Performance Related Pay free essay sample

Performance-related pay (PRP) is a financial rewarding system that links pay awarded to the work output of employees (CIPD, 2013). It is connected directly to individual, group and organisational performance (Armstrong, 2005). In the late 1980s and early 1990s, performance pay scheme became prevalently used in both private and public sectors in UK organisations, where it is perceived to be a motivation tool. 2. Theories about PRP As Thorpe and Homan (2000), the role of incentive pay in employee motivation nearly sets up on psychological theories. Locke and Latham (2004) define motivation as internal factors that impel action and to external factors that can act as inducements to action. The theories of motivation provide a solid theoretical basis for the study of the use of financial rewards for stimulating employees to higher levels of performance for the achievements of organizational objectives (Schuler, 1998). Expectancy theory and equity theory offer the fundaments for performance-related pay. 2. 1 Expectancy theory Expectancy theory is relied on expectations that people bring with them to the work situation, and the context and the way in which these expectations are satisfied. We will write a custom essay sample on Performance Related Pay or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In other words, there is greater scope to understand how employees may require to be treated differently and to interpret why employees do not necessarily respond in a mechanical way to changes in, for example, the level of pay (CIPD, 2013). Vroom’s expectancy theoryVIE assists to understand the motivation through three elements: †¢expectancy – Employees perceived that they possessed the necessary skills to do their jobs at least adequately; †¢instrumentality– Employees perceived that if they performed their jobs well, or at least adequately, they would be rewarded; †¢valence – Employees perceived the rewards offered for successful job performance to be attractive (Arnold and Randall et al, 2010). According to the expectancy theory, money is a significant motivator for most people, and in order to get or secure a higher base salary or some form f bonus payment, we will normally change our behaviour and attitude, directing or increasing effort in a specific direction. Tying pay to specific performance can ensure people are motivated to increase their efforts and performance and ensure performance outcomes are met (Mikovich and Newman, 2005). 2. 3 Equity theory Another psychologic al thinking that is relevant is equity. Equity theorists claim that people seek balance between their inputs and the reward outcomes. The predictions of equity theory are less often supported by research when people receive than their shares, as opposed to when they receive fewer (Mowday, 1991). In other words, employees are more likely to do something in response to feeling under-rewarded than over-rewarded. Equity theory focuses on perceptions of fairness in the workplace, including distributive justice—that is, whether people believe they have received (or will receive) fair rewards; procedural justice—reflects whether people believe that the procedures used in an organization to allocate rewards are fair; interactional justice—refers to whether people believe they are treated in an appropriate manner by others at work, especially authority figures (Arnold, 2010). When people in an organization feel they have been treated justly, they will be more willing to be ‘good citizen’ at work (Liden et al, 2003). While the motivation to perform ‘good citizen’ behaviours are enhanced by a sense of justice (Arnold, 2010). However, Adams argued that whether the input and reward are in balance is determined on the basis of feelings/perceptions compared with others in relation to social norms. 3. Models In relation to the relationship between pay and performance, pay can be related to individual, the working group or orgnisation performance (Brown and Heywood, 2002). 3. 1 Individual PRP An individual performance-related pay system is â€Å"usually involve payment which is integrated into base salary either in the form of a percentage increase or additional increments on a pay scale† (Kessler, 2005). Individual PRP relates reward on an assessment of the employee’s work performance. It assumes that the differences between individuals are measurable so that retention of high quality employees who wish to enjoy high performance reward is increased (Gerhart and Rynes, 2003). In addition, adopting pay incentives will stimulate employees’ better behaviours that will improve work performance and thus, improve organizational performance. Also, employees are motivated to create more efficient methods to boost productivity. However, individual PRP has negative impacts which may de-motivate employees. It assesses the individual’s performance through using qualitative judgments, therefore bias and unfairness coming from performance appraisal is unavoidable by appraisers’ subjectivity. Moreover, Harris’s research (2001) shows that over half of the management failed to understand the â€Å"value system† of PRP, which in turn made inaccurate judgments on performance. 3. 