Factors influencing the various Compensation Packages - Free Essay Example

Sample details Pages: 11 Words: 3295 Downloads: 10 Date added: 2017/06/26 Category Economics Essay Type Cause and effect essay Did you like this example? The main purpose of this project is to describe about compensation packages and factors influencing in this packages. And also discuss the impact of staff turnover and the employee absenteeism ratio which effecting the organisational productivity. Bangladesh is a developing country. Don’t waste time! Our writers will create an original "Factors influencing the various Compensation Packages" essay for you Create order According to UNDPs Human Development Report 2007/2008 Bangladeshs rank is 140th out of 177 countries. In Bangladesh, 40% of total population lives below the poverty line. In other report of Bangladesh Garments Manufacturer and Exporters Association (BGMEA), 2007 it shows that garments sector provides maximum export (76%) of total export in Bangladesh and 1.7% of total population of Bangladesh is working in Garments industries. Ready made garments exports mainly are doing in the European market US market. The ratios of exports are 49% to European Market, 33% to the US market rest (18%) to other countries. In a report shows that due to a strong demand for skilled labour combined with insufficient wage and discontinuity of payment, dissatisfaction of job, bad attitude in job etc. there is high level of migration of workers between factory to factory, and the average turnover is around 20% and absenteeism ratio is also increasing. Methodology: Secondary data is the main source of d ata of this project. I collected information from internet, journal about Bangladesh labour issue, some local magazine and newspaper, and books of human resource management. This project is based on exploratory research. I share my personal experience in based on my previous work. Literature Review: According to Bratton (2007) Reward refers to all of the monetary, non-monetary and psychological payments that an organization provides for its employees in exchange for the work they perform. So, reward can be wages, pay, money, recognition, compensation, psychological contact, promotion, etc. according to Human capital centre tool box series rewards can be anything which is receiving something in exchange for services or actions. However, the worker is getting return from their employer for the work done, can be describe as rewards and rewards is used for various terms or purpose. Earlier reward used only as the term payment (Torrington et al, 2005) but currently it find as bein g too narrow in extent people do not accept only financial form as a reward on the return of their work, they like to take non-monetary and recognitions for their work (Bratton Gold, 2007). And I used compensation the term as motivational factor. The term compensation is broadly used in the American literature alternative to reward (Torrington et al, 2008; Armstrong, 1998 cited on Bratton Gold, 2007). Moreover, the design of reward systems depends on two factors i.e. economic and social factors. Nowadays managers are forced to improve labour productivity and the quality of the products and services based on the local consumer tastes and different local markets. A better social environment between management and other employees of the organization and employee believe and organizational loyalty, all work to the concept of high-commitment-high-performance work coordinations reward which positively helps to improve the performance of the firm (Paauew, 2004 cited on Bratton Gold 2007). Kessler (2001) identified reward role as performance-related pay which plays vital system within the workforce. Paauwe (2004) state that reward management can be interrupt by the social and psychological factors and reward is a significantly essential in lead to system of impartial distribution. And helps to decision making by creating a employees conception of equality and reliance (Boselie et al, 2001). Due to problematic nature of pay system Brown (1989) describes that the reasonable management of compensation is necessary for the involvement of the adequate management, it is not prerequisite to be satisfy. (Bratton Gold, 2007) Furthermore, Bird and Beechler (1995) cited in Briscoe Schuller (2008) established that employee performance (e.g. morale and turnover rate) in firms that successfully adopted the strategic fit concept was significantly better than in firms that did not do so. Although managerial performance (e.g. profit margin and sales) was also better, the d ifference was not significant. The concept of fit refers mainly to the close linkage of HRM strategies and business strategies in ways that will help retain and motivate employees. Yes it is very good point retain and motivation of employee, as because every organisation aim is finding way to keep there employees. Motivation is one of them; it can be two types money and appraising employee. In most of the case money is main motivational factor for the employee especially in Bangladesh. The reason why money is the main factor then we can see from table 1 about the monthly income of average employee is low and there life status is not much standard based on there income and expenses. So they always looking for better opportunity when ever they got good offer from other company they migrate or switch the company. Main body: