(DOC) Managing Human Resources
Added on 2021-04-16
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Running Head: Managing Human resourcesManaging HumanResources
Managing Human resources 1During 1990’s, the employees from private and public sector did put a strong significance on therewards paying for the good performance. For improving individualism and organizationalculture, incentives were also given. Armstrong once suggested that pay is always linked to theperformance measured by many particular objectives. For example: Target for sales or thesatisfaction of the customers. For these objectives, rewards are introduced by using quantitativejudgment[ CITATION Suf07 \l 1033 ]. Performance related pay is extensively used in publicsectors like government or to the teachers etc. There are huge benefits of performance relatedpay that were introduced by Armstrong. He also realized that PRP can be very helpful inmotivating the employees and eventually will help in giving success to the organization. It givesa push to the managers for examining the progress of the goal of the department. This also helpsto retain the resources by rewarding them financially and in the reduction of the golden handcuffeffect too. Marchington said that it is usually difficult to find proof for determining success ofthe performance related pay, however, it is broadly supported and practitioners have seen hugeamount of loyalty within resources. Its’ since few years, there has been an assessment of the newideas behind PRP[ CITATION Bry12 \l 1033 ]. There are new studies that say that PRPcontributes a lot to the organization and the performance of any individual. Lewis in 1998 foundthat in case if the employees are in the agreement of the PRP and practice, they will getmotivated in the much better way in terms of the performance output. This essay focuses onperformance related pay and the benefits of it in terms of motivating the employees and retainingthem. It also focuses on the effectiveness that retail and manufacturing industry got by usingperformance related pay. Employees always seek some rewards for their work done in the organization. Performancerelated pay when is introduced with the any type of job, it makes the job much more attractivefor the employee as this helps the employee to perform better in order to achieve that pay whichis related to his performance. Recently, there has been this concept of involving performancerelated pay to the private sector on the massively. Hence, compensation is tied to theperformance. In many countries which are developed in terms of the economies, there had been arenewal of the PRP policies which are entertained by the government[ CITATION Men11 \l1033 ]. With new view of the organizations of linking incentives to the performance, this processis consistent. Compensation can be seen in various different perspectives by resources, societyand the managers. Society’s perspective about the compensation is the measurement of the
Managing Human resources 2equity or the equal work for equal pay. For employees it is a return of the services they havedone for the organization. Manager view compensation in two ways: as a huge expense and apossibility of influencing the employee’s behavior and motivating them.Compensation can be divided into two groups: intrinsic and extrinsic rewards. Direct rewardsconsists of the protection programs, Pay for the time a resource has not worked such as leaves,illness etc and perquisites. While the direct rewards include basic wages, performance based payand the living expenses. Armstrong observed that there started a trend towards PRP in themanufacturing firms[ CITATION Ton10 \l 1033 ]. A manager’s biggest challenge is t omotivate his employees. The success key of the organization is to only motivate the employees.Jones defined motivation as the external force which determines the way of the person’s attitudeand behavior in the organization. He considered efforts, attitude and persistence as the importantfactors for the motivation. Behavior of t he resource chooses the way for behavior, efforts scalesup as to how hard the resource is working and persistence happens when the resource continue toface the difficulties rather than giving up[ CITATION Baj15 \l 1033 ]. Theory of motivation’s usage revolves around the number of assumption and general ideasshared in the theories. The main focus goes on the cognitive theory of the motivation which isvery valuable for the managers as compared to the need theories as cognitive theory provides thereal guidance on the methods of motivation. Maslow’s theory of motivation: The Maslow’s theory suggests that human beings are motivatedby the requirements which are hierarchical in the order starting from the basic needs till thehigher order of needs[ CITATION Jer13 \l 1033 ]. These needs are sequenced by the humansstarting with affiliation, physiological, self-actualization and security. Once the needs arecompleted then the motivation of the individual automatically comes down. It is said thatsomeone’s frame of reference is determined by the order of significance of their needs andculture of the society which influences that reference frame. Hence, the application of Maslowneeds comes to the conclusion that the needs are not the same when it comes to different peopleof various ethnicities and cultures[ CITATION Avn13 \l 1033 ]. Basically the conclusion thatcould be taken out is that this theory only helps in providing general framework to categorizeneeds of various types.
Managing Human resources 3Two-factor Theory by Herzberg's: Herzberg’s two factors are motivation and hygiene. Herzbergstated that if the hygiene factors like job security, work conditions and pay are absent, then therewould lay dissatisfaction always and if they are present then they will not lead to motivation aswell. Motivation factor includes nature of work, responsibility and recognition among others andif they are present then they would be helpful in motivating the resources but in case of theirabsence, it leads to the state of neutrality i.e. neither satisfied nor dissatisfied[ CITATION Tan11 \l1033 ]. Herzberg also realized that being repetitive will not lead to dissatisfaction. For applyingthis theory in the organization, there should be a two-stage process followed. Firstly, the management must achieve the state of no dissatisfaction through addressing hygienefactors and all this should include the improving of work conditions and fostering of impersonalrelation at work. Secondly, when the stage of dissatisfaction occurs with the help of hygiene factors, motivation ofthe employees can be achieved with introducing the motivators such as new opportunities for theadvancement of the resources and job redesigning for taking more responsibilities[ CITATIONBaa11 \l 1033 ]. The most important strength of this theory is that the theorist made the clear path for themanagers so that they are able to apply this in practice using this two stage process. Equity Theory: Stacy Adams stated that the most important factor for achieving motivation is tostrive for the fairness or equity. The starting point of this theory is the exchange place where theresources give something such as skills or labor as their inputs and in return they get somethingfor it such as appreciation or pay. The centre point of this theory is that the person uses it to testone self’s output balance[ CITATION Agg14 \l 1033 ]. Inequity occurs where one becomesaware of the discrepancy with the reference of the other one. Equity theory given by Adams ishugely regarded for it being simple and it stands up to the accuracy of the empirical tests.Rollinson stated that all the tests have usually supported theorist Adam’s prepositions in thepredictions and Equity theory. Although, a few proofs have suggested that this theory even beingdeprived economically when it comes to employee satisfaction, some resources proved to bevery productive. A conclusion can be taken out that the motivation economically can be greater
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