Personnel Management: Remuneration, Development, and Finance
Personnel Management
Maintenance Personnel
This relates to activities that benefit the worker. Key items to consider are:
Remuneration
Remuneration is compensation or reward for effort, composed of material and moral elements. Material elements include basic salary, overtime, bonuses, and holiday bonuses. Moral elements include psychological incentives (medals and congratulations) or rank (title, private office).
Industrial Security
The aim is to ensure that risks to workers’ health and lives are minimized.
Welfare and Recreation
These address issues related to health, comfort, and entertainment, such as nurseries and sports clubs.
Personnel Development
The goal is achieved through techniques to improve performance at work.
Activities include:
- Training: Has two basic objectives: scheduled development of skills and knowledge, and enabling development of new skills.
- Promotions and Transfers: A positive reward and a powerful stimulus for the employee.
- Qualifications: An objective assessment of a person’s performance in their role. Analysis, description, and evaluation of the role are highly recommended.
According to the Labour Code in force in Chile, consideration paid in cash and additional in-kind valued in money is paid to the worker by the employer because of the employment contract.
Types of payment:
Salary: A stipend of money paid for equal periods, determined in the contract, plus agreed-upon benefits.
Bonus: Pay received for overtime exceeding normal weekly working hours.
Commission: A percentage of sales or purchase price, or other operations.
Participation: A proportion of the profits of a business, company, or one or more sections or branches.
Finance Function
Financial management is the area of administration that manages the company’s financial resources, focusing on profitability and liquidity.
The aim is for the company to be both profitable and liquid.
Profitability is achieved by maximizing returns on investments. Maximizing profit can compromise liquidity because returns are subject to different periods. It is not possible to maximize both objectives simultaneously. Therefore, the financial manager must maintain a satisfactory balance.
The finance function seeks funding from the market and uses and applies the resources obtained.
Task Manager or Financial Decisions
- Obtain funds on more favorable terms through financing from owners and others.
- Allocate funds for company operations and invest surplus in the capital market or acquiring fixed assets, which is investment.