Base Pay and Benefit in Emitares Telecommunications Corporation - Case Study Example

Human resource management and job satisfaction has become the of active discussions since recent times. The reason for this is in the growing role of strategic management and performance in the making the enterprise profitable and stable. Thus, the aim of this work is to discuss the issues of base pay and strategy implementation on the basis of the readings according to the references. The aim of the present work is to assess the relative advantages and disadvantages of base pay for company Etisalat, as well as main job analysis method. The aim of this paper is to research the notion of job satisfaction in the context of the human resource management. It will be necessary to define what causes job and reward satisfaction. Base pay & benefit in Emitares Telecommunications Corporation (Etisalat.uae) Introduction From the time of its creation telecommunications has always been an important part of the life of our society. Now we can’t imagine any entertainment or business deal without it. In future telecommunications will also provide people with services in the field of education and medical care. As the company Etisalat applies innovative technology in order to make telecommunications available to wide audience, the organization’s management does its best to improve work environment inside the company. The human resource management of Etisalat proposes a constantly demanding and rewarding practice. The main goal is to implement successful training of the employees and establish motivating reward system and it is essential to create reward system that will meet the company’s needs. Company’s managers realize that job satisfaction at present has become a very well developed sphere of psychological and related sciences. It may have different definitions, but the core essence of it lays in the feelings which an employee has when he is asked about his job. These feelings can express total satisfaction with the job, simple satisfaction to total discontent (Currall et all, 2005). The reasons of the dissatisfaction should be viewed deeper, and in order to determine the principle factors which cause the employee be unsatisfied it is essential to consider various separate aspects of the employees relationships at work – whether he is dissatisfied with the physical environment, or with the relationships with other employees or a supervisor, etc (Rynes, 2004). According to Rynes (2004), it is noted that the bigger portion of the organization executives under their research have named the two aspects, without which it would be impossible to use the base pay for achieving the breakthrough performance – these are alignment and focus. However, it is under question, where this focus should be done, and of course it depends on the kind of activity the company leads and the key points to be amended or achieved through its strategy development. Though the use of the base pay has usually been the preference of large companies, small enterprises may also use it for their performance breakthrough. (Rynes, 2004) . The main aims of the paper are to be specified as follows: to describe and analyze the relative weaknesses and strengths of the base pay; to define what causes job and reward satisfaction, what job satisfaction is and what strategies can organization apply to improve the job satisfaction among its employees.  The conclusion to be reached will be based on the set aims, and will include the answers on the abovementioned questions. Rewarding and managing people at both the individual and organizational level Job satisfaction Job satisfaction as the integral part of the employee successful performance at work has become a subject of acute attention only recently; simultaneously, only few firms (organizations) were able to apply its recommendations and strategies to their activity. Job satisfaction should be taken as the opportunity for the organization to easily improve its general performance. It is understandable, that the employees who are satisfied with their jobs appear to be more productive, committed to what they do and as a result the clients become also more satisfied with the quality of products and services they get, increasing its reputation and profits (Loeb, 2000). Organizations, which are able to create environment which will attract, benefit, motivate and retain the hard-working employees, will finally be better positioned and will succeed in the competitive business environment, where the main aims to achieve are the quality and cost-effectiveness. It will be understood later, that job satisfaction is far not always connected with the salary and financial side of this job; thus cost-efficiency is highly possible if the experienced HR manager inactivates the hidden potentials of making employees satisfied with their jobs (Kauhanen, 2006). Pay is proved to influence job satisfaction, workers’ approach and presentation. Compensation is also connected to company’s self-image. Well-paid employees feel appreciated, so will do their best to work for benefit. Therefore, it is essential for any company to create and implement appropriate payment model. Base pay and benefits for company Etistalat It cannot be argued, that measuring the business from the point of view of employees has benefited its performance. It is logical, that as soon as the needs and desires of employees are used with the account of other beneficial company factors, this always works for the better performance. The main goals of the Etisalat company management are to hire and retain high-qualified experts, implement appropriate control over payments, maintain discipline. It is necessary to outline base pay advantages and disadvantages to determine the company’s perspective’s and employee’s satisfaction: Base pay advantages: Easy to control; Reasonable: certain pay for certain obligations Connected to job descriptions Implies definite obligations and discipline Disadvantages: No motivation Implies reinforcement and hierarchy No flexibility or alterations The step towards success Base pay really should be beneficial for company Etisalat, because it provides employees with confidence in the future, maintains discipline in the workplace. However, in order to provide better motivation it is necessary for Etisalat to provide employees with additional flexible bonuses and interesting training opportunities (Herzberg, 1993). For the better performance of the company, the base pay should be linked with the following aspects: compensation system for the employees; alignment of the organizational units in one strategy; education and communication; defining individual objectives on the basis of strategic goals; interactive management meetings. (Lipe & Salterio, 2000) Reflection   In the 1950s Frederick Herzberg created the theory, on the basis of which the