a given grade are seen to be
essentially the same ,they are paid relative to each other and to the other job
in the organization.(Nel et al ,2008:291).
f.) Establishing final pay policy- Company must decide whether to take the
lead, lag behind or pay he same as other industry players.(Nel et
al,2008:291).
INCENTIVE PAY SYSTEM : It is geared towards measurable performance
results like cost savings, sales
MERIT PAY SYSTEM: Links pay to performance by basing, employee annual
increase on performance appraisal. It has the dissatisfaction of discouraging
20
team work and difficulty in attracting suitably qualified employees. (Noe et
al,2008:530)
PROFIT SHARING : Involves all or certain group of employees sharing in a
non-deferred pool created by percentage of the profit. The dissatisfaction is
that employees fail to see the relationship between work performed and
organization profits.(Nel et al,2008:295)
GAIN SHARING- Is usually tied to achievement of very specific goals for
productivity, quality improvement, and cost effectiveness. It can lead to
dissatisfaction because one might not be able to determine the role
employees had in achieving these goals.
GROUP INCENTIVE AND TEAM AWARDS: It involves rewarding employee
at level of the group.The satisfaction is that competition between individual is
reduced ,while creating dissatisfaction by replacing it with competition from
outside team.(Nel et al,2008:295)
Dell can satisfy its employee by introducing a mix of these compensation
programme to meet the needs its employee, the Balanced Score Card
approach should be used, it enables companies to track financial results while
monitoring progress in building capabilities and acquiring intangible assets for
future growth.(Noe et al,2008:543).
In conclusion, to ensure the effectiveness of compensation system,
emphasizes used be made on :
1.) Organization should take note of the fact that not only incentive pay plans
impacts on productivity and performance but also on the manner in which
employees are treated.
2.) Effective communication should take place to ensure that employees
understand the incentive the incentive based compensation system
3.) Employees should participate in decision relating to incentive compensation
system. (Noe et al,2008:546-548).
CONCLUSION: Dell is a leading PC organization that integrates its human
resource environment with the company business objectives.
21
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Singapore :john wiley and sons
Graham,H (1998) Human resource management.9 th edition . London:
Prentice hall.
Gupta,c.(2006) Human resource management. Revised edition. New
Delhi: Sultan chand and sons.
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