Academic literature on the topic 'Compensation management. Personnel management'

The article is devoted to the study of the theoretical platform of the personnel management system. One of the key problems remains the lack of unified methodological approaches to personnel management, which needs innovations, where workforce planning should be formed according to the company's development strategy, and additional professional training and retraining support innovation. The methodological base of the study includes the theoretical provisions of personal management. The theoretical and practical significance of the study is to substantiate the need to improve the personnel management system based on innovations in social and labor relations. System approaches covering the functionality of HR-service in a particular company and the workload of employees of this service are highlighted. It is proved that it is advisable not only to stimulate organizational behavior and encourage high-performance work, but also to motivate employees to maximize the implementation of human capital, including creativity to achieve goals. Identify and describe the direction of introduction of innovations in personnel work: the first is staff development and management of business career; the position of the employer, which involves first invest in employee knowledge and then to profit at the expense of increased loyalty; the second is the alignment of the model of material employee compensation for work performed.

This study aims to extend the argument about the association between HRM and Total Quality Management (TQM) in insurance companies in Jordan. It is argued that the consideration of TQM can be supported in terms of configuration as an effect of Human Resource Management (HRM) in the presence or absence of other HRM practices. Data for this study were collected from 24 insurance companies listed on the Amman Stock Exchange and 342 employees. PLS-SEM was used to analyze the data collected through path analysis. Structural equation modeling was used to examine a causal relationship between the variables. The overall effect of HRM on TQM was explored to improve quality orientation and people criteria in insurance companies. The findings have indicated a significant and positive effect of teamwork, staffing, performance appraisals, and compensation on TQM. However, training and development have a negative, but significant impact on TQM. In addition, TQM significantly and positively affects the HRM of an organization. Performance was also positively and significantly affected by HRM. TQM is an important factor of HRM in insurance companies. AcknowledgmentThe authors are very thankful to all the associated personnel in any reference that contributed to the purpose of this study.

In this paper we reviewed the significant court cases which laid the foundation for the compensation of stress-related problems under Workers Compensation Laws of various states in the country. The significance of the court rulings are discussed in relation to routine personnel decisions. The last part of the paper is devoted to discussing certain recommendations to corporate management.

Abstract. Human Resource Management (HRM) is all activities related to the recognition of the importance of educators and education personnel in schools as vital human resources, which contribute to school goals, and utilize functions and activities that ensure that human resources are used effectively and fair for the benefit of individuals, schools and communities. Human resource management aims to formulate the needs of educators and education personnel, develop and empower educators and education personnel to obtain the optimal value of benefits for individual educators and education personnel concerned. The scope of management of human resources in schools is HR Planning, analysis of educators and education personnel, procurement of educators and education personnel, selection of educators and education personnel, orientation, placement and assignment, compensation, performance assessment, career development, training and personnel development educators and the creation of work life quality, educator and education power negotiations, research of educators and education personnel, pensions and dismissal of teaching and education personnel. Keywords: Human Resource Development Management

Synopsis The manager of engineering at Palm Oasis Engineering in Dubai expressed dissatisfaction with his compensation. The uncertainty of his continued participation at a key position came at a critical time for the company. This case provides an event for the analysis of HRM issues of a small company in a nontraditional, international context. Real and perceptual issues surrounding expatriate employee compensation, including wages and benefits relative to home country, cost indices, inflation, and currency fluctuations, are analyzed. Motivation and negotiation strategy are also examined. Research methodology This case has been disguised to protect the anonymity of the company and key individuals. The industry, name of the company, and names of personnel have been changed. The authors were granted access to key personnel at the company during a limited time frame. Relevant courses and levels This case is designed for upper level, undergraduate international management, international human resource management, and human resource management courses. The case is designed as a mid-semester decision-based case that allows students to apply concepts on motivation, human resource management, and negotiation.

