1.

2.

3.

ASSIGNMENT COVER SHEET

SurnameLASEINDE

First Name/s ABISOLA ABODUNDE

Student Number 113681

Subject HUMAN RESOURCE MANAGEMENT,Durban (MBA Year 1)

Assignment Number 1

Tutor’s Name

1

Examination Venue MANCOSA Campus, Aliwal street,Durban, South Africa.

Date Submitted 2nd April, 2010

Submission (√ ) First Submission Re-submission

Postal AddressP.O BOX 50477,MUSGRAVE 4062,DURBAN.

E-mail bisso4rea06@yahoo.com, davidreplica@gmail.com

Contact Numbers

(Work)

0312017322 (Home)

0780273718 (Cell)

Course/Intake MBA Year 1 – January 2010

Declaration: I hereby declare that the assignment submitted is an original piece of work produced by myself.

Signature: A.A laseinde Date:2nd april,2010

TABLE OF CONTENTS

TITLE

CONTENTS PAGE

INTRODUCTION 2

QUESTION 1.1 Linking HRM and company business objectives

Strategy formulation, Strategy implementation and Strategy

evaluation.

2-3

QUESTION 1.2 work that motivates and satisfies employees. 3-4

QUESTION 1.3 Linking customer service, quality and 4-6

2

√

productivity

QUESTION 2.1 HR requirement in an organization (The process

of planning recruitment and selection.)

7-10

QUESTION 2.2 Training and developing the employee 11-13

QUESTION 3.1 Performance management measurement at dell 13-15

QUESTION 3.2 Assessing and developing employee for future

roles.

15-16

QUESTION 4 Implementing effective compensation system 16-19

BIBLIOGRAPHY 20-22

3

QUESTION 1

How the Human Resource environment at Dell is managed.

1.1 Linking HRM practices to the company business objectives

INTRODUCTION:

It deals with linking the human resource environment at dell with the

company’s business objectives and how dell motivates its employees and

also process used in selecting and training their employees, the last question

focuses on compensation and it’s benefit.

Dell South Africa established itself as one of the leading vendors in the world

in the ‘90s. From the case study we can infer that dell has a highly efficient

HR Department with a managing director at the head. The level of integration

between the HRM function and the strategic management function is a type

Two-way linkage, because the HR function is informed of various strategies

which are being considered ,but might not be fully involved in strategic plan of

such programme (Noe et al ,2008:73).

Another component of dell HR strategy is succession planning. (Noe et al,

2008:555 )describes succession planning as a balance for employees need in

the organization by ensuring suitable supply of successors across current

and senior position arising from business strategy.

In linking HRM practice to the company’s business objective at dell, we will

consider the following:

MISSION: a company mission is the reason for it being. In strategy

formulation, the mission statement set the mood of where the company

should go.

OBJECTIVE: Are concrete goals that organization seeks to reach; they

should be challengeable but achievable.

SITUATION ANALYSIS: This involves analyzing of the internal and external

environment of the work place. The external environment has 2 aspects. The

macro environment and the micro environment. The macro environment

4

analysis include a political, economic, social and technological analysis.

[PEST analysis].Michael Porter devised a 5 force framework that is useful for

industry analysis which include barrier to entry ,customers(which dell has

considered as well),suppliers ( dell build it’s system to customer

specification),substitute products and rivalry among competing firms

INTERNAL ANALYSIS: considers situation within the firm itself, such as

company’s culture. Company image, organizational structure, market shares.

(dell also enjoys double digit growth rate in local PC market)in strategy

formulation, Michael porter, identified cost leadership, differentiation and

focus as three generic strategies that should be considered. He further

argued that only one of the generic alternatives should be pursued.

STRATEGIC IMPLEMENTATION.

It involves translation of detailed policies into action that can be understood at

the functional level of the organization. It should be translated into specific

policies such for functional areas, such as marketing, procurement, human

resources etc.

STRATEGIC CONTROL

After the strategic implementation, then results of strategy should be

measured and evaluated and changes made as required to keep the plan on

track. Incorporating all these dell as an organization will then be able to have

the competitive advantage.

