Performance Work Systems

Introduction

Each job is titled with specific duties and responsibilities , education work experience and appropriate emoluments . Organisations adapt unique and different pay structures that suit to the style and functioning of an organization and no two organizations pay structure is similar Recruitment , replacement , training , career programs are some of the major areas of company 's investments which are part of employee 's cost of turnover returned to the company only through employee 's performance Therefore , organizations are very selective while in recruitment process

Presuming that with 5-8 years of experience

Purchasing Agent cadre is at par with that of customer service representatives , a wage between 9-12 per hour can be fixed by Perkins and Balkin . Although pay for performance has been in practice as a managerial thought , pay has always been linked and considered as a motivational tool to a higher grade of performance . Kanter (1987 ) has stated that U .S . is moving away from seniority or status-based systems to performance reward systems in to encourage employees to perform effectively . It is important to note here that underpaid individuals are always low in spirit and less cooperative whereas overpaid individuals are very cooperative

A successful pay-for-performance programs has four basic steps (1 selecting performance criteria (2 ) evaluating the financial impact (3 developing an effective communication plan (4 ) implementing the plan in stages . Some of the advantages of pay-for-performance program are (a incentives in the form of health plan , medical plan etc (b ) consistent and compatible performance targets (c ) reward superior performance with additional pay (d ) provide measurable , accountable criteria (e ) changing preferences and performance expectations . To discuss about disadvantages of pay-for-performance , when a particular system of reward is practiced employees have full control over quantity , quality and cost rather than the management 's credit given to employees . Compensation and reward systems are prone to negative remarks . For this reason , HR practices TQM for quality evaluation of performance

There are five major steps for determining wages or payment plan (1 Wages must not be too low (2 ) Wages must be fair (3 ) consider a decision whether wage is prevailing with local employers (4 ) consider geographical location (5 ) It is good to change factors for determining of wages with the change of time as it provides new thoughts and new strategies

Further it is also important to take note of contributions made by employees and the respective stages therein

1 . The learning stage : Mostly apprentice who are provided guidance

Conclusion

Organisations have begun to realize that multi-skilled employees are benefiting to fit into any area which requires attendance and such employees are entitled to receive packages of benefits and compensation This is a very rare phenomena as very few employees have a talent pool whereas organizations recognize such workers and rewards accordingly to handle new tasks and responsibilites

References

Play for pay : effects of inquity in a pay-for-performance context - includes appendix - process and outcome : perspectives on the distribution of rewards in organizations

Accessed 5 April 2007

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