The Importance of Leading and Motivating
The Importance of Leading and Motivating
The Importance of Leading and Motivating
For a business to be successful, it has to not only offer products and/or services that meet customers' needs and
wants, but also have staff who are loyal and committed. However, to gain your employees' loyalty and commitment
you need to do more than just pay them well. In a competitive job market, you also need to consider people's social
and psychological needs - and this means leading and motivating your workforce properly. In order to lead your staff,
you need to be able to communicate:
a vision of what the business stands for and where you want it to be
what you as an individual intend to do to realise that vision and reflect those values
what individual employees can do to realise that vision and reflect those values
In order to motivate your staff, you should:
higher profits
Indirect financial compensation includes compensation that has financial value but does not
consist of a direct monetary payment to an employee. You can think of it as a non-cash benefit.
Examples include paid time off, health insurance, life insurance, disability insurance, stock
options plans and services provided to employees, such as financial counseling.
Non-financial compensation doesn't have any monetary or economic value per se, but it
involves the satisfaction an employee receives from the work environment.
Samantha's job qualifies her as an exempt employee, which means she is not covered by the overtime
provisions of the FLSA. Some of the most important exemptions to overtime pay include executive,
administrative, professional, outside sales and other highly compensated employees. Each exemption
requires certain criteria to be met, including a minimum level of pay.
Commission
Carl works in sales. He's paid a salary and is also entitled to earn commission. A commission is a
payment a salesperson receives for selling a product or service and is usually based upon a percentage
of the revenue the salesperson brings into the company from sales. Carl gets two percent of each dollar
of revenue he generates in sales. So, if he brings in $2,000,000 in sales during the year, he earns
$40,000 in commission. This is in addition to his regular salary.
Some salespeople work on straight commission, which means they are only paid commissions. The
commission rates are usually significantly higher than if a salary or wage is also paid. Of course, if no
sales are made, no pay is given regardless of the amount of work put in. However, straight commission
arrangements can be highly lucrative to successful salespeople in the correct sales environment. A six or
seven figure income is possible.
Compensation Systems: Design and Goals
The design process is started by identifying desired outcomes and goals for your organization. This is
often referred to as developing your compensation philosophy. Your philosophy is formed by considering
a number of factors. The balance of direct and indirect rewards, the complexity and responsibility of a role
and the candidate or employee filling it, as well as your focus on internal versus external equity are just
few factors explored in this section. It is the ability to achieve results that is critical to organizational
success.
complicated process depending on the firm hiring and the position. Certain
employment laws such as anti-discrimination laws must be obeyed during employee
selection.
Employee selection Process takes place in following order1.
Preliminary Interviews- It is used to eliminate those candidates who do not meet the minimum eligiblity
criteria laid down by the organization. The skills, academic and family background, competencies and
interests of the candidate are examined during preliminary interview. Preliminary interviews are less
formalized and planned than the final interviews. The candidates are given a brief up about the company
and the job profile; and it is also examined how much the candidate knows about the company. Preliminary
interviews are also called screening interviews.
2.
Application blanks- The candidates who clear the preliminary interview are required to fill application blank.
It contains data record of the candidates such as details about age, qualifications, reason for leaving
previous job, experience, etc.
3.
Written Tests- Various written tests conducted during selection procedure are aptitude test, intelligence test,
reasoning test, personality test, etc. These tests are used to objectively assess the potential candidate. They
should not be biased.
4.
Employment Interviews- It is a one to one interaction between the interviewer and the potential candidate.
It is used to find whether the candidate is best suited for the required job or not. But such interviews
consume time and money both. Moreover the competencies of the candidate cannot be judged. Such
interviews may be biased at times. Such interviews should be conducted properly. No distractions should be
there in room. There should be an honest communication between candidate and interviewer.
5.
Medical examination- Medical tests are conducted to ensure physical fitness of the potential employee. It
will decrease chances of employee absenteeism.
6.
Appointment Letter- A reference check is made about the candidate selected and then finally he is
appointed by giving a formal appointment letter.