Employees Incentive System Essay Example | Topics and Well Written Essays - 3500 words

Employees Incentive System - Essay ExampleThese collective risks are universe operationalized in incentive programmes that often impact as much as 30% of a managers income (Tully, 1995 Schraeder and Becton, n.d.).As the threat of global trade liberalization looms, private-enterprise(a) pressures on business organizations will continue to expand. Therefore, business organizations must take the necessary steps in ensnare to become much innovative, productive, and efficient. In order to remain more competitive, business organizations have to make use of all its resources in order to maximize the usefulness of its operations (Scharaeder and Becton, n.d.). And labor, being the most substantive part of expenditure of the business, must be utilized to the fullest by developing and demanding compensation strategies such as incentive programs in order to align individual demand and goals with the objectives of the organization (Scharaeder and Becton, n.d.). This caused the organizatio ns to continually faced with problems of maintaining and energizing excellent employees and elevating additional business units into the upper echelon of excellent performance. It is within the confines of these two separate, but relate challenges that an organization must differentiate between employee recognition and performance improvement (Driving excellence to the bottom line, n.d.). U.S. business organizations are now being encouraged to adopt employees incentive programs in order to improve and encourage employees performance, improve overall operation of the firm, and thereby promote peace and harmony among the work force curiously on management-employees relationships. It has long been proven by a variety of research and studies that the performance of the employees can be enhance or influence by the vogue they are managed (Delaney and Huselid, 1996). The National Organizations Survey survey on 590 profit and non-profit companies has proven the positive associations betw een military personnel resource management (HRM) practices, such as training and staffing selectivity, and perceptual firm performance measures. The study also further suggests the methodological issues for consideration in examinations of the relationship between HRM systems and firm performance (Delaney and Huselid, 1996). Now, it is evident that more and more companies are tapping into the advantages of employee incentive programs in order to remain competitive. The National Association of Manufacturers surveyed 4,500 companies to follow up on prior studies examining skill level of workers and common human resource practices. They found that 54% of these companies offered some type of bonus plan and another 35% offered some type of gain-sharing or pay for performance program (Micco, 1997 Schraeder and Becton, n,d,). Furthermore, employee incentive programs are now being use by the reputable U.S. companies. As an example, Pagoago and Williams (1993), by using the Hay survey to st udy 1,256 hospitals and 350,000 individuals in the healthcare field, has found out that more than half of the surveyed hospitals are adopting various kinds of employee incentive programs and that a growing number of these organizations used contingent pay such as discretionary bonuses, skill based pay, and team based pay. It is also interesting to note that survey results indicated a significant