Executive development

Executive development methods in Human Resource Management (HRM) aim to enhance the skills,
competencies, and abilities of executives within an organization. These methods are crucial for
grooming leaders who can effectively navigate complex business environments. Here are some
common executive development methods used in HRM:

Coaching and Mentoring:

Providing one-on-one guidance and support from experienced executives or external coaches to
help develop leadership skills, enhance decision-making abilities, and address specific challenges.

Executive Education Programs:

Sending executives to specialized courses, workshops, seminars, or executive MBA programs offered
by renowned business schools or institutions to improve their knowledge, strategic thinking, and
management skills.

Job Rotation and Job Enrichment:

Rotating executives across different roles, departments, or geographical locations to broaden their
experience, expose them to diverse challenges, and develop a holistic understanding of the
organization.

Action Learning Projects:

Assigning executives to real-life projects or strategic initiatives where they can apply their skills, solve
complex problems, and learn through hands-on experience while receiving feedback from mentors
or coaches.

360-Degree Feedback:

Collecting feedback from multiple sources, including peers, subordinates, superiors, and clients, to
provide executives with a comprehensive assessment of their strengths, weaknesses, and areas for
improvement.

Leadership Development Programs:

Designing customized programs tailored to the organization's leadership competencies and strategic
goals, which may include workshops, seminars, assessments, and coaching sessions focused on
leadership development.

Simulations and Role-Playing Exercises:

Creating simulated business scenarios or role-playing exercises to help executives practice decision-
making, communication, and problem-solving skills in a controlled environment.

Succession Planning:

Identifying high-potential executives and grooming them for future leadership roles through targeted
development initiatives, mentoring, and job assignments aligned with succession planning goals.

Networking and Peer Learning:

Facilitating opportunities for executives to connect with peers, industry experts, and thought leaders
through professional associations, industry events, or internal networking forums to exchange ideas,
best practices, and insights.

Action Learning Sets:

Forming small groups of executives who meet regularly to discuss real-life challenges, share
experiences, provide peer support, and collectively brainstorm solutions to common issues faced in
their roles.

By employing these executive development methods, organizations can cultivate a pipeline of skilled
leaders capable of driving innovation, managing change, and achieving strategic objectives
effectively.

The process of executive development

The process of executive development involves several steps to identify, design, implement, and
evaluate development initiatives for executives within an organization. Here's a breakdown of the
process:

Needs Assessment:

 Identify the organization's strategic objectives and leadership competencies required to

achieve those objectives.
 Conduct assessments such as performance reviews, competency assessments, and talent
reviews to identify gaps in executive skills and capabilities.
 Gather feedback from executives, managers, and stakeholders to understand specific
development needs and priorities.

Setting Development Goals:

 Define clear and specific development goals aligned with the organization's strategic
priorities and the individual career aspirations of executives.
 Determine the desired outcomes and measurable objectives for the executive development
initiatives.

Designing Development Programs:

 Select appropriate executive development methods and interventions based on the

identified needs, goals, and available resources.
 Design customized development programs or initiatives tailored to the unique needs of
executives at different levels within the organization.
 Determine the delivery format, duration, content, and sequencing of development activities.

Implementation:

 Communicate the purpose, objectives, and benefits of the executive development programs
to participants and stakeholders.
 Provide necessary resources, support, and infrastructure to facilitate the smooth
implementation of development initiatives.
 Assign mentors, coaches, or facilitators to support executives throughout their development
journey.
  Monitor progress, provide feedback, and make adjustments as needed to ensure the
effectiveness of the development programs.

Evaluation and Feedback:

 Establish evaluation criteria and metrics to assess the impact and effectiveness of executive
development initiatives.
 Collect feedback from executives, managers, and other stakeholders on the perceived value,
relevance, and impact of the development programs.
 Analyze data and performance indicators to measure progress against development goals
and identify areas for improvement.
 Use evaluation findings to refine and enhance future executive development efforts,
including adjusting content, delivery methods, or program structures.

Continuous Improvement:

 Continuously review and update the organization's executive development strategies and
practices in response to evolving business needs, industry trends, and feedback from
stakeholders.
 Foster a culture of continuous learning and development among executives and throughout
the organization to support ongoing growth and adaptation.

By following this systematic process, organizations can effectively develop their executives' skills,
capabilities, and leadership potential, thereby enhancing their ability to drive organizational
success and achieve strategic objectives.

WAGE AND SALARY ADMINISTRATION

minimum wage, need based wage, fair wage, living wage, Objectives of wage and salary
administration, factors affecting wage and salary administration, Types of wage payment system,
process of wage determination. Job evolution: meaning, objectives, quantitative and non
quantitative methods of job evolution

CONCEPT OF WAGES

'Wage and Salary Administration' refers to the establishment and implementation of sound
policies and practices of employee compensation. The basic purpose of wage and salary
administration is to establish and maintain an equitable wage and salary structure. Wages and
salaries are often one of the largest components of cost of production and such have serious
implications for growth and profitability of the company. On the other hand, they are the only
source of workers' income.

After the independence and particularly after 1948 some new terms relating to wages began to
be used. These are:

1. Statutory Minimum Wages

2. Basic Minimum Wages
3. Minimum Wages
4. Fair Wages
5. Living Wages
6. Need Based Wages
1. Statutory Minimum Wages: By it we mean the minimum amount of wages which should
essentially be given to the workers as per provisions of the Minimum Wages Act, 1948.

2. Basic Minimum Wages: This minimum wage is fixed through Judicial pronouncement awards,
industrial tribunals and labour. The employers are essentially to give this minimum wage to the
workers.

