netrashetty
Netra Shetty
VMware, Inc. (NYSE: VMW) is a company providing virtualization software[1][2][3] founded in 1998 and based in Palo Alto, California, USA. It is majority owned by EMC Corporation (NYSE: EMC).
VMware's desktop software runs on Microsoft Windows, Linux, and Mac OS X, while VMware's enterprise software hypervisors for servers, VMware ESX and VMware ESXi are bare-metal embedded Hypervisors that run directly on server hardware without requiring an additional underlying operating system.[4]
According to research, Human Resource Management (HRM) describes the functions within a company that relate to people and its respected function includes policies and practices for selection and recruitment, training and development and remuneration of staff for an organization. It is the staffing function of the organization. Moreover, HRM is the effective use of human resources in order to enhance organizational performance and it servers as the management of the workforce of a business to ensure sufficient staff levels with the right skills, properly rewarded and motivated. HRM includes supporting activities such as: recruiting; training; hiring; motivation programs; and compensation-related activities, recruitment and selection of appropriate staff and management of the employment relationship, which includes contracts, collective bargaining, reward systems and employee involvement and considers the strategic and operational view of human resource requirements. According to sources, HR management can play a role in environmental scanning such as identifying and analyzing external opportunities and threats that may be crucial to the company’s success.
One important focus of human resource management is performance management. This refers to the setting and monitoring process for objectives and measures for exclusives, managers, and employees. Therefore, there is continuous evaluation of these objectives by the employees as well as managers and performance is assessed periodically. Moreover, performance management is a frequent development and improvement process for any organization.
Wages, as a means of providing income for employees and as a cost of doing business to the employer, constitute one of the most important subjects in the filed of personnel management. Wages can provide a source of motivation for employees to perform effectively. The wage rate offered is one of the most important considerations to a person who is taking a new job.
The term compensation administration, or alternatively, wage and salary administration, has come to be accepted as the designation for that field of endeavor concerned with the establishment and implementation of sound policies and methods of employee compensation. It includes such areas as job evaluation, development and maintenance of wage structures, wage changes and adjustments, supplementary payments, profit sharing, control of compensation costs, and other related pay items.
Employee compensation refers to all forms of pay or rewards going to employees and arising from their employment, and it has two main components. There are direct financial payments in the form of wages, salaries, incentives, commissions, and bonuses, and there are indirect payments in the form of financial benefits like employer-paid insurance and vacations.
In tern, there are essentially two ways to base direct financial payments to employees: on increments of time and on performance. Most employees are still paid based on the time they put in on the job. For example, blue-collar workers are usually paid hourly or daily wages; this is often called day work. Some employees managerial, professional, and usually secretarial and clerical are salaried. They are compensated on the basis of a longer period of time (like a week, month, or year), rather than hourly or daily.
The second option is to pay for performance. Piecework is an example: it ties compensation directly to the amount of production (or number of “pieces”) the worker produces, and is popular as an incentive pay plan. Psychologists know that people have many needs, only some of which can be satisfied directly with money. Other needs for achievement, affiliation, power, or self-actualization for instance also motivate behavior but can only be satisfied indirectly (if at all) by money. Yet even with all our more modern motivation techniques (like job enrichment), there’s no doubt that money is still the most important motivator.
Goals of Compensation
There are four principal goals that compensation programs may seek to accomplish.
· First they seek to serve a labor market function of allocating people among firms according to the perceived attractiveness of jobs as expressed by the rat of pay and associated pay supplements.
· Second, carefully designed compensation programs enable management to control wages and salaries and control labor costs.
· A third major objective of wage and salary programs is to keep employees content, to minimize quitting, and to reduce employee complaints and grievances due to inadequate or inequitable wage rates.
· A fourth and final goal of compensation is to induce and reward better performance. In other words, pay is looked upon as a motivator.
Factors affecting the compensation
Union influences
Pay / salary / wages rates is the major issue in collective bargaining. However, other issues include cost of living, income security, time of with pay and health care.
