Causes Of Labor Disputes

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5:42 AM

Main causes of labor disputes are as follows:

1. Economic Causes

Economics causes of labor disputes are related to the variables consisting of interest disputes which are concerned with the economic condition of workers and management. The variables under it are as follows:

- Compensation

- Bonus

- Working conditions

- Industrial problem

2. Managerial Causes

The unfair labor practice by the management too lead to labor disputes. Sometimes, management performs insufficient and unfair policies and procedures to raise organizational profit. But such unfair practices enrage the workers and lead to labor disputes. They are reflected by:

- Non-recognition of unions

- Selection and development

- Job security

- Leadership style

- Communication

3. Political And Legal Causes

This refers to all political and legal forces that affect labor dispute in the organization. Political instability and poor legal procedures affect industrial peace to a large extent. Some of its components are:

- Political interference

- Union conflict

- Political change

4. Psychological Forces

Everyone has his/her own psychological feelings, attitudes and beliefs. This difference in beliefs and psychological aspects of individuals may bring some labor disputes in the organization. Some of the psychological causes are:

- Motivation

- Appreciation

- Authority and responsibility

- Unfair treatment 

Concept And Meaning Of Labor Disputes

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5:29 AM

Poor industrial relations culminate labor disputes in an organization which are manifested in the form of strikes, lock-outs and other industrial actions. The common consequences of labor disputes are loss of production, loss of profit, and even the closure of the organization. Disputes are common in industries; so their nature and causes are inevitable for the organization to study.

Labor disputes can be defined as conflicts or disagreements over the rights and interests of employees with the management. It means, disputes  are the disagreements between employees and the employers in matter relating to organizational procedures.The contradiction can be in ideas and views of workers and managers. In a broader sense, labor dispute can occur not only between workers and managers, but also between workers and workers, or between employers and employers. Hence, such disputes are symptoms of industrial unrest in which both workers and managers try to pressurize each other. Therefore, an attempt should be given towards the settlement of disputes whenever they occur.

Concequences Of Employee Grievance

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5:04 AM

Employee grievance may be resulted either from management policies, or working conditions of the organization or personality traits of employees. These are the primary forces that give impetus to the emergence of grievance in the actual work floor. A firm can hardly operate without the influence of grievance. Hence, handling grievance through appropriate procedures play a key role in the settlement of management's mistakes and weakness. If grievances are handled with a proper care and attention, they will introduce positive changes in the organization, thereby enhancing organizational productivity and employee satisfaction.

But if the grievance are not managed properly, they will create some negative impacts. Such impacts reduce organization's output as well as productivity. The negative consequences of employee grievance are:

- Reduced Productivity

- Absenteeism Problem

- Disobeying of orders

- Indisciplined behavior

- Reduced quality of work

- Reduced co-operation among the employees

- Discouragement in employees

- Disharmonious relation between management and employees

Therefore, a due consideration should be given towards the proper settlement of employee grievance instantly when they occur.

Causes Or Sources Of Grievance

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Grievance is a feeling of unfair treatment at work. It can be resulted from dissatisfaction of work. In this regard, sources or causes of grievance can be anything that results dissatisfaction or involving wages, working hours, or conditions of employment are the basis of grievance. The causes or sources of grievance are classified into three categories as follows:

1. Management Policies

The policies and procedures adopted by management give rise to grievance. The autocratic or bureaucratic style of management, for instance, is hardly liked by educated masses. But they favor rather a participative style of management. Similarly, management practices also lead to employee grievance at work as the want to exploit employees through reduction in pays and other benefits. Grievances resulting from management policies are:

- Wages rates or scale of pay

- Overtime

- Leave

- Transfer improper matching of the worker with the job

- Seniority, promotion and discharge

- Lack of career planning and employee development

- Lack of regard for collective agreement

- Hostility towards a labor union

- Autocratic leadership style of supervisors.

2. Working Conditions

Working conditions are relative to the work environment of the organization. If the working environment of company is good, employees will get less place for grievance. Grievance resulting from working conditions are:

- Unrealistic environment

- Non-availability of proper tools, machines and equipments for doing the jobs

- Tight production standards

- Bad physical conditions of workplace

- Poor relationship with the supervisor

- Negative approach to discipline

3. Personal Factors

Personal factors are related to the personality traits of individuals. Sometimes, these personality traits also cause the emergence of grievances at work. Some important personality traits that result into grievance are:

- Over ambition

- Narrow attitudes

- Excessive self esteem

- Gambling and fault finding attitude

- Mental tension

Features Of Employee Grievance

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4:33 AM

Following are the features of employee grievance in an organization:

1. Employee grievance is reflected in terms of dissatisfaction and dishonest behavior.

2. Employe grievance is a feeling of unfair treatment by and individual/group in the work floor.

3. A grievance may be written or verbal.

4. A grievance may be expressed or implied.

5. Grievance will be arisen from the differences between employees expectation and managerial practices.

6. Grievance, if not settled, gives rise to discontent behavior, frustration and low productivity.

Concept And Meaning Of Employee Grievance

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4:26 AM

Employee grievance is the perception of unfair treatment on the job. There are many factors that make employees unhappy. For instance, non cooperation from fellow members or a harsh remark relating to domestic affairs, may create unhappy situation at work. Finally such feelings of dissatisfaction or discontent result in employee grievance. There is hardly an organization that runs smoothly at all times.

In most of the organizations, employees have complaint against their employers which is termed as employee grievance. Hence, a complaint affecting one or more employees at a time does constitute a grievance. The complaint may be related to wages, working hours or conditions of employment. The dissatisfaction which is expressed by an employee is regarded as a complaint. When the complaint is filed and brought to the notice of management, it will then be grievance. Hence, employee grievance is resulted from the perception of unfair treatment and differences in employee's expectations and managerial practices. A well defined grievance procedure is an important constitute of employee relation as it provides a medium for the transmission of complaints to the table of management.

Therefore, employee grievance is a formal complaint affecting one or more individuals at a time with respect to wages, working hours, condition of work environment, transfers, promotion and so on and formally informed to the management.

Purposes OF Labor Relations

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A brief description of  purposes of labor relation is as follows:

1. Harmonious Relations

Labor relation brings an efficient relationship between industrial actors employees, employers and the government/society. It aims to develop and promote a good working relationship within and outside organizational sphere.

2. Legal Representation

Labor relations brings about a legal representation of the society or that state in organizational affairs. This means, labor relation brings all actors in a negotiation regarding the implementation of labor laws, rules and regulations.

3. Industrial Peace

Through the institutionalization of organizational rules and regulations, an efficient relationship between and among the industrial actors is obtained. This ultimately results into high degree of industrial peace in the organization. Hence, an effective maintenance of labor relations ensures industrial peace and organizational stability.

