Pay for Performance Systems

 

Description

1. Describe some of the most significant benefits of a pay for performance system.
2. Pay for performance also has its list of challenges. Discuss the main areas of concern with the implementation of a pay for performance system. How can organizations address the negative aspects of this type of system?
3. How can the organization’s manner of creating and carrying out an incentive plan improve the effectiveness of the plan?

 

Sample Solution

Pay for Performance Systems

Pay for performance, also referred to as performance-related pay, refers to company programs that pay employees based on how they perform their job. Providing performance-related pay to your employees can have numerous benefits for your workplace. Increase productivity – pay for performance aligns employees` compensation with their contributions at work, so they will produce more to receive more. Often, you will outline goals that you want them to meet within a certain period, which may also improve efficiency as employees try to complete more tasks in less time. There are some major challenges that are faced by the system of pay for performance: the syndrome of work performed in relation to pay – when the pay is dependent on only certain performance indicators than the employees neglect the other important component of their job and focus only on the specified indicators.

Thirdly, Vittola argues that war should be avoided (Begby et al (2006b), Page 332) and that we should proceed circumstances diplomatically. This is supported by the “last resort” stance in Frowe, where war should not be permitted unless all measures to seek diplomacy fails (Frowe (2011), Page 62). This means war shouldn’t be declared until one party has no choice but to declare war, in order to protect its territory and rights, the aim of war. However, we can also argue that the war can never be the last resort, given there is always a way to try to avoid it, like sanctions or appeasement, showing Vittola’s theory is flawed. Fourthly, Vittola questions upon whose authority can demand a declaration of war, where he implies any commonwealth can go to war, but more importantly, “the prince” where he has “the natural order” according to Augustine, and all authority is given to him. This is further supported by Aristotle’s Politics ((1996), Page 28): ‘a king is the natural superior of his subjects.’ However, he does later emphasise to put all faith in the prince is wrong and has consequences; a thorough examination of the cause of war is required along with the willingness to negotiate rival party (Begby et al (2006b), Page 312& 318). This is supported by the actions of Hitler are deemed unjustly. Also, in today’s world, wars are no longer fought only by states but also non-state actors like Al-Queda and ISIS, showing Vittola’s normative claim on authority is outdated. This is further supported by Frowe’s claim that the leader needs to represent the people’s interests, under legitimate authority, which links on to the fourth condition: Public declaration of war. Agreed with many, there must be an official announcement on a declaration of war (Frowe (2011), Page 59-60&63). Finally, the most controversial condition is that wars should have a reasonable chance of success. As Vittola reiterated, the aim of war is to establish peace and security; securing the public good. If this can’t be achieved, Frowe argues it would be better to surrender to the enemy. This can be justified because the costs of war would have been bigger (Frowe (2011), Page 56-7).

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