Answer the following questions regarding the link between pay and employee performance. Using Motorola company as an example of your analysis.
- Should pay be linked to the present or expected value to the organization?
- Should pay be adjusted at certain points in transformation process?
- Who is going to monitor the process and determine if the pay being awarded is having a positive effect on hard-wiring behavior?
- How might linking pay to performance enhance or impede organizational change within an organization.
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Pay should be linked to both present value to the organization and the expected value they will bring to the organization. The equity for the company cannot be solely based on the present value because it does not provide incentive for continuing or improved productivity. Nor does it fulfill the needs of the company to have employees who provide vision and efforts to innovate and improve processes. However, basing pay on expected values can result in pay increases less often, which can create issues with motivation. When it is a long time between increases, people become frustrated ...
This solution provides a review, based on the questions supplied regarding employee compensation.