Employee performance can be managed through individual performance-related pay”
It can be analyzed that the performance of the employees plays an important role in the workplace. If the performance of the employees is not good then it can negatively affect the overall operations of the company. It is the responsibility of the top management to boost the overall performance of the employees in the workplace. Performance related pay is considered as the method that helps in managing the pay by connecting salary progression to the overall assessment of the individual performance. In the business, is evaluated that performance pay is related to the financial reward system for the workers where there are rewarded by analyzing their performance on a monthly or annual basis. Performance related pay is considered in the workplace by the people and team where they can easily manage their work in the given time frame. It can be stated that without proper rewards it is not possible for the employees to give their best towards the activities of the company (Reiche et al., 2016).
So, in this paper, the discussion will be made on the overall performance of the employees which can be managed through performance-related pay. It can also be stated that the employee works for earning more rewards in terms of finance.
If the performance of the employees is taken into consideration than it is stated that there are various issues which take place. One of the issues is related to the incentives offered in the workplace. When in the workplace, effective incentives are not given then it can create dissatisfaction among the employees and it can also impact the overall activities of the company. It is necessary for the top management to offer proper incentives so that employees can feel motivated and happy. If they are motivated and satisfied with the incentives offered then they will work with dedication and honesty towards the organizational activities. The issue related to incentives should be minimized by maintaining proper incentive policy which can motivate the employees to give their best towards the overall operations in the workplace.
In the workplace, there are many teams who focus on managing the overall activities of the company. But it can be analyzed that individual performance plays a great role. If there is no individual performance then team members will also be not able to give their best or can show their efficiency towards the overall activities of the company. It is necessary for the top management to give reward according to the individual performance so that satisfaction level can be enhanced of the employees in the workplace. Satisfaction level is important for the employees in terms of pay which is given by the top management. If proper pay is given to the employees then it can help to bring efficiency in the overall working structure in the workplace. Performance related pay is considered as the financial reward to the workers whose work focuses on achieving set targets. If the targets are not met then the impact can be seen on the overall pay related to the performance of the employees. Performance related pay is considered where the performance of the employees cannot be appropriately measured in terms of overall sales attained. It can be examined that performance relayed schemes can vary from business to business and also there are some common features which are related to it (Madhani, 2015).
One of the features is related to performance appraisal. It is analyzed that the performance of the individual is reviewed on a regular basis which can also be known as performance appraisal. It can be stated that in this the employee’s performance is analyzed and according to this increment is given to the employees. It can be evaluated that there is an increase in the salary which take place and this is done by considering the performance of the employees in the workplace. It is necessary for the employees to focus on maintaining efficiency towards the work so that it can be possible to achieve success in the competitive market (DeNisi and Smith, 2014).
There are also various challenges which are related to pay for performance system. The challenges which can be seen relates to the pay which is dependent only on the performance indicators. In this, it can be analyzed that employees neglect the other factors of their job and only focus on some indicators which can also impact the overall growth of the company. So, it is necessary for the employees to focus on all the factors by giving their best towards the activities so that it can be easy for the management to attain profits and growth in the competitive market. It can be examined that the other challenge is related to negative results on the spirit of cooperation. It simply states that the workers do not cooperate with the other workers by restricting the important data (Lepper and Greene, 2015).
The feeling of competition also take place with can affect the overall environment of the workplace. It can be stated that there are many employees in the workplace who think that the data should be not shared with the other employees as it can give benefit to them and can also improve their performance. Also, in some cases, conflicts take place in the workplace which is important to be improved so that employees can be efficient towards their work. It can be seen that the conflicts between the employees can take place in the workplace due to the jealousy factor related to the performance. The jealousy factor can take place which can also impact the relations between the employees in the workplace. It is necessary to maintain the relations so that it can be simple for the employees to manage the organizational activities with efficiency (Hickman and Silva, 2018).
Lack of control is also considered as one of the challenges related to performance related pay. In this, it can be examined that the control in the activities of the workplace is affected and employees complete their work to earn more by giving emphasis on the other aspects. It also impacts the overall performance of the employees in the workplace (Kearney, 2018).
