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Performance related pay benefits for employees
Advantages and disadvantages of performance related pay
Performance related pay advantages and disadvantages
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There are many disadvantages of using person focused pay system. Many employee feel that if a company does not care about how they are progressing in the company. Then they will become disencourage and not want to succeed in the company. Most employee are giving the opportunity to further their education but do not take up the opportunity to do so. Employee often become disloyal to the company. It has shown that a “human resources executive with very little experience in human resources and a lot of experience in sales and marketing would be classified as a typical”(Sidle,2007,p.83). They feel like they are not motivated enough to get the job done. Some employer often time down talk the worker stating that they are not moving fast enough or …show more content…
Which this mean that the company will spend out more money trying to replace the employees who have left the company. “There is evidence that similarity-focused comparison of non-social material is more efficient than dissimilarity-focused comparison”(Corcoran,2013,p.128). Rewards are not often times what an employee is looking for within a company. Some of the employees are still not paid what they feel that they are worth. Going back to school to further his or her education does not guarantee that he or she will get a higher pay. Some believe that going back to school will help them with their pay but others believe that all will be paid the same no matter what they got a degree in. Do the employee degree really determine it? Many employer do not look at all the overhead cost that the company could be affect by. Overhead cost can be defined as a cost that cannot be identified with or charge(Šiškina, Juodis, & Apanavičienė,2009). There are several disadvantages of exploitation person targeted pay system. several worker feel that if a corporation doesn't care concerning however they're progressing within the
The objective of paying our employees is to increase employee satisfaction and loyalty. Northwestern sends too much on recruiting and education to see a majority of its employee leave before they are able to have a full career as a financial advisor. By paying their employees northwestern is able increase employee productivity, increase the employee’s lifespan at the company, which will increase the number of clients northwestern will have as well.
Most companies are just out there to make money and not care for the welfare of their employees. It may be difficult to see this as business has always been portrayed as a stimulator of the economy and always on the lookout for its employees. However, this is only because the companies that abide by such practices are given as examples and not the ones that do poorly. We oftentimes complain about the little petty things in life when we should be worried about the people who are suffering in our world. The saying always goes; you never know what you have till it’s gone. Unfortunately, this saying corresponds particularly well this
Noe, Raymond A., et al. Human Resource Management: Gaining a Competitive Advantage. 7th ed. New York: McGraw-Hill/Irwin, 2010. Print.
A two tier wages plan system causes the employee body to perceive an organization as having stratified
As jobs are becoming more technical every year and innovations are arising with new job opportunities, finding employees that meet a business’ requirement is becoming more difficult (Nickels (290-346). This is why it is important to have a career that arises and evolves that meets this innovating world: Human Resources. Human resources plays a big part into a business’ success from hiring new employees, to employee retainment, and ensuring employees are trained to meet the evolving businesses requirements (Nickels (290-346). Human Resources is quickly evolving to become one of firm’s most critical professions in the industries market business.
Organizations’ other resources can be hired, retained and discarded at any time but human resources needs special treatment. It needs to be carefully hired, deserve an extra effort to retain it and requires training & development to upgrade and improve its capabilities. Other resources depreciate with the passage of time but when the human resource gains more and more experience, it becomes more beneficial for the organizations. These characteristics have brought human resources to be the central element for the success of an organization. (Mohammed, Bhatti, Jariko, and Zehri, 2013, pg. 129, para. 2)
If the economy would be helped by putting money in the pockets of the people who spend it, nothing would benefit the economy more than a raise in the minimum wage. (Our Opinions)
...r investigate what sort of rewards or fringes would their employee’s desire compared to the old method of monetary incentives for the beneficial for the company”.
...e “ The reward system of the organisation guides the actions that generally have the greatest impact on the motivation and performance of individual employees”. Similarly, Wah (2000) argues that companies which treat their high-performing employees significantly better than those that don't are the best-performing companies around and they reside in the upper quartile of shareholder returns. In addition Lawler (as cited in, Readings In Contemporary Employment Relations, 1998) states that if all the psychological rewards are removed employees will grudgingly remain at work, however if all the financial rewards are removed they would most likely leave.
Because of this, many employees tend to leave when they have found a job with higher pay. This increases the training costs for their employees, as they tend to not stay for too long.
Management spends a huge amount of time to design incentive systems and schemes to motivate their workers and to ensure they work in their best possible manner. Motivating workers by giving them decent pay helps in winning employees heart to make the work done efficiently, significantly and effectively. The most effective way to motivate people to work productively is through individual incentive compensation (Pfeffer, 1998). An attraction of getting more is a powerful incentive to people for high performance. While most people agree that money plays a major role in motivating people, in organizations there is a widespread belief that money may also have some undesirable effects on morale.
A human resource manager needs to plan ahead and know what is going on. in and outside the company labour market. He needs to be aware of the past, present and future trends of employment in a particular area. of the specialisation of the. He needs to know if there are available skills needed or if there are few people with the type of skills needed by the company.
Human resource is the most valuable and unique asset of an organization. The successful management of an organization’s human resource is an exciting, dynamic and challenging task , especially at a time when the world has become a global village and economies are in a state of flux. The lack of talented resource and the growing expectation of the modern day employee has further increased the difficulty of the human resource function.
Noe, Raymond A., John R. Hollenbeck, Barry Gerhart, and Patrick M. Wright. Human Resource Management: Gaining a Competitive Advantage. 7th ed. Boston: McGraw-Hill Irwin, 2010. Print.
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)