Individual Pay Performance Plan Preference in Compensation

This essay presents an argument for preferring an individual performance pay plan over a group performance pay plan within Michelle Company. The author emphasizes the benefits of individual recognition, fair compensation based on personal contribution, and the motivation to improve perf...Read More

Running Head: COMPENSATION 0
Human Resource Management

COMPENSATION 1
Compensation and benefits: Individual pay performance plan or group performance
pay plan
As an employee of Michelle Company, I would like to work on individual performance pay
plan. It will help me in knowing my areas of excellence and weaknesses. I will like to get the
reward for my abilities rather than relying on other abilities. It will be easy for me to compare
the pay of other employees. Comparing does not mean getting demotivated rather than it
means motivation. By doing this, I will develop the skills and apply new techniques for doing
work in order to reach the desired goal. Individual compensation plan over the group
compensation plan helps in knowing the capabilities of me. By considering this, it will assist
the other embers to see the capability to do varied task in the organization. I will prefer this
plan because it will clearly witness my part of contribution in the organization. Whatever the
outcome is, it will reveal the correct and accurate contribution from my side. I think that
group compensation ensures all the employees same in the organization. It is true that all
employees have the right to treated equally but I think capable one should get the high pay in
return for its performance. Similarly, this principle I would like to apply for me while
working as an employee of Michelle Company. It will also help me in getting a fair pay
because pay based on group must have some sort of discrimination. It will lead to better
productivity in me, as the reward for my part of performance will belong to me.
Secondly, I believe that “quality is better than quantity.” I personally believe that while
working a team and getting reward according to that does not reveal the capabilities of each
of the employees. Besides this, individual performance plan will help me in working hard due
to the tendency to work well than others work. There is a level of competition by getting pay
according to the individual outcome. As per my perception, quality work can come from
working individually. Individual performance plan will always motivate me to think for
creative idea so that I will be recognised for that too. Besides compensation, it provides the
several benefits in the organization such as status, appreciation for creative or innovative
performance. Besides this, it will provide the high pay to high achievable employees. I would
always like to pay for my contribution and creative that I do in the organization. Pay for my
performance will help me to getting my salary a bit quicker than the group pay performance
plan. It is easy to give the pay of one individual for its contribution. It will also avoid the low
pay for the poor performance of other members. In this way, individual performance plan is
better to earn a fair pay for working in the organization.