Compensation
Every organization needs to set up plans for the salary and wages of the employees. There are several ways to develop payment plans for the employees depending upon the significance of the job. The worth of the job needs to be decided. Therefore, all kinds of payments or rewards provided to the employees is referred to as compensation. The compensation may be in the form of direct financial payments, such as salary, wages, bonuses, etc., or indirect payments like insurance or vacations provided to the employee.
Direct financial payments are of two kinds, that is, performance-based and time-based. In a time-based payment plan, the salary or wages are paid daily, weekly, monthly, or annually, whereas, the performance-based payment plan is the payment of salary or wages according to the set task. There are many ways in which the compensation of the employee based on their performance can be calculated. There are also plans, which are a combination of both time-based and performance-based. There are a few factors that affect the payment plan, such as legal, company policy, union, and equity. Thus, staffing is the process that includes possession, retention, promotion, and compensation of the human capital, that is, the most important resource of the organization. There are several factors such as the supply and demand of specific skills in the labour market, legal and political considerations, the company’s image, policy, unemployment rate, human resource planning cost, labour market conditions, technological developments, general economic environment, etc., that may affect the execution of recruitment, selection, and training.
Staffing Process
Staffing is the art of acquiring, developing, and maintaining a satisfactory and satisfied workforce. Staffing is that function by which a manager builds an organization through the recruitment, selection, and development of the individual, which also includes a series of activities. It ensures that the organization has the right number of people at the right places, at the right time, and performing the right thing.
As we know, the prime concern of the staffing function in the management process is in the fulfilment of the manpower requirements within an organization. These requirements may arise in the case of starting a new enterprise or expanding the existing one. It may also arise as the need for replacing those who quit, retire, transfer, or are promoted from the job. In any case, the need for ‘the right person for the right job, at the right time’ needs an emphasis.
Table of Content
- Staffing Process
- 1. Manpower Planning
- 2. Recruitment
- 3. Selection
- 4. Placement and Orientation
- 5. Training and Development
- 6. Performance appraisal
- 7. Promotion and Career planning
- 8. Compensation
- Aspects or Components of Staffing