1.2 Designing work that motivates and satisfies the employees as well as

Wikipedia, the free encyclopedia describes motivation as the activation or

energization of goal oriented behaviour. It can be intrinsic or extrinsic.

Intrinsic Motivation: This occurs when people are internally motivated to do

something because it either brings them pleasure.

Extrinsic Motivation: This occurs when a person is compelled to act in a certain

way because of factors external to him or her like money, etc.

5

The case study describes the profile of a typical dell employee as a driven

professional who thrives in an environment where pressures and rewards are

both high. In relating this to the Incentive theory of motivation...

A reward when presented after occurrence of an action will elicit a person to

perform the same action again. if such an action is rewarded immediately ,the

effect is greater as the duration decreases ,the effect is lesser.

Another way the human resource environment at dell motivates it employees is

by meeting the managing director and discussing their views and concerns as

well as making suggestions.Maslow needs theory states that people will

continuously want things ,as soon as one need is satisfied, another need takes it

place. Therefore people need can never be fully satisfied.(nel et al,2008:337).In

his self actualization theory, when people needs are met ,then can then apply

their skills to the best of their ability. self –actualization needs now become

uppermost.

Social needs may be satisfied to a large extent in the work situation, but it can

be difficult to develop a strategy that will translate these needs into an incentive

for improved individual performance. The work people do, and their work

environment may be designed in a way that increases employee interaction., the

disadvantage is the excessive socialization may lead to a negative effect on

employees’ work output.(Nel et al 2008:338).

In conclusion, workers in an organization need something to keep them

motivated, if this is absent, then employees quality of work will

deteriorate .Motivation is the key factor that keep an employee working at his or

her best.

1.3 Maximizing customer service, quality and productivity.

Wikipedia .org defines customer service as the provision of services to customer

before during and after a purchase. Element of dell philosophy include

establishing good customer relationship and providing a superior customer

experience for their clients. Meeting customer expectation of service is a very

important aspect of any organization function.

6

Steve.k and Sarah .C. (1995:23-28) in their article link the HR dept to customer

service delivery. The human resource dept have a key role to play in the

development and delivery of customer service strategy. Their unique contribution

is their ability to keep a finger on the pulse of their organization and to

understand what will work and what will not and to be a valuable part of

information flow to ensure things are working the way they should.

Increasingly,HR professionals take on the role of internal consultant to any

organization, their role is to provide guidance and facilitate progression moving

through the key stages of designing and implementing a customer service

strategy. In integrating customer service with culture, we know that all

organization has it own culture, that is the way things are done around here. In

the case study, Dell also has an excellent culture which is codified into the soul of

their organization.

For customer service to become a way of life, there is need for integration into

every aspect of an organization,HR professionals can shape this though the

development of policies such as recruitment ,training, development ,team

briefing and reward which have customer service at it core.

Quality assurance: Can be said to be a behaviour inclination of an organization

as a whole (organizational cultural dimension and individual employee behaviour

motivation) as part of any process used to pursue Quality in the products or

services of Organization.(Nel et al 2008:54).( Marilyn .m and George .l.1996:5-

10)describes how quality and productivity can improve a firm competitive

advantage. Organization must increase their quality or loose their market shares.

Firms must have an understanding of the level of quality desired by consumers,

also management should be aware of the exact level of quality necessary to

meet or exceed the quality standard of competition.

STEPS IN IMPLEMENTING GOALS OF QUALITY AND PRODUCTIVITY.

1. Top Management should be convinced of need for an overall emphasis on

a manufacturing strategy for the entire organization.

2. Training and orientation of all workers in the department about new

strategic orientation. Engage in team building and goal setting activities

7

which will improve communication and working relations among

departments.

3. General survey of customers to the products be sure that they are

offering the products and benefits the customers seek. Customers

perception and priorities do change over time.

4. Company must improve the work flow and make the design of

manufacturing system more flexible and effective to new products

demands.

5. Continue to gather information ,after sales on user attitude and conduct a

customer service audit where they compare the company service to its

competitors.

6. Encourage worker suggestion and reward good idea and productivity with

positive feedback and recognition.

In conclusion as employees get involved in quality and productivity, their

satisfaction will increase. Customer survey will also show a company the level

of satisfaction of their customer.

