Introduction
In any company, the goal for progress and rapid acquisition of income and profit is the central task of any management, especially those who are assigned in the senior management level. Constant research and further study about the organizational development of any company is imperative in order to stay competitive and stay longer in the business world. In this case, versatility of managerial skills and savvy attitude towards critical analysis on management strategies and approaches are needed. Significant to the growth of any corporation is the advancement of adopting new means of giving effective customer service assistance in order to remain competitive and at the same time help robust the company’s profit and income, the use of new technology as the means of generating highly effective and proficient services to costumers imperatively employed.
All companies strive to have this attitude and behavior. The utility of human power and knowledge manufacture great results in any organizational structures. The presence of highly competitive managers, researchers, economic analysts, experts in human resource management are formed collectively as archetypes of companies serving as troubleshooters, innovators, constructivist managers and organizational experts.
With all of these high caliber human capabilities, companies lived longer and advertently progressed and developed competitively.
The historical antecedents as well as the precedents allow us to conjure our strengths to follow the significant footsteps of our forefathers in their struggle of instituting a civilization which represent their investment for labor and work. The transmission of knowledge and historical facts lead us to recognize the value of our ancestors’ struggle to establish a world that is conducive for living. The unending struggle to fight for the right and against oppression, abuse, and slavery are embossed in the map of history, chronologically designed and evaluated rigorously. In this line of thought, we are brought, with enough historical evidences that the omnipresence of labor and work is indeed born along the creation of life.
Management in organization
In the realm of human resource management with other influential districts within an organization emphasized the vital role of individuals as the center of all the processes. One great consideration in defining and formulating effective organizational structure and management strategies is the role of individuals within its sphere. We cannot deny the fact that technology brought magnificent output in any organizational production but while technology can be an aid, the centrality of individuals or people has to be fully recognized and reinforced continuously. Such centrality of individuals merit incentives of being agent of knowledge transfer and knowledge source.
Moreover, our identification of individuals as to its role in the growth and success of an organization is considered essential, more so in various domains of worldly interactions.
Performance Related Pay (PRP) and Payment by results (PBP)
We defined PRP as any system which links a workers pay directly to her output like standard piece rates. The implementation of PRP systems in workers contacts has contributed to a turn down in the level of unemployment in the UK. However, PRP schemes vary according to the firm’s structural management and the pressing need of any organization. PRP has at least divided into two fundamental schemes: the individual PRP and group PRP schemes in which business scholars variably express their analysis on which of the two basic schemes are effective in any firms’ set-up.
Moreover, Brown (1990) underlined five objectives of PRP in general: magnetizing and maintaining competent employees, to promote an accomplishment orientation, to reward good performance, to share the economic benefits of improved performance and promote employee responsibility. In Britain, PRP schemes have become increasingly known over the past decades. Throughout the 80s and 90s these schemes were seen as a means of progressing both individual and organization performance. Such business trend attracts the government to integrate such scheme in its governmental units.
Individual PRP has been used for a long time in the UK, but was traditionally used as a merit payment over and above the annual pay reward. This scheme was treated before as just a means of rewarding a good behavior inside the working environment rather than a merit on good performance. Now, such scheme reportedly has been utilized for a wider range of occupations and has been appraised on an annual basis. However, according to a study made by the Munich Personal RePEc Archive, firms who have a PRP system at all tend to have either less than 10 % of total workers covered, or more than 90%. Moreover, in business services 34.38% of workers, on average, are covered by PRP. This compares to only 22.13 % and 22.96 % in other services and construction. Size of firm, therefore, found to be stoutly important determinant of PRP coverage. Here micro businesses had on average 20.07% of workers covered in comparison to 26.08% in small firms, 35.17% in medium-sized firms and 38.94% in large firms.
This status is due to the cross variables affecting the firms’ workers condition towards performance and perception on various issues. Such motivation systems based on individual performance are problematical according to the study of Robert McNabb and Keith Whitefield (2003). This problems are rooted to the difficulty to extricate each individual’s contribution to production, the output of a work team might surpass the summation of individual contributions, such scheme is seen to daunt political interaction among workers, which often positively influences the level of output, individual PRP schemes are costly to monitor and can promote unhealthy competition between workers which reduces output levels and schemes can increase the resistance of workers to changes in work or product lines because their productivity is likely to be lower in new rather than familiar settings.
However, we cannot discount the strengths it supplanted in strengthening the productivity and performance of workers leading to maximization of profit and income of the firms. Such schemes have the advantage to the firm in that they not only induce greater effort from workers, but also encourage the workers for more commitment and reinforce existing cultures and values where these foster high levels of performance, innovation and team work. The link of pay to performance also potentially establishes equity and consistency in the pay structure and enables the firm to attract more able workers. Moreover, individual PRP schemes are likely to be successful in improving organizational performance in only narrow range of work settings namely those in which team working is not important, where high trust relationships are not associated with the performance, where it is easy to extricate individual contributions to output and where the key to competitive success does not lie in constant change to the work process.
On the other hand, payment by results program will increase the emphasis on improving workforce productivity. In the case of NHS or National Health Service, the imposition of payment by results goes in more subtle and complicated manner. It will affect the demand situation and will have other implication for workforce planners in terms of workforce and activity linked information, cost requirements and skill mix solutions. Payment by results is intended to drastically change the arrangements by which providers receive their funding. In turn, this is expected to create variety of provision and therefore increased choice for patients. There will be a prospective tariff for most NHS activity. The tariff will be built on clinically meaningful groups of treatments and activities. The cost for the service will be based on NHS average prices, as reported by NHS organizations. The same process will apply to across the whole English NHS. These are the basic elements which comprise the provisionary guidelines of NHS in relation to the payment by results scheme. Moreover, there are possible implications for the workforce upon implementing the payment by results scheme. Some headstrong responses would cover cutting the budgets, attract more patients, reduce the length of stay, pass the parcel of high cost patients, ‘cherry picking’ low cost patients, and rationalize the services offered. Meanwhile, the positive responses can be on the reduction of labor cost, create a richer skill mix and work smarter.