4. Physical Facility

A good maintenance of labor relations in the organization introduces a good working environment thereby increasing organizational facilities in the work station. Moreover, the workers get sufficient financial and non-financial benefits/incentives to lead a quality life. 

5. Effective Communication

Another purpose of labor relation is to introduce an effective communication system in the organization. The communication system will be effective when it allows two-way flow of messages and information between all levels of employees. For effective communication, the actors should also be effectively involved in the system.

6. Change Management

An effective implementation of labor laws, rules and regulations by introducing a creative work environment, cooperation and confidence makes the process of change easy. This helps to initiate organizational and environmental changes in today's Topsy-curvy environment.

7. Productivity And Organizational Effectiveness

A good labor relation aims to increase the productivity of the workers as well as organization. Due to cordial labor relations, employees take interest in their jobs and work effectively and efficiently. This leads to higher production output thereby enhancing the existing level of productivity at a higher point. This ultimately results the enhancement of organizational effectiveness.

8. Reduce Industrial Actions

An efficient relationship between industrial actors helps to reduce industrial actions such as strikes, lock-outs, sits-in, demonstration and other protestive activities.

9. Organizational Stability

Labor relation aims to establish an efficient and friendly work environment in the organization. The introduction of industrial peace provides an important pre-condition for organizational stability and goal achievement.

Process Of Labor Relation

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Labor relation is a step-by-step process that begins with the unionization of employees, moves through dispute/conflict to collective bargaining, to settlement of conflict, and finally ends with administration of contract.

1. Unionization Of Employees

The first step of labor relation is unionization of employees. A trade union is defined as an organization of employees that is formed to protect and promote the interest and welfare of employees in the organization. It is continuing and long-term process that is targeted to form and maintain specific purpose of blue collar workers. It is a voluntary organization of workers that protects their interests through collective bargaining.

2. Dispute Or Conflict

Usually, employers want to avoid trade unions in their organizations. Therefore, when the unions are formed, they create disputes or conflicts in the work environment. Because trade unions try to fulfill employees' needs first rather than the organizational objectives. Besides, trade unions have been severely criticized, particularly by the employers, that is why the even resist the formation of such unions in the organization. Hence, a dispute will be created after the formation of trade union.

3. Collective Bargaining

Collective bargaining is a mechanism through which the essential conditions of employment are determined bu negotiating between employees' union and management. It is a negotiation about working terms and conditions between an employer and the trade unions. The negotiated agreement serves as a code defining the rights and duties of each employee. When disputes are conflicts are arisen in the work environment, such hurdles are solved through collective bargaining between concerned parities. hence, it is a next step of employee relation process.

4. Settlement Of Contract

In this step of labor relation, the disputes or conflicts are settled through a negotiation. Both of the conflicting parties (employees and employers) agree upon a consensus and sign on a contract to settle the existing problem. Hence, it serves a way for future disputes to be settled under a mechanism. This brings an effective work environment in the actual workplace.

5. Contract Administration

This is the last step of labor relation process in which a monitoring team is formed to monitor the effectiveness of signed contract whether it is followed by the disputing parties. This means, a team is formed from proportionate representation of both the disputing parties to monitor the execution of settlement of contract.

Concept And Meaning Of Labor Relations

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1:32 AM

Traditionally, labor relation was considered as a relationship between employees and employers. But these days,this has become a burning issue consisting of the relationship between workers, employers and social environment of  the organization. It is a dynamic socio-economic process that makes a social dialogue possible among employees, employers and the organizational social environment. The primary focus of it should be on grievance handling, industrial dispute, and interpretation labor laws, etc. It provides a context in which organizational rules and regulations are framed so that organizational roles assigned to members are performed.

Hence, labor relation or employee relation or industrial relation is a system that makes the social dialogue between employees, employers and society/government. It refers to all means of relationship between management and employees, unions and management, unions and employees and between the employees themselves. It is a joint effort of these major influences that produce a harmonious industrial relations between them. But it is multidimensional force that is influenced by the external forces economic, social, cultural, political, legal, technological and occupational forces. The primary concern of labor relations is to promote a healthy and harmonious relationship between employees and the employers. Beside management and workers, the government is another important factor that influences organizational affairs through legal and administrative measures. In this way, this harmonizes the divergent and conflicting interests of these parties through a consolidated dialogue. 

Procedures Of Disciplinary Action

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Discipline is considered as a force that promotes individuals or groups to observe organizational rules and regulations at work. If they are not performing based on the general guidelines provided by the company, disputes may occur in the work environment. In such a situation organization needs to suffer. Therefore, the organization develops a systematic procedure that helps to initiate disciplinary action upon accused employees. Different aspects of this procedure are as follows:

1. An Accurate Statement Of Disciplinary Problem

The first step of resolving disciplinary problem is to prepare an accurate statement of such problem. It means, under this step, a brief statement is prepared showing the location of responsibility, definition of performance, expectations, reasoning for immediate supervision etc.The details to be included in this statement are rules, regulations, policies and standards and find out the vault and violations to know when and how often the violation occurred.

2. Collecting Facts Bearing On The Case

After defining an accurate statement of disciplinary problem, the next phase of collecting required facts and information occurs. Before collecting necessary data and information the predefined rules and regulations, policies, procedures etc. are communicated to the employees. Then after, the required data and facts relating to performance standards are collected for the purpose of initiating disciplinary actions.

3. Selection Of Tentative Penalties

Under this step, the tentative penalties are selected based on the nature of disciplinary problem. It means, the kind of penalty that an accused individual is supposed to get depends on the nature and type of disciplinary problem committed by him/her.

4. Application Of The Penalty

Once the tentative penalties are selected, the management or disciplinary action committee awards punishment to the accused employee. This usually follows the procedure of progressive discipline that proceeds from an oral warning to a written warning to suspension to dismissal.

5. Follow-up Disciplinary Action

This is the last step in the procedure of disciplinary action. When the disciplinary action is initiated, it is necessary to keep see in order to verify whether the punishment has any influence on the accused employee's behavior. If not, other corrective measure needs to be followed to improve the accused employee's behavior. 

General Guideline In Administering Discipline

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Administration of discipline is a process of making employees disciplined at work, The general guidelines developed by behavioral scientists for administering discipline are as follows:

1. Discipline Should Be Corrective

This is the very first guideline of administering employee discipline. This holds the philosophy that disciplinary action should be a corrective one rather than punitive. This means to say, the disciplinary action should not deal out the way of punishment, instead it should correct an employee's undesirable behavior. The objectives of disciplinary action should be mentioned in the policies and procedures of disciplining manual. 