Compensation System Analysis: Saiyadain (2006) describes that I am only marking my time in this organization till I get a better paying jobÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦[4] Financial compensation represents a part of total reward system in an organization. Even though for the overall satisfaction of the employees money still plays a significant, more constant and more difficult role. The major responsibilities of HR managers are to give compensation or pay employees for their work and increasing structures of compensation packages. As because a good pay packages helps the organization for talent hiring and retaining employees for long time that necessary for the high productivity (Saiyadain 2006). Determining Compensation: According to Saiyadain (2006) to set the compensation structure is the most complicated and time consuming activity of HR manager. This decision is depends on a numbers of variables which are discussed as bellows: Trade Union: Trade union is one of the im portant variable in determining the levels of compensation because they always pushing organization and force to pay better compensation for the employees. Hiring and retain talent: Better pay structure works significant role in the organization to attract and retain talent employee. A good compensation system helps to influence a great number of applicants where organization may get the opportunity to select the best candidate among them. Region-cum-industry basis compensation: In Bangladesh context organization has to determine compensation structure based on the region-cum-industry. Organization cannot afford to pay less than region-cum-industry due to chance to lose the employees for their better opportunity. And on the other hand organization they are not allowed to give high compensation because the pressure of the other organization. Job security: Some times employees are looking for good reputed organization where jobs are more secured. And they are not giving prefe rences which are providing high compensation but hire-fire is the regularly happened in the organization. Ability to pay: Ability to pay is also a factor in determining the compensation. Sometimes organization is not affordable to pay high compensation due to the size and profitability of the organization. The Civil Rights Act 1964 or Equal Pay Act: The civil rights act which is determine the standard minimum wages of the employee based on living expenses and life status. This law also covers not to discriminate man or woman in the workplace who are doing same values and equivalent job. Methods for Determining Compensation: Saiyadain (2006) describes there are two broadly uses methods for determining compensation such as salary survey and job evaluation. These are discusses as follows: 1. Salary survey: HR manager can determine compensation by conducting a survey in similar industries for similar positions. It is quick and less expensive way to determine compensation. Th is survey could be done at two levels such as organizational and professional levels. In the organizational level the HRM department responsibility to undertake a study to find out equivalent compensation package in the similar industries. They can collect data from different source for example checking with HR managers of similar industries, collect information about compensation packages from newspaper advertisement and electronic media including websites for related jobs in similar industries. In addition HR department also can arrange a formal salary survey to determine compensation. However organization can determine compensation with the help of professional consultants who are expert in this sector. They use variety of technique to suggest compensation package (Saiyadain 2006). 2. Job Evaluation: Bloom (1998) cited on Torrington et al. (2002) describes job evaluation is a systematic process designed to aid an establishment in establishing differentials across jobs within a single employerÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦ The culmination of this appraisal process is a hierarchy of jobs denoting their relative complexity and value to the organization. This method is the way to build up a connection between the employee contribution and compensation for this contribution. It is a good method to evaluate employee skills and also helps to show the best performance in a job. Job evaluation is the best way to observe the outcomes of skills, capabilities, measures the responsibilities and work environment which is closely related to the best performance. Basically it does not set the value of job but it gives foundation for it. And this is a performance appraisal technique which helps to improve the job descriptions and requirement (Saiyadain 2006). According to Saiyadain (2006) there are four methods of job evaluation. These are ranking method, job classification, point system and Factor comparison system. These methods are discusses as below: Ranking met hod: This method is the simplest method of job evaluation. In this method the whole job is being categories based on the difficulty level. For example in garments industries employer segments operator in 4 different levels such as Tr. Operator, Jr. operator, operator and Sr. operator. They categories based on the skills and experience but there is not specific way to indicate the performance levels. It is only showing the difficulty levels of the