George Baker’s Statement
The article “Rethinking Rewards” indicates that incentives might be inappropriate since they work too well. George Baker is not opposed to the use of competitive play in the workplace. However, he argues that good salaries can motivate employees depending on the implemented plan. The chances are high that workers will record positive results if the human resource (HR) department executes this framework effectively. The author goes further to indicate that all beneficiaries of an effective pay plan will be able to focus on the outlined goal and streamline operations, thereby making the targeted organization successful. However, the use of pay alone might not transform all aspects of performance (Brickley, Zimmerman, & Smith, 2015). For instance, some workers might decide to deliver superior products but ignore the changing needs of their colleagues with diverse backgrounds. They can also fail to support the targeted customers or patients, depending on the nature of the workplace. The approach can eventually result in reduced employee turnover and affect productivity. Baker refers to these aspects and issues when he writes that incentives tend to “work too well.”
Well-Developed Compensation Plan
The presence of a well-developed compensation plan can make a significant difference in any given organization. The first thing to consider is that such a model should be informed by these aspects: incentives, commission, non-monetary benefits, and a basic salary (Brickley et al., 2015). The second aspect is that the developed plan should be designed in such a way that it is personalized and focuses on the unique needs of every employee. Salisu, Chinyio, and Suresh (2015) argue that people tend to have diverse expectations and demands despite being in the same workplace or unit. A plan that delivers such a promise will be acceptable and capable of encouraging all beneficiaries to deliver the intended results. The third issue is that such a plan needs to be fair, sustainable, and capable of improving the working environment of all employees.
With such a model in place, the selected organization will be able to empower its workers and attract competent individuals who possess the required skills and philosophies. People in different working environments or departments will be pleased to pursue their duties, get good pays, and receive competitive perks. Those in leadership positions will address the special needs of all employees continuously (Brickley et al., 2015). Consequently, the targeted beneficiaries will continue to provide their services without the need to search for new jobs elsewhere. These achievements mean that the targeted organization will record a reduced employee turnover rate.
From this analysis, it agreeable that incentive pay forms a single factor that is capable of “working too well.” To avoid such a challenge, leaders of different companies should be considerate and aware of the unique needs and expectations of their followers. They should go further to provide vacations, work-life balance, and fringe benefits (Brickley et al., 2015). Such measures will motivate all workers to continue being part of the organization and ensure that positive results are recorded within the stipulated period. Consequently, the company will achieve its aims and remain competitive in its industry or sector (Salisu et al., 2015). Business firms and health institutions should, therefore, consider the importance of a well-developed compensation plan since it will minimize most of the challenges recorded in different units and eventually drive organizational performance.
References
Brickley, J., Zimmerman, J., & Smith, C. W. (2015). Managerial economics and organizational architecture (6th ed.). New York, NY: McGraw-Hill Education.
Salisu, J. B., Chinyio, E., & Suresh, S. (2015). The impact of compensation on the job satisfaction of public sector construction workers of Jigawa state of Nigeria. The Business and Management Review, 6(4), 282-296.