Mgt501 2nd GDB solution spring 2012

Solution:

After analyzing the above given scenario, it is noted that the employees of Pak IT left job even they were get high salaries as compare to market salaries on hiring. It leads to the assumption that the employees’ were not satisfied with their jobs because high salaries are not enough to retain employees. People demand more than salaries which increase motivation in people. After the study of Pak IT case I suggest some type of incentive system that will help to increase commitment and retention of employees in this company. These are following:

1. Skill-based pay (pay-for-knowledge): Pay is based on work-related skills, not seniority or job performance.
2. Creates incentives for employees to complete training, learn new skills, & become qualified to do additional jobs.
3. Project Completion Rewards: Higher-level employees need recognition, but it should be tailored to the type of work they perform.
4. Incentives for group accomplishments should be given as a group to strengthen teamwork.
5. Profit sharing: some of the company’s profits are shared with the employees. This incentive will match the employee’s goals with company’s goals
6. Merit pay: the employee’s annual pay increase is based on the employee’s job performance in the previous year

If Pak IT imposes these incentives system in its company it will increase the commitment and retention of employees in the company.