Good Example Of Essay On Market Competitiveness

Type of paper: Essay

Topic: Organization, Employee, Workplace, Competition, Market, System, Quality, Performance

Pages: 2

Words: 550

Published: 2020/12/27

Abstract

This paper introduces a detailed model of market competitiveness in relation to an organization’s pay system. Considerable emphasis will be put in situation where the organization is not able to offer its employees market competitive salaries due to lack of finances. The paper will propose alternative approaches that can be used by organizations, which have limited financial resources. In addition, the paper will discuss about the steps that could be taken to minimize the impact of implementing these alternative approaches in determining the success of the success of the firm. To end with, there will be a justification of why the steps followed are the most appropriate in this situation.
Over the last decade, compensation surveys have vastly grown. Organizations are using every method available to ensure its credibility is earned to ensure that they have a competitive advantage. On the other hand, labor markets have become progressively vibrant leaving companies with no choice than to establish a market based pay system. Market-based system has replaced all other traditional methods of job evaluation system in organization due to its efficiency as well as reliability (Trends Issues, 2005).
Every organization strives to ensure that its compensation program is effective to attract skilled employees for improved performance. A well designed pay system allows the Human resource department to reward skill development as well as rewarding performance while controlling salary cost. Nevertheless, the organization may end up making more loses or in severe cases; the organization may even shut down in a situation where an organization is not able to offer its employees market salaries due to lack of finances.
In today’s competitive environment, competitors are enticing quality employees from rival organizations that are not paying well by offering them considerable compensation. If they succeed to entice more quality than employees do, the competitors are assured of quality production in their organization and at the same time, they cripple the performance of its rival competitor (Porter & Rivkin, 2012).
Some approaches may negatively influence an organization performance in the long –run if some considerations are not evaluated well despite restoring an organizations competitive advantage. Therefore, there are various steps for the organizations to follow to reduce the impact of using these approaches. These steps includes; determining whether the approach is compatible with the organization’s main objectives, determining whether the approach will enable the organization to retain quality employees and most importantly ensuring that the approach is simple to administer and to explain. These steps reduce considerable risks that are associated in the implementation of some of these approaches in an organization.
The first thing an organization may be required to do if it decide for instance, to pursue on productivity is to determine the compatibility of the approach with the overall strategic plan. If the approach is fitting to its strategic plan, the organization is required to determine whether the approach will help the organization to retain its quality employees. Additionally, the approach should also prove to be safe to administer and implement. Fundamentally, if the approach satisfies the entire step, then an organization may endorse the approach (Porter & Rivkin, 2012).
In conclusion, every organization should strive to ensure that its competitive advantage is secure in spite of the available financial resources. Compensation systems should not hinder an organization from achieving its ultimate goals.

References

Porter, M., & Rivkin, J. (2012). What business should do to restore competitiveness
Retrieved March 21, 2015, from http://fortune.com/2012/10/15/what-business-
should-do-to-restore-competitiveness/
Trends Issues. ( 2005). Effective Market-Based Pay Systems. New York: Retrieved March 21, 2015 from http://www.3ccomp.com/pdf/MarketBasedPaySystemsQ42005.pdf

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WePapers. (2020, December, 27) Good Example Of Essay On Market Competitiveness. Retrieved April 13, 2024, from https://www.wepapers.com/samples/good-example-of-essay-on-market-competitiveness/
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"Good Example Of Essay On Market Competitiveness." WePapers, Dec 27, 2020. Accessed April 13, 2024. https://www.wepapers.com/samples/good-example-of-essay-on-market-competitiveness/
WePapers. 2020. "Good Example Of Essay On Market Competitiveness." Free Essay Examples - WePapers.com. Retrieved April 13, 2024. (https://www.wepapers.com/samples/good-example-of-essay-on-market-competitiveness/).
"Good Example Of Essay On Market Competitiveness," Free Essay Examples - WePapers.com, 27-Dec-2020. [Online]. Available: https://www.wepapers.com/samples/good-example-of-essay-on-market-competitiveness/. [Accessed: 13-Apr-2024].
Good Example Of Essay On Market Competitiveness. Free Essay Examples - WePapers.com. https://www.wepapers.com/samples/good-example-of-essay-on-market-competitiveness/. Published Dec 27, 2020. Accessed April 13, 2024.
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