jobs. Job Classification: This method is identifies the classes, categories and grades of job. This is a grading systems of job for example in garments industries there are some operation which are important for making garments but normally anybody can not do that process with maintaining target. In this method it classified or grades the operation such as A grades, B grades, and C grades operation and performance ranges such as above 80% is very good, 60% 79% good, 40% 59% average and below 40% is poor. This is the good method of clas sify operators grades. Point System: It is a most practical method of job evaluation as because operator in garments industries may have variety of skills. Each segmented operations are important in the garment industry with 100% target and this is important for the company productivity. One operator can do several good categories operation with 100% target or some average operations with 100% target but on the other hand one can do several good categories operation but only can give the 60% 80% target in that case point system is the best way to evaluate operators performance and influence to improve their performance. Factor Comparison System: This is a complicated and expensive method due to it required consultation of professionals and specialists for judgment and assessment of jobs. In this method it compared the money value of one factor in one job with the money value of the same factor in other job. This is a more suitable method because it is structured based on the well-known compensation systems (Saiyadain 2006). Labour turnover analysis: Some consultants, academics and management gurus states that There are no longer any jobs for lifeÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦[3] Torrington et al. (2002) argued about the impact of staff turnover rates is depends on the organization to organisaiton. In some organization is successful in business with high turnover rates which are impractical to function in other sector due to the different in operation and difficult to replace skill workers. For example in some chains of fast food restaurants are generally managing business and become successful with turnover rates in excess of 300 percent that means standard occupancy for each employee is only four months (Ritzer 1996; Cappelli 2000). On the other hand, in a professional service organization where personal relation is more important between employees and clients to organizational success, it is badly hampered to the organization if the turnover rate s are excess of 10 percent. Bevan (1991) cited on Bratton Gold (2007) indicates several causes for high staff turnover. He identified that pay in not only the reason for staff turnover and there are some other factors works on that issue. They are follows: Employee expectation: The employees expectations are not matching with the job such as bonus, benefits, holidays and etc (Torrington et al 2002). That factors causes dissatisfaction of job. It is more likely happened with the new employees of the organization. A lack of attention: Employees are found that managers are not giving attention to them and they are not providing supporting training to develop themselves. For that reason they are not well perform in the job. Work environment: Work environment is not friendly with the employee such as lack of freedom in work, limited responsibility, no challenging environment and there are no innovative works within the organization. Appraisal system: Some organization doe snt have the proffer evaluation systems. So employees are disappointing with the unfair promotion and worried about the development opportunities system. Management system: Due to unskilled management and their unfair treatment with the employees and lack of knowledge of how to motivate employee. Gregg and Wadsworth (1999) cited in Torrington et al. (2002) demonstrate in their study of 870,000 workers starting new jobs in 1992 out of that 17 per cent had left within three months and 42 per cent within 12 months. The above discussion of all issues are the main reasons rather than pay issues which depends on the employees, management, the work environment and organizational systems what welcomes staff turnover rates in the organization. Saiyadain (2006) point out that I changed my previous job to this because it pays wellÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦[4]. So pay is the crucial issues for quitting job. According to Torrington et al. (2002) there is some argument in the reten tions literature about raising pay levels reduces staff turnover. In one side some researcher found that usually, employers who offer the most attractive reward packages to the employees have lower turnover rates than those who pay poorly (Gomez-Mejia and Balkin 1992), for that reason many organization uses pay rates as their major weapon in retaining employee (Cappelli 2000; IRS 2000a; IRS 2000b cited on Torrington et al. 2002). On other research based on questionnaire suggests that pay is a good deal and less important than other factors in a decision to quit ones job (Bevan et al. 1997; Hiltrop 1999 cited on Torrington et al. 2002). In a study Sturges and Guest (1999) cited on Torrington et al. (2002) point out that in the field of graduate employment pay rising is not vital factors for quitting job that only resulting greater job satisfactions but they wants more challenges and innovation within