Материал: 1253

Equity and participation

The ability of a reward system both to motivate and to satisfy depends on who influences and/or controls the system's design and implementation. Even though considerable evidence suggests that participation in decision making can lead to greater acceptance of decisions, participation in the design and administration of reward systems is rare. Such participation is

Сtime-consuming.

Perhaps, a greater roadblock is that pay has been of the last strongholds of managerial prerogatives. Concerned about employee self-interest and compensation costs, corporations do not typically allow employees to participate in pay-system design or decisions. Thus, it is not possible to test иthoroughly the effects of widespread participation on acceptance of and trust in reward system.

бCompensation systems: the dilemmas of practice

A body of experience, research and theory has been developed about how money satisfies and motivates employees. Virtually every study on the importance of pay compared with other potential rewards has shown that pay is important. It consistently ranks among the top five rewards. The importance of pay andАother rewards, however, is affected by many factors. Money, for example, is likely to be viewed differently at various points in one's career, because the need for money versus other rewards (status, growth, security, and so forth) changes at each stage.

National culture is anotherДimportant factor. American managers and employees apparently emphasize pay for individual performance more than do their European or Japanese counterparts. European and Japanese companies, however, rely more on slow promotions and seniority as well as some degree of employment security. Even within a single culture, shifting national forces may alter people's needs for moneyИversus other rewards.

Companies have developed various compensation systems and practices to achieve pay satisfaction and motivation. In manufacturing firms, payroll costs can run as high as 40% of sales revenues, whereas in service organizations payroll costs can top 70%. General managers, therefore, take an understandable interest in payroll costs and how this money is spent.

The traditional view of managers and compensation specialists is that if the right system can be developed, it will solve most problems. This is not a plausible assumption, because, there is no one right answer or objective solution to what or how someone should be paid. What people will accept, be motivated by, or perceive as fair is highly subjective. Pay is a matter of perceptions and values that often generate conflict

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Management's influence on attitudes toward money

Many organizations are caught up in a vicious cycle that they partly create. Firms often emphasize compensation levels and a belief in individual

pay for performance in their recruitment and internal communications. This is likely to attract people with high needs for money as well as to heighten that need in those already employed. Thus, the meaning employees attach to

Сimportance as a reward, management must then respond to employees who may demand more money or better pay-for-performance systems.

money is partly shaped by management's views. If merit increases, bonuses,

stock options, and perquisites are held out as valued symbols of recognition and success, employees will come to see them in this light even more than they might have perceived them at first. Having heightened money's

иshape employees' satisfactions, and those expectations will sustain the existing practices. If money has been emphasized as an important symbol of

Firms must establish a philosophy about rewards and the role of pay in the mix of rewards. Without such a philosophy, the compensation practices

fewer administrativeбproblems and perhaps even lower cost. Money is important, but its degree of importance is influenced by the type of compensation system and philosophy that management adopts.

that happen to be in place, for the reasons already stated, will continue to

success, that emphasis will continue even though a compensation system

with a slightly different emphasis might have equal motivational value with

АPay for performance

A pay-for-performance systemДcan help to retain good performers while discouraging the poor performers. In the US, at least, many employees,

Some reasons why organizations pay their employees for performance are as follows: under the right conditions, a pay-for-performance system can

motivate desired behavior, a pay-for-performance system can help attract and keep achievement-oriented individuals.

both managers and workers, prefer a pay-for-performance system, although white-collar workers are significantly more supportive, of the notion than blue-collar workers. But there is a gap, and the evidence indicates a wide gap,

systems is the level of aggregation at which performance is defined - individual, group, and organization wide. Several pay-for-performance systems are summarized in the exhibit that follows:

individual performance group; performance organization; wide performance;

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merit system piece; rate executive bonus; productivity; incentive cost; effectiveness;

profit sharing; Сproductivity-sharing.

