Discuss Lawlers theories of New Pay Essay Example | Topics and Well Written Essays - 750 words

Discuss Lawlers theories of New Pay - Essay ExampleThe problem with current construction of pay is that it brings insecurity among employees regarding their pay and benefits. With current pay ashes linked to job grades rather than employees performance, It makes it hard for employees to make extra effort for organizations performance. (Heery, 1996)The late pay theories have convey popular in the last decade as academics have been criticizing the old pay corpses due to legion(predicate) reasons. It is often argued that the old pay placement is not directly related to organization performance and employees quality they are not being acknowledged for their contribution in organizations performance. (Heneman, 2000) Schuster and Zinghiem criticized the old system and represented the approach of new pay. Their argument was that by linking the pay and rewards to organization scheme and performance lead bring benefits. The new pay system will be strategic, business aligned, and per formance driven.(Schuster and Zingheim, 1996) The reasons for emphasising this pay system are quite clear the pay system needs to be aligned with organization strategy and needs rather than a standard bureaucratic system that has been followed for decades. Schuster and Zinghiem extensive research is the force bum the idea of making pay a positive tool for achieving excellence in organizations.Although the new possible action is well received and appreciated in academia, it is far from implementation in the industry. New pay system is likely to bring discrimination among the employees as people will be paid rather than the job. other issue could be legal responsibilities that an organization has for its employees. (Sturman and Short, 2006)Case Study An extensive research into the banking sector regarding new pay system brought out some issues. The research was carried within Finbank reward strategy for managers. The idea hind end the research was to align the rewards system with the