Compensation for accomplishing objectives. When workers contribute

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Compensation and Benefits

TB may use numerous pay-for-performance approaches to stimulate
their workers. Pay-for-performance approach means that staffs are compensated
for accomplishing current objectives of the firm. In a system of a merit-based
pay worker is compensated for performance throughout a certain time period, it
means that pay increase is based on performance. A lot of companies propose
premiums to personnel for accomplishing objectives. When workers contribute to
decision-making process their managers consider them to be an important participants
of the company. With such a positive outlook towards both the management and
the organization as a whole, the employee would be more willing to take on
extra roles, responsibilities (Bateman and Organ, 1983; Miles et al., 2002;
Smith et al., 1983). A reward system that directly recognizes good citizenship
makes it clear to employees that the organization truly values such behavior
(Levering and Moskowitz, 2003; Meet Asda’s Happy Family Pack, 2002).

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In line with the systems view
of HR (Lado & Wilson, 1994), firm performance serves as a final outcome of
an effective HR system. Employee retention is a good indicator of firm
performance. Supervisors and businesses owners should do constant effort to build
and raise an environment which inspires existing workers to stay employed, by
launching right practices and policies to address employee’s needs. Collins and
Porras (1994) explained that the first key to success for any organizations is
people. Organizations need to have the right people and, thus, it is important
to retain employees and knowing how an employee can remain in a particular

Consequently, HRM practices
affect employee retention. A career planning system is crucial for personnel to
accomplish their specific professional goals. With this in mind, Greenhaus and
Callahan (1994) developed a number of career development strategies. They
believed that employees needed to go above and beyond the specified
requirements of their tasks to realize their career goals. Employees often view
training as organizational support. Such views are positively related with a
tendency to help co-workers (Shore and Wayne, 1993). This means that employees
who reflect positively on the benefits of training exhibit stronger feelings of
citizenship to the organization that provided it. Independence and the ability
to influence outcomes within the scope of their roles encourage employees to go
beyond their job requirements (Watt and Schaffer, 2003). This is further
supported by Cushman (2000). 


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