Question 2

The process involved in the acquisition and preparation of potential

employees at dell.

2.1 identifying HR requirements-HR planning, recruiting employees and selecting

employees.

INTRODUCTION

The process used in planning, recruiting and selecting employees will be

evaluated .The advantages and disadvantages mentioned .

In identifying the HR requirement ,we will examine how the HR dept plans and

recruits.

Planning is the process of anticipating and providing for the movement of

people into ,within and out of an organization.(Snell and Bohlander 2007:48) .

Workforce planning is therefore an integrated and holistic resourcing planning

8

process that ensures that the right people are in the right roles to meet the

current organizational profit plan.(Nel et al 2008:216).It involves the

vision ,mission, goals, and objectives of both HR and the organization being

implemented in an organization.

Human resource planning is important because, it allows for:

1. More effective and efficient use of people at work

2. Greater employee satisfaction

3. Better developed employees

4. More effective employment equity planning.(kleynhan et al,2007:69).

The Process of HR Planning

Phase 1: Forecasting

The first activity of HR planning involves forecasting so as to determine labour

demand and supply. Techniques used include sophisticated and powerful

software packages that large and small companies can easily use.(Nel et al

2008:220).

Phase 2: Goal setting and Strategic Planning

The forecasted labour surplus and labour shortage will be used to determine

measurable goals for each particular skill area or job category. The organization

will then choose a strategy which will provide for the achievement of the set

goals.(Noe et al, 2008:185)

Phase 3: Programme implementation and Evaluation.

It involves the implementation of strategy so as to achieve the goals in phase 2.It

also involves evaluation of results of planning process.(Noe et al 2008:192

1. Actual staffing levels against forecast staffing requirement are comparison

that need to be made.

2. Actual levels of labour productivity against anticipated levels of productivity.

3. Actual programme implanted against action programmes planned.

Recruitment: The case study states that dell makes use of recruitment

agencies as well as search and selection specialist to source its staff. It also

advertises all available job internally and post them on it website. People can

also approach dell directly to find out about the current oppournities. Dell uses

9

both internal and external method to recruit. www.the free library.com (most

important aspect human resource management); Recruitment is almost central to

any management process and failure in recruitment can create difficulty for any

company including an adverse effect on its profitability and inappropriate levels

of staffing or skills.

INTRENAL RECRUITMENT. Can be said to be the practice of choosing amongst

the current company workers to fill a position that falls vacant over time. Methods

used in internal recruitment include, internal job sheet, company notice board,

and company intranet.

SOURCES OF INTERNAL RECRUITMENT

1.Job advertisement circulated to present employees.

2. Personnel records to identify present employees with potentials

3. Referrals from current employees.

4.Formal employees which include those who were laid off previously or have

worked seasonally.(Nel et al,2008:226)

EXTERNAL RECRUITMENT:

Is when a business recruits new staff from outside the business

SOURCES OF EXTERNAL RECRUITMENT.

1.Advertisment (placed in Newspaper, Magazines and internet)

2.Employment Agencies

3.Campus Recruitment

4.Direct mail

5. Customer: Who are often neglected, because they are familiar with the

organization and their products.(Nel et al,2008:227)

The advantages and disadvantages of internal and external Recruitment.

INTERNAL RECRUITMENT

Advantages Disadvantages

4. Provides greater motivation for

good performance

1. Creates `inbreeding and stale

ideas.

10

5. Provides greater promotion

oppournities for present

employees

2. Creates political infighting and

pressures to compete

6. Provides better oppournities to

assess abilities

3. Requires a strong management

development programme

7. Enables employees to perform the

new job with little lost time.

4. Creates a homogenous

workforce

EXTERNAL RECRUITMENT

Advantages Disadvantages

1. Provides new ideas and insights 1. Loss of time owning to adjustment.

2. The existing organizational hierarchy

remains relatively unchanged.

2. Present employees cease to strive

for promotion

3. Provides greater diversity 3.individual may not be able to fit with

the rest of the organization

Table 1(Nel et al table 8.4, 2008:225)

E-RECRUITMENT: Is a type of online recruitment; refers to the process of

recruiting via the internet(externally) and intranet(internally).(Nel et al

2008:227).Dell also makes use method in recruiting.