2 Team PRP Team-based performance-related pay schemes include variable pay which depends on the performance of a team. The aim is to consolidate the team through incentives, establishing a united, mutually supporting team with a high level of involvement (Acas). Meanwhile, team-based pay motivates less effective employees and serves as an incentive for the whole team to improve. There are also potential disadvantages of team-based PRP. In contrast to individual PRP, peer pressure is heavy and result in consistence instead of creativity. Subsequently, bullying or harassment will be resulted from individuals who are perceived to be under-contributing. On the other hand, an amount relies on the underlying magnitude of the free rider problem, whereby team members expect others to accomplish the extra workload to increase team PRP. The greater the concern about some employees’ free-riding, the less will pay be linked to team PRP for the total team input into the production process is reduced (Robert, 2007). 3. 3 Organisation PRP Organizational PRP associates with larger groups than teams, like manufactory and company. The universal PRP schemes for organization level relied on profit-sharing and gain-sharing, or alternatively on dividends of employee-owned shares and change in share value. Hence, employees are able to share such financial participation as profit or share ownership, and are more directly responsible for the project’s success. The firm PRP system is effective as the workforce is aware of their contribution. Besides, employees can participate in organizational control and show greater commitment to the organization. Drawbacks come along with organization PRP benefits. The motivation value of implementing such a scheme is relatively weak. On one side, the added-value systems like profit-sharing involves complicated information and rules and thus employees will feel confused with them. On the other side, the bonus payments are usually available with a delay of several months or years and sometimes combined with other indicators of firm-level performance such as sales, productivity, amount of cost saved and etc. 4. Evidence The tables are from the 1998 Workplace Employee Relation Survey (WERS) (McNabb and Whitfield, 2007). Table 1: Impact of performance related pay, employee and financial participation on individual earnings PRP acts as a motivational tool that attracts workers to perform higher competency and induce employees to pay greater effort. Table one supports this point, showing that workplaces that exert any type of PRP schemes pay higher than those that do not. Among them, individual PRP only makes the most contribution to earnings by comparison with the team and organizational PRP only. Nevertheless, the only single scheme impact is far behind that of combined application of two or more types. Earnings are highest in workplaces where firms adopt a combination of individual and workgroup-based or organizational PRP schemes, as can be seen from the column three. Table 2: Interaction effects Along with, the impact of PRP on pay is strongly controlled by the joint of financial participation. As can be seen from table two, earning is relatively high where PRP co-operate with employee share-ownership. PRP is not only backed up by employers, but also by governments to promote employee financial participation through a range of fiscal incentives. For instance, the UK’s new Share Incentive Plan requires employees to leave their shares in trust for a minimum of five years to avail of tax relief. . Conclusion In conclude, PRP is one of the main financial incentives to motivate employees on the basis of expectancy theory. If PRP is designed and implement efficiently and measured fairly, positive impacts will be appeared on employees’ performance. Earnings are paid higher when organization applies PRP and highest when uses a combination of individual and team or organisational PRP. In spite of this, there is no optimal approach to PRP, an d in practice each model has its own advantages and disadvantages. Individual PRP works best where employee decision-making processes centered on jobs, whereas group-based PRP works best where employees are involved in making decisions about their work-roles in their broader context (Delbridge and Whitfield, 2001). Different organizations should undertake different PRP to suit its own situation. And schemes need to be tailored with the management strategy and organisational culture, such as the organization that demands team work would not be appropriate to establish individual PRP system.

Habil Qabil Essay Example

Habil Qabil Essay Example Habil Qabil Paper Habil Qabil Paper The Play of Habit and Cabal by HISS The script of Habit and Cabal by HISS Presenter: Sulfanilamide and welcome to the play of Habit and Cabal. Before the scene is set, we would Just like to thank you all for coming and mention that any good from this play Is from Allah STW and any mistakes or wrong-doings is from ourselves and we ask Allah to forgive us and make light to us our mistakes, Install. Without further ado, we hope you enjoy the play (Presenter walks off. Narrators walk on, each on separate sides of stage) Narrator 1: Once upon a time; Adam, peace be upon him, and his wife Haw, may Allah be pleased with her, were residing In Earth, when one day Haw gave birth to their first children, a set of twins. It was a happy day and both parents loved their children dearly. The young boy was named Cabal. (Enter young Cabal and twin sister 1, start playing together on stage) Narrator 2: Soon after, Haw gave birth to her second set of twins and like before It was a young boy and girl. The boy was named Habit, (Enter young Habit and twin sister 2, start playing together with young Cabal and sister on stage) Narrator 1: (pause before reading this line, let young ones play and laugh a bit) They ere a very happy family who enjoyed the beautiful fruits and luxuries that Allah STW had blessed them with and thus the children grew up to be young strong and healthy. (Young