Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Person-Focused Pay
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Person-Focused Pay
Person focused pay programs are not for all organizations or all positions. But this program is great when one is looking to improve the culture of an organization, to encourage growth within the organization, and it aids in the process of motivating employees on an individual bases. This program model suggest that employees need to shift the mindset away from seeing pay as a privilege. Person focused pay programs acts as a reimbursement and as a reward for obtaining and executing pertinent skills and knowledge. This pay program can have advantages and disadvantages but if one is looking to reward an employee on an individual bases this is the program that one should use so that one can retain and entice current or future employees.
The three advantages that one would use when one is focused pay system at Mitron would be better customer service, increased employee productivity, and better pay out. When it comes to better customer service and the person focused pay program, one can see the increased measures by using a survey. When customer service is increased there is a level of customer satisfaction that comes about when it comes to the implementation of a company’s self directed work teams. This in turns aids in the process of the employees different skill dimensions. Furthermore, the employees that are involved try to make that they give the best customer satisfaction knowing that they are in charge of the
…show more content…
The program can aid in the company begin successful in the global market. It would also be easier when it comes to employee scheduling because they will take advantage of the pay increase when one is looking to perform new skills and learn new things. The scheduling would be flexible when it comes to one who can do various jobs and it will be easier when one is out sick and or on vacation. This would help when one can cover a shift or just when one is able to move all around with these different skill
According to our textbook rewarding an employee who has attained job related skill, competency, or knowledge and then using that acquired insight toward being successful in job performance is a what person-focused pay plans are designed for (Martocchio, 2013). So it pays for an employee to invest in themselves in return the skills they have invested in become what employer may be seeking. The text continues to describe two types of pay plan included in the person-focused pay systems. Skill-based pay and pay-for-knowledge, both plans reward employees for how their acquired skill helps them be more productive in their given jobs (Martocchio, 2013). So what would be some advantages Mitron could experience by having a person-focused pay system? Increased employee commitment, enhanced customer service and improved problem identification and resolution are considered to be benefits of implementing a skill-based bay model (Gustafson, 2000).
When employees were asked, what factors could be changed at USAA to help maintain employee motivation levels, a couple of them answered with, “higher wages” and “more money”. This response corroborates other studies regarding pay which state surveys will more likely under emphasize the importance of pay relative to other motivational factors. (Rynes, Gerhart & Minette, 2004). “Financial incentives had by far the largest effect on productivity of all interventions. For example, pay was four times more effective than interventions designed to make work more interesting.” (Rynes, 2004). One reason for this phenomenon is social desirable responding. It should be noted, that although pay may be under reported, the results indicate other factors are also important for employee
Personal Financial Advisors work behind the scenes with every type of person. They are the people who know how money works, and can tell you the best way to spend yours. They make investments on stocks or bonds, they plan for your retirement or children's college education. Financial advisors are aware of different opportunities and investment plans and they have the means to put your money where it can earn the largest return. A vast majority of people invest money, and more often than not there is a financial advisor by their side. This means that I could find a job as a financial advisor anywhere in the United States and in most other places around the world as well. Of course, it fits to reason that the people directing the world's money
The company Steel Co, which has been established for around 30 years, has been in a steady decline during the current recession and although a Divisional Director has been employed by the owner the fortunes of the company have not improved. The staff is unhappy, unproductive and unimpressed by the Human Resource system that currently exists in the company. The pay structure that currently exists within the organisation has been much debated among employees who feel it is unsatisfactory. The Business Adviser will research Performance and Reward management tools in order to help the company develop a more suitable Performance and Reward system to use. A variety of sources will be used in order to evaluate the system and tools against other organisational frameworks. The pay structure within the company will also be looked at in order to identify any possible changes that could be made.
Deciding which pay form to use when compensating employees is extremely important to a company. Many things are taken into consideration: labor costs, the correlation between performance and pay, customer service, and the ability to attract and retain employees which is extremely important to FastCat’s need for innovation. We believe a single pay structure coincides with our single based plan for the organization. We want to keep things simple and understandable to all areas of the organization. This strategy will allow employees to understand how their performance and the performance of others relate to the success of the company through specific measures. It is also important that the strategies align with the objectives of FastCat. We beli...
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”.
Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.
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.
Employee compensation and reward systems have undergone a couple of paradigm shifts since inception. Reward systems were traditionally compensation based and focused on the individual or the position (Beam 1995). After a recession in the early 1980's, employers turned to performance based models in an attempt to save money while still rewarding top performers (Applebaum & Shapiro, 1992). Today, the most successful organizations are using a total reward model, a hybrid of the performance based model combined with strategic human resource management planning to create reward systems that both benefit the employee and help organizations realize their operational goals (Chen & Hsieh, 2006).
“Person-focused pay plans generally reward employees for acquiring job-related competencies, knowledge, or skills rather than demonstrating successful job performance” (Martocchio, 2013, p. 100). One of the advantages of a person- focused pay system is that employer obtain a huge benefit from it in the sense that every employee becomes more valuable because they are acquiring more knowledge about the job as a result, their productivity increases, they can fill in for any coworker that is out of work for vacation, or for any other reason. . (Martocchio, 2013).
Evaluate the view that wage differentials are only a reflection of differences in the marginal productivity of workers.
Most will agree that knowledge is the ‘key’ resource in this post-industrial economy. The challenge for many companies is developing an organization that creates and cultivates knowledge and learning. Pay plays a significant role in shaping workplace behavior. Most of the traditional pay systems reward the job the individual performs rather than the skills he/she brings to the job. The system is not being able to reward the things the company needs and this presents a barrier. The trend has moved away from pay for the value of the job, service and seniority. It is being replaced with paying for skills, knowledge, competency, performance and productivity, all which can be delivered through different invitations, from changes to base pay to introducing gainsharing.
The foundation for effective job performance and compensation system can be traced to effective job analysis process. Fundamentally, a job analysis should consist of a thorough examination of the job 's duties and knowledge, skills, abilities, and qualities that are required in order to be successful in a specific position, upon which appropriate rewards or compensation can be determined. For many perspectives, jobs are usually made up of requirements and rewards, where rewards may be regarded as a major recruitment strategy for motivating potential employees in order to influence them to stay the organization for a longer period as well as enhance their performance. The most common or basic form of rewards which attracts employees is extrinsic
Organizations are working hard in today’s world of business, not only to remain competitive, but also to focus on stability and structure. Employees are the backbone of an organization. It is becoming more important to offer quality HRM programs to staff, in order to support the retention of trained and experienced staff. Employees have always been concerned with salary however, there is a new focus emerging that looks at compensation as a whole entity. Monetary wages are now just as important as other benefits such as paid time off, medical and dental offerings and retirement. This paper will discuss the importance of the total compensation program which includes many aspects, not just salary. Attention must be paid to equal pay, pay