Fringe Benefit-A Motivational Tool for Employee Performance
Category : Motivational Tool for Employee Performance
Fringe Benefit-A Motivational Tool for Employee Performance
In order to achieve the new objectives of the work organizations, changes and reformulations must take place; thus, resulting to the transition of both human resource management and industrial relations. Primarily, these changes can be attributed to the emergence of globalization. Industrial relations practices for instance, had changed so as to increased collective bargaining at the enterprise point, flexibility in relation to areas of employment as well as with regards to working time and job functions. The change in industrial relations had been encouraged due to the increasing global competition, rapid development in products and systems as well as the emphasis on the importance of quality, productivity and skills of the employees (Kuster, 1994).
In the same way that these factors had caused an impact to industrial relations, human resource management policies and practices were also affected. Employees have to be involved so as to overcome the changes and increasing competition. Organizations should then ensure that their laborers are equipped with the necessary skills for the creation and development of goods and the provision of services that the global market will accept. Human resource management now manages the workforce in a way that will motivate the employees to be more productive. In order to induce productivity and quality among the employees, human resource management incorporates work motivation through training and rewarding their employees. The realization of the goals and needs of both management and employees and the significance of fringe benefits had become the top priorities and important activities of the human resource management.
Statement of the Problem
As Burack, et al (1994) pointed out, human resource management had transformed itself as more emphasis is stressed on commitment and control. Quality, competence and flexibility among the employees had efficiently replaced quantity of task accomplished and dumb obedience. The payment that each and every individual receive in return for the work they perform is commonly the major source of their financial condition. That is why pay or more commonly known as compensation plays a significant role in the economic and social well-being of a person. Employees see that compensation is a return in exchange between their employer and themselves, as an entitlement for being an employee of the company or even as a reward for a job that was done well (Sims, 2002).
In the case of various business organizations, it had been able to focus on its human resource. The company focus on the demands and needs of their employees and it can be seen in the overall performance of the employees. The company had been able to offer the employees different packages that focus not only on compensation but also to fringe benefits such as money, services as well as other in-kind payments. The said aspect, and can be explained by focusing on the different motivational theories, primarily the theory of hierarchical needs, where in financial safety is considered as one of the most important motivator of an individual. As we all know, motivation is the one that pushes an individual to perform at his or best, thus in the case of the employees of the company, it had helped them to work hard, therefore, it helped them to become productive. The said situation created a domino effect, meaning if each and every employee is productive, it will reflect on the overall performance of the company in terms of sales and services towards the customers.
Generally, the purpose of this study is to conduct a study on the fringe benefits of business and identify the perception of the employees. This study tries to answer the following queries:
1. What are the employees’ perceptions regarding the fringe benefits in their respective companies?
2. What are the variables that significantly affect the perception of the employees regarding fringe benefits?
3. What are the advantages and disadvantages of employing a fringe benefits program in businesses?
4. Is there any significant difference between the perception of the respondents regarding fringe benefits and company development?
Scope and Limitations
The study intends to investigate the level of effectiveness of the employee fringe benefits programs in most businesses. For this study, primary research and secondary research will be used. Primary research will be conducted using anonymous questionnaires that will be sent to selected employees of certain businesses. The questionnaires will be used to collect quantitative data and the interviews will be used to provide qualitative insights into the data collected.
The data will be analysed and compiled for the correlation of the hypothesis. The data will then be presented by means of graphical representations and illustration and the difference would be highlighted. A negative correlation between the variables would suggest that the hypothesis is null, that is, the level of effectiveness of training programs significantly affects the general efficiency of the organisation.
Research requires an organised data gathering in order to pinpoint the research philosophies and theories that will be included in the research, the methodology of the research and the instruments of data interpretation. In this study, the Research Process “Onion” will be utilised so that the findings of the study can be thoroughly established. The inner part of the onion describes the methodology portion whereas the outer part discusses the strategies that can be utilised in interpreting the results of the findings.
The descriptive research method uses observation and surveys. In this method, it is possible that the study would be cheap and quick. It could also suggest unanticipated hypotheses. Nonetheless, it would be very hard to rule out alternative explanations and especially infer causations. Thus, this study will use the descriptive approach. This descriptive type of research will utilise observations in the study.
Burack, E, Burack, M, Miller, D & Morgan, K 1994, "New Paradigm Approaches in Strategic Human Resource Management," Groups & Organizational Management, vol. 19, no. 2, pp. 141-160.
Kuster, T 1994, "The Challenge of Partnerships between Union and Management", New Steel, vol. l0, no. l, pp. 16-21.
Sims, RR 2002, Organizational Success through Effective Human Resources Management, Quorum Books, Westport, CT.