2. Discipline Should Be Progressive

Although the type of disciplinary action depends upon the frequency and nature of problem, it should be a progressive one. This means, any disciplinary action should follow a procedure of progressive approach that proceeds from an oral warning to written warning to suspension to dismissal. More specifically, when problem is not much serious, an employee should not be dismissed after a first offense. But in case of a severe problem the employee will be dismissed even after a first offence too.. 

3. Discipline Should Follow The "Hot Stove" Rule

The rule of 'hot stove' holds the philosophy that any disciplinary action should be quick reactive, immediate thereby leaving no question of cause and effect. When we touch a burning stove we get an immediate response. We have ample warning that we should not touch burning stove. Hence, the comparison between touching a hot stove is similar to administering discipline. This means that the disciplinary action should be as like a red-hot-stove.

4. Employee Explanation

This states that the employees should be given a ample opportunity to clarify the matter before initiating any disciplinary action. This means, the employees should be provided with a chance to explain their position so that the real cause of such problems can be found out. Sometimes errors may occur due to misunderstanding and in influence of others. In such situation, a severe disciplinary action will not be an ethical. 

Causes Of Disciplinary Problems

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12:34 AM

Disciplinary problems are unproductive hurdles to the organization. Rather they hinder the smooth operation of organizational activities. Hence, such problems need to be addressed timely. Main causes of disciplinary problems are as follows:

1. Defective recruitment selection and socialization of employees.

2. Inappropriate and inadequate organizational values and norms established by the organization.

3. Defective evaluation of employees by supervisors.

4. Defective communication system may create such disciplinary problems. Defective communication means, lack of two-way communications.

5. Defective leadership by managers.

6. Defective supervision or lack of supervision at work.

7. The 'divide and rule' policy practiced by the managers.

8. Bad and unpleasant working environment.

9. Discrimination of employees at work.

10. Lack of delegation of authority and assignment of responsibility.

11. Improper coordination work.

12. Lack of timely address of employees problem.

13. Entry of different employees with different backgrounds, skills and experiences.

14. Lack of proper training and skill development programs at work.

15. Carelessness of work.

Types Of Disciplinary Problems

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All the employees of an organization are nor self-disciplined,rather some of them may create disciplinary problems in the organization. Such problems are also called indiscipline behaviors or misconducts. 

The most frequently used disciplinary problems are as follows:

1. Attendance Related Problems

Attendance related problems are those indisciplinary actions that seriously create infractions for managers. They are undoubtedly a serious problem facing managers. It is much more serious and wide spread than other problems. Attendance problems are as follows:

- Absenteeism

- Abuse of sick leave

- Tardiness

- Late arriving

- Leaving work without permission.

2. Job Behavior Problems

Job behavior problems are related to on the job behavior of the employees. Such problems may include carelessness, fighting, gambling, failure to use safety devices, dishonesty, refusal to obey orders,failure to report accidents, abuse of alcoholic liquids and drugs, sleeping or loafing on the job, insubordination and so on, Most of these problems reflect direct infractions of organizational rules and regulations, Moreover, such problems clearly indicate a violation of organizational norms, values and culture; hence, such infractions are rarely difficult to address.

3. Dishonesty Problems

Dishonesty is another crucial disciplinary problem in an organization. This has traditionally resulted one of the severe disciplinary problems found in organizations. Stealing, theft, falsification of information, etc. are the examples of dishonesty problems. Such dishonest act directly affects one's character and leads the employee separated from the organization even if it was only a first offence.

4. Outside Activities Problems

These are those disciplinary problems that will take place outside organizational environment. These are therefore, also called off-the-job activities. They are resulted from activities of employees outside of their work and adversely affect the work performance. Unauthorized strikes, wage garnishing, decorating outside criminal activities, working for competitors are the examples of outside activities. Sometimes they impair the image of the organization. Hence, such activities should be checked properly for which there will be a need for disciplinary actions.

Objectives Of Employee Discipline

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The primary concern of discipline is to frame an employee's behavior as per the organizational rules and regulations, or the value set by the organization. Besides, other important objectives are as follows:

1. To obtain organizational rules, regulations, norms and values so that the organizational activities are performed effectively.

2. To impart the environment of certainty despite the differences in individual backgrounds, cultures, values and experiences, and other related organizational changes.

3. To develop a spirit of tolerance and desire to make adjustments among employees.

4. To give and seek direction and responsibility.

5. To promote the environment of respect for human personality and harmonious labor relation.

6. To motivate the employees for higher level of performance and so on.

Basic Features Of Discipline

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The basic features or characteristics of discipline can be summarized as follows:

1.A disciplinary action refers to one's self-control to conform organizational rules and regulations.

2. Discipline is a determinative willingness that promotes individual and group to carry out the instructions and suggestions that have framed by the organization as acceptable behavior.

3. Discipline is a negative approach in the sense that it encourages individual to undertake some actions that restrain them from undertaking others.

4. Discipline is a positive in the sense that it imposes a penalty if the values and norms that have been laid down by the organization are violated.

Concept And Meaning Of Employee Discipline

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Discipline means behaving in a right and desired manner. It connotes orderly and acceptable behavior by the members of the organization. The employees are of different kinds and they come from different background, cultures and experiences with different norms, values and cultures. Hence, if they behave differently, the organizational objectives will be far beyond from target of achievement. 

Employee discipline can be referred as a force that promotes individuals.groups to observe the rules, regulations and procedures of the organization which are necessary to achieve organizational  goals. It is a condition in which employees perform organizational activities with a consistent behavior. In other words, it is said that discipline avoids disorder, irregularity and confusion. It is a condition in an organization when employees perform their activities in accordance of organizational rules and regulations. Through such disciplinary actions, employees confirm with what is considered proper behavior. It means, the employees confirm to organizational rules and regulations framed by the organization as acceptable behavior.

Therefore, employee discipline is a procedure that helps correct or punish a subordinate so that he/she conducts activities to within and acceptable manner. It is a tool that managers can rely on to communicate organizational behaviors to the employees. Usually, disciplinary actions are framed by supervisors, however, in self-managed work teams, it is a team's responsibility to maintain discipline at work.

Merits And Demerits Of Organizational Incentives

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Merits Of Organizational Incentives

1. Organizational incentive enhances organizational effectiveness.

2. Organizational incentive helps to enhance team work.

3. Organizational incentive encourages employee participation at work.

4. Organizational incentive adds a new dimension in organizational productivity and job satisfaction.

5. Organizational incentive ensures employee relations among the employees as well as between the employees and management.

Demerits Of Organizational Incentives

1. Since the incentive depends on organizational performance, employees may not be motivated at individual level.

2. It will be complex to determine the amount of incentive among different levels of employees

3 .Organizational incentive plan does not provide instant incentive to employees.