This study focuses on the extent to which modern personnel practices are used in North Carolina municipal governments. As such, it not only maps out the existence of these practices, but also the conditions and circumstances in which they occur. Recruitment and selection, compensation and benefits, employee rights and regulations, and performance appraisal practices are examined. In addition, the effect of city and organizational size and that of governmental structure (the presence of a professional manager) on these personnel practices is studied.

Konstantin V. Bogatyrev - Moscow State University. M.V. Lomonosov Moscow State University. E-mail: konstantin.bogatyrev@yahoo.com The top management remuneration policy of public companies counts among the key decisions that shape the financial architecture and the incentive structure for hired executives in such companies. The factors determining the pay of top managers have been a debated topic both for academia and for the public at large for decades. For Russian companies, however, this question has remained largely unstudied.This paper is intended to rectify this deficiency and contributes to the research on top management remuneration policy and the way in which it relates to performance in Russian corporations. Following an overview of the evidence presented in previous studies focusing on other markets, the paper presents a new empirical study of pay and performance using self-collected data on 93 Russian public companies for the five-year period between 2009 and 2013. The data on key management personnel compensation has been collected from the companies' official reports, including annual or financial reports and other stock exchange reports. The data on other financial indicators has been procured from the Bloomberg Professional® database.Using fixed effect models for econometric analysis, we find evidence of a positive relationship between compensation and business performance in Russia, although this is not evident for every performance indicator. Indeed, both short-term and long-term forms of compensation as well as their sum show a positive relationship to return on assets (ROA), and the respective sensitivities of pay to performance are not negligible. However, institutional or state ownership can weaken this sensitivity. The relationship is only evident in companies with no state participation. Whereas 33 state-owned companies in the sample exhibit no significant relationship of top management compensation to corporate performance, the accounting profits and ROA of the remaining 60 (private) companies serve as significant determinants of remuneration levels.

There are few studies which report on the personnel practices in the American states. A survey of state compensation analysts in the Summer of 1987 elicited information concerning the use of compensation controls in state government. Results indicate that with the exception of wage and salary surveys, data concerning compensation controls is rarely collected. Initial analysis indicates that the role of the legislature and the existence of collective bargaining may have an impact on the number of controls used.

The issue of comparable worth arose as a result of the discovery of serious gender inequities in the operation of the compensation system of Washington State government. Subsequent developments elsewhere have further added to the salience of the pay equity issue. In the context of this highly charged political context, what attitudes toward pay and compensation do women in the public service tend to hold? On the basis of employee surveys conducted in both the State of Washington and among the U.S. federal workforce, findings are reported that suggest that women are less likely to be dissatisfied with their pay than men. The implications of these findings are discussed, both with respect to the future politicization of the comparable worth issue and the proper assumptions to be made in conceptualizing the motivational basis of public employee behavior.

Marketing analytical studies of optimal salesforce compensation policies typically rely on a set of restrictive assumptions. In this paper, a model of decentralized salesforce compensation is developed, wherein some of the classical assumptions are challenged. Response Surface Methodology is used to optimize decentralized compensation policies over a set of simulated conditions. The proposed approach is then illustrated with two empirical applications in artificial and real settings. The objective is to provide some preliminary evidence about decentralized structures and to recommend salesforce compensation policies.

Numerous researchers, employing theories from either psychology or economics, have investigated the circumstances under which firms are likely to adopt salary-based versus commission-based compensation plans. This study integrates the most common theoretical bases of salesperson compensation literature into a broad framework labeled the Eclectic Paradigm of Salesperson Compensation (EPSC). The EPSC proposes that there is a positive association between a firm's salary orientation and resource commitment, and a firm's salary orientation and firm control. There should be a negative association between salary orientation and dissemination risk, and salary orientation and salesperson motivation/performance. Twenty-three hypotheses originating from the EPSC were tested using a pretest sample of 48 real estate salespersons and a test sample of 311 real estate salespersons. The data were analyzed using common factor analysis, logistic regression, multivariate analysis of variance, and median tests. Of the 23 hypotheses, 10 were supported, 7 were partially supported, and 6 were not supported. The results suggest that the eclectic paradigm of salesperson compensation is a promising initial step toward developing a comprehensive model for understanding the determinants of salary versus commission.

