Hi, need to submit a 500 words essay on the topic HR Headline: Pay for Performance in Public Schools Remains Controversial.
The company should set standards that they wish their employees to attain. If such levels of performance are met then the plan could be said to be effective.
Secondly, the company’s costs in relation to the pay-for-performance plan should be investigated to determine its liquidity position. The cash flow statement gives the information that could determine the effect of the program to organization financial position. The costs should not eat too much into the organization earnings. The cost of the plan should have negative effects on the normal financial operations of the company. Simply, the plan should be affordable to the organization (Chingos, 2005).
It is also possible to determine the effectiveness of the plan by determining job satisfaction among company’s employees. This gives crucial information about the incentives offered by the organization in terms of its effect on the general contentment of the employees (Chingos, 2005). If workers exhibit a rather satisfactory feeling on their jobs, it might be caused by the effectiveness of the incentive plans.
Pay –for –performance means that employees that perform highly in their jobs are compensated more than worker who performs less favorably. However, these pose problems to employees in any organization (Tropman, 2011).To start with. this plan would be unfavorable to most employees since it is difficult to performing well every month. This means that the employees will be having high pay in certain months and receive low compensations in other lowly performed months (Jorgensen, 2006).
Another notable disadvantage of this plan is that it is not favorable to the senior staff. This is because the incentive does not reward employee based on their experience and seniority. It is possible to find a junior staff earning more money with this plan than another senior staff in the same organization (Tropman, 2011). This