kids walk off stage, big Habit (with sheep) and Cabal enter. Habit look after sheep, Cabal sort through grains) Narrator 2: Cabal would till the land while Habit would raise the cattle. Narrator 1 : As time went by the young boys reached an age where they desired lifelong partners. Allah STW revealed to Adam BUY to instruct the boys to marry the twin sister of their brother. (Sheep walk off) n smiling and stands next to Habit) is much more beautiful than yours! (Point to ugly twin sister who walks on offended) Ugly twin sister: What did you say to me? (With sass) Cabal: This is unfair, Im going to talk to father about this!! (All twins walk off stage, Cabal walks off angrily while pretty twin sister runs after him saying : Pretty twin sister: Cabal wait, its not that bad! Cabal! Habit and ugly twin sister leave, Habit putting arm over his sister and looks like hes reassuring her) Narrator 2: Adam BUY was in a dilemma as he wanted to keep peace in the family UT did not want to disobey Allah Sets command. So like in any tough situations, the Prophet invoked Allah STW for guidance. Narrator 1: It was revealed that both brothers had to offer a sacrifice for Allah STW and whose ever was accepted had right on their side. (Cabal and Habit (with sheep) enter from different sides of stage and face back to back. Presenter put orange sheet on stage) Habit: Im going to give my best sheep! (Smiles and puts sheep in place) Cabal: I dont care what I give, Im Just going to give this rotting grain. All my work will e gone if I give my best grain, Eve worked too hard and put too much time and effort into my work Just to give it away! (Cabal and Habit leave stage, while sheep pulls orange sheet [represents fire consuming it] over him then leaves stage) Narrator 2: A fire descended and consumed Habits sacrifice thus Allah STW had accepted Habits sheep leaving Cabals rotting sacrifice as it was. Narrator 1: Adam BUY knew it was Habits sincere kind offering that would be the one accepted but Cabal became very angry confronting his father, demanding that Habits was only accepted because he thought Adam BUY had only prayed for Habit and not for himself. He promised his father to settle the matter between himself and his brother, but this was to have serious consequences. (Presenter remove grain from stage and put stone on stage. Habit and Cabal enter Cabal: Your sacrifice was accepted and mine was not, thats so unfair!! Daddys little boy always gets everything. I work all day tilling the land, sweating and you merely stand around watching cattle! You are always favored, you get to go out late at night hunting but Id never be allowed to! You dont deserve any of that and you certainly dont deserve my sister, only I do!! So for that I will surely kill you so that you will not marry my sister! Habit: Verily, Allah accepts only from those who are pious. If you do stretch your hand against me to kill me, I shall never stretch my hand against you to kill you, for I fear Allah; the Lord of all that exists. Verily I intend to let you draw my sin on yourself as well as yours, then you will be one of the dwellers of the Fire, and that is the recompense for the wrong-doers. (Cabal picks up a stone and eyes Habit for a couple of seconds. Cabal then throws stone at Habit who lets out a cry as he falls to the ground. Cabal smiles and runs off stage) Narrator 2: Cabal the first murderer of mankind and Habit the first martyr of mankind. (Habit crawl offstage taking stone with him) Narrator 1: After some time, Adam BUY started looking for Habit as he was getting worried for he had not seen his beloved son for a long time. He asked Cabal who impudently replied that he was not his brothers keeper nor his protector. From this, Adam BUY knew what had happened and grieved that he had lost both his sons. Lost Cabal to Bills and lost Habit in death. Narrator 2: Adam BUY, a great Prophet continued spreading the message throughout his children and grandchildren despite this tragic incident, warning his children of Bills, giving this story as an example of the cruelness and deviousness of Bills. Narrator 1 : Meanwhile, Cabal was facing the consequences of his terrible crime. (Cabal enter dragging Habit. Place Habit in middle of stage and looking regretful starts pacing up and down stage) Cabal: Eve been traveling for days with this corpse on my back, yet still I do not know where to hide it, and on top of all this, the stench of this body is becoming more and ore unbearable! Oh what have I done! (Cabal falls to his knees in despair. Presenter put brown cloth on stage. Two crows letting out a crow. Crow 1 than uses her foot and wings to pretend to dig and then buries Crow 2 (puts brown cloth of Crow 2) then flies of Cabal: (standing up) Woe to me! Am I not even able to be as this crow and to hide the dead body of my brother? (Crow 2 crawls off stage leaving cloth. Cabal begins to bury Doing as crows did Then puts cloth over Habit) Narrator 2: Sending the crows was a mercy of Allah STW despite what Cabal had done ND thus showed Cabal how to hide the body of his brother therefore releasing one of his many burdens. This shows that Allahs mercy always remains, but it is up to the individual to run towards it and ask for forgiveness. (Cabal runs offstage. Habit crawls off taking cloth with him) Narrator 1: Unfortunately, Cabal did not run towards the mercy of Allah and instead ran far away from his family. He still believed that what he did was correct and continued to suffer from the whisperings of Bills. Presenter: Thank you for watching. We hope you enjoyed watching this play as much as we enjoyed performing it. END