the job roles. In addition, a result of research cited on Torrington et al. (2002 ) appears to verify the views of Herzberg (1996) where he indicates pay as hygiene factor rather than a motivator. Therefore it shows as a cause of dissatisfaction at work, other than not of positive job satisfaction. People who are not get paid well by the employer they automatically motivated to leave the job but if they satisfy about their pay, the additional benefits do not effect to change their mind to quit job. Absenteeism analysis: In everyday life employees need a little extra effort to come to work in an emergency. A little little problem makes a tremendous impact on work attendance such as problem with bicycle, a drizzle, a small tiff with spouse and several such types of incident. But it depends on satisfaction or dissatisfaction of work and for the dissatisfied worker these minor problems becomes the major issues for missing from work on the other hand for the satisfied worker is totally irrelevant. However, it causes extra cost to cover this situation. An organizati on has to recruit extra manpower or retaining large number of manpower as they required due to the increasing rates of the fact of absenteeism. Bhatia and Valecha (1978) cited on Saiyadain (2006) defines that organization has to retain extra 10 per cent workforce of the total workforce. However, there are several definition of absenteeism are available and most of them are describes absenteeism as absence from work when one is expected to work. Absence from work could be happened several reasons such as inability or unwillingness to come to the works. Any absence with prior notice or approval did not count as absenteeism only unexpected sickness or injury is counted as absent. Moreover, According to Sinha and Nair (1965) cited on Saiyadain (2006) study on absenteeism shows that the lower job satisfaction is causes the higher rates of absenteeism. They classified their research based on respondents in two groups as low absentee and high absentee group. Their result also points out that low absence groups are more satisfy with their job than the high absence group. Case analysis: Pacific Jeans Ltd. is one of the leading garment industries in Bangladesh. They are working with world renowned buyers like GAP, HM, NEXT, Lee, Wrangler etc. This company introduced modern technology with high-tech machine which is ensured high quality product and increases there production upto 20% annually. Up to year 2004 they use to set compensation packages without any job evaluation process. They only were taking the recommendation from manager to determine compensation of the employee. But that was not fair system and it was badly affected to the employee. Due to that unfair system operators turnover and absenteeism ratio was surprisingly increases where company loosing there productivity and efficiency. For finding the solution of that company introduces a new team whose duty is to find out the problem and give the best solution for that. However, this team introduce s operator ranking method of job evaluation like Tr. operator, Jr. operator, operator and Sr. operator where any have chance to go any categories with showing high performance. They also introduce process or operation classification method like A B C grades based on the difficulty of the operation. Therefore every operator was motivated himself to do good grades operation which helps him/her to promote themselves. Moreover, the team finds out the solution about the new operator recruitment process which helps to select the best and necessary operator the team. They taking cycle time (cycle time is observed time of a process how long it takes to complete the operation) of operation (at least 10 cycle) with the help of stop watch which the operator knows best and calculate the capacity of the new operator with giving 10% 20% allowance (for example bobbin change, needle broken, thread cut etc.) based on the operation categories (see appendix I). Based on his/her capacity and doing which grades operation it can easily identify the ranking of operator and determine the compensation package. It is fair judgments system for the operator. So far that is best and fair way to evaluate the operator. As a result of fair evaluation system and compensation packages operators are motivated to do best performance and reduces the absenteeism and turnover rates that lead to high job satisfaction to the employees. Conclusion: Compensation is a crucial issue for the employee. If an employee is not well compensated for his contribution then s/he is not happy in his job. So it guides employees to increases absenteeism and turnover. There is a proverb that money is sweater than honey. Every body in any organization is work for survival for the fittest especially in the developing country or poor country. From the analysis of compensation system it could see that how fair judgment effecting employee mind and motivate the employee turn into satisfaction or dissatisfaction of jo b. Human Resource Management is playing a vital role in an organization to change all the factors by taking some necessary steps about employee motivation. Finally it can say that good compensation packages for employee works as motivational factors in an organization while it reduces absenteeism and turnover rates in an organization on the other hand it also helps to increases company productivity.

