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Pay and Reward System and its Related Issues

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  • Word Limit: 3200 words
  • Type : Essay
In the human resource practice pay and rewards system and its structuring is the most important practice for the human resource manager. The function of structuring pay and reward system becomes more complex when this function is managed on international human resource management (IHRM) practices. IHRM has vast scope as the human resource managers while dealing with human resource practices at international level they have to consider several interests of the employees in the global market and have to provide justified pays and rewards to all the global employees on a fair level. Mainly the corporate and human resource management strategies drive the payment and reward structures in the international business organizations (Poole and Jenkins 2007).

The pay system in the present day time is quite different from the older payment systems where only payment was given on the basis of the working hours (Sims and Schraeder 2006). In relation to this the following paper is mainly aimed to explore the issues of structuring of payment and rewards system in the organizations. The analysis of this issue is done with the inclusion of the orthodox economic theories of pay and rewards. For such purpose some specific theories are taken under consideration to evaluate whether the pay and rewards systems according to these orthodox theories are appropriate or not. The paper is further putting light on the influence of different social factors on the rewards structure in the global market place. There are several social factors that influence this rewards system, among which the main factors as performance related pay, expatriate work and discrimination. For the evaluation purpose in this papery the social factor of performance based pay is selected to analyze in what way reward system is structured under the influence of the social factor of performance based pay.

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