Legal Aspect
All the organizations are bound to follow the Government rules and regulations while deciding the compensation for their employees. Also labor laws and workers Act. are considered. In addition various organizations have their own policies for compensation.
Compensation Policy
An employer compensation policy also influence the wages and benefits to the employees. One consideration is that whether the organization is leader or the follower regarding pays / salaries / wages. Other important policies include the basis for salaries increases, promotion and demotion, over-time pay policy and policy regarding probationary period and leave period.
Equity and Its Impact on Pay Rates
The need for equity is crucial factor in determining the pay rates, specially external and internal equity. In case of external equity, pays must compare favorably with other organizations. Whereas internal equity means that each employee should view his or her pay as equitable given other pay rates in the organizations.
Process of establishing pay rats while insuring external & internal equity
Step 1: conduct an salary survey
A survey aimed at determining prevailing wage rates. A good salary survey provides specific wage rates for specific jobs. Different types of salary survey including formal, informal, commercial and Government, are conducted in this regard.
Step 2: Determining the worth of the job / job evaluation
Job evaluation is aimed and determining a job’s relative worth. Here we determine the worth of one job relative to another and eventually results in wages or salaries hierarchy. The job is evaluative through the content of job in relation to one another or through the comparable factors such as skills, efforts, responsibility and working conditions.
Step 3: Group similar job into pay grade
Similar nature and status jobs are grouped in one category of pay grade. Meaning there by these jobs are paid equal amount of salaries / wages and other allowances and benefits.
Step 4: Price each pay grade
Assignee pay rates to each of pay grades. Individual pay rates would have to be assigned to each individual job.
Step 5: Fine-tune the pay rates
As the inflation keep on increasing there is a need to fine-tune the pay rates i.e. adjustment according to the inflation. It is a continues process which takes place with the time. Normally the organizations undertakes this process on yearly basis.
Current Issues in Compensation Management
Ø Comparable worth of job.
Ø Pay secrecy.
Ø Inflation and salary compression.
Ø Cost of living differentials.
Ø Legal issue.
VMware's desktop software runs on Microsoft Windows, Linux, and Mac OS X, while VMware's enterprise software hypervisors for servers, VMware ESX and VMware ESXi are bare-metal embedded Hypervisors that run directly on server hardware without requiring an additional underlying operating system.[4]
According to research, Human Resource Management (HRM) describes the functions within a company that relate to people and its respected function includes policies and practices for selection and recruitment, training and development and remuneration of staff for an organization. It is the staffing function of the organization. Moreover, HRM is the effective use of human resources in order to enhance organizational performance and it servers as the management of the workforce of a business to ensure sufficient staff levels with the right skills, properly rewarded and motivated. HRM includes supporting activities such as: recruiting; training; hiring; motivation programs; and compensation-related activities, recruitment and selection of appropriate staff and management of the employment relationship, which includes contracts, collective bargaining, reward systems and employee involvement and considers the strategic and operational view of human resource requirements. According to sources, HR management can play a role in environmental scanning such as identifying and analyzing external opportunities and threats that may be crucial to the company’s success.
One important focus of human resource management is performance management. This refers to the setting and monitoring process for objectives and measures for exclusives, managers, and employees. Therefore, there is continuous evaluation of these objectives by the employees as well as managers and performance is assessed periodically. Moreover, performance management is a frequent development and improvement process for any organization.
Wages, as a means of providing income for employees and as a cost of doing business to the employer, constitute one of the most important subjects in the filed of personnel management. Wages can provide a source of motivation for employees to perform effectively. The wage rate offered is one of the most important considerations to a person who is taking a new job.
The term compensation administration, or alternatively, wage and salary administration, has come to be accepted as the designation for that field of endeavor concerned with the establishment and implementation of sound policies and methods of employee compensation. It includes such areas as job evaluation, development and maintenance of wage structures, wage changes and adjustments, supplementary payments, profit sharing, control of compensation costs, and other related pay items.