4. Organizational incentive does not depend on individual performance.

Merits And Demerits Of Group Incentives

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Merits Of Group Incentives

1. Group incentive is suitable for employees who perform interdependent and interrelated tasks.

2. Group incentive enhances group work so that the jobs can be performed effectively.

3. Group incentive helps to enhance team spirit at work.

4. Group incentive encourages a sense of cooperation and responsibility.

5. Group incentive facilitates on-the-job training as the group members have interest in getting new people trained as quickly as possible.

6. Group incentive encourages employee participation in group, job satisfaction and quality of work life at organization's environment.

Demerits Of Group Incentives

1. No reward is solely on individual's own effort.

2. Due to group/team focus, individual job performance will not be improved.

3. A group incentive plan may be less effective as compared to an individual incentive plan because under it, the individual does not see his/her effort leading to award.

4. Since overall performance depends on team effort the conflict and disagreement may be seen in the workplace among team mates.

5. The problem of self deception can occur.

6. Usually group members expect greater than average rewards, which lead to internal conflict within the team.

Merits And Demerits Of Individual Incentives

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Merits Of Individual Incentives:

1. Employees are individually motivated for higher level of performance in the organization.

2. Organizational ability will increase due to individual's satisfaction at work.

3. Individual incentives will result in greater job satisfaction and organizational productivity.

4. Individual incentive reduces organizational expenses.

5. Individual incentives can be easily administered and applied.

Demerits Of Individual Incentives

1. Since the individual incentive is provided with an additional output, employees tend to increase their output as far as possible and they give less importance to the quality.

2. Goal conflict occurs between individual goals and organizational goals.

3. The quality of work life is reduced.

4. The living standard of employees will be uncertain.

5. Individual incentive does not promote team work,

6. Bonuses are nor directly linked with employees performance.

Types Or Forms Of Incentives

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The incentive plan can be designed on individual, group or organization wise performance:

1. Individual Incentives

Individual incentives refers to incentives given to individual employees for their additional contribution towards organizational objectives. Under it, incentives are calculated on the basis of individual performance that can be measurable in quantitative terms. This is a most popular form of incentive in the industry under which employees are rewarded individually for their additional contributions. The foundation of such incentives is the worth of individual performance. It can be of following types:

- Piece work plan

- Commission

- Bonus

2. Group Incentives

The individual incentive plan will be ineffective when the output of the individual employees is not measurable, in such situation a group incentive is applied. It means, when two or more employees are involved for a particular performance, incentives are provided to the group collectively, it is called a group incentive. Group incentives make a strong sense where employee's tasks are interdependent and thus require a collective effort for the completion of such tasks. Especially, this system of incentive is useful in project teams where one worker's contribution is almost impossible to reflect in measurable units. Under this plan, a productive plan is set as standard performance for group of employees and a the reward is provided by assessing the performance of the whole team. If the employees in the group perform better, all members of team are rewarded collectively.

3. Organizational Incentives

When the incentives are provided to all employees of the organization, it is called organizational incentives. This kind of incentive is useful to motivate all employees at work for organizational effectiveness. The primary goal of organizational incentive is to direct the efforts of all employees toward achieving organization's overall mission, vision, objectives. This incentive plan produces reward for all employees working in a particular organization. The reward is provided in terms of productivity, gain-sharing, profit sharing, share ownership. and so on.

Concept And Meaning Of Incentive Plans

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Incentives are variable rewards granted to employees as per the variations in their performance. Incentives are provided besides wages and salaries so that the level of motivation and job satisfaction can be enhanced. Incentive payments are quite substantial and paid regularly as wages and salaries. The International Labor Office states that the incentive payments as 'payment by results'. They emphasize on the point of motivation, productivity, job satisfaction and good labor relation among the employees. Usually incentives are not relatively fixed as wage and salaries do. They depend upon the level of performance and vary from individual to individual and from period to period for the same individual too.

The obtained advantage of incentives is the inducement and motivation of employees towards the higher level of performance and greater output. They offer an attraction of extra payment for efficiency and productivity. An efficient incentive plan guarantees a fixed minimum wage rate based on hourly rate and extra remuneration for increased output.

Incentive plan is designed on the basis of following assumptions:

- Individual workers and work teams differ in terms of how much they can contribute towards organizational objectives.

- The overall performance of the firm largely depends on the performance of individual workers and work teams.

- The employees are rewarded based on their relative performance for a high performance.

Methods Of Establishing Employee's Compensation

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The main purpose of establishing employee compensation system is to value and price each job. The methods to be followed for the establishment of compensation are as follows:

1. Job Analysis

Job analysis is known as a process of collecting necessary information relating to job and its specifications. The required information can be collected through different methods such as surveys, observation, discussions, and so on. The information is collected for the preparation of job description and job specification statements.

2. Job Evaluation

Job evaluation is a systematic approach of evaluating or rating or valuing the job in terms of its worthiness, It puts jobs in a hierarchy and assign a relative worth of each job so that a pay structure can be determined. It means a systematic comparison of job is done in order to determine the worth of one job relative to another. Job evaluation provides an objective ranking of jobs so that an equitable and appropriate rate of pay can be determined for each job.This provides a basic ground for the determination of an efficient pay structure through the identification of compensation factors.

3. Compensation surveys

Compensation surveys refer to collecting information on prevailing market rates through different channels. The information can be collected through formal or informal surveys. Most employers in a small scale operation use informal telephone calls to collect data on a relatively small number of easily identified jobs. This informal telephone call is also a good technique for checking discrepancies in the wage rate. Under this method, the data and information relating to other's pay structure are obtained so that the collected data can serve a standard benchmark for formulating compensation plans and policies. The required data and information are collected through different sources such as published surveys, consultants and agencies, advertisements, informal communication etc.

4. Pricing Jobs

Under pricing jobs method, different pay levels are determined based on the grade of each job. Firstly the jobs are grouped into pay grades, than, the pay rates are assigned to each individual pay grade, rather than assigning rate to each individual job. A pay grade comprises of jobs of approximately equal difficulty or importance. It means, the jobs having similar nature can be grouped under a job grade as determined by job evaluation. If we use a point method in it, a particular grade falls within a range of certain points. Fir instance 0-50 points, 50-100 points, and so on.

Factors Affecting Compensation System

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The primary objective of a compensation system is to administer an effective and equitable pay system. It can be affected by various factors which are as follows:

1. Organizational Provisions

Organizational provision states that the level of compensation largely depends upon organizational operating policies and procedures. It is because the policies serve as a guideline for formulating and implementing compensation plans and programs. Moreover, organizational regulations, plans, objectives, ability for pay etc. also affect the level of pay.

2. Government Regulations

In order to protect the working class from wage exploitation by strong employers, the government enacts various laws ans judicial decisions. Such laws and regulations affect compensation management. Because, they emphasize on minimum wage rate, overtime rate, working hours, equal pay for equal work, payment of bonus, etc. So, an organization has to design its pay system as per the government rules and regulations.