Historically, pay for performance has meant pay for individual performance. Piece-rate incentive systems for production employees and merit salary increases or bonus plans for salaried employees have been the dominant means of paying for performance. In the last decade, piece-rate иincentive systems have dramatically declined because managers have discovered that such systems result in dysfunctional behavior, such as low cooperation, artificial limits on production and resistance to changing standards.б

Similarly, more questions are being asked about individual bonus plans for executives as top managers discovered their negative effects. Meanwhile, organization wide incentive systems are becoming more popular, particularly because managers are finding that they foster cooperation, which leads to productivity and innovation.АTo succeed, however, these plans require certain conditions. A review of the key considerations for designing a pay-for- performance plan and a discussion of the problems may arise when these considerations are not observed follow.

IndividualДpay for performance

The design of an individual pay-for performance system requires an analysis of the task. Does the individual have control over the performance (result) that is to be measured? Is there a significant effort-to-performance relationship? For motivational reasons alreadyИdiscussed such a relationship must exist Unfortunately, many individual bonus, commission, or piece-rate incentive plans fall short in meeting this requirement. An individual may not have control over a performance result, such as sales or profit, because that result is affected by economic cycles or competitive forces beyond his or her control. Indeed, there are few outcomes in complex organizations that are not dependent on other functions or individuals, fewer still mat is not subjected to external factors.

Choosing an appropriate measure of performance on which to base pay is a related problem incurred by individual bonus plans. For reasons discussed earlier, effectiveness on a job can include many facets not captured by cost, units produced, or sales revenues. Failure to include all activities that are important for effectiveness can lead to negative consequences. For example, sales personnel who receive a bonus for sales volume may push

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unneeded products, thus damaging long-term customer relations, or they may push an unprofitable mix of products just to increase volume. These same salespeople may also take orders and make commitments that cannot be met by manufacturing. Instead, why not hold salespeople responsible for profits, a more inclusive measure of performance? The obvious problem with this measure is that sales personnel do not have control over profits.

СThese dilemmas constantly encountered and have led to the use of more

subjective but inclusive behavioral measures of performance. Why not observe if the salesperson or executive is performing all aspects of the job well? More merit salary increases are based on subjective judgments and so are some individual bonus plans. Subjective evaluation systems though they can be all inclusive if based on a thorough analysis of the job, require deep trust in management, good manager-subordinate relations, and effective interpersonal skills. Unfortunately, these conditions are not fully met in many

и situations,бthough they can be developed if judged to be sufficiently

important. Group and organization wide pay plans.

Organizational effectiveness depends on employee cooperation in most

instances. An organization may elect to tie pay, or at least some portion of pay, indirectly to individual performance.

Seeking to foster teamwork, a company may tie an incentive to some measure of group performance, or it may offer some type of profits or productivity sharing plan for the whole plant or company. Gains-sharing

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Список рекомендуемой литературы

1.Ильенко, П. Особенности аннотирования и реферирования текстов по дисциплине «Иностранный язык» в высших учебных заведениях (для студентов неязыковых факультетов / П. Ильенко, И.П. Ильенко // Вестник Оренбургской духовной семинарии. –2016. – №2(6). – С. 202–214.

2.Шуваева, И.Н. К вопросу методики работы над текстом по СибАДИспециальности при обучении реферированию и аннотированию

И.Н. Шуваева // Апробация. – 2017. – №2 (53). – С.103–105.

3.Баранова, Е.В. Реферирование и аннотирование для студентов, изучающ х ностранный язык в неязыковом вузе Е.В. Баранова // овременные нструменты управления человеческими ресурсами: теория и практ ка : матер алы Междунар. науч.-практич. конф., посвященной 40-лет ю Челяб нского государственного университета, в рамках Фестиваля науки творчества ЧелГУ. – Челя инск, 2016. – . 24–27.

4.Хоменко, О.Е. Практический курс перевода (аннотирование и рефер рован е): уче ное посо ие / О.Е. Хоменко. – Ставрополь, 2015.

5.Benefits of smartphone technology [Электронный ресурс]. – Режим доступа: https://smallbusiness.chron.com/benefits-smartphone-technology- 57037.html – Загл. с экрана (дата о ращения к ресурсу: 18.10.2018).

6.Language [Электронный ресурс]. – Режим доступа: literature.freeservers.com›image polat/llat.html – Загл. с экрана (дата обращения

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