Employee compensation refers to all forms of pay or rewards going to employees and arising from their employment, and it has two main components. There are direct financial payments in the form of wages, salaries, incentives, commissions, and bonuses, and there are indirect payments in the form of financial benefits like employer-paid insurance and vacations.
In tern, there are essentially two ways to base direct financial payments to employees: on increments of time and on performance. Most employees are still paid based on the time they put in on the job. For example, blue-collar workers are usually paid hourly or daily wages; this is often called day work. Some employees managerial, professional, and usually secretarial and clerical are salaried. They are compensated on the basis of a longer period of time (like a week, month, or year), rather than hourly or daily.
The second option is to pay for performance. Piecework is an example: it ties compensation directly to the amount of production (or number of “pieces”) the worker produces, and is popular as an incentive pay plan. Psychologists know that people have many needs, only some of which can be satisfied directly with money. Other needs for achievement, affiliation, power, or self-actualization for instance also motivate behavior but can only be satisfied indirectly (if at all) by money. Yet even with all our more modern motivation techniques (like job enrichment), there’s no doubt that money is still the most important motivator.
Goals of Compensation
There are four principal goals that compensation programs may seek to accomplish.
· First they seek to serve a labor market function of allocating people among firms according to the perceived attractiveness of jobs as expressed by the rat of pay and associated pay supplements.
· Second, carefully designed compensation programs enable management to control wages and salaries and control labor costs.
· A third major objective of wage and salary programs is to keep employees content, to minimize quitting, and to reduce employee complaints and grievances due to inadequate or inequitable wage rates.
· A fourth and final goal of compensation is to induce and reward better performance. In other words, pay is looked upon as a motivator.
Factors affecting the compensation
Union influences
Pay / salary / wages rates is the major issue in collective bargaining. However, other issues include cost of living, income security, time of with pay and health care.
Legal Aspect
All the organizations are bound to follow the Government rules and regulations while deciding the compensation for their employees. Also labor laws and workers Act. are considered. In addition various organizations have their own policies for compensation.
Compensation Policy
An employer compensation policy also influence the wages and benefits to the employees. One consideration is that whether the organization is leader or the follower regarding pays / salaries / wages. Other important policies include the basis for salaries increases, promotion and demotion, over-time pay policy and policy regarding probationary period and leave period.
Equity and Its Impact on Pay Rates
The need for equity is crucial factor in determining the pay rates, specially external and internal equity. In case of external equity, pays must compare favorably with other organizations. Whereas internal equity means that each employee should view his or her pay as equitable given other pay rates in the organizations.
Process of establishing pay rats while insuring external & internal equity
Step 1: conduct an salary survey
A survey aimed at determining prevailing wage rates. A good salary survey provides specific wage rates for specific jobs. Different types of salary survey including formal, informal, commercial and Government, are conducted in this regard.
Step 2: Determining the worth of the job / job evaluation
Job evaluation is aimed and determining a job’s relative worth. Here we determine the worth of one job relative to another and eventually results in wages or salaries hierarchy. The job is evaluative through the content of job in relation to one another or through the comparable factors such as skills, efforts, responsibility and working conditions.
Step 3: Group similar job into pay grade
Similar nature and status jobs are grouped in one category of pay grade. Meaning there by these jobs are paid equal amount of salaries / wages and other allowances and benefits.
Step 4: Price each pay grade
Assignee pay rates to each of pay grades. Individual pay rates would have to be assigned to each individual job.
Step 5: Fine-tune the pay rates
As the inflation keep on increasing there is a need to fine-tune the pay rates i.e. adjustment according to the inflation. It is a continues process which takes place with the time. Normally the organizations undertakes this process on yearly basis.
Current Issues in Compensation Management
Ø Comparable worth of job.
Ø Pay secrecy.
Ø Inflation and salary compression.
Ø Cost of living differentials.
Ø Legal issue.
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