This thesis focuses on evaluating the performance appraisal system of Filiz Gida, a small food processing company that is located in Turkey. Filiz Gida was established by Dogus Holding in Bolu, and currently employs 284 individuals. Filiz Gida is dedicated to fair and respectful treatment of all workers, offering voluntary benefits in housing programs, health care, education for worker's children, and professional child care services. The importance of quality in production at Filiz Gida is reflected by its receipt of ISO 9002 certification in 1994. In 2003 the Barilla Group, which is one of the giants in the pasta business, acquired Filiz Gida due to financial interests that have not been well documented by public media.

This master’s thesis " Human Resource Management at DPMB, Inc.“, is focuses on the theoretical basis and subsequently compared with the analysis of the actual state of human resource management in the enterprise, with emphasis on 2007-2009. Analysis results are processed in own proposal to increase work efficiency in business. The results of analysis are offered to management for possible use.

As a result of the agency problem, earnings management may take place due to the high contracting costs, shareholders’ bounded rationalities, and information asymmetry. Therefore, three main groups of motives have been identified to explain earnings management behaviour at the contracting, capital market, and external levels. While the previous studies have individually examined those motives, this thesis provides evidence that they interact in determining earnings management behaviour. The first empirical chapter of this thesis focuses on the contracting factors and examines the impact of earnings management on executive compensation conditioned on managerial ability. It finds that managers who utilize accrual earnings management receive higher compensation than those who undertake real earnings management. However, high quality managers are rewarded less for accrual earnings management and punished less for real earnings management. The second empirical chapter examines the non-linear effect of market concentration as an external motive of earnings management. It documents that accrual earnings management increases in concentrated markets as the quantity of information decreases. However, the sophisticated real earnings management starts to substitute for discretionary accruals at higher levels of market concentration when the quality of information declines. The third empirical chapter combines factors from the contracting and external motives. It examines the effect of market competition on the relationship between managerial ability and earnings management. The results show that in the face of increased competition, high quality managers manipulate earnings via accruals rather than more costly real earnings management. Overall, the results of this thesis show that management compensation is a crucial factor in assessing the costs of earnings management at the firm level. An optimal level of market concentration exists and should be considered by the regulators. Finally, understanding how industry level factors influence managerial decisions at the firm level is essential to explaining earnings management behaviour.

Checkland's soft systems methodology is adapted to investigate and suggest improvements to personnel management in Kuwait libraries. An initial study investigating relevant elements of personnel management in Kuwait, such as motivation, communication, etc., was conducted primarily by interviewing. A model was constructed on this basis to deduce relevant important issues, such as library services and motivation of library staff. These issues were further investigated in a second survey again primarily by interviewing. Because of the Gulf War, a third interview survey then took place to update data and to identify important changes regarding library management. Four activity-based models were then constructed to determine factors relating to the improvement of personnel management in Kuwait libraries and as guides for data analysis, as follows: a system of increasing the supply of competent information workers; a system to enhance communication inside and outside the library; a system which meets users' needs and encourages the use of the library; a system to enhance staff motivation. The conclusion examines possible solutions regarding personnel management problems in Kuwait libraries. In addition, the value of Checkland's soft systems methodology for this kind of analysis is examined.

