Strategic Human Resource Management. Performance-Related Pay Systems Essay

Strategic Human Resource Management. Performance-Related Pay Systems - Essay Example The paper tells that within a modern business environment, employers must balance the needs of the business with the requirements of the employees. Human Resource Management (HRM) is an important aspect of this, where employers organise and develop strategies for working with their employees. Many employees work inefficiently, as they have no desire to perform well for the company. This comes from the fact that what is good for the company is not necessarily the same as what is best for the employee. Businesses are generally aiming to make the highest profit possible, while employees are working for the money that they need to live. Performance-related pay is a system in which the company attempts to align the interests of the employees with the interests of the business, by providing employees with incentives to work hard. The exact form of the system differs substantially between different companies, with some offering commission-based pay, some paying employees a certain rate per unit produced and others paying based on team performance. There are many other variations of performance-based pay and it is a popular means of increasing overall output for a business. Performance-related pay is common in Britain and has been used for government employees as well as many large companies. However, despite the popularity of the system, current research is questioning whether performance-related pay is actually effective. Evidence suggests that this may be a mechanism that is useful in some circumstances, and counterproductive in others. The need for performance-related pay In the standard work environment, people work because they need the money, not because they have a strong loyalty for the company. While some individuals may strive to put in effort to make sure that they perform well and that they are an asset to the company, most are content with doing the minimum that is required of them. Because the success of the company does not directly affect their pay che ck, most people have no interest in how well the business does. Research suggests that compensation is the most effective driver of motivation, behaviour and attitude within the workplaces. While forms of compensation vary, money has been shown to be the most influential . Consequently, the money that employers pay their staff members plays a crucial role in maintaining relationships and the development of motivation. Pay is an essential component of the relationship between employer and employee. For the employer, it is an important component of the costs of the company and is used for bringing in new talent as well as maintaining the current labour force. For the employee, pay is used as a way of paying for living expenses, and also represents how valued he is by the employer. A person who receives a higher wage feels that what they do is important, and may put in more effort as a result. In contrast, people who feel that they are being underpaid often do not work hard, and tend t o have low morale which further decreases productivity. The traditional method of wage distribution has been non-performance-related, and pay increases have been related to a range of aspects, such as minimum wages, seniority, the cost of living or the need to retain staff. However, this system does not encourage skill development or employees to work at their maximum potential. Additionally, under this system pay rises were often associated with promotions. This can be difficult, as a person must be promoted in order to receive a pay rise and the number of positions present in a company is limited. Increasing an individual’s pay acts to reinforce positive behaviour, making it more likely that the behaviour will be repeated. Within a company, there are often many individuals that perform the same role, however they differ in terms of knowledge, experience and performance . For a business to remain competitive, it is important that their employees work to their maximum pot

JUDICIAL ACTIVISM BY EUROPEAN COURT OF JUSTICE Essay

JUDICIAL ACTIVISM BY EUROPEAN COURT OF JUSTICE - Essay Example In case of ambiguities in the text of the Treaties, ECJ has to employ its creative talents so as to accomplish an acceptable elucidation and application of Community law. ECJ has filled in the gaps and removed the imprecision in the provinces of Community law thereby removing the barrier of restricted jurisdiction and is able to develop its authority and role. The main aim of this research essay will be analysing in detail the activist strategy of the ECJ which appears to have initiated some courageous and bold efforts to establish a constitutional cornerstone for the EU2. â€Å"What is Judicial Activism?† Judicial activism connotes to the keenness of the courts to establish public policy if a State, and its political institutions is reluctant to do the same or may not in a position to execute the same. In real parlance, it can be called as the shifting of judicial decision making privileges from the administrative and legislative process to the courts. It is a well known fact that judicial activism at ECJ refers the political consequences of the policy preferences employed by the Court in its elucidation or interpretation role. Judicial activism may compel a court to function as legislators, or it can be referred as ‘judicialisation of politics3’. There is a need for judicial activism in EU as the language of the Treaty is not supportive and so the Courts require to establish some cannons so as to fill in a â€Å"procedural hole.† Language and Interpretation of EU Law It is to be observed that EC law cannot be comprehended without recognising its multilingual personality into account. While applying or interpreting Community laws, the peril of swerving meanings between various versions and the equal legitimacy of all language versions of community provisions. As there are about 23 working and authentic languages employed in the EU institutions, there is enormous strain on the EU’s translating services. Further, it is to be obs erved that daily application and interpretation of Community regulations actually occurs in various and different tribunals and courts of the Member States. ECJ employed teleological approach in cases where intellectual property is involved even when its relevance contravenes the precise and explicit factual meaning of clearly expressed words as it held in the case Davidoff & Cie SA v Gofkid Ltd4. General Activism As early as in 1963, in Van Gend en Loos5 case, it was held by ECJ that cannons of the Treaty could have a direct impact. Thus, the direct effect offers an individual citizen right to sue national government in their own national courts for not willing to implement the treaty6. In this case, the Court viewed that the Treaty is not an agreement and it more than that which establishes mutual responsibilities between the Contracting States, besides, the Community establishes a new legal setup of international law for the advantage of which the States have restricted their aut onomous authority, despite within the restricted grounds. In the above case, ECJ created the doctrine of direct effect thereby restricting national courts from proclaiming the illogicalness of Community law. In Foto-Frost7 case, ECJ viewed that national courts do not have authority to invalidate the community law even though it is having such authority. In Costa v ENEL8, it was held by ECJ that EC law has primacy over the national laws. In this case, ECJ supremacy doctrine was established ,which connote that State transfers of legal authority were irrevocable and imposes a long -lasting restriction on sovereign