Impact of Compensation, Performance Evaluation and Promotion Practices on Government Employees Performance VS Private Employees Performance
Bilal Jamil
Research Scholar
Foundation University Islamabad
Naintara Sarfaraz Raja
Assistant Professor
Foundation University Islamabad
Abstract
This study investigated the impact of three HRM practices namely compensation, performance evaluation and promotion practices on employee performance of both public and private sector organizations of Pakistan. Three hypotheses were formulated with respect to previously discussed variables. Result indicated that compensation and performance evaluation practices were significantly and positively associated with employee performance of both public and private sector organizations of Pakistan. On the other hand promotion practices were found to be insignificantly associated with employee performance of both public and private sector organizations.
Keywords: Compensation Practices, Performance Evaluation Practices, Promotion Practices, Public and Private Sector Organizations; Pakistan.
1 Introduction
Human Resource Management (HRM, HR) is the management of an organization 's employees (wikipedia.org). Providing and maintaining necessary balance of human resource for smooth operations of organization is a primary function of HRM. Now HR work is not only concerned with traditional activities of recruitment and selection, training and development but its scope has been
In corporate culture, equality, talent, aptitude, ethics and loyalty develops the outlook for any employee from all the directions. Managers keep the supposed contemplations in the notice to decide the employees’ future responsibilities and pay scale. In fact, Compensation is always based on employees’ performance, loyalty towards the organization, job exploration, reliability factors, utility, and reputation in the internal environment of the business and so on. Also, sometimes, financial statistics of the company, salary grade, current salary, appraisal rating play a key role in disseminating bonus and other salary and job analysis decisions (Garen, 2006). However, it might happen that internal politics, hegemony, nepotism have a big part for the compensation and job related decisions as well.
Employee compensation is critical for the satisfaction, motivation, and preservation of the workforce within an organization. HR managers plan, direct, and coordinate salaries, retirement plans, health insurance, and other employee benefits that an organization offers its employees. An organization should spend a great deal of time and resources to plan, create, and implement effective employee compensation strategies. Accordingly, in my opinion HR managers need to carefully examine these strategies that will ultimately effect and meet the organization’s targets and objectives. According to Gerade (2003), the implementation of reward and compensation within an organization will alter an employee’s thought toward organizations view of
The challenges of an organization can influence the performance of an organization from a satisfaction with pay (Gomez-Mejia, Balkin, & Cardy, 2016, p. 296). The employee salary within an organization is a huge cause for turnover of employees (p. 296). First, the topic of employee salary is of great importance for the current and potential workforce (Lee & Lin, 2014, p. 1577). In addition, employees that have the perception on receiving lower compensation that others within their market will lack in performance and have a desire to leave the organization (p. 1577). In retrospect, the regular evaluation of compensation within the organization is vital to the reduction of employee turnover (p. 1577).
Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization and also HRM is the organizational function that deals with issues related to people such as compensation, hiring, performance
Human resource management (HRM, or simply HR) is a function in organizations designed to maximize employee performance in service of their employer’s strategic objectives.[1] HR is primarily concerned with how people are managed within organizations, focusing on policies and systems. HR departments and units in organizations are typically responsible for a number of activities, including employee recruitment, training and development, performance appraisal, and rewarding
A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:
The challenges of an organization can influence the performance of an organization from a satisfaction with pay (Gomez-Mejia, Balkin, & Cardy, 2016, p. 296). The employee salary within an organization is a huge cause for turnover of employees (p. 296). First, the topic of employee salary is of great importance for the current and potential workforce (Lee & Lin, 2014, p. 1577). In addition, employees that have the perception on receiving lower compensation that others within their market will lack in performance and have a desire to leave the organization (p. 1577). In retrospect, the regular evaluation of compensation within the organization is vital to the reduction of employee turnover (p. 1577).
Human Resource Management (HRM) are activities managers perform to plan for attracting, develop, and retain a productive workforce (Kinicki & Williams, 2016). The role of human resource management is to prepare, develop, and administer policies and program designed to make expeditious use of an organization human resources. Part of control which is concerned with the people at work and with their relationship within an enterprise. HRM have their hands full; they have to face employees daily with a complaint, write-ups and sadly terminating of the worker. All areas of HRM such as, staffing, orientation, training, development, pay wages benefits are all significant parts that are dealt with daily. Human resource management presents itself as
It used to be that human resource was only thought of as the department who hires employees and safe keeps the clerical part of the organization. Human Resource is much more involved in the entire structure of the organization then just the clerical part of it. Human Resource Management (HRM) is the term used to describe formal systems devised for the management of people within an organization. The HRM department is responsible for three major areas including staffing, employee compensation and benefits and defining and designing work. HRM works for the benefit of the organization through managing its greatest business asset which is the employees. The task of managing employees of an
The company Steel Co, which has been established for around 30 years, has been in a steady decline during the current recession and although a Divisional Director has been employed by the owner the fortunes of the company have not improved. The staff is unhappy, unproductive and unimpressed by the Human Resource system that currently exists in the company. The pay structure that currently exists within the organisation has been much debated
Human Resource Management (HRM) is the terminology used to illustrate formal systems devised for the management of people within an organization. It is the method of managing an organization or company that is directly related to the employees of that particular organization. The success of a business often rely heavily on the performance of managing human resource. Maximizing the desires and benefits of an organization and helping a business grow by rewarding employees to help motivate and push them in their performance is one of the main aim of HRM. By doing this, it will have a positive impact on both the company and it’s entire organization.
HRM is typically seen as comprising a range of practices, spanning the acquisition of employees, employee development, and employee retention (Stone & Meltz, 1993). Quresh, et al (2010) quoted that human resource management is linked with all the managerial functions involved in planning for recruiting, selecting, developing, utilising, rewarding, and maximising the potential of the human resources in an organisation. Job satisfaction, morale, optimism, and turnover are key drivers of organisational performance (Becker & Gerhart, 1996).
Pay for performance is to link employees’ salary or salary increase to his or her performance. It seems to be a reasonable or attractive idea but it often does not work well in organizations. Please use at least 4 motivation theories or models to explain why pay for performance may not work as expected—particularly in government and nonprofit organizations.
Human resource is one of the important factors to be utilised for achieving organisational goals. Human Resource management (HRM) is a premeditated methodology to manage the human resource of the organization with the help of functions like recruitment, training and development, utilizing and retaining this asset etc. (Simons, 2011). The nature of workforce in every organization demographically and psychologically vary. Therefore, every organization has its own tailor made HRM policy and the procedures.
As cited in Zhou, Zhang & Montoro-Sa ́nchez (2011) reward management is a key function in HRM systems in modern enterprises, playing an important role in attracting, retaining and motivating employees (Milkovich and Newman, 2004). Furthermore, Schuler and Jackson (as cited in Esteves & Caetano, 2010) state that the focal point of success of companies today is centered on the effective use of human resources.