Attention to safety and health are of ever-increasing priority to industrial organizations. Good Safety is demanded by stockholders, employees, and the community while increasing injury costs provide additional motivation for safety and health excellence. Safety has always been a strong corporate value of DuPont and a vital part of its culture. As a result, DuPont has become a benchmark in safety and health performance. Since 1990, DuPont has re-engineered itself to meet global competition and address future vision. In the new re-engineered organizational structures, DuPont has also had to re-engineer its safety management systems. A special Discovery Team was chartered by DuPont senior management to determine the “best practices’ for safety and health being used in DuPont best-performing sites. A summary of the findings is presented, and five of the practices are discussed. Excellence in safety and health management is more important today than ever. Public awareness, federal and state regulations, and enlightened management have resulted in a widespread conviction that all employees have the right to work in an environment that will not adversely affect their safety and health. In DuPont, we believe that excellence in safety and health is necessary to achieve global competitiveness, maintain employee loyalty, and be an accepted member of the communities in which we make, handle, use, and transport products. Safety can also be the “catalyst” to achieving excellence in other important business parameters. The organizational and communication skills developed by management, individuals, and teams in safety can be directly applied to other company initiatives. As we look into the 21st Century, we must also recognize that new organizational structures (flatter with empowered teams) will require new safety management techniques and systems in order to maintain continuous improvement in safety performance. Injury costs, which have risen dramatically in the past twenty years, provide another incentive for safety and health excellence. Shown in the Figure 1, injury costs have increased even after correcting for inflation. Many companies have found these costs to be an “invisible drain” on earnings and profitability. In some organizations, significant initiatives have been launched to better manage the workers’ compensation systems. We have found that the ultimate solution is to prevent injuries and incidents before they occur. A globally-respected company, DuPont is regarded as a well-managed, extremely ethical firm that is the benchmark in industrial safety performance. Like many other companies, DuPont has re-engineered itself and downsized its operations since 1985. Through these changes, we have maintained dedication to our principles and developed new techniques to manage in these organizational environments. As a diversified company, our operations involve chemical process facilities, production line operations, field activities, and sales and distribution of materials. Our customer base is almost entirely industrial and yet we still maintain a high level of consumer awareness and positive perception. The DuPont concern for safety dates back to the early 1800s and the first days of the company. In 1802 E.I. DuPont, a Frenchman, began manufacturing quality grade explosives to fill America’s growing need to build roads, clear fields, increase mining output, and protect its recently won independence. Because explosives production is such a hazardous industry, DuPont recognized and accepted the need for an effective safety effort. The building walls of the first powder mill near Wilmington, Delaware, were built three stones thick on three sides. The back remained open to the Brandywine River to direct any explosive forces away from other buildings and employees. To set the safety example, DuPont also built his home and the homes of his managers next to the powder yard. An effective safety program was a necessity. It represented the first defense against instant corporate liquidation. Safety needs more than a well-designed plant, however. In 1811, work rules were posted in the mill to guide employee work habits. Though not nearly as sophisticated as the safety standards of today, they did introduce an important basic concept — that safety must be a line management responsibility. Later, DuPont introduced an employee health program and hired a company doctor. An early step taken in 1912 was the keeping of safety statistics, approximately 60 years before the federal requirement to do so. We had a visible measure of our safety performance and were determined that we were going to improve it. When the nation entered World War I, the DuPont Company supplied 40 percent of the explosives used by the Allied Forces, more than 1.5 billion pounds. To accomplish this task, over 30,000 new employees were hired and trained to build and operate many plants. Among these facilities was the largest smokeless powder plant the world had ever seen. The new plant was producing granulated powder in a record 116 days after ground breaking. The trends on the safety performance chart reflect the problems that a large new work force can pose until the employees fully accept the company’s safety philosophy. The first arrow reflects the World War I scale-up, and the second arrow represents rapid diversification into new businesses during the 1920s. These instances of significant deterioration