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Strategic Human Resources Management

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Aside from establishing a stronger working relationship between each employee and the employer, focusing on one’ s own performance will minimize the possibility that the organization will have to face a collective bargaining coming from the influence of a trade union. (Leopold, Harris, & Watson, 2005: Ch. ) Basically, each type of individual pay-performance approach has its significant and/or non-significant impact over employees’ work performance in terms of motivation, commitment, cultural change, quality, teamwork, competence or skill, and flexibility. (University of Sunderland, n.In relation to globalization and tighter competition in the market, employees that are capable of performing multi-tasking has become very important today.

When it comes to challenges related to the need to make the organization more flexible, increase employees’ competence in terms of their acquired skills, and improve the quality performance of each employee; human resource managers who work in a company should adopt the competence / skill-related pay in order to reward employees who have the knowledge and a special technical expertise needed in performing a more competitive job performance. Since IT-based companies are subject to a fast-paced changing technology, the success of the company is normally based on the competent skills its employees have acquired.

For this reason, employees should constantly upgrade their knowledge on the latest improvements in the world of information technology. For example, an IT-based company should award employees based on their competence and skills in IT soft- and hardware. In line with this matter, employees who have less knowledge on IT skills should be awarded less to enable them to become more determined and willing to improve their existing IT skills by enrolling themselves in a university or colleges that offer higher degree courses related to IT subjects.

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