The next challenge which is faced is related to psychological contracts in which it has been investigated that when the system of pay for performance is implemented in the workplace, then employees of the company form a psychological contract with the company that would be resistant to the change in the situations. This challenge is important to be maintained by the management by considering effective leadership skills. It is necessary to focus on considering the effective leadership skill so that the employee’s mindset can be changed. It is the responsibility of the managers to motivate the employees to think in a positive manner. If they think in a positive manner then only they will be able to complete the activities with efficiency. It is necessary for the employees to boost the overall confidence level of the employees so that their satisfaction with the job can be enhanced (Buckingham and Goodall, 2015).
Also, job dissatisfaction and stress is one of the challenges faced by employees in the workplace. It can be seen that the overall productivity in the workplace is enhanced just because of the pay for the performance system but the satisfaction related to the job can be reduced of the employees in the workplace. To maintain their performance and to earn more the employees can take stress which can negatively affect their health and also growth in the competitive market. It can be said that employees should be dedicated but they should know how to manage their personal life with their professional life (Mone and London, 2018). It is necessary to maintain their personal life with their professional life as it can help in maintaining the work-life balance in the workplace. It will also motivate the employees to give their best towards the overall goals of the company. Stress is one the challenge which is faced by the employees when the management focuses on pay related to the performance. Intrinsic drives are also one of the factors which are decreased (Girma, 2016).
It can be analyzed that pay for performance system focuses on the overall performance of the employees and it is important for the employees to work with dedication so that proper rewards can be earned. It is important for the management to focus on releasing the stress of the employees by giving proper incentives to the employees so that they can be satisfied with the job which is offered to them.
So, these challenges should be minimized so that employees can focus on work-life balance. It is necessary for the employees to give their best towards the organizational activities as it will positively impact the overall image and working of the company in the competitive market.
It is important for the management to focus on the Maslow hierarchy of needs so that it can be easy to enhance the satisfaction level of the employees. If management emphasizes on fulfilling the basic needs of the employees then it can be seen that it is easy to enhance the overall performance of the employees in the workplace. Maslow hierarchy of needs is important to be considered by the management as it can help to enhance the performance of the employees in the workplace. It can be seen that by satisfying the needs of the employees it can be simple for the management to motivate the employees towards organizational activities (Kegan and Lahey, 2016).
In Maslow hierarchy of needs, there are five stages which emphasize on the needs of the individual. It can be seen that first is the physiological need which is considered as the basic need. In this, it is necessary to focus on the needs related to human survival. It can be seen that if these needs are not satisfied then it can affect the overall growth of the company (Nuttin, 2014).
The next is related to safety need on which the company should focus so that employees can be satisfied with the jobs. It is important for the management to satisfy the employees that their jobs will be secured and also stability is important to be showcased in front of the employees so that they can give their best towards the organizational activities (Cardy and Leonard, 2014).
In this model, the next need is related to love and belongingness needs. In this, the managers should emphasize on maintaining the behavior of the employees as it can impact the overall performance of the employees in the workplace. There should be trust and mutual understanding between the employees so that they can give their best. Also, esteem needs should be considered by the management so that it can be easy to maintain the performance of the employees. The managers should appraise the employees so that their motivation level can be boosted. This theory can help to enhance the overall performance of the employees. Also with the enhancement of the performance, it can be analyzed that dedication and efficiency of the employees will be maintained (Reeve, 2014).
So, the top authorities in the workplace should focus on giving the individual pay according to their pay. They should not focus on giving rewards by considering the performance of the entire team in the workplace.
For example: In many companies, the targets are given to the employees on an individual basis and if the employee fulfills their given targets then it can be easy for them to earn more incentives. They can earn more money despite the salary offered to the employees. When employees are given pay according to their performance then it has been seen that they feel more motivated as according to that they are given incentives (Hatch, 2018).
So, it can be stated that Employee performance can be managed through individual performance-related pay”. If the performance of the employees is not managed in the workplace then it can be difficult for the company to achieve growth and competitive advantage in the market.
Expectancy motivation theory is also the theory that should be considered by the management in the workplace. This theory states that motivation is the result of the individual wants which can be stated as valence and also expectancy is taken into consideration which is a faith the overall performance will be improved of the employees. It also influences by considering the factors like right resources, collection of important data and effective skills of the employees. Also in this focus is given on maintaining the performance of the employees (Purvis, Zagenczyk and McCray, 2015).