in safety performance reinforced DuPont’s commitment to reduce the unsafe acts that were causing 96 percent of our injuries. Only 4 percent of injuries result from unsafe conditions or equipment — the remainder result from the unsafe acts of people. This is an important concept if we are to focus our attention on reducing injuries and incidents within the work environment. World War II brought on a similar set of demands. The story was similar to World War I but the numbers were even more astonishing: one billion dollars in capital expenditures, 54 new plants, 75,000 additional employees, and 4.5 billion pounds of explosives produced — 20 percent of the volume used by the Allied Forces. Yet, the performance during the war years showed no significant deviation from the pre-war years. In 1941, the DuPont Company was 10 times safer than all industry and 9 times safer than the Chemical Industry. Management and the line organization were finally working as they should to control the real causes of injuries. Today, DuPont is about 50 times safer than US industrial safety performance averages. Comparing performance to other industries, it is interesting to note that seemingly “hazard-free” industries seem to have extraordinarily high injury rates. This is because, as DuPont has found out, performance is a function of injury prevention and safety management systems, not hazard exposure. Our success in safety results from a sound safety management philosophy. Each of the 125 DuPont facilities is responsible for its own safety program, progress, and performance. However, management at each of these facilities approaches safety from the same fundamental and sound philosophy. This philosophy can be expressed in eleven straightforward principles. The first principle is that all injuries can be prevented. That statement may seem a bit optimistic. In fact, we believe that this is a realistic goal and not just a theoretical objective. Our safety performance proves that the objective is achievable. We have plants with over 2,000 employees that have operated for over 10 years without a lost time injury. As injuries and incidents are investigated, we can always identify actions that could have prevented that incident. If we manage safety in a proactive — rather than reactive — manner, we will eliminate injuries by reducing the acts and conditions that cause them. The second principle is that management, which includes all levels through first-line supervisors, is responsible and accountable for preventing injuries. Only when senior management exerts sustained and consistent leadership in establishing safety goals, demanding accountability for safety performance and providing the necessary resources, can a safety program be effective in an industrial environment. The third principle states that, while recognizing management responsibility, it takes the combined energy of the entire organization to reach sustained, continuous improvement in safety and health performance. Creating an environment in which employees feel ownership for the safety effort and make significant contributions is an essential task for management, and one that needs deliberate and ongoing attention. The fourth principle is a corollary to the first principle that all injuries are preventable. It holds that all operating exposures that may result in injuries or illnesses can be controlled. No matter what the exposure, an effective safeguard can be provided. It is preferable, of course, to eliminate sources of danger, but when this is not reasonable or practical, supervision must specify measures such as special training, safety devices, and protective clothing. Our fifth safety principle states that safety is a condition of employment. Conscientious assumption of safety responsibility is required from all employees from their first day on the job. Each employee must be convinced that he or she has a responsibility for working safely. The sixth safety principle: Employees must be trained to work safely. We have found that an awareness for safety does not come naturally and that people have to be trained to work safely. With effective training programs to teach, motivate, and sustain safety knowledge, all injuries and illnesses can be eliminated. Our seventh principle holds that management must audit performance on the workplace to assess safety program success. Comprehensive inspections of both facilities and programs not only confirm their effectiveness in achieving the desired performance, but also detect specific problems and help to identify weaknesses in the safety effort. The Company’s eighth principle states that all deficiencies must be corrected promptly. Without prompt action, risk of injuries will increase and, even more important, the credibility of management’s safety efforts will suffer. Our ninth principle is a statement that off-the-job safety is an important part of the overall safety effort. We do not expect nor want employees to “turn safety on” as they come to work and “turn it off” when they go home. The company safety culture truly becomes of the individual employee’s way of thinking. The tenth principle recognizes that it’s good business to prevent injuries. Injuries cost money. However, hidden or indirect costs usually exceed the direct cost. Our last principle is the most important. Safety must be integrated as core business and personal value. There are two reasons for