3. Equity Considerations

Equity considerations hold the philosophy that the compensation system should be fair and equitable. It means the compensation system should be similar for the same type of work within the organization. Similarly, it should be fair relative to what other people get for the similar job in another organization. It is important because any imbalance between what the employees contribute and what they obtain as return would lead to greater job dissatisfaction, employee turnover and absenteeism.

4. Union Pressure

Labor unions are pressure groups that work in the interest of the workers. Such unions lobby the management for the formulation of fair compensation plans. These organized unions can ensure better wages for employees.

5. Job Analysis And Evaluation Report

Job analysis is a method through which necessary information about the contents and the contexts of the job is made available to determine the value of each job.The job evaluation is a process of determining the value/worth of a job so that a payment system can be specified. Job analysis and job evaluation determine the relative worth of job which ultimately assist for compensation management. Hence, it is regarded as an important factor of compensation management.

6. Cost Of Living

Compensation is concerned with an overall return that an employee obtains from the organization for rendering contributions towards organization objectives. Therefore, the payment should be adequate to maintain the cost of living of the employees. Hence, the employer should manage compensation viewing the cost of living of each individual.

7. Organizational Positions

Sometimes, the organization itself evaluates where it is in order to prepare compensation plans. The position of the organization is determined by its productivity i.e, if the productivity of the worker is high, it assess itself as a higher position. As a consequence of it, the compensation system is determined at a higher level. Contrary to it, in case of lower productivity, wages/salary rates tend to be low. Thus, any shift in productivity and employee performance has direct impact on the wage level of the organization.

8. Productivity Of Workers

Another factor of compensation management is the productivity of workers. This is the new concept of linking pay with employee performance. Under it, if the workers are highly productive, they get high compensation as compared to less productive workers. Productivity is a key factor as it enhances organization's image and status.

Types Of Compensation

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Compensation is a package of salaries and wages, pay incentives and benefits that an employee receives as a remuneration for rendering services to the organization. Depending upon the nature and mode of compensation, it can be categorized into two dimensions as follows:

1. Financial Benefits

The financial benefits consist such payments which are paid in terms of monetary gains. They enhance the economic well-being of the employees. Financial payments can either be direct or indirect.

Direct Payments

Direct payments consist of wages, salaries, bonuses, commissions,and other direct forms of payments.

Indirect Payments

Indirect payments consist of insurance, social benefits, allowances,employee services, holidays etc.

2. Non Financial Benefits

The non-financial benefits include everything in a work environment which are not expressed in monetary units. They help to enhance a worker's sense of self-respect and sense of being accomplished. The ideas under it are shown as:

Work Benefits

Work benefits consist of challenging job, responsibility, accountability, feeling of achievement and so forth.

Environment Benefits

Environment benefits consist of appropriate policy, adequate supervision, co-worker's status, interesting job, appropriate timing, and the like.

Concept And Meaning Of Compensation Management

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Compensation means the basic returns that an employee obtains from his/her work. Every organization offers a good compensation to attract and retain the ablest employees in the actual work floor. It is because if the company does not offer an attractive package of compensation,compared to other competitive firms, the efficient employees may leave the firm. Hence, the employees should be compensated adequately. A well-designed job evaluation program helps to determine an appropriate compensation system.

Compensation may be defined as a package of financial and non-financial benefits that the employee receives for his/her contribution rendered to the organization. It consists of all forms of monetary and non-monetary rewards/pays provided by the employer to the employees for services contributed by them towards organizational objectives. It has two main components- direct financial payments and indirect payments. The direct payments consists of salaries, wages, incentives,commissions, bonuses, etc. Whereas, the indirect payments comprise financial benefits like paid leaves, employee aid insurance  etc.

Compensation is a major component of reward which is basically given to the employees in return of their services. It is a package of quantifiable rewards provided to the employees. Hence, the assignment of appropriate/low cost compensation is known as compensation management.It will attract, motivate and retain competent employees at work, and this helps to minimize the turnover ratio.

Criteria For Distributing Rewards

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Different criteria of distributing rewards are as follows:

1. Performance

Reward is basically based on the level of job performance ability of an individual. 

The one who can perform the job well can get high reward in comparison to the poor performer. Hence, under this criteria of reward distribution, an individual's performance is evaluated before assigning any reward.

2. Effort

Another important criteria of distributing reward is the effort contributed by an individual towards organizational objectives. Where the question of employee performance is a low caliber, the only one way of rewarding employees is the basis of effort. Through this criterion one can exert the input of individual for organizational activities.

3. Seniority

Under this criterion, reward is provided to those individuals who have served relatively for longer period. This is one of the traditional ways of determining rewards in the organization,under which, the rewards are provided on tenure basis. Hence, length of service on the job is a major factor for determining the level of pay and it is easy to determine rewards.

4. Skills Held

Under this criterion of reward distribution, individuals having special skills are rewarded. It is another important practice of distributing rewards which is not unknown in organizations. Under it, regardless of whether the skills are used, these individuals who possess the highest talents are rewarded.

5. Job Difficulty

under this criterion of reward distribution, the complexities of the job are considered as the basis of rewarding employees. It assumes that the complex and difficult jobs require higher attention and concentration at work. So, these types of job holders should be rewarded.

6. Discretionary Time

This criterion is based upon the time taken for decision making. More tome for decision making means more probability of getting reward. This is because such jobs may have occur the chances of error hence, there is a need for careful judgement. 

Qualities Of An Effective Reward System

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An effective reward management system is essential for high satisfaction and motivation of employees at work. It is concerned with the process of employee attraction, motivation and retention. Therefore, an effective reward system should possess the following qualities.

1. Importance

An utmost care should be given towards the management of reward system because the employees should feel that reward is important for them. No reward is equally important for all employees. Hence, they should be rewarded with what they feel is important for them.

2. Equitable

Equitable is concerned with the fairness in distributing rewards to the employees. It means rewards should be perceived as equitable and fair. The fairness can be among the organization's employees in one hand and fairness relative to what people get for the similar job in another organization, on the other.

3. Visibility

Rewards, to be effective, must be visible and seen by the employees. Because visible rewards helps to motivate employees for higher level of performance. They help to satisfy individual's esteem and recognition needs. 

4. Flexibility

Rewards, to be effective, should be flexible to vary with changes in the performance. This means,rewards should vary as per the changes in actual performance of the employees.

5. Low Cost

An effective reward should be less costly because rewards are not free gifts they have some costs. Hence, the costs and benefits of reward should be taken into account in order to maintain organizational effectiveness.

