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Many organizations driven by quality would implement a pay-for-performance system that will improve employees’ performance. They will set mechanisms to gather, analyze and interpret unbiased data of all employees through annual or semi-annual performance appraisals linked directly to an individual. This will remove biases and challenge employees to work harder since the industrious ones get appreciated through rewards such as promotion (NIV, Mathew 25.21).
Linking employees’ performance to rewards will give the administration the best program to design salaries and wages. It will also help in performance, monitoring and evaluation, which will translate into quality production, profitability, low turnover and organizational discipline (Rehman, & Ali, 2013). However, such scenarios may not occur in organizations where management is bossy. Such management always has conflicts with employees resulting in a general decrease in production capacity despite high salaries.
Healthier lifestyles will save organizations costs related to medical expenditure and production. The organizations are also developing employee wellness programs such as regular medical examinations focused on preventing health issues before they develop and increasing employee insurance premiums.
Huang, S., & Lai, W. (2014). A study of the effect of incentive system on job performance- locus of control as a moderator. Journal of International Management Studies, 9(1), 89-98. Retrieved from http://search.proquest.com/docview/1517530191?accountid=45049
Rehman, R., & Ali, M. A. (2013). Is pay for performance the best incentive for employees? Journal of Emerging Trends in Economics and Management Sciences, 4(6), 512-514. Retrieved from
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