LAY CONCEPTS OF HEALTH Free Essay Example, 1000 words

Particularly, Herzlich (1973) discovered that lay people linked illness and health to lifestyle: the participants shared the belief that stress, fatigue, and other adverse tensions associated with urban living could either exacerbate an illness caused by other factors or generate an illness on their own. Based on this finding Herzlich (1973) justified the lay concept of duality of health. According to that concept, health is an endogenous (within a person) thing maintaining of which requires constant struggle against a variety of exogenous (external) factors that cause illness. A series of subsequent studies further explored the links revealed by Herzlich (1973) across a range of ages, sexes, occupations, social classes, cultural backgrounds and other variables to discover the most essential features of lay beliefs about health and illness. Most of these studies exposed the variation between lay perception of health and illness and direct social and material conditions of participants. The origins of lay conceptions of health were also identified. These findings were brilliantly summarized by Stacey (1988) in the following statement: â€Å"Ordinary people develop explanatory theories to account for their material, social and bodily circumstances. We will write a custom essay sample on LAY CONCEPTS OF HEALTH or any topic specifically for you Only $17.96 $11.86/pageorder now These they apply to themselves as individuals, but in developing them they draw on all sorts of knowledge and wisdom, some of it derived from their own experience, some of it handed on by word of mouth, other parts of it derived from highly trained practitioners. Thus lay explanations go beyond common sense, in that explanations beyond the immediately obvious are included† (p. 142). Perception of health as functional capacity is also a common characteristic of lay health beliefs (Blaxter, 2004). Lay people treat ‘good health’ as the ability to normally fulfill the duties inherent in their social and/or economic roles. This means that health may be perceived as the absence of illness on the one hand and as the ability to successfully cope with one’s duties despite illness. Such concept of health is predominantly shared by representatives of the middle class and the elderly who, therefore, viewed health as a sort of reserve e nabling them to cope with illnesses. By contrast, those people who have poor health are less likely to adopt the functional conception of health (Blaxter, 2004). The notion of so-called ‘candidacy’ is an important feature of lay health concept. This notion is used by lay persons to explain relative risk of illness and effectiveness of preventive behaviours.

Rene Descartes Free Essays

Rene Descartes Rene Descartes was a brilliant man. His works on philosophy, physics and mathematics are still heavily influenced much to all of these studies today in our modern world. Descartes was born in March 31, 1596 in La Haye, France; he was named after one of his godfathers, Rene Bruchard des Funtaines. We will write a custom essay sample on Rene Descartes or any similar topic only for you Order Now Descartes parents were Joachim and Jeanne Descartes, he also had one brother and one sister and two half siblings. Growing up Descartes had health issues â€Å"infirmity of the lungs, (Rene Descartes). When he was enrolled in school around eight years of age at Jesuit college La Fleche in Anjou he had permission to wake up at eleven in the morning instead of earlier like all the other school kids, in regards to his fragile health. Descartes kept this daily routine for almost the rest of his life he believed that, â€Å"the only way to good work in mathematics and to preserve his health was never to allow anyone to make him get up in the morning before he felt inclined to do so; an opinion which I chronicle for the benefit of any schoolboy into whose hands this work may fall, (A Short Account of the History of Mathematics’). Descartes left school at around 1912 and they began to study law at Poiters, and graduated with honors for his degree and license in law, although he di dn’t pursue a law degree. In 1617 Descartes chose to join the army rather than the church; He served in the army of Prince Maurice of Orange and then Breda. He was more of a mercenary for the Catholics and Protestants. One day in late fall of 1618, Descartes was walking around and saw a Dutch placard, which spiked his curiosity; and by luck the person he stopped was Isaac Beckman. Beckman was a highly educated Dutch philosopher; he translated for Descartes in return if Descartes would work out the problem. After a couple of hours passed, intrigued by Descartes, Beckman â€Å"sparked his interest in mathematics and the New Physics, he concluded that his real path in life was the pursuit of true wisdom and science, (17th Century Mathematics-Descartes). † During his leisure time in the army, Descartes studied mathematics; in November 10th-11th, 1619 he had a series of dreams that he believed is one or the most important days of his life. The visions he had were his first ideas of new