Compensation for accomplishing objectives. When workers contribute

Compensation and BenefitsTB may use numerous pay-for-performance approaches to stimulatetheir workers. Pay-for-performance approach means that staffs are compensatedfor accomplishing current objectives of the firm.

In a system of a merit-basedpay worker is compensated for performance throughout a certain time period, itmeans that pay increase is based on performance. A lot of companies proposepremiums to personnel for accomplishing objectives. When workers contribute todecision-making process their managers consider them to be an important participantsof the company.

With such a positive outlook towards both the management andthe organization as a whole, the employee would be more willing to take onextra roles, responsibilities (Bateman and Organ, 1983; Miles et al., 2002;Smith et al., 1983). A reward system that directly recognizes good citizenshipmakes it clear to employees that the organization truly values such behavior(Levering and Moskowitz, 2003; Meet Asda’s Happy Family Pack, 2002).RetentionIn line with the systems viewof HR (Lado & Wilson, 1994), firm performance serves as a final outcome ofan effective HR system. Employee retention is a good indicator of firmperformance. Supervisors and businesses owners should do constant effort to buildand raise an environment which inspires existing workers to stay employed, bylaunching right practices and policies to address employee’s needs. Collins andPorras (1994) explained that the first key to success for any organizations ispeople.

Organizations need to have the right people and, thus, it is importantto retain employees and knowing how an employee can remain in a particularorganization.Consequently, HRM practicesaffect employee retention. A career planning system is crucial for personnel toaccomplish their specific professional goals. With this in mind, Greenhaus andCallahan (1994) developed a number of career development strategies.

Theybelieved that employees needed to go above and beyond the specifiedrequirements of their tasks to realize their career goals. Employees often viewtraining as organizational support. Such views are positively related with atendency to help co-workers (Shore and Wayne, 1993). This means that employeeswho reflect positively on the benefits of training exhibit stronger feelings ofcitizenship to the organization that provided it.

Independence and the abilityto influence outcomes within the scope of their roles encourage employees to gobeyond their job requirements (Watt and Schaffer, 2003). This is furthersupported by Cushman (2000).