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Impact of Competitive and Organizational Context on Manchester Unit of Amifood - Essay Example

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The paper analyzes the case of Amifood which has confronted HR issues regarding performance of low skilled operatives. The industry where Amifood operates includes high level of competition where employees’ performances play vital part in providing quality products and satisfying customers…
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Impact of Competitive and Organizational Context on Manchester Unit of Amifood
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Download file to see previous pages In order to empower the low skilled employees of Amifood, it needs to generate the sense of responsibility so that they take their task seriously. It can be performed by offering employees with a few choices. The socioeconomic position and social background are the factors which can impact the choice of employees (Staw, 2006). Effective organizational context can support and strengthen the capabilities of employees by developing a supportive environment and by providing adequate resources in terms of training, higher wages and advanced equipment (Pierre & Et. Al., 2011). In the case of Amifood, it can be observed that the comparative pay of tray operatives is lower than similar jobs of other companies, which has directly created anxiety among the workers and reduced the level of performance. A reward system on the basis of performance of employees in the Manchester Unit can further promulgate effectiveness in healthy work environment. Benefits and Costs from Increase to the Real Wages of Low Skilled Operatives The wage setting in an organization is an uncertain procedure. According to ‘Conventional Theory’, it can be said that “marginal product of labor is similar to the real wage” of employees (Millea, 2002). If employees become more useful, then organizations can react with increase of the amount of real wages. On the other hand, the ‘Efficiency Wage Theory’ says that, higher wages provide an encouragement for employees to upsurge their efficiency. The cost of turnover of employees is directly related with the wage amount. According to the observation of Campbell (1993), employees who receive comparatively higher wages are much unenthusiastic to quit the job. It can be stated that high real wages...

It is evident from the study that Human Resource Management (HRM) is a vital segment in any organization which deals with managing the relationships with and among employees and controlling their performance. The practices of HRM in organization include recruitment, training, performance appraisal and reward among others. Effective HRM at work can guarantee high quality loyal employees which are beneficial for organization. It is the duty of HRM to motivate employees so that they can put their best effort towards work. Motivation of employees is significant for any organization to improve the productivity and gain competitive advantage. Among other factors the financial aspects can be used as a motivator for low skilled employees of Amifood because their pay was comparatively lower than other organizations which in turn resulted in higher absenteeism, less enthusiasm to work for extra hours and high rate of turnover. Demotivated employees can fail to deliver quality services and it can harm the reputation of the company. Therefore, appropriate change in HR process is significant for Amifood to make them dedicated towards work and make a strong position in the international market. Several theory depicts that employees can be motivated by money, thus many companies apply higher pay to make them perform effectively. Where employees’ productivity is directly connected with the achievement of company aims, higher pay can be used as motivator.

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