Topic > HR Case Study - 719

The performance of an organization's employees, measured in terms of sales, employee turnover, absenteeism, employee motivation and productivity, to name just a few, can have a neutral effect, positive or negative on organizational performance. High performance work systems still aim to increase an organization's performance through certain human resource management practices. A practice may include high and rewarding employee compensation (Mariappanadar & Kramar, 2009). Compensation systems such as pay for performance or incentive pay help in managing employee performance as this practice leads to “motivating employees to develop the knowledge, skills and abilities (KSAs) and/or competencies they feel they have that they need to achieve their goals." performance objectives” (Mackay, 2008). The motivation of an organization's employees is critical to an organization's performance as it is intended to provide increases in overall job satisfaction (Wood, et al., 2013) which in turn can reduce turnover leading to a decrease in costs per an organization and to increases in organizational performance due to increases in the productivity of its workers. Furthermore, the need for human resource management involvement and its relevance for businesses is further highlighted