6. Use Of Team Rewards For Interdependent Job

An interdependent job holds the philosophy that the tasks are interrelated with each other, and is performed step-by-step. The overall completion of such jobs is not the credit of single individual, rather it is due to the combined effort of all team members involving in the entire process of the job. Hence, in such situation it is advisable to use team rewards such as gain sharing and bonuses.

Types Of Rewards

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Reward is pay provided by an employer to the employees. It consists of packages of pay, benefits,services etc. Broadly, rewards can be divided into following types:

1. Intrinsic Rewards And Extrinsic Rewards

Intrinsic rewards:

Intrinsic rewards are the satisfactions that an individual obtains from the job itself. It means, they are the factors of esteem and self actualization needs of the employees. These satisfactions are self initiated rewards and are fulfilled internally by the employees. These rewards consists of having a pride on work, having a feeling of  accomplishment, or being a part of team etc.

Extrinsic Rewards

Extrinsic rewards are the benefits provided externally. These rewards are provided in term of money and fringe benefits. These rewards are necessary to fulfill physiological and safety needs of the employees. Such rewards are the results of management policies and procedures of the organization.

2. Financial Rewards And Non-financial Rewards

Financial Rewards

Financial rewards means those direct and indirect payments that enhance an employee's well being. Financial rewards make employee financially sound so that he/she can fulfill his/her material desire. Direct payment consists of salary,wages, commissions,incentives, bonus, allowances etc. Indirect payment include pensions, medical insurance, paid leaves, paid sick leaves, purchases, discounts etc.

Non-financial Rewards

Non-financial rewards are those employee benefits that do not enhance an employee's financial well-being  However, such rewards provide more job satisfaction. Preferred lunch hours, preferred office furnishing, parking spaces, impressive job title, desired work assignments, business cards, own secretary etc. are some of its examples.

3. Performance Based Rewards And Membership Based Rewards

Performance Based Rewards

Performance based rewards are such benefits which are provided on the basis of an employee's job performance ability. The reward depends upon the performance of an individual in the actual work floor.These rewards are exemplified by the use of commissions, piece work pay plans, incentive systems, group bonuses or other forms of merit pay plans.

Membership Based Rewards

Membership based rewards are those rewards that are paid on the basis of being a member of an organization. It means, the basis of allocating rewards is employee's organizational membership. Hence, the reward goes to all employees irrespective of their performance.

Concept And Meaning Of Reward Management

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Reward means a thing given to any one because of  his contribution to organization. Rewards and incentives contribute to strategy implementation by shaping individual behavior in the organization. A well design reward system is consistent with organizational goals, visions, missions and job performance. The most obvious reward that individual gets from the job is in the form of pay.

In managerial term, reward is defined as the total return given by an employer to an employee for rendering his/her services towards the organizational objectives. This is the overall return from the work. Every person asks for return from the organization before involving in any type of activities,which is termed as the reward. It attracts a worker's attention and inspires him/her to perform the task. Moreover, a reward is a pay-off for performance which is directly concerned with the level of motivation and job satisfaction.

Therefore, management of reward in an organization helps to motivated and retain employees at work. It is a vital aspect of HRM because a well-designed reward system will lead towards organizational productivity and employees satisfaction. Moreover, reward management is the process of  creating, implementing and controlling an effective reward system in the organization that helps to maintain and improve organizational performance. It senses the strategic purposes of attracting, motivating and retaining employees. Reward management basically focuses on how the employees can be retained or motivated at work.

Hence, reward management is a crucial aspect of HRM that revolves around designing and implementation of appropriate pay system. This system helps improve organizational performance and get people motivated at work. 

Purposes And Uses Of Performance Appraisal

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Performance appraisal systematically evaluates an employee's current and past performance as well as future potentials. It helps to identify employee's job related behavior and outcomes. Organizations usually undertake appraisal for administrative and developmental purposes. Main uses are as follows:

1. Administrative Uses Of Performance Appraisal

Under administrative use, performance appraisal provides a basis for a decision about the employee;s work conditions, promotions, terminations, and rewards.Administrative uses of performance appraisal comprise the following aspects:

A. Promotion

Performance appraisal serves as a basis for promotion of employees by communicating required skills, efficiency and potentials of the employees. It is the common interest of employees to get promoted into position where they can utilize their abilities effectively. It is mismanagement to promote the employees into such position where they cannot perform effectively. Hence, performance appraisal provides relevant information on promotion decision.

B. Transfers

Transfer decision is concerned with the transformation of employees from one work unit to another. It is conducted when the employees are not performing will in the organization. Performance appraisal provides reliable and relevant information for transfer decisions.

C. Remuneration Administration

Performance appraisal serves as a basis for administrating the remuneration of employees. It means, by assessing the current and past performance of an individual a decision regarding reward and punishment will be made.

D. Training And Development

Performance appraisal provides a basic ground for determining needs of individuals. It indicates the performance deficiencies in employee, if any, so that the training needs can be identified within individuals. It also helps in indicating talented employees so as to impart additional knowledge and skills in them.

E. Supervision

Performance appraisal provides a guide line for determining where and what kind of supervision is required. It also helps in personnel research.

2. Development Uses Of Performance Appraisal

Performance appraisal is said to be used in development whenever it is used to gear up towards improving employee's performance and skills. It can also be defined from the view point of self improvement. Under it, performance appraisal helps for the development of overall skills and efficiencies of the individuals. It also facilitates employee's career planning by recognizing their strength and weakness. This brings out the deficiencies and short comings of the employees, and provides a regular feedback to employees, so that the employees can improve their skills deficiencies.

Performance Appraisal Process

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Performance appraisal is a process through which performance deficiencies and actions to ratify such deficiencies. It is a continuous process of the following phases:

1.Establishment Of Performance Standards

It is concerned with the establishment of predetermined performance standards that will help in comparing the actual performance of the employees. It can be done through the formulation of human resource planning and job analysis.

2. Communication Of Standards To Employees

Under this step, the set performance standard is communicated to the concerned employees. The employees are assigned with required duties, responsibilities and authorities to do the tasks effectively and efficiently so that the expected standard will be met. Moreover, it provides information relating to what is to be done and how well the task is performed. The communication should be two-way process so that the implementation can be effective.

3. Measure Actual Performance

The actual performance of an individual is measured in terms of its efficiency and effectiveness. The performance is measured on the basis of predefined standards. The information related to actual performance is collected through the application of different qualitative and quantitative techniques; and the relevant criteria for comparison will be determine on the basis of such information.

4. Comparison Of Actual Performance With Standards  

This step is concerned with the comparison of actual performance with predetermined  standards. It is determined in terms of whether present standard is maintained. The information provided by the report on actual performance is compared with standards in order to identify performance deviations.