1. The benefits are lower advertising costs

2. Job advertisement receive local, national and international exposure.

3. Information about vacancies are accessible 24hrs a day.

4. Online communication device are used between organization and applicants

{Nel et al 2008:227)

SELECTION

Is the process of choosing the most suitable persons out of all participants. It

involves choosing the best of those recruited.(Nel et al,2008:239).The process of

selecting recruit was not enumerated in the case study. I will briefly consider

processes used to select below;

11

1. Preliminary Screening :This is the 1st step ,here individuals not qualified for

the job are quickly eliminated, if the minimal requirement are not met.(Nel

et al,2008:39)

2. Completion of application Form: The filled in application forms provide

pertinent information about the individual and are used in job interviews

and for reference check to determine the applicant suitability for

employment.

3. Interview: Is one of the most widely used tool, it is used to get information

from the applicant and to judge the applicant on the basis of the

information.(Nel et al 2008:244)

4. Employment Test: A test is basically a sample of a person

behaviour.Psychological tests are being used frequently in employee

selection, where it involves some aspect of an individuals

attitude,behaviour and performance.

5. Reference checking: A further selection method, it involves employees to

verify an applicants current position and salary, if he or she agrees and

knowing about his or her technical competencies.(Nel et al,2008:249).

6. Medical Examination: Applicants who have crossed the above stage are

sent for physical examination to determine if there are existing disabilities

and know the pre-employment status of the employees.

(Prasad .L.2005:242-243).

7. Employment: Is the final stage in the selection process, After the selection

steps have been taken, the human resource or management can then

take on the decision of employment. Employment can be offered in form

of an employment menitoring.The post, the rank, the salary grade, the

date and other terms and conditions and other contractual agreement

mentioned.(Prasad .L.2005:243).Appointment is made on probation of one

or two years, where upon satisfactory performance during the period, the

candidate is confirmed on the job.

2.2 TRAINING EMPLOYEES

12

Training can be defined as the planned effort by a company to facilitate

employees learning of job related compentencies.These competencies

include knowledge, skills or behaviours that are critical for successful job,

(Noe et al,2008:267).Companies are now investing million of dollars in

training programme to gain a competitive advantage.

THE TRAINING PROCESS:

1. NEEDS ASSESSMENT: This is the 1st stage in training and will indeed

identify the problems which could be poor performance, new technology or

job redesign.(Noe et al,2008;271).

2. ENSURING EMPLOYEES READINESS FOR TRAINING: Employees

readiness for training are evaluated through self-efficacy ,understanding of

the benefits and consequences of training, awareness of training needs,

careers, interest and goal.(Noe et al,2008:280)

3. CREATING A LEARNING ENVIRONMENT

4. ENSURING TRANSFER OF TRAINING: Employers should try and allow

employees who go on training to apply such skills.(Noe et al 2008:286).

SELECTING TRAINING METHODS.

In the case study, Dell invests in ongoing online and classroom training for

staff as well as on-the-job training and mentoring. In selecting training

method, we must determine if it going to be employee related or programme

related. As far as employee related issues are concerned ,it entails where and

how employees are to be involved such as in or outside of working time. while

programme related involves on-the –job or off-the –job training. Some of the

method used in training will be briefly evaluated.

Classroom Training: It involves a trainer who lectures a group of people. it

may include question or answers question session, discussion and case

studies to provide for participation.

ADVANTAGES

1. Less expensive

2. Least time consuming

3. Large number of learners. (Noe et al,2008:291-294)

13

On-the-job-training : Is usually used to train new recruit and to upgrade

skills of experienced employees.(Noe et al,2008:294).It allows workers to

learn because they actually perform the task on the job.e.g of methods

used include coaching, job rotation, understudy .(Nel et al,2008:465-466)

Advantage

The learner learns at her own pace and receives feedback on learning

performance

On-line training: Training over the intranet or internet. It allows for learning

oppournities and support via training by computers online. It could be on-

the –job or off-the job.

