Firms want to begin emphasizing on outcomes, high quality of labor and reward staff primarily based on efficiency quite than time spent.Time-based efficiency is mistaken as a result of;
Not all staff require the identical time to finish a task-This technique assumes that every one staff want similar time to finish a process. That is usually very mistaken and it results in detrimental vitality on the a part of excessive performing staff. Some staff have nice abilities and velocity in comparison with others thus allocating equal time and equal reward system is mistaken.It results in redundancy- Time-based system of rewarding staff creates an impression that one solely must do the minimal he can and even when one can do three or 4 duties in that given time, she or he won’t trouble to do extra.
It results in excessive prices and inefficiency- Since staff are usually not working at their finest but the corporate nonetheless pays them salaries, this will increase inefficiency and prices to the corporate. The corporate is paying for each performers and non-performers whereas it might probably cut back this if it makes use of performance-based reward system and solely reward the workers who ship.Misuse of Time-based work- Staff will discover different methods of using the additional time left after finishing a process. Others will use it for private points, others going for extended lunch, others will faux illness throughout necessary work days to keep away from troublesome duties thus exploiting different staff. Excessive performers will benefit from the system as low performers benefit from excessive performers.It outcomes to low productivity- This technique lowers the productiveness and high quality of excessive performing people. When a person can full two or three duties in the identical timeframe he is required to complete one process, and he is restricted to solely full that one process, then his productiveness stage could be very a lot lowered and this may occasionally result in a low esteemed worker.Totally different staff carry out higher throughout totally different times- Some staff carry out higher within the morning whereas others carry out higher after lunch. It is upon the supervisor to know what time every particular person performs higher and schedule duties accordingly.
The checklist is huge and I can go on and on, however these are simply of the explanation s why time-based means of rewarding staff is mistaken and it’s excessive time corporations begin recognizing the significance of performance-based reward system in that they do not must reward staff who fail to ship. They need to enlighten staff on what work might be rewarded, set up an elaborate means of score to assist managers differentiate between totally different ranges of efficiency and derive distinguished methods of rewarding those that carry out higher, averagely and dismally.