Human Resource Management
The fierce competition in business has led to the intense rivalry in having quality employees. The situation where valuable employees are in high demand causes the salary for particular job position continues rising. This is true for specialized jobs like engineer in information technology, lawyers, and accountants. According to a study led by Carl R. Weinberg, a principal at PricewaterhouseCoopers, nowadays, compensation formulas adopt the pay and performance that suggests current practice in management’s remuneration scheme where mostly chief executive officers (CEOs) are paid based on the company’s financial performance.
This means that these days, CEOs’ compensation relates to the performances of companies they lead. There are many ways in achieving the fair compensation packages. Thus, this new compensation method will put aside the old ways that ensure CEOs to get rich whatever the companies’ performance are so that it prevents excessive packages for a CEO in underperformed companies. While top managements, skilled workers, and high-demand professionals are widely known to have attractive compensation packages, it certainly takes more than just money to attract and retain them to run the company’s fortune.
This is important since the success of business comes from the capability of a company to manage their human resources
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The selection of candidates can occur by conducting several modes like opening job vacancy on newspapers, word of mouth, and from internal employees’ recommendation as described in the figure 1. Figure 1 Traditional Recruitment Steps Source: Jobsatltd, 2005 Each mode of recruitment steps has distinctive characteristics. For instances, a company that has strong corporate culture is likely to use the traditional recruitment and selection process by visiting schools to obtain qualified fresh graduates.
Meanwhile, a company that intends to obtain the ‘right’ person usually conducts internal job vacancy to sort best employees within their own pool of applicants. Another recruitment mode is word-of-mouth where this is somewhat effective mode since the applicants are likely to stay longer and may be more suitable than recruits obtained by advertising may. In many details, in order to find suitable candidates for a job position, there are many different methods of recruiting applicants.
To decide which method is appropriate for the position, company should highlight how is the best to proceed and know what kind of applicant are exactly they look for. The success of company depends on recruiting right applicants in a right time. Company is usually applying a recruitment and selection process that concerns the standard of value assortment. Company is also offering improvement and career opportunities for employees. These should be considered when deciding whether they will recruit inside company, outside company, or both (“Recruitment and Selection”, 2006).
Different job positions require different methods. There are the conventional means, for example emergency or database searches, advertising in press and a variety of web sites. For more specialized, company may choose advertise in a specific newspaper. Some of them give a committed consultant to handle the company’s requirement. Usually, they are not only experienced but also have a comprehensible perceptive of company’s market place and will attempt to achieve the company’s requirements (“Choosing a Method to Attract Candidates”, 2005).
Recruitment agencies are mostly useful if there are not a lot of potential applicants and the job position is very specialist. Agencies can exploit the local and abroad networks to find applicants. They can also offer recommendation on salary, create selection criteria, and choose candidates for the company. Alternatively, invitation or recommendation is conducted when the ordinary recruitment and selection techniques are surrendered. The candidates will be chosen without some personal ad. It only occurred if the person is full of an experiences and skills (“Choosing a Method to Attract Candidates”, 2005).