Human Resource Managemnt

Topics: Decision making, Cognition Pages: 3 (1017 words) Published: November 15, 2011
Human Resource Management

Application case
Inserting the team concept into compensation -or not?

1. Does the pay- for- performance plan seem like a good idea? Why or why not? I believe that pay for performance plan is not a good idea, first of all this may improve the performance of workers but at the same time it might create a competition culture within the organization. And the new culture that was implemented was team culture, which is expressed in the phrase “Excellence Together”. I believe that the team based pay for performance would be a contradicting the culture of the organization. Yes the workers would perform there jobs better at a certain level but the team spirit would be absent. The employees would compete with each other so as to be the best. This can be compared with a classroom, the students are awarded grades based on their performance, that’s why students compete with one another to study harder and get better grades so at the end they can be awarded with being the salutatorian. Another reason why I don’t agree with this plan is that pay does not motivate workers to perform excellent which is said by psychologist Fredrick Herzberg. Workers get motivated to perform well when they can excel in an organization, harder tasks etc. because of the team culture this plan is not a good one.

2. What advice would you give Regina and Sandy as they consider their decisions? I would advice Regina and sandy to use a plan that would incorporate the team culture, so that no one would have to compete with each other. This plan is based on outstanding performance for pay raise and it would definitely affect the culture which was recently implemented. They have to make a decision that would improve the well being of the organization and also the employees. They could make the employees give their opinion and be part of the changes. Employees don’t like to feel mistreated. It is very hard to make sudden changes in a organization. . One thing...
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