this. First, we’ve learned from almost 200 years of experience that 96 percent of safety incidents are directly caused by the action of people, not by faulty equipment or inadequate safety standards. But conversely, it is our people who provide the solutions to our safety problems. They are the one essential ingredient in the recipe for a safe workplace. Intelligent, trained, and motivated employees are any company’s greatest resource. Our success in safety depends upon the men and women in our plants following procedures, participating actively in training, and identifying and alerting each other and management to potential hazards. By demonstrating a real concern for each employee, management helps establish a mutual respect, and the foundation is laid for a solid safety program. This, of course, is also the foundation for good employee relations. An important lesson learned in DuPont is that the majority of injuries are caused by unsafe acts and at-risk behaviors rather than unsafe equipment or conditions. In fact, in several DuPont studies it was estimated that 96 percent of injuries are caused by unsafe acts. This was particularly revealing when considering safety audits — if audits were only focused on conditions, at best we could only prevent four percent of our injuries. By establishing management systems for safety auditing that focus on people, including audit training, techniques, and plans, all incidents are preventable. Of course, employee contribution and involvement in auditing leads to sustainability through stakeholdership in the system. Management safety audits help to make manage the “behavioral balance.” Every job and task performed at a site can do be done at-risk or safely. The essence of a good safety system ensures that safe behavior is the accepted norm amongst employees, and that it is the expected and respected way of doing things. Shifting employees norms contributes mightily to changing culture. The management safety audit provides a way to quantify these norms. DuPont safety performance has continued to improve since we began keeping records in 1911 until about 1990. In the 1990–1994 time frame, performance deteriorated as shown in the chart that follows: This increase in injuries caused great concern to senior DuPont management as well as employees. It occurred while the corporation was undergoing changes in organization. In order to sustain our technological, competitive, and business leadership positions, DuPont began re-engineering itself beginning in about 1990. New streamlined organizational structures and collaborative work processes eliminated many positions and levels of management and supervision. The total employment of the company was reduced about 25 percent during these four years. In our traditional hierarchical organization structures, every level of supervision and management knew exactly what they were expected to do with safety, and all had important roles. As many of these levels were eliminated, new systems needed to be identified for these new organizations. In early 1995, Edgar S. Woolard, DuPont Chairman, chartered a Corporate Discovery Team to look for processes that will put DuPont on a consistent path toward a goal of zero injuries and occupational illnesses. The cross-functional team used a mode of “discovery through learning” from as many DuPont employees and sites around the world. The Discovery Team fostered the rapid sharing and leveraging of “best practices” and innovative approaches being pursued at DuPont’s plants, field sites, laboratories, and office locations. In short, the team examined the company’s current state, described the future state, identified barriers between the two, and recommended key ways to overcome these barriers. After reporting back to executive management in April, 1995, the Discovery Team was realigned to help organizations implement their recommendations. The Discovery Team reconfirmed key values in DuPont — in short, that all injuries, incidents, and occupational illnesses are preventable and that safety is a source of competitive advantage. As such, the steps taken to improve safety performance also improve overall competitiveness. Senior management made this belief clear: “We will strengthen our business by making safety excellence an integral part of all business activities.” One of the key findings of the Discovery Team was the identification of the best practices used within the company, which are listed below: ▪ Felt Leadership – Management Commitment ▪ Business Integration ▪ Responsibility and Accountability ▪ Individual/Team Involvement and Influence ▪ Contractor Safety ▪ Metrics and Measurements ▪ Communications ▪ Rewards and Recognition ▪ Caring Interdependent Culture; Team-Based Work Process and Systems ▪ Performance Standards and Operating Discipline ▪ Training/Capability ▪ Technology ▪ Safety and Health Resources ▪ Management and Team Audits ▪ Deviation Investigation ▪ Risk Management and Emergency Response ▪ Process Safety ▪ Off-the-Job Safety and Health Education Attention to each of these best practices is essential to achieve sustained improvements in safety and health. The Discovery Implementation in conjunction with DuPont Safety and Environmental Management Services has developed a Safety Self-Assessment around these systems. In this presentation, we will discuss a few of these practices and learn what they mean. Paper published with permission.