The paper 'Best Practices Remuneration and Performance Management System - Capital Airtime Ltd " is a good example of a management case study. This report analyses the ‘ Best Practices’ when designing a remuneration and performance management system in an organization. Capital Airtime Ltd is a medium-sized company that’ s looking to attract and retain the appropriate employees. Also, the organisation plans to become profitable and increase returns on its stock price. The paper outlines the seven principles of The Pfeffer-digm ‘ best approach’ strategy which includes Employment security, selective hiring, self-managed teams or team-working, high pay contingent on company performance, extensive training, reduction of status differences, and information sharing The paper recommends the ‘ best practices’ approach and gives the benefits of implementing the strategy. 1.0.Introduction Remuneration and performance management is applied to describe several activities practised in an organisation so as to evaluate, monitor and adjust aspects of individual and organisational performance using various management controls (Thompson and Richardson, 2003).
There are several remuneration and performance management systems such as ‘ Best Practice’ and strategic alignment. 2.0. Literature review Several Philosophers have widely discussed the issue of whether employee management contributes to the general performance of an organisation.
Several studies have been conducted to evaluate the impacts of these high-performance work practices. Pfeffer-digm discovered the 'best practice ' approach which includes employment security, selective hiring, extensive training, reduction of status differences, information sharing, self-managed teams or team working, and high pay contingent on company performance (Pfeffer 1998). 2.1. High pay contingent According to Pfeffer (1998), contingent compensation may include profit sharing, stock ownership, team incentives, gain sharing, pay for skills. Companies such as Southwest Airlines, Microsoft and AES Corporation support such share ownership.
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