Essay Topic: Drawing From Current Literature, Discuss The Relationship Between Pay And Performance Motivation.

The effectiveness of an organization leans on a lot of forces. One really important force is the work team. The work team is the people who work for the production. So, we can easily understand that to achieve an organization their goals have to collect the right workers (persons who have the right knowledge and skills) for a specific work position and to train them correctly, seeing that the organization use the right systems of organizing. But there is another important force that the businesses must not forget: it’s the person’s disposition to attribute. We talk about “I can and I want”.

A basic part of managerial executive is to make their collaborators to be in mood to want to attribute. The need of incitement for the workers flow from the incident that the work sometimes may be boring, without interest.

The central meaning of the word incitement is the motivation.

Motivation is an internal power that becomes from the needs.

B. Berelson and G. Steiner appoint the meaning of motivation as an “internal state which activate and direct the behavior to objectives.”

The above definition make us understand that motivations it’s a decisive element.

There is important to understand that motivations have an immediate relevance with the human behavior and it is much more complex than many people believe. But throughout the motivations we can not explain the human behavior. The humanity has been characterized from a huge number of motivation- needs that specify not only from humans nature, but also from the environment where they live and develop. The point is how hard people strive to understand their work tasks, together with the factors that can have an effect on their hard work.

In this report we are going to analyze how pay can be a motivation in a work context and the relationship between pay and performance motivation.

The payment for a business has a decisive role. First of all helps the organization to attract the competent candidates, and after that, to keep them in the business. Secondly, the payment it’s a very strong force because has a great influence at workers attribution. Payment considers every kind of reward to the worker with exchange his tries to achieve the organization goals.

Payment consists of:

1. The immediate economical eve: it’s about the salaries, wages, and the bonuses.

2. The indirect economical eve: it’s about the profits like the payments for vacations, permissions and life safeties.

Every kind of business to have the control of the labor cost, need to use a clear payment system. All the organizations regardless of the payment system that use strive to some specific objects:

• Have competitive wages and salaries, to attract the most suitable candidates.

• To control the labor costs.

• To pay good attribution stages.

• To observe the legislative layouts.

• To decrease the rates of retirements.

The policy of salaries or wages and the payment system for every business decide the higher administration. But responsible for that policy (that must be fair, competitive, and prompt the workers) is the human resource management.

When a person decides to work the reason why is not only economical but also for their social and psychological needs. But can a person cover his social, physical, psychological needs with his salary? Is the payment equal to his work?

The workers estimate their salary as a metre of their good attribution. So we can say that the payment for them it’s a goal, that they try to achieve, and they are waiting from their managers to recognize their work. However the payment classifies the person to the society. It’s a criterion for person’s value. As much as a person deserve, so much it’s his payment. By telling “a person deserve” we mean his accomplishments: knowledge, experience, skills.

All the businesses and usually the private sector, in their try to actuate and reward their workers for a specific result attainment, they provide them motivations and bonuses. However, these two words (motivations- bonuses) used alternate, but there is a difference between these terms: motivations are a predetermined payment for an aim achievement so long as bonuses recompense the success.

The motivations, most of the time, is economical. For example the workers receive some money for the achievement results. But sometimes motivations may not be economical but also a diploma or vacations that have already pay the business, promotion or praise.

An attractive idea in terms of motivation is the performance related pay. Performance related pay can defined as a system where an individual’s appraisal for a goal achievement, has an increase to his/ her salary. This system usually works to motivate managers and executives. But, an organization has a lot of reasons to introduce the performance related system, such as: to encourage positive behaviors, to grow weaker trade union power, to help in recruitment and retention, to make possible change in organizational culture.

A Motivation system has a lot of advantages. Some of the basic advantages are the following:

• A motivation system may call into action the workers,

• Attract willing and able persons,

• Make more competitive the payment system,

• Create an immediate and clear relationship between pay and performance,

• Encourage the business mentality and behaviour between the executive and the employees.

But on the other side of the