philosophy and his works of analytical geometry. He continued to serve in the army under his family traditions and influence and was persuaded to volunteer under Count de Bucquoy in the army of Bavaria, and then he resigned his commission in 1621. Descartes traveled throughout parts of Europe for a couple of years still purely giving himself to mathematics in 1628 while residing in France he met Cardinal de Berulle, the founders of the Oratorians. Berulle loved his conversation with Descartes, â€Å"and he encouraged Descartes to devote his life to the study of truth, (Rene Descartes-Biography). For the nest twenty years Descartes lived in seclusion in Holland and made regular trips to France. In the course of time Descartes wrote a piece of his collections, â€Å"Le Monde†, he didn’t want it to be published in that time; because the Catholic church had burnt all of Galileo’s Dialogue Concerning the Two Chief World Systems (1632) and him in house arrest. Descartes had lived in fear the same thing could happen to him if he didn’t correspond with the rules. Yet he was book â€Å"Le Monde† was published many years later. Despite not being able to release that book, he did write another book in 1633 and was published in 1937. â€Å"In 1637 Descartes published Optics, Meteorology, and Geometry, a collection of essays. The preface to the collection is titled Discourse on the Method of Rightly Conducting the Reason and Seeking the Truth in the Sciences, (Rene Descartes-Biography). † â€Å"La Geometrie† is what his contribution to mathematics is still used till this day. Before his discovery mathematicians used capital letters (A,B,C) for known quantities in algebraic notation and unknown quantities were lower case letters (a,b,c). In the â€Å"La Geometrie† he gave his ideas and instead of using capital and lower cases letters, he shifted it to just (a,b,c) as know quantities and (x,y,z) for unknown. In that time he also in verbal expression of exponents such as â€Å"square, cube at etc†, he replaced it with numeral superscripts. Descartes argued that, For the square of a magnitude did not differ from it in kind, as a geometrical square differs from a line, rather, the square the cube and all powers differed from the base quantity only in the number of â€Å"relations† separating them respectively from a common unit quantity. That is since: 1: x=x; x2 =x2: x3=†¦ (Descartes: Mathematics and Physics) Descartes â€Å"rule of signs† a law given for determining whether the number of positive or negative real roots of polynomials â€Å"Descartes’ â€Å"rule of signs† does not give the solution of a polynomial equation, but it does give information on the number of positive and negative roots of the polynomial, (17th Century Mathematics-Descartes). † He also proposed in â€Å"La Geometrie† that each point in a two dimension form can have two numbers on a plane, giving a horizontal and vertical locations; which is known as Cartesian coordinates. He used perpendicular lines (or axes) crossing at a point called the origin, to measure the horizontal (x) and vertical (y) locations, both positive and negative, thus effectively diving the plane into four quadrants, (17th Century Mathematics-Descartes). † With the Cartesian Coordinates, Descartes showed that the x and y axis supported simple equations of straight lines, to more complex coordinates of equations with different exponents. For example y=x2+4 is a curve parabola. Descartes was more famously known as a philosopher giving his two sense in things and pursuing to uphold the truth. He continued to keep adding to his collections of writing Meditations, Principia Philosophiae and others. In 1649, Queen Christina of Sweden invited Descartes to live in Stockholm to tutor her in philosophy and she insisted in working with him at 5 in the morning; which he was used. The early hours and the harsh weather affected his health and he died of pneumonia in early 1650. Besides his great deal of being dubbed â€Å"the father of modern day philosophy† Descartes math contributions are value of us today. His idea of the Cartesian coordinate is in our mathematical calculators and the coordinates are what we use in math in almost all grade levels. Without Descartes influence exponents wouldn’t have been as simple, and also being able to determine positive and negative real roots. Descartes believed everything can be related to math and that there was always an answer, even if it was imaginary numbers too. His contributions in all areas of studies helped shaped the modern studies. Rene Descartes was a brilliant man indeed. Works Cited Ball, W. W Rouse. ‘ A Short Account of the HIstory of Mathematics’ (4th edition). 1908. Biography, Complete Dictionary of Scientific. Descartes: Mathemtics and Physics. 2008. December 2012 Encyclopedia. com. Rodis-Lewis, Genevieve. â€Å"Descartes’ lofe and the development of his philosophy. † Cottingham, John. The Cambridge Companion to Descartes. 1992. p 21-58. School, The European Graduate. Rene Descartes-Biography. http://www. egs. edu/library/rene-descartes/biography/. Unknown. 17 Century Mathematics-Descartes. How to cite Rene Descartes, Essay examples