Improving Competitiveness Essay Example

and previous successful solutions may indicate an individual's ability to solve a problem, each problem requires a fresh approach. Therefore, compensation based on competency considers characteristics such as knowledge, skills, experiences, personality traits, and abilities to determine performance. As a human resource management tool, rewards should support corporate strategy, motivate staff, promote retention and knowledge sharing. Failure to provide adequate rewards may impact employee commitment to IT Plus Solutions Ltd and their colleagues. Appropriate reward structures can facilitate team efforts and assist in creating collaborative groups.

Combining competency management with rewards can be challenging, and several factors should be taken into account, as suggested by Dockel (2003), Costigan (2000), and Bloom (2000). These factors include identifying the competencies that individuals possess and how they align with business objectives; determining whether the skills required are past, present, or future-oriented and how they can be developed; considering how skill development and acquisition can be linked to pay progression; encouraging employees to expand their skillset horizontally or vertically and balancing this with personal goals and organizational objectives; deciding which stakeholders should evaluate employee competencies, such as managers, peers, or consultants, as well as taking into account previous work experience, life experiences, and educational background.

The level of formality in the evaluation process is significant. Informal methods are more suitable as having experienced candidates take written exams or tests for a job is unlikely to yield useful information, especially for those who have been out of academia for an extended period. Successful innovators, creators, and problem solvers often rely on developed processes for problem-solving and creativity. Additionally, their experiences provide the fundamental basis for their superior creativity. For instance, most professors

would likely fail intermediate mathematics exams if they were part of the selection process for a creative industry (Cohen, 1986 Chapters 1-9). Therefore, managing knowledge workers in IT Plus Solutions Ltd. presents different challenges than managing those in production or routine operations, mainly when it comes to motivation.

The knowledge worker must experience creative freedom and happiness within the organization's overall goals. Proper compensation is crucial, as it is essential to identify those with unique skill sets and experiences that can deliver results. Once identified, these select individuals need to be motivated by incentives, freedom, empowerment, recognition, ongoing education, and a collaborative team approach in order to produce outstanding results in an increasingly competitive market. References / Bibliography: Bernadine, HJ and Russell, JEA. (1998). Strategies for Improving Competitiveness: Quality, Productivity and Quality of Work Life.

The book "Human Resource Management: an Experiential Approach" by Matt Bloom and George T., 2nd Edition published by Irwin McGraw Hill, covers pages 334-365.

According to Milkovich (2000) of Cornell University, international compensation can be examined from a SHRM perspective.