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Human Resource Management Essay

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Below is an essay on "Human Resource Management" from Anti Essays, your source for research papers, essays, and term paper examples.

1. Explain why some businesses are pay "leaders", while others are pay "laggards", with regard to employee base pay. What considerations go into decisions regarding pay philosophy? Explain, with reference to current events involving the workplace.
The main reason why majority of people look for employment is to get a paycheck to settle their bills. The pay practices of a firm determines its success or failure since this is what determines the kind of employees the firm will attract. Everyone wants to feel that the pay they are getting is fair depending on their level of education, skills and experience and when this is not the case, the employee will leave a firm in search of greener pastures and even if the employee does not quit, he or she will not achieve full productivity. The pay rates set by a firm should be appropriate. They should not be too low as to cause a firm turnover and recruitment problems and they should not be too high to cause a firm budgetary problems (Kleiman, 2010). Though most of the firms do pay at the market rate, there are those who pay above the market rate and these are called the market leaders. On the other hand there are those who pay below the market rate and these are called the market laggards. There are several reasons why firms are either market laggards or market leaders and these are related to the pay philosophy of a firm to some extent.
Each firm has the factors it considers when designing its pay policy. Market leaders pay above the market rates because their budget allows them to do so (Kleiman, 2010). They are usually the well performing firms in the market and thus can afford to pay well without experiencing budgetary problems which may force them to raise their prices. Another reason why such firms pay their employees above the market rate is that they desire to attract the best employees in the market as they know that this translates into higher productivity (Kleiman, 2010). In addition, by paying above the market...

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