Discuss the paradoxes and tensions of pay systems and the problems Thesis

Discuss the paradoxes and tensions of pay systems and the problems these create for the management of the employment relationship - Thesis Example pectations relevant to financial remuneration from employee perspective shall be determined from his qualification, previous work experience, and role in the organization, performance and potential assessment by the employer, work load and cost of living (inflation). The employer share a different perspective while accounting for the salary package for the organization, the bench marking is conducted against the local industries, the profits of the company are monitored, the investment plans are verified and lastly the performance and need of the employee. The perspective shared by employer and employee are therefore distinct, and such distinction has in many cases failed to develop appropriate settlement between the parties on this issue (Mahler, 1986). As per Adams Equity Theory, the inputs and putputs of the employee shall maintain equilibrium. The performance of the employee is closely monitored by the employer on the scale of profit-return, productivity, and maintenance and functional cost-cutting. Therefore in many organizations the pay systems are exclusively designed to offer financial rewards to the individuals who have contributed to the organization, instead of offering such deals to all the employees (David, 2000). There are systems where pay system is employee-centric, irrespective of contribution and performance of an individual, however such system has been nightmare for the employers due to the resignations of the high-performance employees, and consider it as unfair system. The employees have simple desire to be based fairly for their performance and achievements, and their salary shall necessarily take into account the cost of living. The employers share similar approach; however its execution is primarily profit margin driven followed by cost-cutting for the launch for new investment plans. This practice is widely common among the employers of South Asia inclusive of China, India, Malaysia and Thailand (Hamel, 2000). The pay system offered by