Workkks

Personal report

The first thing to mention in relation to pay-for-performance would be to understand how low level employees are rewarded and promoted to higher levels. Promotions are used as an extrinsic motivation and result from an employee's "high" performance . Promotions usually encourage and boost the employee to consider working even harder than before because of a higher pay and because his job imposes more challenges then. In the case of the employees working at NATO , they receive a base pay plus a variable monetary amount calculated by the performance of each individual agents.

Concerning the Army , the reward system drives individual motivation. Therefore, just like in most organizations, pay, promotion, and rewards are part of the basics of extrinsic motivation. These three aspects of motivation can be used as proxies in order to reward/promote a specific behaviour.

Lazear and Ghibbs describes 2 different kinds of promotions. Tournament, where only a fixed number of employees who have the best performance gets promoted. On the other hand, the firms promotes any employee whose performance meets some threshold . This last one is called an absolute standard. (Lazear & Ghibbs, 2009) . If we now compare this concept with our organization ,we can argue that NATO can not base their promotion on some fixed threshold like the standard promotion rule . The essence of NATO is to achieve a highly diversified work force and reward the best employees . In addition , they should have an efficient selection criteria in order to promote the proper employees in order to keep this diversified culture and skills in the different hierarchical level. The requirements concerning the quota of nationalities of their employees is quite present in an organizations such as NATO and thus , their should definitely not follow the standard rule.

Furthermore, it is not efficient for NATO to have two CEO or CFO . With regard to that , lower level employees should assume their...