modern knowledge about job satisfaction has been developed. His idea was to interview a number of employees and to ask them to answer only two questions, the first of which was related to the period when the employee felt especially good about his job, and thus the circumstances with which those good feelings were connected; simultaneously the employee had to answer another question – to describe the situation when he had felt especially bad about his job and what was the reason for those bad feelings (Shields, 2007). Thus, on the basis of those two answers Herzberg was able to develop his own theory of job satisfaction, and that theory had two definite dimensions – hygiene and motivation. The issues, connected with hygiene, according to Herzberg, cannot really make the employee satisfied with his job, but they can work for making this dissatisfaction less. However, it is also important to understand that hygiene issues should be properly handled, and only in this case they will be able to minimize this dissatisfaction. Thus, or in other words, these issues can increase dissatisfaction if they are absent at employees place of work. Among the principal hygiene policies are salaries, supervision, company policies, working conditions and even intrapersonal relations. In general, these can be any issues relating to the environment in which the employee works. Motivation is somewhat another aspect of the job satisfaction, as motivation as a notion makes the worker grow, and the absence of this motivation and thus the absence of recognition, responsibility, and advancement also make the worker dissatisfied (Kauhanen, 2006).        In this relation it is also interesting to bear in mind the following fact: not always job satisfaction goes in line with the wishes of the employee. Sometimes it happens that job satisfaction at the employee level does not brings positive changes at the company level; it may happen that the employee is fully satisfied with the situation of coming to his workplace and doing nothing; in this case job satisfaction has nothing to do with the general companys work and advancement (Gardner, 2004). Employee-centric approach is a very interesting aspect of implementing strategies for better enterprise performance. However, it should be decided whether the company used this employee -centric approach for its performance breakthrough. Kaplan & Norton state, that through the use of the base pay it is possible to understand the main principles and forces which may drive their employees and the enterprise itself towards their objectives (Herzberg, 1993). Conclusion In the light of ongoing changes in the overall management companies may strive for better performance through the base pay use, though its implementation needs through preliminary research and strict control over its operation. The use of base pay as a means of improving the company’s performance must be combined with other important strategic steps noted in this work, mainly: compensation system for the employees; alignment of the organizational units in one strategy; education and communication; defining individual objectives on the basis of strategic goals; interactive management meetings (Rynes, 2004). Evaluating the enterprise from the employees’ viewpoint is important to the reasonable extent and should not be underestimated. It is evident, that the use of the base pay in strategic management of different companies will become more popular, as it obviously works for the better company’s performance, but the approaches towards the base pay use should be somewhat changed. ob satisfaction influences performance of every worker, and ultimately it influences the level of the company performance. Making the employee satisfied through understanding the meaning of his work as well as being proud of what he does will increase the level of customer satisfaction and thus the reputation and prestige of the enterprise as a whole. The human resource management of Etisalat proposes a constantly demanding and rewarding practice. The main goal is to implement successful training of the employees and establish motivating reward system and it is essential to create reward system that will meet the company’s needs Base pay system really has a lot of advantages if implemented correctly. ‘Make a big deal out of meaningful tasks that may have become ordinary, such as new-baby visits. Of course employees may not find all their tasks interesting or rewarding, but you should show the employee how those tasks are essential to the overall processes that make the practice succeed. You may find certain tasks that are truly unnecessary and can be eliminated or streamlined, resulting in greater efficiency and satisfaction.’ (Bloom, M., 1999) Base pay should be beneficial for company Etisalat, because it provides employees with confidence in the future, maintains discipline in the workplace. However, in order to provide better motivation it is necessary for Etisalat to provide employees with additional flexible bonuses and interesting training opportunities. References Armstrong, M., & Brown, D. (2006). Strategic reward: Making it happen. London: Kogan-Page. -book Bloom, M. (1999). The performance effects of pay dispersion on individuals and organizations. Academy of Management Journal, 42(1), 25-40. Currall, S. C., Towler, A. J., Judge, T. A., & Kohn, L. (2005). Pay satisfaction and organizational outcomes. Personnel Psychology, 58, 613-640. Gardner, D. G., Van Dyne, L., & Pierce, J. L. (2004). The effects of pay level on organization-based self-esteem and performance: A field study. Journal of Occupational and Organizational Psychology, 77, 307–322. Kauhanen A. and Piekkola H. (2006) What makes performance-related pay schemes work? Finnish evidence, Journal of Management Governance, 10: 149-177. Pfeffer, J. (1998) Six dangerous myths about pay. Harvard Business Review, 76(3), 109-11. Rynes, S. L., Gerhart, B., & Minette, K. A. (2004). The importance of pay in employee motivation: Discrepancies between what people say and what they do. Human Resource Management, 43(4), 381-394. Shields, J. (2007). Managing employee performance and reward: Concepts, practices, strategies. Port Melbourne: Cambridge University Press. -book Wells, J. (2004). Just rewards: Reward your staff and reap the benefits. Crows Nest, NSW: Allen & Unwin.- book Greene, R. & Norton D. (2001). Transforming the base pay from performance measurement to strategic management. Accounting Horizons, 15, 147-152 Loeb, M. & Salterio, S. (2000). ‘The base pay: Judgmental effects of common and unique performance measures’. The Accounting Review, (July): 283-298 Herzberg, F. & Mausner, B. (1993). The motivation to work. New York, Transaction      Publishers.- book Jamal, M. (1997). ‘Job stress, satisfaction and mental health’. Journal of Small Business Management 35(4): 48-57    Read More