Human Resources Management is an important functional area of an organisation. Human Resources are actually the employees of the organisation. If there is not any human resources the organisations can not run.
Effective functioning of Human Resources Management is the succss of an organisation. They are responsible for solving the problems related to the employees. If they have any arrogance their employees can not function effectively.
A good HR management provides salary and allowances to the workers on the basis of their performance and the annual increment is on the basis of their profitability. It will create a team work among the workers and a good relationship between the management and workers. It will helps to increases the efficiency and prosperity of both employees and management.
If the annual increment is a fixed percentage it will not helps to increases the efficiency and prosperity of management and workers. It will create a break among the team work of workers. Government enterprises are always implement these system. Therefore there have not a good profitability or prosperity to them.
If the increments are to be fixed on a meeting with management and trade unions it is not a good HR system. Vaidyaratnam company always implement this system. In this system if any increment is allowed in a discussion with meeting the but actual attitude of employers is that it is not allowed. But it is allowed in names only. In this system increments is in names only and it is maximum negotiated. But in profitability method increment is on the basis of their profitability and all of the employees are getting an reasonable increments.