Question 1: Do pay grades limit a company’s ability to achieve competitive advantage? Support your position.
According to me, pay grades have the potential to limit the company’s ability to achieve a competitive advantage. This is because pay grades establishes the amount of salary that each employee in a particular position should be awarded. While pay grades are a way of motivating more qualified employees or those with a longer-term serving experience, they do not necessarily translate to the level of achievement or performance of an employee in the company. Constant factors in the working environment such as the amount of time spend on duty and the complexity of responsibilities would better at determine the pay scale rather than the parameters that are commonly used in most companies. The outcome is usually reduced motivation among most employees with a lower pay scale. Most of the employees with a lower pay grade carry out the company’s primary responsibilities. Their loss of motivation and morale directly translates to the reduced productivity which consequently affects the company’s competitive advantage in a negative way.
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Question 2: Do merit pay grids have the potential to undermine employee motivation? Support your position.
Merit pay grids do not have the potential to undermine employee motivation. This system of reward and remuneration ensures that higher-performing employees are given additional pay or incentives on top of their salary. Use of merit pay grids motivates employees that are underperforming to work harder in order to get a better pay. According to Armstrong & Taylor (2014), extrinsic motivation is directly impactful on the company’s performance. Use of merit pay grids increases extrinsic motivation of employees.
Question 3: Using an e-Activity, determine how a person-focused pay program could benefit your current (or future) place of employment. Provide specific examples to support your response.
Generally, a person-focused pay program can improve my future place as an employee in the banking sector. This is because banking sector uses emerging technology and encourages innovation and invention of new ideas based on the customer feedback as well as employee’s own level of initiative (Kumar, 2017). Working in a bank involves continuous pursuit of ways to improve the customer service as well as generate profit on the behalf of the bank. Since it involves use of modern technology which is subject to rapid development, I would work hard on finding out more about new ways of banking using customer feedback and my own pursuit of technology. If paid higher based on my performance, I would still work to perform even better, which translates to the benefit of the bank.
References
Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management practice . Kogan Page Publishers.
Kumar, N. (2017). Use of Information Technology in Banking Transactions Using Electronic Payment Systems. Journal of Bank Management & Financial Strategies , 1 (2), 33-42.
