The new Utley management would like to establish a pay-for-performance system. What does this mean to the Utley management?
Pay for performance system will have a possible number of consequences to the Utley management, these effects will be mainly centered on the way that the system is incorporated into the organization, the culture of the organization, the perception of the employees in the organization and how open the system will be as regards to its targets.
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In any organization, payment issues are considerably sensitive and it thus requires a positive tactical approach to achieve the desired results. As proposed by Blinder (2002) pay for performance system will work differently for different organizations. This is mainly because of the culture of the organization and the perception of the employees regarding the fairness of the system. The Utley management ought to understand that there are advantages and disadvantages of implementing the system.
On a positive note, the existing system on the employee’s performance appraisal has received negative perception from the employees; the introduction of the new system may be a major relief to the management and the employees of the organization. This will be the case only if the system meets the fundamental requirements of a pay-for performance system and is also properly integrated into the organization.
The major objectives for this system includes but not limited to the following; employees will be motivated to be more productive as the results links direct with the payments of rewards in the organization, the employees will feel fairness in the system as they will be rewarded based on their efforts, and the continuous check and balance system will also guarantee the fairness of the system.
To the management, they will require adequate funding of the system, supportive organization culture that can integrate payment for performance system, adequate training for supervisors and the employees, fair and effective supervisors and ongoing system evaluation process that ensures fairness.
To the management of the Utley, this system will mean fairness, performance oriented organization and thus increase in the production of the company’s employees. The ongoing check and balance system will ensure that the system runs smoothly and necessary system modification done with regard to the changing time, culture and the size of the organization.
What changes will have to be made in the way the system operates now?
The system operation at the moment has received negative perception from the employees mainly because of two fundamental reasons; firstly the system is not open to employee’s suggestions and criticism, in essence the employees have less knowledge on how their performance evaluation is carried out.
Secondly, the system is unfair in the eyes of the employees; this is because upon complaining, the management of the organization reacts in a way that shows some signs of unfairness by adding the complainant an amount slightly above the average pay.
These provisions in the current system show lack of proper payment and performance evaluation system instituted in the organization to enhance fairness and openness. Podmoroff (2005) suggests that system improvement within the organization especially with regard to employees reward is critical for the organization’s survival.
In order to improve the current system, it is necessary to address the fundamental weaknesses of the system. This system should thus be adjusted to be more open on how the employees’ performance is evaluated in order for the employees to have a chance to explain their poor performance whenever necessary.
Involving employees in this critical decision making process will not only make the system fair but also motivate employees and thus enhance a performance oriented organization. The system should also form a department that deals with the grievances of employees within a union and those without the union.
The adjustment of pay because the employee has complained needs to be removed and proper channels of payment adjustments put in place to deal with the situation. The pay for performance system should thus be borrowed and integrated into the organization in order to increase the fairness, efficiency and the performance of the Utley Food Markets organization.
How might these changes be implemented?
These changes that seek to address the payment issues in Utley Foods Market organization needs to be addressed with several things in mind. The existing organizations culture needs to be considered, the nature of the organization structure also needs to be considered, and the availability of funding option should also be addressed. Once these factors among others are considered by the management of Utley, the changing process will be easier and with fewer obstacles.
The process of changing to the new system should ensure that the employees are involved. This can be achieved by proper communication and training in order for the employees to comprehend the organization’s objectives and their critical role in attaining these objectives and how the payment system will function.
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Assuming that these issues are self-explanatory will derail the objectives of restructuring process (Blinder, 2002). Transparency of the payment system is another critical consideration in adopting the payment method. The company’s employees should be informed on what desired behaviors and accomplishments will be contented by the new payment system.
In addition to this, it will be necessary to ensure a consistent and positive feedback regarding the performance of the employees. At this stage, the supervisor or the management of Utley should train employees on the expected accomplishments, how well they should present their efforts and showing them their past ratings as regards to their performance and the rationale for the rating.
After the integration of the new system following the mentioned factors, it is imperative for the Utley management to establish a check and balance system that will ensure the effectiveness and the supervisors discretion in evaluating and consequently rewarding the organization’s employees.
It is important for the pay system to be fair both in the perceived angle and the actual angle regarding the employee and the organization respectively. When this is the case, credibility and motivating power will be enhanced once the system is in place.
Which of the nonmonetary changes will help motivate better performance? Defend your position
There are a number of considerations that the Utley management should adopt and integrate into the organization to improve and motivate the company’s employees without necessarily biasing towards rewarding them monetarily. Creating a sound environment is the initial step in enhancing the workers performance.
The environment where employees can interact freely with themselves and the management will ensure their personal growth and the feeling of belonging. When the management inquires problems about their personal lives and make positive contributions with advice and show of concern has the greatest impact on the company’s employees, this will translate to performance in the organization.
Arranging seminars and training sessions that addresses different careers of the organizational employees is another imperative step in improving the employee’s performance. These seminars will not only promote the employees performance rate but also motivate them to achieve their personal goals in the organization (Bruce, 2008).
Giving employees adequate holidays to attend their personal issues is also another important step in motivating them. Employees who are exhausted and have little time for their personal issues will always perform below their expected standards. It is thus necessary to improve on employee’s holidays in order for them to refresh themselves and have a time off their usual work.
The other significant issue that the management of Utley needs to ensure is the smooth flow of communication process, this will enhance a sound environment for the interaction process required in any organization to produce quality work and thus meet the objectives of the organization. In essence, communication is the key to successful motivation process since the management will be in a good position to understand the employee’s demands and grievances; in turn this will increase their performance in the field.
Blinder, A. (2002). Paying for productivity: a look at the evidence. Chicago, IL: Brookings Institution Press.
Bruce, A., & Pepitone, J.(2008). Motivating employees. New York, NY: McGraw-Hill.Pp 123-145.
Podmoroff , D.(2005). 365 ways to motivate and reward your employees every day– with little or no money. New York, NY: Atlantic Publishing Company. Pp. 134-147.