The paper "Managing Personal and Human Resources" is a perfect example of management coursework. In contemporary society, one of the most important developments in the field of organization is the growing significance given to human resources (Beardwell and Claydon, 2010). Human resource generally is a term used to describe the people who constitute the workforce of an organization (Muller-Carmen et al. , 2008). In addition, human resource is the name given to the function in an organization which entails the formulation of policies and strategies involving the management of persons (that is the human resources).
Furthermore, the function is responsible for employee motivation, communication, performance management, and administration as well as organization development, recruitment of new employees as well as their management and the giving of direction for them to work towards the success of the organization (Pfeffer, 1995, and Boxall, 1998). Besides, human resource focuses on planning for future ventures as well as setting objectives involving people in the organization (Bratton and Gold, 2007). Most importantly, the function is responsible for managing people as well as the workplace environment and culture to ensure that employees contribute productively and effectively to the overall organization direction and the attainment of the organization’ s goals and objectives (Beardwell and Claydon, 2010).
Ultimately the role of human resource is very important and cannot be ignored in managing an organization. It is one of the main pillars that hold the organization together and help in the attainment of the overall objectives. Managing personal and human resources is deemed as one of the main factors that result in the success of an organization. This essay will focus on the management of personnel and human resources and in particular, the essay will assess how companies can use pay linked to performance to increase organizational effectiveness. How companies can use pay linked to performance to increase organizational effectiveness In this age of globalization which is characterized by increased competition, there is an excessive pressure for companies to constantly increase performance, attract and retain the best personnel and improve business results (Muller-Carmen et al. , 2008).
However, most companies fail to recognize that giving the right rewards and pay to the right individuals may speed up and guarantee high performance and company effectiveness (Heneman and Gresham, 1998).
It is apparent that most companies pay their personnel the same although some are better performers compared to others. This has led to the underpayment of employees who possess higher skills, and overpayment of staffs with low skills. It is true that one way of measuring the effectiveness of an organization is through productivity (Muller-Carmen et al. , 2008). High productivity can only be achieved if the employees are well motivated. Companies can use pay linked to performance as a tool for improving motivation amongst employees.
Research has proved that employee tends to link their performance with the amount of pay they receive (Lawler et al. , 1995). Furthermore, employees will increase their productivity standards if their performance is well rewarded. Consequently, the poorly performing employees tend to improve on their productivity in order to achieve higher rewards like their colleagues, which in return contribute to the general success of the organization.