History, Relevance in Todays Market Essay Example | Topics and Well Written Essays - 750 words

History, Relevance in Todays Market - Essay Example In this regard the most famous and widely used method is of Performance Related Pay (Brown & Armstrong, 1999). In order to better understand the concept of Performance Related Pay, it will be beneficial to first comprehend the meaning of the performance. Performance means the output or end result given by any party or person. In the reference to the performance of the employees, it is perceived to be the fulfilment of the task or job responsibility which is measured on the basis of standards set for different factors like accuracy, time, cost etc. PERFORMANCE RELATED PAY: Performance Related Pay (PRP) is the method used by the organisations in order to directly relate the pay or reward with the performance of the employees. It is strongly believed that the increased or additional pay increase the motivation level of the employees and they strive to give high performance. In this method several bonuses and pay levels are directly linked with the appraisal or assessment of the performa nce of the employees in comparison to the objectives and standards. ... It can be further divided into straight piecework and differential piecework. 2. Merit pay: it is further divided into fixed incremental scales, merit bars, percentage increases, merit bonuses, and cafeteria benefits. 3. Profit Sharing: profits sharing or sharing incentives plans are provided to very limited and loyal employees of the organisation in order to retain them and motivate them to give high performance. In this system the employees are awarded with some shares of the organisation in response to their outstanding performance and output. 4. Commission: in this system the employees are provided with a certain percentage of commission in relation with the amount of work done or sales made. Usually commission is used to increase the motivation level and performance of the sales team. RELEVANCE OF PERFORMANCE RELATED PAY IN TODAYS MARKET: It is important for the organisations to include and consider the prevalent economic condition in the process of designing the pay system or s cheme. Most of the analysts are of the view that the concept of the Performance Related Pay is no more effective and relevant for the organisations in view of the recent economic downturn and crisis. On the other hand, according to another school of thought organisations have become more concerned about the overall cost and setup of the pay structure and compensation. In order to justify the cost of the pay and compensation structure, organisations are striving to linking this cost with the benefits derived. As a result, these organisations are widely using the method of Performance Related Pay (Brown & Armstrong, 1999). Apart from the economic crisis, increasing globalisation and free trade across the economies of the world have

Enterprise resource planning Research Paper Example | Topics and Well Written Essays - 1500 words

Enterprise resource planning - Research Paper Example By definition, Extended ERP components is the entire set of collaborating companies, both up-stream and down-stream, from raw materials to end-use consumption, that work together to bring value to the market- place. The advantages of extended enterprise derive from a firm’s ability to quickly utilize the entire network of suppliers, vendors, buyers, and customers. The flows of information that lie at the core of the coordination and collaboration among network members not only link disparate information sources, they also provide an opportunity to build knowledge based tools. Companies engage in long term partnering relationships built around mutual goals and accompanied by very rich and deep exchange of information. Members view that their element of joint action, value chain partners as still retaining some aspects of self serving behavior. Business intelligence (BI) is an information technology concept, representing current state of the historical development of information technologies. This development started in the mid 1960s with the first versions of management information systems (MIS).Therefore BI is more than the fashion and needs to be defined, categorized and explained and analyzed. Of course, information systems are an important variable determining the design of organizations and demand in some cases organizational restructuring processes. Thus BI has direct impact on the organizational structure without giving any direct recommendations and prescriptions as to what the organization is supposed to end up like. CRM uses information technology to create a cross-functional enterprise system that integrates and automates many of the customer-serving processes such as sales, marketing, and services that interact with a company’s customers. CRM systems also create an IT framework of Web-enabled software and databases that integrates these processes with the rest of a company’s business operations. CRM systems include a family of software