Human Resourses And Personnal Management Example

Human Resourses And Personnal Management Example Human Resourses And Personnal Management â€" Assignment Example > IntroductionOrganizational effectiveness depends on a number of factors such as the qualifications of its employees, the employee’s motivation level, ability of the organization to attract and retain competent people and the structure of the organization (mechanistic or organic). It also depends on the culture that the organization wants to promote (skill based culture, merit based culture, team culture, individual culture) among its employees and the cost of the business (Heneman 1984). The organizational section controlling personnel is the human resource department. It does so by improving personnel welfare so as to ensure that their motivation stays on the optimum (Torrington 2005). The most common way of motivating personnel is through pay. Organizations have different reward systems for their employees depending on the policies and procedures in place. The reward system is supposed to anchor employees towards achieving an organization’s objectives by motivating the perso nnel to acquire new skills or to perfect old ones so as to improve their working efficiency for improved productivity (Derder 2002). Rewards can be in the form of money or other materials. Monetary rewards include basic salary and bonus, commission payment, retirement monies and benefits, and health insurance. Non-monetary benefits, on the other hand, are recognition, job grade promotion, improved working conditions and better treatment at work (O’Dell 1987). Pay for performanceThere are various types of payments; variable pay, alternative pay, merit pay, incentive system and pay for performance (Peck 1984). Organizations can use one or more payment systems on their employees. Performance has three measures; input (The level of an employee’s effort, knowledge, skills and abilities); behavior (observable ways of doing a job) and outcomes (include those of an individual or group). Pay for performance is a reward system which incorporates both monetary and non-monetary rewards fo r employees based on their performance appraisal; the greater the performance the higher the pay (Belcher 1991). The success of this method depends on three factors as illustrated by the expectancy theory. 1)ValenceIt is derived from Maslow’s theory of needs. Maslow proposes that humans are always in need, and these needs are the drive for pursuit. When a need is fulfilled or is non-existent, it stops being a motivation (Bandura 1986). For a reward to motivate better performance there must be a need and the need must be fulfilled by the reward. If one has need for money and they are offered money as a reward for higher performance, they are likely to record higher performance. On the other hand if money is not their need maybe due to economic or cultural reasons then the reward will not result in increased performance. In that case, other desirable rewards as expressed by employees can be offered. Organizations should try to find out the needs of their staff so that the rewards s et are desirable in order to foster increased productivity (Lawler 1971). 2)Performance-Reward associationThe reward offered should be proportional to the work done. Employees should be in agreement with the reward offered. If the reward offered is too small to be noticed, it will not motivate performance (Bratton and Gold 2007). Companies should have reasonable rewards that will encourage performance.