Payment by results designed to amplify the amount of work done by hospitals, especially in areas with long waiting times, such as hip operations. It also opened up the way for money to begin to follow patient choice. In addition, under payment by results, hospitals are now moving away from locally negotiated block contacts. These allowed for considerable variations in prices for operations across the country, in line with their actual costs to hospitals. Furthermore, hospitals were often paid even when they under-performed, failing to carry out number of operations required of them.
Applying the scheme in the case of NHS in the UK, PBR means a hospital will be paid the fixed price for every treatment it undertakes. If the treatment costs more and around half of the UK’s hospitals are expected to fall into this high-cost category, the hospital will have to find ways of bringing those costs down. It can either cut costs or try to do more operations to generate extra money. The assumption underlying this new system approach is that hospitals will want to make a surplus on top of their existing legal obligation.
Let us analyze in this context the benefits of PBR, if the implementation of such scheme is successful, the NHS will become more competent and productive, undertaking more operations and treatments. It also helps make more transparency about the work that hospitals do. In contrast, PBR rewards quantity not quality. Hospitals can make money if they will employ cost-cutting strategy, or increase the amount of work they do. But cutting costs might be at the expense of better quality equipment or staff numbers and quality of care can suffer when hospitals are given incentives of this kind. Another is that hospitals can start to con on coding system such that NHS tariff pays two prices for different kinds of heart attack treatment. The risk is that hospitals will rig the code in order to make more money.
It is not easy to set tariffs for all health care activities. Procedures that have a clear treatment and roughly predictable length of stay such as hip replacements are relatively easy to cost, but it is much harder to set a fixed rate for treatments with fewer agreed definitions or end points. In wider perspective, it remains unclear what might happen to health service provision as a whole if hospitals find they are losing money. They might choose to move money across from profit-making areas, or cut costs in the loss-making area, with potential risks to quality. They might give up offering some types of surgery or treatment altogether. All market systems imply winners and losers, but it may well prove highly controversial if some local services start to disappear.
Participation schemes will always enhance performance whatever their costs’. There have been a wide variety of innovations that have been designed to encourage greater employee participation and thereby better performance. These differ markedly in terms of their characteristics, focus and objectives. These are typically combined to make the analysis manageable, though there is no consistency in the methods used to group individual practices. There are at least three groups of employee participation scheme in the works of McNabb and Whitefield (2003), the problem-solving groups which task is to solve specific problems or discuss aspects of performance or quality and which involve more than 60 per cent of non-managerial employees, briefing groups however, is the system of briefings for any section or sections of the workforce, the meetings of which give over 25 per cent or more of their time to questions from employees or for employees to offer their views and representative participation refers to committees of managers and employees primarily concerned with consultation rather than negotiation.
Hence, when participation scheme appeals to so great between individual workers the same great level will occur in their performance. Participation in many aspects of the management structures and activities enhance not only the level of performance of workers or individuals to generate maximum profit but also contributes to the development of each person’s growth.
The given business cases relative to the importance of individual appraisal is vital not only to the objectives and goals set by any organizations but to the personal development and growth of individuals. Individual appraisal does not only covers the necessity of identifying the weaknesses and strengths it incurred during his/her stay in the organization but serves as a mirror where we can see the organization’s own standing and examine what’s need to be improve and strengthen.
The cases contribute much to analyze the human side and needs of each individuals. We cannot deny the fact that individuals are motivated to do everything he can in order to satisfy his needs. The schemes which the business cases offered provide us not just a glimpse of the human side of individuals but of its nature. Both performance schemes provided varied benefits as well as detriments. However, let us look at the side in which it contributes to our growth.
Moreover, in whatever means man is motivated to work and perform a task that is a byproduct of stimulating and attracting stimuli, can only be traced to man’s inherent drives or motivations to survive.
The ‘stress epidemic’ in UK’s organizations can be based in varied factors. At least on this account we can identify general yet powerful drives in which stressfully made UK’s organizations undergo depression.
The hard times in UK’s organizations are not only brought about by the fact that there is lack of human capabilities and expertise but the fact that even other powerful and developed regions encountered the same epidemic.
We can account these ‘stress’ on the rapid changes occurred brought about by globalization and technological trends. The drastic and dramatic shift of the world preoccupations which significantly caught various societies’ sectors off-guard was the rapid innovations and trends primarily caused by recent discoveries and developments in science and technology. Moreover, due to this reality, different entities need to adopt effectively with this trends. Along with the current situation and rapid changes is man’s capability to transform drastically into which we call now technological man, meaning, man who are no longer attached to the very foundation of ancient beliefs but to the technology that makes him satisfy his pleasures and id.
Conclusion
Given the presentation of the two elemental schemes in performance, we are led to realize that man is not a passive being rather an active and transforming. His consciousness continues to strive for the best he can be, being motivated to further embrace the challenges and struggles. Only when man is motivated and given proper needs and benefits can be able to pursue and significantly give everything that he possesses.
The schemes allow us to understand how different organizations invoke and apply complex strategies in performance and how it goes to implement these schemes despite of the great risks it will embrace. However, significant with this activity to boost and motivate the performance level of every individual in the workplace is the fact that it fittingly provides each individual its due.
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