The paper tells that within a modern business environment, employers must balance the needs of the business with the requirements of the employees. Human Resource Management (HRM) is an important aspect of this, where employers organise and develop strategies for working with their employees. Many employees work inefficiently, as they have no desire to perform well for the company. This comes from the fact that what is good for the company is not necessarily the same as what is best for the employee. Businesses are generally aiming to make the highest profit possible, while employees are working for the money that they need to live. Performance-related pay is a system in which the company attempts to align the interests of the employees with the interests of the business, by providing employees with incentives to work hard. The exact form of the system differs substantially between different companies, with some offering commission-based pay, some paying employees a certain rate per unit produced and others paying based on team performance. There are many other variations of performance-based pay and it is a popular means of increasing overall output for a business. Performance-related pay is common in Britain and has been used for government employees as well as many large companies. However, despite the popularity of the system, current research is questioning whether performance-related pay is actually effective. Evidence suggests that this may be a mechanism that is useful in some circumstances, and counterproductive in others. ...Show more
This research is being carried out to evaluate and present the need for performance-related pay; types and objectives of performance-related pay; strengths and weaknesses of performance-related pay; effectiveness of performance-related pay…
Therefore organisations which are looking to gain a competitive advantage, thus the implication of strategic human resources are a key factor for performance of the organisation. Strategic HRM is all about adaptation and integration. The strategic HRM concept has gained momentum and is mainly due to importance of strategic human resource, the way strategic HRM is managed, integrated, developed, retained, engaged and finally utilised and gain a competitive advantage over its competitors.
The resource based view (RBV) is particularly the most common best fit model of SHRM. Essentially, there is need to balance and integrate the organisation’s external environment and its internal competencies and resources so as to be better positioned to fulfil its strategies.
As a result of these developments, HRM has become a major thrust area where the focus is on synergizing and propelling organizations to seamlessly integrate with the macro environment. The field of HRM can become a greater strategic contributor to organizational performance and success (Mathis and Jackson, 2003).
Comes to issues of Therefore, there is a unique relationship between the human resource management practices and techniques employed by an organisation and its overall performance. Certain sets of human resource practices are critical for any organization restructuring and if they are not implemented, they will lead to poor performances..
Human Resources Management is one such area that is gaining importance by the day. Human Resources Managers work towards the fundamental problem of creating a balance between the expectations of both, employers and employees.
The reason for this question has its strong base on the potential disadvantages PRP systems have.
This paper will examine how systems of PRP can impact upon employees in the finance sector, with a specific focus on both productivity levels and the quality of service.
Performance pay is a system of rewarding employees which is based on perceived out put often without clear measurement formula but which depends on the discretion of the supervisor or the line manager concerning the employee. Compared to other pay system performance pay is more complex and more difficult to implement.