Advantage

1. Ability to deliver training to, learners anywhere in the world

2. Ability to control what they learn and speed at which they progress

through a programme. (Nel et al 2008:469)

Mentoring: When a senior employee takes an active role in guiding role in

guiding another individual we refer to this as mentoring. This is support

system guided by a mentor vouches for the candidates, answers for the

candidates in the highest circles within the organization, it also makes

appropriate introduction and advises ,guide the candidate on how to move

effectively through the system.

Disadvantages

1. It has the tendencies to perpetuate the current style and practices in the

organization

2. It relies on the mentor ability to be a good teacher. (David.A.,and

Stephen.P.2006:124)

INTERNATIONAL TRAINING: Dell employees are allowed to travel overseas to

further their training.

EVALUATION: This is the final phase in training. Snell and bohlander( 2007:311)

include four criteria for evaluation ie,Reaction,learning,behaviour and results.

While, Noe et al (2006:298) categorizes training outcomes as cognitive , skill-

based, Affective

14

outcomes and Result and return on investment. Skill-based, Affective and result

outcomes measured following training can be used to determine transfer of

training, i e the extent to which training has changed behavior, skills, or attitude

or directly influenced objective measures related to company effectiveness.

Question 3

Manager need to ensure that employees have the necessary skills to

perform current and future jobs through continuous

assessment ,development and management.

With regards to this statement, how the above is accomplished at dell. Your

discussion must consider the following:

3.1 Measuring employees` performance.

Performance can be measured through performance appraisal and performance

management.Perfomance appraisal is the process of evaluating and

communicating to an employee how he or she is performing the job and

establishing a plan for improvement (Iloyd.l.and Leslie. 2006:223).it should be a

future oriented activity. While, Performance Management is a holistic approach

and process towards the effective management of individuals and groups to

ensure their shared goals as well as organizational strategic objective.(Nel et

al,2008:493).Performance appraisal is a component of performance

management and it is usually measured on a short term basis.

The typical dell employee has a performance plan which is reviewed regularly,

as well as an individual development plan that is a working document…the

company identifies top performers every year and places them on an accelerated

development plan. This means that each dell employee is individually assessed

and also have individual development plan which they try to improve on,any

employee that is identified as being a top performer is placed on an accelerated

development plan, ahead of his or her peer. This development is to aid better

oriented results and serve as incentives to other employees at dell.

The case study also states that the company is a meritocracy where

employees are rewarded for good performance measured against a set of

metrics, this indicates that dell considers talent ,intellectual achievement and

15

excellence of performance worthier of reward than race or sex or social

status.Perfomance management can be measured through different approaches,

but before we discuss the types of approach used in performance management,

the purpose of performance management must be mentioned, this

are,Strategic,Administrative and development.(Noe et al 2008:332)

Strategic purpose: simply means linking employee activities to the organization

goal.

Administrative Purpose: it assist the organization with administrative decision

Development Purpose: This seeks to improve performance and develop

employees at their jobs.

TYPES OF APPROACH

1. Comparative Approach

2. Attributive Approach

3. Behavioral Approach

4. Result Approach

5. Quality Approach ( Noe et al,2006:340-359)

The approach used at dell can be said to be the result and quality approach,

the Result approach is based on the premise that results are the one best

indicator of how a subordinate performance has contributed to organizational

success (noe et al,2008:351).the technique used include:

a.) Management by objective(MBO) : Goal setting lies at the heart of

the MBO process, it involves long range objectives that cascade through the

organization department objectives and then to the individuals.

(Pieter.G ,Surrette.W,Michael.R and Norbert.F:2006:275)

16

Goal setting

Periodic review MBO Action planning

Self control

Figure1:

Action planning: It constitutes a road map for accomplishing their goals.

Periodic reviews: This mechanism allow the MBO measure progression towards

their goals. It allows employees discuss problems that they be having.(Pieter.G

et al,2006:276)

b.) Productivity Measurement and Evaluation System: It main goal is to motivate

employees to higher productivity.

