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Managing Human Resource Essay

   

Added on  2021-04-16

11 Pages3501 Words24 Views
Leadership Management
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Running head: MANAGING HUMAN RESOURCESManaging Human ResourcesName of StudentName of UniversityAuthor Note
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1MANAGING HUMAN RESOURCESIntroductionPayment methods adopted for employees are one of the important challenges thatmanagers of business organisations face in the modern world. According to Herhausen, Lucaand Weibel (2017), payment of employees need to be based on the effort provided by them atthe workplace. At the same time, Shields et al. (2015) have made a counter-argument, statingthat payment needs to be made based on the performance of the employees at the workplace.The essay highlights the concept of payment based on the performance of employees alongwith its link to the motivation of employees. Motivating employees is required to ensure thatthe teamwork and efficiency within an organisation exists. A comparison is made betweentwo industries based on the effect that performance-related pay has on the industries. At thesame time, the advantages and disadvantages of such a method are also taken intoconsideration.DiscussionAccording to Bellé (2015), performance related pay is a paying system that is solelymade for the performance and contribution made by the employees towards an organisation.The performance is measured by the efficiency and the result that is received by theorganisation after the end of a financial year. For example, sales representatives or productionline workers receive wages via this type of payment. Such a method of payment has drawn invarious debates over the years. As stated by Malik, Butt and Choi (2015) employees need tobe paid for the effort provided as the end result of a particular sale of a product may notalways in the hand of the organisation. Tastes of customers, competitors and economicfactors play a major role in the success or failure of an organisation. On the other hand, Bellé(2015) argued that without a good performance from the employees, organisations cannot
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2MANAGING HUMAN RESOURCESsucceed. Consequently, the payment of the employees may cease due to lack of success andrevenue.In the modern day, it has been seen that most managers use the basic standard systemfor calculating the salary or wage of an employee. The basic standard of pay providesemployees with a high salary if the performance rate is more. For example, if the rate of saleof cars for one particular month is more for a particular employee, then the employee willreceive a better salary than its peers will. Poor sales performance, however, may lead to haveproblems regarding job security and provide a modest or low rate of payment (Storey andSisson 2015). Such a method of payment acts as a motivational factor for employees.Lucifora and Origo (2015) stated that the payment received in the form of incentives acts asthe rewards that a manager provides to motivate the employees. The targets set up by a teamor an organisation needs to be achieved so that employees become eligible to receive thepayment. Thus, the theories related to motivation can be linked with the concept ofperformance related pay.One of the theories of motivation that can be linked to the performance related pay isthe theory proposed by Herzberg. According to Schaller et al. (2017), motivation is requiredto ensure that employees remain loyal to an organisation and the work atmosphere remainsfun as well as competitive. Employees need to fulfil the basic needs to lead a good andluxurious life. Payment made in the organisations act as a hygiene factor for the employees.This is because poor payment, lack of bonus or commissions acts as agents that create jobdissatisfaction among the employees. Improving the hygiene factors lead to the decrease inthe level of job dissatisfaction among employees (Lepper, and Greene 2015). Thus, it isnecessary to provide payments that are based on the performance of the employees. Extrapayment in the form of bonus or commission acts as a huge motivational factor, as employees
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3MANAGING HUMAN RESOURCEStry to make a living that matches their social class. The societal class of the people can bemaintained or improved with an increase in the payment.In this regard, the motivational theory of Maslow can be considered as anotherimportant concept related to performance related pay. In the words of Healy (2016),Maslow's hierarchy of needs provides a systematic approach to attain motivation whileworking in an organisation. Employees tend to fulfil the basic needs such as a place to live,eat and job security before aiming at enjoying a healthy lifestyle. Hence, performance-basedpay can encourage the employees to aim at a healthy lifestyle initially. To do so it is requiredthat the employee utilises their skills and work hard for the success of the organisation.Monetary benefits provided to the employees can help them to achieve more for thebetterment of an organisation. At the same time, Chadwick and Raver (2015) stated thatemployees with poor performance could be motivated by the fact that the peers are earningmore money. Thus, this important factor needs to be considered by the managers as theperformance-related pay can act as a beneficiary for both high and low performers at anorganisation.According to Lucifora and Origo (2015), to ensure that the performance-related pay isexecuted in an effective manner, it is important for the managers to remain transparent so thatthe employees are given the proper benefit from such a scheme. In automobile industries,performance-related pay is based more on the selling of the cars. If an employee manages tosell a car at the rate set up by the company then the payment received by the particularemployee is greater than the payment received by the others. At the same time, the number ofcars sold by an employee also accounts for success in the payment department. Hence, such amethod of payment is considered beneficial for the employees alone with benefits receivedby the organisation. However, as stated by Schaller et al. (2017) employer benefit also needsto be included in the performance related pay scheme.
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