Human Resource Management And Its Impact On The...

Human resource management consists of planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organisational and social objectives are accomplished. Human resources are a critical, if not the source of, competitive advantage for the business, rather than, say access to capital or use of technology. Thus attention needs to be paid, at a strategic level, to the nature of this resource and its management, as this has impact on the performance of the organisation, however defined. Batt and Banerjee (2012) found that, in an analysis of strategic HR research articles in British and American journals, the link between†¦show more content†¦According to Taylor ´s research, people do not naturally enjoy work and worked purely for money. Paying is one of the, if not the most important part in a business. Business tends to exist if it’s making profit, an d employees would only work when they get paid. Therefore, different types of paying system have been developed. Piece-rate-pay is applied to industrial production very often; such as mass production factories where limited knowledge or skill are required for workers to repeat the same work and operate machineries. But in the 21 century, businesses are diversified for which new paying system is required. Skill-based pay is a compensation system that rewards employees with additional wages in exchange for formal certification of the employee’s mastery of skills, knowledge, and competencies. In skill-based pay systems, employees receive additional pay after their demonstrations of relevant skills, knowledge, and competencies that the system rewards. Thus, skill-based pay is considered as a person-based system, because it is based on the abilities of the person. Employees who possess special skills related to their job fields are benefit from such paying system. This long-term strategy can be applied to businesses that have more direct contacts with customers worldwide. For example, for those who are capable of speaking multi foreign languages are more likely to be paid extra in