Human Resources Management - Research Paper Example

These conventional incentives are inexpensive to the company and yet the result in increased loyalty, engagement, and willingness to do more than what is expected of them. Additional data suggests that a mix of flexibility, recognition, and allowed breaks during working hours as the leading nonmonetary motivators among employees. Top-tier employees want to work in companies that allow for reduced hours, staggered hours, and remote work arrangements. Regular appreciation of accomplishments is a very effective nonfinancial incentive.

Employees who feel appreciated for their accomplishments and efforts at work create huge returns for the company as a result of the recognition. Additionally, allowing employees to take short breaks in-between work has been shown to increase productivity at work. The result of nonmonetary incentives is increased employee satisfaction and performance, while maintaining low costs for the company. One observer argues that external equity should always be the primary concern in compensation, noting that it attracts the best employees and prevents the top performers from leaving.

Do you agree? The effectiveness of external equity in enticing and retaining top-tier employees is somewhat questionable. This is because the wage rate is determined by the labor rates in external markets. Since there is no uniformity in the demand and supply of labor across the board, no single labor market exists for the same job. This makes assessment of fair compensation difficult as over narrowing of the market can lead to overcompensation of the employees. On the other hand, over broadening the market definition may lead to low wages being set by the company, which may not be enough to appeal to and retain top performing employees.

How can a pay-for-performance system increase the motivation of individual employees and improve cooperation at the same time? In order to improve employee motivation and cooperation, companies should evaluate whether the employees have control over their performance, and if there exists a relationship between the performance of the employee and the effort put it. The company must implement a suitable performance measure that takes into account that job effectiveness can include several aspects not captured by the produced units, sales revenue, or cost.

In most cases, employee cooperation influences organizational effectiveness. In a bid to increase motivation, a company may choose to indirectly tie all or some part of an employee’s salary to their performance. Alternatively, to promote team work, the company may link some incentives to group performance, and/or it could opt for a productivity or profit sharing plan across the board. Plans based on sharing the gains of a company thrive in situations where there is a participation climate in the organization.

Here, employees are involved in making decisions that increase the performance of the company resulting in a companywide bonus. List and discuss three ways the HR department can contribute to positive employee relations in a company. i. Equity – employees want parity and the HR department should ensure that all employees feel respected in their capacity in the company. They should ensure fair treatment in areas concerning salaries, job security, and the benefits being issued by the company. ii. Achievement – the HR department