2. Quality approach: It is aimed at improving customer satisfaction; it emphasizes

both internal and external customers in setting standard and measuring

peformance.the disadvantage include employees being held accountable for

good and bad results.(Noe et al,2008:354)

3.2 Preparing employees for future work roles:

Dell recruits top performers into their by offering sound career path, as well as

opportunity to develop their skills. Development is a formal education, job

experiences, relationship and assessment of personality that help employee

prepare for the future, it also involves learning that is not related to the

employees current job.(Noe et al,2008:383)

There are about three stages involved in creating a development programme.

1. The assessment phase

2. Direction phase.

3. Development phase.(Luis.R, Gomez. M, David.B, Robert.L,2003:300)

1. ASSESSMENT PHASE: It identifies employees strengths and weakness,

Common self assessment tools include, career workbooks, career planning

17

workshop. Tools used include, assessment centres,performance appraisal and

360degree feedback system, benchmarks, myers-briggs type indicator. (Noe et

al,2008;394)

2. DIRECTION PHASE: It involves the type of career employees want and steps

they must to realize their goals. methods used include

Individual counseling: One-to-one session with goals of helping employees

examine their career aspirations

Information service: It provides career development information to employees.

The most commonly provided information system are job-posting system, skill

inventories , career paths and career resource centers.(Luis.G et al,2003:304-

307)

3. DEVELOPMENTAL PHASE: It involves taking action to create and increase

skill to prepare for future job oppornities.Methods used includes mentoring,

coaching, job rotation and tuition assistance. Mentoring has been explained

above.(Luis et al,2003:309).Benefits of mentoring are advancement of the career

of the protégé by nomination for promotion or sponsorship, Counseling in both

work and personnel issues, there is usually better job performance and longer

service in organization who develop a protégé. (Pieter.G et al,2006:402).

Coaching: Is a peer or manager who works with an employee to motivate them to

develop their skills, provide reinforcement and feedback. Methods used an be

one-on-one sessions ie paring an employee with an expert.(Noe et al,2008:404)

Job rotation: Involves assigning employees to various job so they can acquire a

wider base skill.(Luis.R et al,2003:313).

Tuition assistance programme: Dell as an organization can do this to support

their employees education, it can range from seminars, workshop, degree

programmes to continuing education programmes.(Luis et al,2003:313).

The methods mentioned above can help the employees at dell to be prepared

for their future work roles.

QUESTION 4:

18

Dell is considered as an employer of choice because of its highly effective

compensation system. How can effective compensation system lead to

employee satisfaction or dissatisfaction, if they believe pay and benefits

are unfairly distributed.

Compensation refers not only to extrinsic rewards such as salary and benefits,

but also intrinsic rewards such as achieving personnel autonomy and more

challenging job opportunity . It also refers to all forms of financial returns and

tangible services and benefit employee receive as part of an employment

relationship.(Grobler et al, 2006:351). The table below shows the objective of a

good compensation system and how it can be achieved.

Compensation

objectives

Obtained by

1. Attract good

employees

Wage survey to determine the ongoing rate in the

labour market.

2.Retain good

employees

Job evaluation system.

Wage survey to determine the ongoing rate in the

labour market

3. Motivate employees Employees perceive as equitable

Reward good performance

4.Comply with the law Documentation of HR records.

Government legislation.

Table 2.(Adapted from Pieter Grobler et al,2006:351) figure11.2.

OBJECTIVE OF A GOOD COMPENSATION SYSTEM.

Boarse cited in Nel et al,2008:282 that the achievement of these objective is

influenced by several external forces.

1. labour market forces.

2. Collective bargaining

3. Government legislation

4. Top management philosophy regarding payment and benefits

5. Top management willingness to recognize individual ability and efforts.

19

The case study mentions that dell pays market related salaries, this indicates that

there is some level of comparison with the wages other PC company ,this also

indicate EQUITY. The equity theory argues that a person compares her own ratio

of perceived outcomes ( e.g pay, benefits, working condition) to perceived inputs

(e.g efforts, ability, experience )to the ratio of comparison with others. If equity is

perceived ,no change will occur in the employees behaviors, attitude and vice

versa. (Noe et al 2008:487)

Effective job compensation can lead to employee satisfaction, if employers

follow certain step in determining the value of job done within their organization,

These include

a. Conduct job analysis

b. Identify compensable factors

c. Develop job hierarchy

d. Construct Job grades

e. Carry out compensation survey.

f. Establish final pay policy. (Nel et al,2008:288)

a.) Conduct job analysis- The process of describing and recording the

purpose, task, and characteristic of job in a given organization setting to

determine match for individual skill, knowledge and need.(Nel et

al,2008:289)

d.) Constructing Job grades: All the job in a given grade are seen to be

essentially the same ,they are paid relative to each other and to the other job

in the organization.(Nel et al ,2008:291).

f.) Establishing final pay policy- Company must decide whether to take the

lead, lag behind or pay he same as other industry players.(Nel et

al,2008:291).

