Human Resource Management, Wages and Salaries

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Introduction
Human Resource Management is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques. Extensive training and culture management programs, individualized reward management systems, as well as a range of employee involvement mechanisms, all operate towards achieving enhanced employee contribution. It is a whole range of notions on management theory, style and practice. Perhaps most usefully considered as a generic term that covers the entirety of work organization, working terms and conditions and representational systems, HRM can be depicted as being concerned with all those activities associated with the management of people in organizations (Boyd 2003).

Businesses rely on effective human resource management (HRM) to ensure that they hire and keep good employees and that they are able to respond to conflicts between workers and management. HRM specialists initially determine the number and type of employees that a business will need over its first few years of operation. They are then responsible for recruiting new employees to replace those who leave and for filling newly created positions. A business’s HRM division also trains or arranges for the training of its staff to encourage worker productivity, efficiency, and satisfaction, and to promote the overall success of the business. Finally, human resource managers create workers’ compensation plans and benefit packages for employees. Personnel Management is the development of a set of values that regards individual employees as important productive entities; the conscious utilization of these value judgments in making decisions affecting those individuals; and the acquisition of a pattern of thinking, or rational analysis, which attempts to achieve the most effective and satisfactory utilization of human talents (Megginson 1972).

Personnel Management unlike Human Resource Management is not limited to the techniques and paper work associated with routine activities of selecting, training, and compensating employees; nor does the term refer exclusively to the methods, procedures, techniques, and tools of personnel selection, training and development, direction, and other related activities.

Businesses rely on effective human resource management (HRM) to ensure that they hire and keep good employees and that they are able to respond to conflicts between workers and management. HRM specialists initially determine the number and type of employees that a business will need over its first few years of operation. They are then responsible for recruiting new employees to replace those who leave and for filling newly created positions. A business’s HRM division also trains or arranges for the training of its staff to encourage worker productivity, efficiency, and satisfaction, and to promote the overall success of the business. Finally, human resource managers create workers’ compensation plans and benefit packages for employees (Gratton et al. 1999). The essay intends to consider how wages and salaries are set in organizations. If compensation is not tied directly to performance, what can and should it be tired to. The essay intends to discuss about psychological contract; turnover and the forms of turnover; training and some of its concepts; and remuneration system. Through the information that will be gathered every thought that is necessary will be put together so that a proper conclusion will be formulated.

Psychological Contract
The psychological contract refers to employees' beliefs about the mutual obligations between the employee and his or her organization. These beliefs are based on the perception that employer promises have been made about such matters as competitive wages, promotional opportunities, and job training in exchange for certain employee...
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