MG4031 Week 08 Lecture 02 PDF

MG4031 Wk.08 Lec.02 Pay and Benefits: Rewards can be classified under two main headings: Intrinsic Rewards: Coming from the job itself, including autonomy, responsibility and challenge. Extrinsic Rewards: More tangible rewards including pay, job security and working con...

MG4031 Wk.08 Lec.02 Pay and Benefits: Rewards can be classified under two main headings: Intrinsic Rewards: Coming from the job itself, including autonomy, responsibility and challenge. Extrinsic Rewards: More tangible rewards including pay, job security and working conditions. Lawlor’s key factors influencing satisfaction with a reward: 1. It depends on the amount received versus what the person feels they should receive. 2. It is influenced by comparisons with others. 3. It affects overall job satisfaction. 4. People differ in the rewards they desire and the value they attach to those rewards. 5. Many extrinsic rewards only satisfy workers because they lead to other rewards. Factors determining pay packages: Organisation’s ability to pay Labour market conditions Comparable rates elsewhere Bargaining strength of the union Types of payment system: Flat Rate Only: A fixed hourly/monthly rate. Easy to implement and understand, ensure stability, used where specific performance criteria are hard to establish. Flat Rate + Payment by Results: Offers a direct incentive. They can be difficult to establish and may encourage rushing. Merit Rating: Bonuses can be earned based on a systematic assessment of their performance, which is evaluated against specified objectives. It is difficult to accurately measure performance, however. Profit-Sharing: Bonuses correspond to company performance. It can increase employee commitment to the organisation. Piecework: Paid for each piece of work completed, doesn’t guarantee an income, payment is solely on performance. Employee benefits (some statutory) include, maternity/paternity leave, child-care facilities, career breaks, holidays, health insurance, sports facilities, additional holiday pay, cars, pension schemes and sick pay. Performance Appraisal: A process that assists in the collection, checking, sharing and use of information gathered from and about people at work, with the objective to achieve and maintain high performance standards to ensure company success. Other objectives include: Determining how well the employee is meeting the job requirements Determining any training or development needs Identifying people with potential to take on wider responsibilities To provide a basis for assessing and allocating rewards To facilitate communication between managers and staff To develop motivation and commitment by providing regular and scheduled opportunities for feedback on performance and improvement. Appraisal Techniques: Ranking – Best to worst – Simple but subjective Paired Comparison – Compare 2 people – Simple but subjective Critical Incident - Objective but time consuming Free form – General, no format – Flexible but subjective Self-Assessment Assessment Centre Performance oriented systems Rating Training and Development: The following learning principles can be applied when designing and implementing training in a firm: Motivation to learn Involvement of learner Meaningfulness of the training Reinforcement learning Feedback Training: A planned systematic effort to modify of develop knowledge, skills and attitudes through learning experiences to achieve effective performance in an activity/range of activities. Development: The general enhancement and growth of an individual’s skills and abilities through conscious and unconscious learning, with a view to enable them to take up a future role in the organisation. Factors like new technologies, increasing global competition and the emergence of skill gaps in some industries have increased the need for training and development. Stages of training and development: 1. Develop a Training Policy: This ensures that employee training needs are met and that the resources for them are available. 2. Identify Training Needs: Compare what is happening against what should be. Surveys are often used to identify who needs training, the standard the training is expected to achieve, the current training arrangements and suggestions for improvement. 3. Plan and Conduct the Training: Training methods include on-the-job, coaching, counselling, mentoring, projects, lectures, discussions and online. It should focus on activities closely related to the job being performed. 4. Evaluate Training: To ensure that control can be maintained and that assessment can be carried out. It can be evaluated at a formal and an informal level in the firm. Employee Relations: Industrial Relations: The study of employment rules and their variation over time. The institutional provision in place for managing the relationship between the parties to the labour process is employment relations. It is important to take all employer, employee and state interactions into account. Procedural Rules: Methods for formally handling specific issues that may arise. Substantive Rules: Detailed outcomes of negotiations. Pluralism: That a basic conflict of interest exists between management and labour and that this conflict can be optimally handled through collective bargaining between employers and trade unions. Unitarism: A mutuality of interests between the parties to the labour process. Trade Union: A body that aims to unite workers with common interests, by defining them, expressing them and advancing them. Objectives include: Achieving satisfactory pay and conditions and providing services to members.  Replacing individual bargaining with collective bargaining. Developing a political system where workers have a greater influence on decisions. Trade unions can be: Craft Unions: Where workers have a skill in a trade where entry is restricted by apprenticeship or otherwise. Often protective of the trade, e.g. Connect. General Unions: Cater for workers regardless of skill/industry. E.g. SIPTU. White-Collar Unions: Cater for professional, supervisory, clerical and managerial staff. E.g. ASTI, INMO, TUI. There are usually three levels of a trade union: 1. Workplace Level: Shop stewards represent the union on the member’s behalf. Their functions are to recruit union members, to negotiate with management, to liaise with the union and to represent workers in grievance or disciplinary issues. Also at the workplace level is the section committee. 2. Branch Level: Made up of employees from different organisations in the same location. The branch manages internal union affairs, managed by the branch committee, elected at the branch AGM. A branch secretary serves the committee and members, they may be full time. 3. National Level: Union officers are elected. Motions about the union and policies are discussed and voted on. An annual delegate conference takes place. The national executive is responsible for carrying out the decisions of the annual delegate conference. It appoints union staff. The general officers are usually general president/VP/secretary/treasurer. ICTU (Irish Congress of Trade Unions): The central co-ordinating body for Irish trade unions. Its goals are to: Represent and advance the economic and social interests of working people. Negotiate agreements with government and employers. Promote the principles of trade unionism by campaigns and policies. Provide info, advice and training to unions and union members. Assist in resolving disputes between unions and employers. Regulate relations between unions and rule on inter-union disputes. Employer Associations: Aid in the conduct of employee relations. To represent employers’ views to government  To create an environment that supports business To ensure that legislation supports employer’s views on employee relations matters To aid employers IBEC (Irish Business + Employers’ Confederation): Represents the interests of business in Ireland, formed in 1993. Dedicated to providing a favourable environment for economic growth, investment and employee/industrial relations. Represent employers to government, unions and the EU Provide conferences, seminars, stats., etc. on employer related topics Consultancy services on things such as HRM, training and development and health and safety. Trade Associations: For trade and commercial relations. WRC (Workplace Relations Commission): Established in 2015. Promotes the improvement of workplace relations Encourages conformance with labour and employment laws Advises the minister on the application and import of relevant labour and employment legislation Conducts research and issues findings to relevant parties Led by a Director General and a board of a chairperson and 8 members. They provide advisory, conciliation, mediation, adjudication and inspection services. Labour Court: The appeal body for all WRC decisions. Established in 1946. 13 members, chairman and deputy chairmen (4) - appointed by the minister, four IBEC members and four ICTU members. References: Tiernan, S. and Morley, M. (2019) Modern Management : Theory and Practice for Students in Ireland, Fifth edition. ed, Dublin, Ireland: Institute of Public Administration, pp. 194-222 MG4031 Lecture Slides