is an organizational strategy meant to give an employer insight intohow well employees are working towards the achievement oforganizational goals. At the heart of the success of a firm areemployees. Employees are substantial resources that requiremotivation to make them work with a passion for the good of thebusiness. Recognizing and rewarding employees who go over and abovein their assigned duties is the best way to go about motivation. Manycompanies are faced with the challenge of designing desirable rewardand performance systems. The manner in which the performance processis managed significantly affects how the company is perceived byemployees (Milkovich et al., 2014). For this reason, companies shouldfind ways of implementing reward systems that are acceptable toemployees. This essay examines pay for performance and how incentivescan be utilized to motivate employees in places of work.
Tostrengthen the pay-for-performance link, employees must be paidaccording to their expectations. This means that payment should becommensurate with the individual input. High input should see paymentincrease accordingly. The increase should be significant enough to beseen by employees as rewards. The employer must clearly outline theamount of output expected from employees. Again, employees should beallowed to assess themselves concerning their abilities in workingtowards the attainment of the goals an organization has set. Lastly,employees must address the issue of disparities in payment (Milkovichet al., 2014). There should be no huge differences between oneemployee and the other as this will motivate some employees anddemotivate others.
Powerfulincentives will bring about ethical issues in the work environment.In trying to surpass the level of the output set by the employer,employees will go to a great length to ensure that they meet andexceed those targets even if it means through dishonest means. Thiscan be addressed by employers defining output measures that they canbe easily monitored. When tasks used to measure performance aresimple, the company can easily spot misconduct. Teamwork can also beused to assess performance. This will ensure that all employees workas a unit and cooperatively to achieve organizational goals.
Toeliminate unethical issues in employees while at the same timemaintaining robust incentives, the employer should design groupincentive plans as opposed to individual plans (Milkovich et al.,2014). Individual plans make employees think so much about personalgain rather the overall goals of the company. Working as a unit willensure each employee contributes and will eliminate the use ofshort-cuts. To ensure ethical behavior, the employees should be givenautonomy. Studies have proved that freedom encourages innovationamong employees and allows them to work in mutual trust with theemployer. If employees are innovative, unethical issues will notemerge.
Milkovich,G., Newman, J., & Milkovich, C. (2014). “Pay-for-:The Evidence”, “Pay-for- Plans”, In Compensation.New York: McGraw-Hill/Irwin.