Concept of Market Competitiveness in relation to an Organization's Pay System - Essay Example

Concept of Market Competitiveness in relation to an Organizations Pay System Introduction Remuneration is a fundamental feature that does not only affect the lives of the employees but also affects their productivity while at the organization. As an essential factor of motivation, organizations must therefore pay their employees competitively. Competitiveness in the payment of employees refers to a trending market rate. This implies that employees holding a particular position in the organization compare his or her salary to those holding similar positions in other organizations in the same industry (Bruce & Pepitone, 1999).

 The pay disparity should often be minimal. As the most fundamental resources in an organization, the effective management of human resources in an organization is therefore paramount. Motivating the employees is a major feature of managing the human resource that validates competitive remuneration. However, when an organization is facing numerous economic challenges and cannot therefore pay its employees competitively, the management must consider other alternative ways of motivating the employees thus enhancing their productivity despite the minimal pay.

The essay below discusses such alternative ways. Improving productivity even with minimal pay rates requires effective employee motivation. This implies that the organization must consider other alternative ways of motivating its employees. The organization must therefore develop a conducive work environment. A favorable work environment is one in which the employee relate freely with their managers and can share their feeling at the organization without victimization. Making the employees develop a feeling of belongingness is paramount in developing such a work environment.

As discussed earlier pay is always among the most important motivators in an organization, however developing friendly work environments may make employees overlook the less competitive pay. This implies that the organization must adopt an effective communication model that permits the employees to interact appropriately with their managers. Communication is a key management function that ensures that the employees implement the production policies within the organization as designed. The organization must develop appropriate upward and downward communication model thereby providing an interactive communication media in the organization.

This way, the employees express their feelings freely a feature that will motivate them. Creating a friendly work environment is feature of the organization’s culture. This refers to the values and traditions of the organization. The organization can readily influence the nature of both the formal and informal relationships that employees have at the organization. By enhancing the relationships, the employees become attached to their colleagues. Coupled with the freedom of communication and participation in the organization’s major decisions through the reliable communication media, the employees will readily overlook the minimal pay and concentrate in enhancing the productivity of the organization (Müller, 2010).

As a portrayal of the enhanced communication and interactions between employees and their managers in the organization, the management must recognize the industrious employees and revise their pay accordingly. This implies that by deploying the above-discussed techniques of motivating employees, the organization is likely to realize improved productivity. The managers must therefore have concerted discussion with their employees and promise to revise the salaries depending on the improvement on the organization’s financial resources.

In case of an increase in the company’s productivity, the managers must appreciate the employees and increase their salaries accordingly. This makes the employees feel appreciated and recognized a feature that motivates hem thereby enhancing their productivity. Their salaries may not measure up to the salaries of the employees working for the comparative firms but the promise of growing their salaries with the growth of the company is an efficient motivation that will ensure that they work hard and enhance the productivity of the organization (Fargus, 2000).

  Additionally, the management of the organization can employ other less costly ways of motivating their employees. Paying all the employees competitive salaries is often costly depending on the size and profitability of the company. However, the company can infuse other smaller and less costly ways of motivating their employees such as appreciating productivity. The managers can develop effective structures of measuring the productivity of the employees and rewarding the most productive employees.

Such titles as “the employee of the year” or “the employee of the month” are effective and equally less costly ways of enhancing both the competition among the employees and the productivity of the organization. The organization must appreciate the productivity and the effort of their employees despite the small size of the organization (Podmoroff, 2005). Recognizing such and rewarding them appropriately motivates other employees to sustain the competitive nature of the organization thus enhancing the productivity of the company.

As such, the company becomes equally competitive since its employees are employing effective means of production thus steering the organization to success. Furthermore, such means of motivation are always as cheap as recognizing such individuals at staff meetings. Through effective management and effective motivation, the company is likely to grow. Successive growth of the company offers yet other effective ways of motivating the employees in the organization. Promotion is one such efficient ways of motivating the employees thus enhancing their productivity even with a less competitive salary.

The management must carry out effective ways of determining the productivity of the employees thus rewarding the appropriately. Among the most effective ways of rewarding employees in an organization is by promoting them to the positions of junior management among other categories of management existing in the organization, the promise of periodic job revision and promotions where appropriate enhances the productivity of the employees thereby ensuring that the organization remains comparative in the industry (Torrington, Hall & Taylor, 2008).

In retrospect, enumeration is among the primary features that employees consider before accepting a job. This implies that organizations must always provide their employees with competitive enumeration in order to recruit and retain the best human resource in any labor market (Armstrong, 2007). However, with minimal financial resources, the organization can still recruit and retain such human resource by enhancing the motivation of the employees. The management of the organization can employ the numerous ways of motivating their employees in order to make them overlook the minimal pay.

Among such effective ways of motivating employees in an organization, include recognizing productivity, periodic revision of their salaries and positions in the organization thus promoting them appropriately. Through such, the organization remains competitive despite the less competitive salaries. Reference Armstrong, M. (2007). A handbook of human resource management practice. London [u.a.: Kogan Page. Bruce, A., & Pepitone, J. S. (1999). Motivating employees. New York: McGraw-Hill. Fargus, P. (2000). Measuring and improving employee motivation.

London: Financial Times Prentice Hall. Müller, C. (2010). Employee motivation an incentives at Apple: Do incentives really help to motivate employees?. Norderstedt: GRIN Verlag. Podmoroff, D. (2005). 365 ways to motivate and reward your employees every day-- with little or no money. Ocala, Fla: Atlantic Pub. Group. Torrington, D., Hall, L., & Taylor, S. (2008). Human resource management. Harlow: Financial Times Prentice Hall.