5. Discuss Appraisal With The Employee

This step of performance appraisal process finds out the deviation occurred in actual performance. It also identifies the extent of differences and the causes of such differences. Then the findings of performance appraisal is to discussed with the concerned employees to locate the measure/solution.

6. Corrective Action

If performance differs with the predetermined standards, then a corrective action is initiated in order to improve employee's performance in future. Corrections are remedial measures which are taken to bridge the gap between predetermined and actual performance. The corrective actions can be Do Nothing, Correct Deviations, Change Standards.

Significance Or Importance Of Performance Appraisal

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Performance appraisal provides important and useful information for the assessment of employee's skill, knowledge, ability and overall job performance. The following are the points which indicate the importance of performance appraisal in an organization:

1. Performance appraisal helps supervisors to assess the work performance of their subordinates.

2. Performance appraisal helps to assess the training and development needs of employees.

3. Performance appraisal provides grounds for employees to correct their mistakes, and it also provides proper guidance and criticism for employee's development.

4. Performance appraisal provides reward for better performance.

5. Performance appraisal helps to improve the communication system of the organization

6. Performance appraisal evaluates whether human resource programs being implemented in the organization have been effective.

7. Performance appraisal helps to prepare pay structure for each employee working in the organization.

8. Performance appraisal helps to review the potentiality of employees so that their future capability is anticipated..

Concept And Meaning Of Performacne Appraisal

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The work performed by the different employees differ in many aspects due to the difference in their backgrounds, experiences, knowledge, skills, abilities and aptitudes. Such differences determine the need of training and development activities. So, it is necessary for management to identify such differences so that employees having better job performance ability, skills and knowledge can be rewarded in one hand, and the wrong placements of the employees may be checked through transfer or punishments on other hand. In this regard, performance appraisal provides a measure in order to know the level of performance so that the employee may improve his/her performance.

Performance appraisal is a process of identifying, measuring and managing employee's performance in order to enhance organizational efficiency and effectiveness. It is a merit rating that denotes the appraisal of the performance of the employees in an organization. Performance appraisal systematically evaluates the personality and performance of each employee so that the productivity can be measured in terms of efficiency and effectiveness. The primary purpose of performance appraisal is to facilitate the orderly determination of an employee's worth in comparison to his/her fellow employees and expected level of performance. It provides information relating to various aspects of an individual upon which promotion, transfer and salary decisions can be made. It also provides an opportunity to review employee's work related behavior.

More precisely, performance appraisal can be defined as a systematic evaluation of an employee's current, or past performance as well as future potentials by supervisors or those familiar with his/her performance. It defines an employee's job related behaviors and outcomes which help reward, motivate, and empower employees at work. It also helps to identify future potentialities of an individual.

Factors Affecting Job Satisfaction

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Job satisfaction is influenced or affected by various factors which are as follows:

1. Employee's Expectation About Job

The expectation of reward from the job greatly influences job satisfaction. After performing the task what the individual is supposed to achieve determines the level of job satisfaction. The expected reward can be in term of intrinsic rewards and extrinsic rewards.

2. Reward And Punishment

This factor is closely related with expectation of intrinsic and extrinsic reward. Under it, a better performer gets reward, whereas the worse performer gets punishment. Due to expectation of reward and fear of punishment, employees are motivated at work thereby leading to job satisfaction.

3. Working Condition

Working conditions include work load, necessary equipments, job complexities, work opportunities, health and safety, etc. These forces are directly related to the job satisfaction. Better working condition results higher job satisfaction and vice versa.

4. Communication

A properly and effectively designed communication network provides ample opportunity for providing/transmitting various information relating to the job and its environment. Hence, it reduces potential frustration thereby increasing job satisfaction.

5. Personal Ability

Job satisfaction directly concerned with employee's ability, interest, attitude, skills, knowledge etc. Hence, highly capable person can perform the job effectively and efficiently which leads for greater job satisfaction.

6. Work Groups

Work group or work team is a collection of two or more individuals in order to achieve a common purpose. The nature of such work group affects the level of job satisfaction. If the individuals are closely interconnected with each other and directed toward a common end, the team performance will be enhanced. As a result, greater job satisfaction takes place.

7. Supervision

The frequency, nature and style of supervision also affects job satisfaction. When the supervision establishes supportive relationship with the team members, this will result in greater job satisfaction among the members/subordinates.

Concequences Or Effects Of Job Satisfaction

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Job satisfaction is known as a result of job performance and productivity. There exists a positive relationship between these variables. The consequences or effects of greater job satisfaction are as follows:

1. Job satisfaction increases efficiency and effectiveness at work.

2. Job satisfaction helps to reduce employee's absenteeism.

3. Job satisfaction promotes harmonious employee's relation.

4. Job satisfaction enhances organization's productivity and employees satisfaction.

5. Job satisfaction helps to decrease employee's turnover.

6. Job satisfaction helps to improve the image of the organization.

Concept And Meaning Of Job Satisfaction

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Job satisfaction can be defined as an employee's attitude towards the job. It is not same as motivation, rather it is concerned with the attitude and internal state of an individual regarding a particular job. It could, for example, be associated with a personal feeling of achievement, and hence, shaped or determined by pay, supervisory style, and age factors. If the existing job fails to provide psychological or physiological need of an individual, satisfaction from the job might be low.

More specifically, job satisfaction can be explained as an employee's general attitude towards the job. It is a pleasurable feeling that results from an employee's perception of achieving the desired level of need or satisfaction. Job satisfaction fulfills an individual's psychological and physiological needs through organizational process. It is a multidimensional attitude which is made up of the attitude towards pay, promotions, co-workers, supervision, the work environment and so on. High job satisfaction implies that the employees are liking the job, whereas, low job satisfaction relates to the disliking of the job by individuals. Job satisfaction is an intangible variable which is expressed through emotional feelings.

Therefore, we can conclude that, job satisfaction is an employee's positive response toward the various aspects of job. It helps to improve job performance, and can be determined by the deviation between employee's expectation about job outcome and what the job actually offers.

Measures Of Reducing Potential Frustration

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With the application of following measures, the potential frustration can be reduced:

1. Effective Recruitment, Selection And Training

The process of recruitment and selection makes available the potential incumbents in actual workstation who are fully capable of performing the tasks. Various training programs provide opportunities for them to learn different technical and administrative skills to do organizational activities. This makes them able to perform the activities effectively and efficiently. Hence, the potential frustration can be reduced.

2. Job Design And Work Management

Job design helps assign appropriate roles and responsibilities to the capable individual. This matches right people at right place and time according to their knowledge, skills and abilities. This practice helps to reduce the potential frustration. Because the employees fully enjoy doing the assigned tasks.

