Humanresource management (HRM) is the process of developing strategies andpolicies to ensure maximum employee productivity. Many organizationshave realized the importance of HRM and therefore employ it as anindependent tool in production. HRM is based on both personneleconomic theories and the traditional human resource methodologies.[ CITATION Edw08 l 2057 ].Based on the tournament theory, companies have justified excessiveexecutive compensation. In 2013, the average CEO made more than threehundred times the average worker.
CBSis an American television broadcast company, which was founded byWilliam S. Paley in 1927. The President and Chief Executive Officerof the CBS Company Leslie Moonves, earns a total compensation of oversixty nine million US dollars and is the highest paid CEO in themedia industry, as at 2013. This breaks down to thirty two million incash, thirty two million in equity and five million in otherbenefits. The next top earner in the CBS Company is the ChiefOperating Officer, Joseph R. Ianniello, who earns less than half thesalary of the CEO. The average employee at CBS earns around fortythousand dollars. The disparity between these compensations is verylarge.[ CITATION Mur99 l 2057 ]
Thequestion on whether or not the tournament theory acts as an effectivetool for motivation of employees is debatable. Therefore, this reportseeks to highlight the major roles of HRM, effective in maximizingproductivity by using qualitative analysis. The qualitativemethodology of research will be effective in exploring the issuessurrounding the human resource at CBS and ensure an in depth analysisunique to its operations.
Beingin the media industry requires the CBS Company to be very critical oftheir output. The fact that results are spontaneous in nature,especially breaking news, and should maintain high levels oflegitimacy, requires the company to maintain high levels ofpreparedness. The company therefore relies heavily on the employeesfor results. To maximize productivity the CBS has given the HRM thefollowing roles:
Recruitmentand selection: this is the process of finding and hiring thebest-qualified applicant for a specific job. This involvesselectively matching skills to the particular job description formaximum output. Compensation and benefits: this involves notonly giving a satisfying guaranteed salary to employees, but alsogiving other benefits in terms of rewards including bonuses forexemplary results, insurance and equity based compensation. Retentionand motivation: this is done in order to ensure employeecommitment to their jobs and is achieved by providing ample benefitstogether with working environments that are conducive with thevertical and horizontal colleagues. Training and development:this role is aimed at improving performance of individuals bydeveloping their skills to ensure competence and hence thedevelopment of the organization. Employment laws and policies:these are used in assessing employee performance and act as standardsof measure in line with the organizations’ goals and objectives.Safety and health at work: this role aims at providing safe,secure, and healthy physical and social working environments foremployees to maximize output.
Theseroles are aimed at maximizing production on the part of CBS. However,the employees should also participate in ensuring that the goals andobjectives of the company are achieved. Performance evaluation istherefore employed to assess the contribution of each employee to thecompany’s value and this is done annually at CBS. The design usedfor performance evaluation is based on the following dimensions:risk, distortion, scope, manipulation and job design. This is in linewith the selective allocation of jobs to specific individuals.[ CITATION Lau11 l 2057 ]In evaluating performance, controllable and uncontrollable eventsshould be referenced so as to consider underlying circumstances. CBSperforms broad evaluation so as to accommodate more risks given thenature of the broadcasting industry.
Performanceis then rewarded to act as motivation to the employees. Rewards andpenalties are accorded to the employees either in terms of monetarygains or other benefits within the company. It is also at this pointwhere necessary changes in terms of ranking employees are done inrelation to their performance, including promotions. In accordancewith the tournament theory, this is meant to have a positive effecton the employees.
TheCBS Company has made great effort to improve its working conditionsand to ensure employee loyalty. However, most of the employees arenot content with their pay in relation to that of the top executives.The huge difference has a negative impact on the workers’ input,hence the need to get rid of the seniority pay. The Company shouldalso ensure that it creates avenues for teamwork so as to ensurecooperation among colleagues. Teamwork is also important in ensuringthat there is development of new ideas as it stimulates creativity.Lastly, the CBS Company should guarantee annual bonuses to allemployees to ensure that those who are not recognized as exemplaryperformers still feel motivated.
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