Employee performance is related to the pay. If companies are offering good pay to the employees then it can be seen that their efficiency and dedication level will be more and they will take interest in the overall activities of the company. It can be investigated that there are companies’ focuses on giving compensation into two parts. First is concerned with intrinsic compensation and the next one is related to extrinsic compensation. It can be analyzed that intrinsic compensation emphasizes on the psychology of the workers and it also broadcast the outcome which is considered by managing the specific job (Young and Ghoshal, 2016).
Next is extrinsic compensation which focuses on both monetary and non-monetary rewards. It can be seen that pay can be concerned with the base pay and also it focuses on the hourly and annual basis. There are many workers to whom the benefits are given. The employee advantages are concerned with discretionary benefits and also it is required on the legal platform. It can be seen that discretionary benefits can be divided into three in which the focus is given on the protection plans and also on the services. It can be stated that protection programs should emphasize on giving family benefits as it can help to motivate the employees (Pinder, 2014).
So, these schemes should be given to the employees by emphasizing on the overall performance so that it can be easy to boost the confidence level. Performance of the employees is one of the factors which are linked with the pay offered to the employees by the top management in the workplace. It can be seen that if there is no proper wages or pay given to the employees then it can affect the overall growth of the company in the competitive market (Shields et al.,2015).
Retaining the employees in the workplace is also link with the pay which is given to the employees. It can be seen that if a proper wage is not given to the employees then it can impact the motivation factor of the employees in the workplace. So, it can be concluded that Employee performance can be managed through individual performance-related pay”. Also, it is the responsibility of the top management to focus on maintaining the performance of the employees in the workplace. So, without pay, the employees will not be able to give their best towards the activities of the organization. Therefore, proper wages should be maintained by the employees in the workplace so that growth can be attained in the market. Top authorities should also focus on giving rewards to the employees according to the individual performance as it can motivate the employees to give their best towards the organizational goals and objectives.
References
Buckingham, M. and Goodall, A., 2015. Reinventing performance management. Harvard Business Review, 93(4), pp.40-50.
Cardy, R. and Leonard, B., 2014. Performance Management: Concepts, Skills and Exercises: Concepts, Skills and Exercises. Routledge.
DeNisi, A. and Smith, C.E., 2014. Performance appraisal, performance management, and firm-level performance: A review, a proposed model, and new directions for future research. The Academy of Management Annals, 8(1), pp.127-179.
Girma, S., 2016. The relationship between leadership style, job satisfaction and culture of the organization. International Journal of Applied Research, 2(4), pp.35-45.
Hatch, M.J., 2018. Organization theory: Modern, symbolic, and postmodern perspectives. Oxford university press.
Hickman, C.R. and Silva, M.A., 2018. Creating excellence: Managing corporate culture, strategy, and change in the new age. Routledge.
Kearney, R., 2018. Public sector performance: management, motivation, and measurement. Routledge.
Kegan, R. and Lahey, L.L., 2016. An everyone culture: Becoming a deliberately developmental organization. Harvard Business Review Press.
Lepper, M.R. and Greene, D. eds., 2015. The hidden costs of reward: New perspectives on the psychology of human motivation. Psychology Press.
Madhani, P.M., 2015. Sales organization culture, compensation strategy and firm valuation. Compensation & Benefits Review, 47(4), pp.173-183.
Mone, E.M. and London, M., 2018. Employee engagement through effective performance management: A practical guide for managers. Routledge.
Nuttin, J., 2014. Future time perspective and motivation: Theory and research method. Psychology Press.
Pinder, C.C., 2014. Work motivation in organizational behavior. Psychology Press.
Purvis, R.L., Zagenczyk, T.J. and McCray, G.E., 2015. What’s in it for me? Using expectancy theory and climate to explain stakeholder participation, its direction and intensity. International Journal of Project Management, 33(1), pp.3-14.
Reeve, J., 2014. Understanding motivation and emotion. John Wiley & Sons.
Reiche, B.S., Stahl, G.K., Mendenhall, M.E. and Oddou, G.R. eds., 2016. Readings and cases in international human resource management. Taylor & Francis.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., O’Leary, P., Robinson, J. and Plimmer, G., 2015. Managing employee performance & reward: Concepts, practices, strategies. Cambridge University Press.
Young, C. and Ghoshal, S., 2016. Organization theory and the multinational corporation. Springer.
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