3. Appropriate Personnel Policy

An appropriate personal policy helps to organize a good and efficient working environment with the organization. Such environment provides opportunities for growth and development of various skills related to work performance. As a result of it, the potential frustration will be reduced and employees are motivated towards better performance.

4. Effective Communication

Communication is known as a lifeblood for the organizational activities. It works as a channel in transferring necessary information from one person to another, or one work unit to another work unit. A properly designed network of communication provides the information relating to various activities of the job promptly and timely. Hence, it helps to reduce the potential frustration among the employees.

5. Participative Management

Participative management is a technique pf motivating employees which revolves around many new ideas such as employees involvement, quality of work life, employee's empowerment, employee ownership, etc. Under this technique, employees ideas and inputs get considered in decision making process. It provides autonomy to employees which reduces potential frustration at work.

Causes Of Frustration

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Frustration is a result of interpersonal interactions which will be resulted when a motivated drive gets blocked before reaching a desired goal. The following factors causes frustration: 

1. Limited Resources

When an adequate resource is not available in the workplace, the job performance will be negatively influenced. As a result of which frustration may arise among employees.

2. Unclear Relationship

Unclear relationship between employees to employees or employees to managers causes frustration. If the relationship is not defined clearly, it will be impossible to assign tasks to the employees as per their status, position and ability.

3. Unclear communication

Effective communication plays a vital role in motivating employees towards better job performance. If the flow of communication is not defined clearly, it will cause employee's frustration. It is because unclear communication blocks the regular flow of work, job performance techniques, objectives and suggestions.

4. Status And Role Inconsistencies

If an employee's role and status is not consistent, he/she will be frustrated. This is because of frequent change in role. status, ans position creates confusion and dilemma in actual work environment.

5. Goal Difference

Goal difference is goal inconsistency between individual to individual. The goal difference occurs due to individual differences in goals, objectives, needs and wants.Such goal difference between each and every employees leads to employee's frustration.

6. Personal Background

Everyone has his/her own family, societal, cultural background, and way of perception. If such backgrounds differ from the organizational culture, and working relationships, the individual may feel frustrated from the work.

7. Organizational Climate

Organizational climate represents an overall working environment and relationship of the organization. Healthy and friendly environment helps to motivate people at work. On contrary, unhealthy and uncomfortable working environment leads to employee's frustration.

8. Lack Of Goal Harmony

Goal harmony means a proper match between individual goals and organizational goals. A proper goal harmony creates improved job performance thereby resulting higher degree of motivation. Contrary to it, the lack of it creates employee's frustration.

9. Poor Staffing

Staffing involves all activities necessary to create roles and responsibilities in organizational environment. But poor staffing results into less commitment. As a result of which, employees may be frustrated.

10. Lack Of Effective Personnel Policy

If the organization is lacking an effective personnel policy, the employees will not commit themselves towards better performance. As a result, frustration occurs at work station.

11.Lack Of Incentive And Motivation Procedure

The best incentive and motivation procedure helps to achieve high job satisfaction. But in case of its inadequacy, employees feel frustrated at work because they feel bored by performing hideous work.

Different Forms Of Frustrated Behavior

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The frustration follows a defense mechanism. Different forms of frustrated behaviors are as follows:

1. Aggression

Aggression means expressing a negative behavior. It leads to an unpleasant behavior of the individual. Sometimes it may be physical and mental attack upon his/her boss. The employees try to hurt their bosses mentally or sometimes physically also. It includes different behaviors such as displacement, negative,and fix action.

2. Withdrawals

Under this behaviors the frustrated employees try to avoid the root cause of frustration. He/she wants to separate him/herself from the frustrated behavior. It includes fantasy, regression, resignation, fight etc.

3. Fixation

Under fixation, the frustrated employees show repeatedly the same behavior time and again, even though there is no possibility of achieving any output or accomplishing his/her goal. For instance, driving the machine continuously without any work.

4. Compromise

It is concerned with searching for alternative so that the goal can be achieved. Under it, the frustrated employee may select a different way to compromise the situation. It includes different behaviors such as rationalization, projection, identification etc.

Concept And Meaning Of Frustration

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Frustration is a negative behavior which arises when a motivated drive is blocked due to various reasons. When a motivated drive is constrained by obstacles or barriers  before it reaches desired goal, the situation is called employee frustration.Frustration occurs due to internal conflict in individual goal and objectives. Hence, it is resulted from the condition internal to the individual rather than external influences. It prevents an employee to achieve a desired level of outcome. Frustration is an obstacle to goal achievement; hence, it may result the wastage of resources and efforts.

More precisely, frustration is a consequence of interpersonal interactions. Everyone has some sorts of wants or desires. They are motivated towards the achievement of those wants/desires through organizational processes.But all of their wants and desires are not fulfilled at a time. Because some are irrelevant, whereas other may contradict with each other. Hence, a tensionfull environment is created with individuals. As a result of which frustration takes place within them.

Importance Of Motivation

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Motivation refers to a willingness to do something in order to achieve organizational objectives and goals. The reasons behind its importance are as follows:

1. Effective Utilization Of Human Resources

Motivation helps to utilize the human resources effectively and efficiently towards the attainment of organizational goals and objectives. Because motivated people show a greater degree of job performance ability and skills.

2. Effective Utilization Of Other Resources

Along with human resources, motivation promotes the effective mobilization of other non-human resources. Motivated people can find better ways to do the jobs thereby reducing the wastage and damages of resources. Hence, motivated employees can utilize organizational resources effectively.

3. Willingness To Work

Motivation is a willingness to do a particular task in order to achieve organization's goals and objectives. This inspires, induces and stimulates individual for higher level of performance.Through intrinsic and extrinsic factors people will be motivated towards better performance. Hence, such motivational factors increases willingness for work in them.

4. Acceptance For Change

Motivation makes employees ready for accepting change in organizational environment. It means, motivation can be found in the present and future technology required for production. Hence, it prepares people for adoring such change. On the other hand, demotivated employees try to resist change.

5. Public Image

Motivated employee perform the task with utmost care and with positive comment about their organization; thereby resulting less wastage and damages; as a result of which they can build a strong public image in the society. If employees are motivated, they work for the organization, which enhances the quality output and productivity. This ultimately enhances a good public image.

6. Co-operation Between Employees

Motivated employees are work friendly; so they coordinate with each other while performing the tasks. They share their ideas, feelings, attitudes and experiences with each other. Hence, this brings the feeling of co-operation.

7. Better Supervision

Motivated employees are self-controlled and self-managed. They perform the tasks without any reluctance; hence, the work performed by such motivated and committed employee requires no supervision at all.

8. Organizational Effectiveness

When the employees are motivated, they perform organizational activities with an utmost care. They introduce creative and innovative ideas in the work place, and accept organizational challenges easily. Hence, the organizational effectiveness can be maintained.