3. Minimum Wages: The concept of minimum wages has developed due to different standards
in different countries. In Indian context, minimum wage means the minimum amount which an
employer thinks necessary for the sustenance of life and preservation of the efficiency of the
worker. According to Fair Wage Committee, the minimum wages must also- provide for some
measures of education-medical: requirements, and amenities...

4. Fair Wages: in order to bring about improved relations between labour and management an
effort has been made in modern times that the labour gels a. fair deal at the hands of owners
and managers of industries. Various proposals were undertaken at the Industries Conference in
1947 arid a resolution known as the Industrial Truce Resolution was passed. It is provided for the
payment of fair wages to labour. The government of India appointed a Fair Wages committee in
1948 to determine the principles on-which fair wages should be based and to suggest the lines
on which- those principles should be applied. According to the report on this' Committee, Fair
Wages is that wages which the laborer gets for his work just near to minimum wages arid living
wages. Generally the current rate of wages being paid in the enterprise are known as fair wages.

5. Living Wages: According to Fair Wage Committee Report, "The living wage should enable the
male earner to provide for himself and his family not merely the bare essentials of food, clothing
and shelter, but also a measure of frugal comfort including education for children, protection
against III health, requirements of essential social needs and a measure of insurance against the
more important misfortunes including old age." According to the committee on fair wages, the
living wages represent the highest level of the wages and include all amenities which a citizen
living in a modern civilized society is to expect when the economy of the country is sufficiently
advanced and the employer is able to meet the expanding aspirations of his workers. The living
wage should be fixed keeping in view the National income and the capacity of the industry to
pay.

6. Need Based Wages: The Indian Labour Conference at its 15th session held at New Delhi in
July, 1957 suggested that minimum wage fixations should be need based. Following are the
important points of the resolution of the conference.

a) The standard working class family should include three consumption units lor the one earner.
b) Calculation of minimum food requirements should be made on the basis of the
recommendation of Dr. Aykoroyed i.e. 27000 calories for an average Indian adult.
c) Calculation of cloth should be made #18 yards annually for one member. As such, a family
consisting of four members will require 72 yards of cloth.
d) The workers should get minimum rent as per guidelines fixed by the government in the
industrial housing policy.
e) Expenses for fuel, light and so on should be equal to 20% of the entire minimum wages.

WAGE AND SALARY ADMINISTRATION - OBJECTIVES

Its objectives are:
 i. To compare or draft company HR policy .
ii. Find out the income level and return ratio of similar industries
iii. To understand wage differentiations
iv. To examine the competitiveness of entry level employees
v. To establish hiring rates favorable to the community
vi. To keep abreast wage and salary rates with production cost
vii. To minimize labour turnover due to pay disparity
viii. To increase employee's satisfaction and morale
ix. To learn about the trend of perks and benefits in the market
x. To resolve existing labour problems concerning compensation

TYPES OF WAGES Determination of reasonable wages is a difficult task for the management and so
they should give adequate attention to this area. However, different types of wage payment can be
divided into three parts:
1. Time wage
2. Piece wage
3. Wage incentive plan

1. Time wage: In this type the worker Is given remuneration according to time. This type of
remuneration may be per hour, per day or per month or per yean There exists no
relationship between the quantum of work and the wage. This type is in operation in all
industries in India. This plan is very simple to understand. The worker works after due
thinking and with convenience. However it encourages the tendency of prolonging or
delaying the work unnecessarily. Moreover, it is very difficult to measure the productivity of
the workers under this type of plan.
2. Piece Rate System: In this type of plan, a worker gets remuneration according to his output
irrespective of the time he takes in finishing his job. Here, the payment of remuneration is
related to work and not to time. Under this type, the workers are encouraged to earn more
and more, The more the output is, the more the remuneration is. The workers are also at
liberty for their job with interest and they need not be supervised. However, this type of
wage payment is not suitable for commodities of artistic taste. Moreover, the quality of
goods goes
3. Wage incentive Plan: This type of wage payment is the combination of two types the above
referred

FACTORS AFFECTING WAGE AND SALARY ADMINISTRATION

The wage policies of different organization vary some what. Marginal units pay the minimum
necessary to attract the required number of kind of labor. Often, these units pay minimum wage
rates required by labor legislation, and recruit marginal labor. At the other extreme, some units
pay well about going rates in the labor market. They do so to attract and retain the highest
caliber of labor force. Some managers believe in the economy of higher wages. They feel that, by
paying high wages, they would attract better workers who will produce more than average
worker in the industry. This greater production per employee means greater output per man
hour. Hence, labor costs may turn those existing in firms using marginal labor. Some units pay
high wages because of a combination of a favorable product market demand, higher ability to
pay and the bargaining power of trade union. But a large number of them seek to be competitive
in their wage programme, i.e., they aim at paying somewhere near the going rate in the labor
they employ. Most units give greater weight to two wage criteria, viz, job requirements and the
prevailing rates of wages in the labor market. Other factors, such as changes in the cost of living
the supply and demand of labor, and ability to pay are accorded a secondary importance.

A sound wage policy is to adopt a job evaluation programme in order to establish fair
differentials in wages based upon differences in job contents. Beside the basic factors provided
by a job description and job evaluation, those that are usually taken into consideration for wage
and salary administration are:

 The organizations ability to pay

 Supply and demand of labour
 The prevailing market rate
 The cost of living
 Living wage
 Productivity
 Trade unions bargaining power
 Job requirements
 Managerial attitudes
 Psychological and sociological factors
 Levels of skills available in the market