Introduction
The qualitative working environment requires different approaches to maintain the workers’ productivity and motivation. Among crucial aspects are ethical and jurisprudential issues, which should be followed to set high standards for the organization’s reputation. Such a tool as a pay model with different compensations is essential to manage these factors. This essay will consider specific objectives and policy choices of the pay model. Implementing the qualitative pay model requires profound attention to every worker and consideration of their contributions and needs.
The Objectives of the Pay Model
The pay model is an essential component of the organization, which allows managers not only to construct fair payments for the employees but also to increase the overall productivity and efficiency of the company. Among the essential objectives of this model that should be highlighted are efficiency, ethics, fairness, and compliance with regulations and laws (Gerhart, 2023). To understand the advantages of the pay model, it will be helpful to consider each of them. The efficiency objective assumes that using compensation tools in the pay model increases workers’ sincerity and desire to accomplish the high goals of the organization.
For example, as one of the priorities of this objective, one can name attracting and engaging top talents. In addition, delighting stockholders and customers is another component of the efficiency objective. The ethical objective requires increasing workers’ motivation to complete their tasks qualitatively, honestly, and concerning all participants (Gerhart, 2023). It is vital to state that the pay model should act as a trigger to help workers understand the importance of integrity and excellence.
The next objective of the pay model is fairness, which assumes fair payment for all employees. It also acknowledges that team outcomes are collective (Gerhart, 2023). According to Gerhart (2023), “the emphasis to place on employee contributions is an important policy decision because it directly affects employees’ attitudes and work behaviors” (p. 23). As an example of this objective’s incorporation, one can name the approach of the Whole Foods company, which assumes a fair attitude to employee contributions and needs (Gerhart, 2023).
The last objective is compliance with laws and regulations. As well as in the case of ethics, this objective states that employees’ actions should align with various policies to not harm the company’s reputation. For example, as Gerhart (2023) states, “If laws change, pay systems may need to change, too, to ensure continued compliance” (p. 21). Therefore, flexibility from workers is required, which requires additional motivation from the qualitative compensation system.
The Objectives and the Standards to Judge Success
Fair judgment of the workers’ success is crucial to the qualitative working environment and pay model. As mentioned, payments directly affect employees’ productivity and sincerity in contributing to the company’s goals. Therefore, such objectives as ethics, efficiency, fairness, and compliance with regulations and laws set high standards to judge success (Gerhart, 2023). For example, considering worker’s achievements will allow the manager to understand their desire to act according to the company’s vision, goals, and long-term strategy. For example, to judge success, such an objective as fairness requires a thorough evaluation of each worker’s achievements to construct a fair and qualitative pay model according to them.
On the other hand, ethics and compliance with laws and regulations allow managers to avoid various biases and judge workers’ success rationally. Gerhart describes in his book that such services as Wall Street financial organizations created particular judging standards to reward workers who take considerable steps to improve the company’s position (Gerhart, 2023).
This point highlights the judgment of success from the perspective of better accomplishment of daily routine work and assumes taking risks and critical thinking. Consequently, while summarizing all the above factors, one can state that the objectives set the standards to judge success by understanding employees’ readiness to contribute to the organization’s strategy. Moreover, one should stress that the ability to think out of the box and take risks is also essential as a standard of success.
Different Pay Objectives for Different Business Units
The primary reason one company can have different pay objectives for different business units depends on the tasks these units process. The payment should be delivered and structured according to the employees’ focus. For example, some units may be focused on increasing customer satisfaction. Therefore, the primary pay objective here will be ethics. On the other hand, another unit can work on developing innovative new products (Gerhart, 2023). In this situation, the primary objective can be efficiency and fairness.
Four Policy Choices
The first policy choice, internal alignment, is to consider the worker’s position. This means the correlation between their duty and the organization’s business objectives should be established to manage payments effectively (Gerhart, 2023). For example, Whole Foods aims to use this policy choice when making payments to retain talented employees. External competitiveness assumes comparing payments with other employers in the market (Gowan, 2021).
As an example, before payment of compensation, the manager will research the same points in other corporations. The choice of employee contributions policy is another method that requires directly considering workers’ achievements. For instance, Motorola uses a team-based pay method to enhance the quality of work (Gowan, 2021). The fourth policy, management, is based on following the rule that the right employee will be paid appropriately.
Conclusion
In conclusion, it is essential to highlight the importance of setting objectives in constructing an effective pay system. Such points as efficiency, fairness, ethics, and law alignment are crucial. In addition, the manager has various methods, such as the four described in the paper, to realize which employee or unit should be paid by specific objectives to enhance the company’s position in the market.
References
Gerhart, B. (2023). Compensation [14th Ed.]. McGraw Hill.
Gowan, M. (2021). Fundamentals of human resource management: For competitive advantage. SAGE Publications.