INCENTIVE PAY SYSTEM : It is geared towards measurable performance

results like cost savings, sales

MERIT PAY SYSTEM: Links pay to performance by basing, employee annual

increase on performance appraisal. It has the dissatisfaction of discouraging

20

team work and difficulty in attracting suitably qualified employees. (Noe et

al,2008:530)

PROFIT SHARING : Involves all or certain group of employees sharing in a

non-deferred pool created by percentage of the profit. The dissatisfaction is

that employees fail to see the relationship between work performed and

organization profits.(Nel et al,2008:295)

GAIN SHARING- Is usually tied to achievement of very specific goals for

productivity, quality improvement, and cost effectiveness. It can lead to

dissatisfaction because one might not be able to determine the role

employees had in achieving these goals.

GROUP INCENTIVE AND TEAM AWARDS: It involves rewarding employee

at level of the group.The satisfaction is that competition between individual is

reduced ,while creating dissatisfaction by replacing it with competition from

outside team.(Nel et al,2008:295)

Dell can satisfy its employee by introducing a mix of these compensation

programme to meet the needs its employee, the Balanced Score Card

approach should be used, it enables companies to track financial results while

monitoring progress in building capabilities and acquiring intangible assets for

future growth.(Noe et al,2008:543).

In conclusion, to ensure the effectiveness of compensation system,

emphasizes used be made on :

1.) Organization should take note of the fact that not only incentive pay plans

impacts on productivity and performance but also on the manner in which

employees are treated.

2.) Effective communication should take place to ensure that employees

understand the incentive the incentive based compensation system

3.) Employees should participate in decision relating to incentive compensation

system. (Noe et al,2008:546-548).

CONCLUSION: Dell is a leading PC organization that integrates its human

resource environment with the company business objectives.

21

BIBLIOGRAPHY.

David,A., Stephen, P.,(2003) Human Resource management.7 th edition .

Singapore :john wiley and sons

Graham,H (1998) Human resource management.9 th edition . London:

Prentice hall.

Gupta,c.(2006) Human resource management. Revised edition. New

Delhi: Sultan chand and sons.

Iloyd.l and Leslie.W.(2006) Human resource management.8 th edition . New

York: McGraw-hills international edition.

Luis,R.,Gomez-mejia.,David,B.,Robert,L.(2003) Managing human

resources.3 rd edition. New Delhi: Prentice hall.

Marilyn.M., Helms.,George.L.,(1996) Prospective on quality and

productivity for competitive advantage.[on-line].Vol.18,No.3,pp 5-

10.Available from Emerald online library.[Assessed 22nd march 2010)

Nel,P.S., Werner,A., Haasbreok,G.D.,Poisat,P.,Sono,T.and

Schultz,H.B(2008) Human Resource Management. 7 TH Edition Cape

town:Oxford University press Southern Africa.

Noe,R.A.,Hollenbeck,J.R.,Gehrart,B. and Wright,P.M.(2008) Human

Resource Management: Gaining a competitive advantage 6 th edition .

Mcgraw-Hill.

Pieter .G.,Surette.W., Michael.R.,Norbert. F.,Robert. D. (2006) Human

Resource Management 3 rd edition: London.Thomson.

Snell,S.&bohlander,G.(2007) Human Resource Management.

Mason:Thomson

22

Steve.k.,and Sarah.C.(1995).The implication of customer service initiative

for human resource professionals. Training for Quality [on-line].Vol.3

No.1.Available from Emerald on-line library. [Assessed 19th march 2010]

www.wikipedia.org (free encyclopedia).Assessed on the 15th of march

2010.

23