Over the years, the health care has been searching for a better pay system suited for the system. This pursuit of the ‘perfect’ pay system is meant to improve the employee productivity and at the same time minimize the cost of production of any org especially the output.
The founding principles of a pay system are simple and enduring and the systems have been based upon time or upon performance.
The ‘entitlement mentality’ adopted by the health care workers involves them demanding a better paying system that looks out for their best interest which considers their workload, environment and tremendous input in the time factor.
‘Entitlement mentality’ is the demand of a pay system by the workers, employees , that takes into a consideration, the market worth/value of the job, supply and demand of the professionals, amount of work input (time), work environment, educational input etc. this notion has an impact on the productivity of workers i.e.
If they feel they are not getting better payments compared to what they deserve, the workers i.e. if they feel they are not getting better payments compared to what they deserve, the workers tend to do a sloppy job, hence the production quantity and quality decreases.
PERFOMANCE RELATED PAY (PRP)
This is a pay system that over the years have particular related for directed and senior managers. This is usually seen as a way to motivate them (workers) to achieve targets incorporated into strategic plans. In the recent years, most public sector organizations have adopted it. The notion of PRP embraces a wide range of pay stem.
These vary according to the unit of performance – whether it is the individual or the collective and the nature of the performance measure whether they are in the form of particular inputs or outputs. There are two dimensions in the basis of the main types of performance pay system;
· The individual – output system that tend to link pay to relatively tangible and quantifiable measures of employee performance e- in the case of piece work, the unit production or time saved, and with commission, the sales achieved.
· Individual – input schemes, bases the pay upon behavior traits such as flexibility, cooperation or punctuality. Skill based pay is related here where the rewarded for coming to their posts with certain physical and mental capacities of capabilities.