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All modern day organizations are mainly motivated by market pressures focusing on their goals by providing improved quality and productivity greater flexibility continuous innovation and the aptitude to respond hastily to market needs and demands to achieve a competitive position Effective HRM is fundamental for these goals Improved quality and productivity associated to motivation can be realized through training employee involvement and extrinsic and intrinsic rewards Interest in pay systems regarding performance and skills mirrors one characteristic of increasing importance of HRM in realizing management goals and a steady shift from collectivism to the individualization of pay Given such pay systems as a critical desirability gives the prospect of accomplishing these goals without increasing labour costs at the same time increasing profits The key point to realizing management goals and managing transformations involves employee involvement commitment and training employee participation cooperation and team-work - all important HRM initiatives and activities Thus it would be a oversight to only invest in skill development even though employees are the organizations key to success According to the statement given it mainly takes employees interest into account seemingly organizations are prepared to invest a great amount of money on people development The model that this statement reflects mainly is the best practice model which encourages employee involvement as employees are seen as a key component in this statement which emphasis on enhancing employee abilities or knowledge and skills through good recruitment and strong training motivating desired behaviour by providing strong incentives and opening up opportunities for better trained and more motivated workers to contribute their ideas through work redesign and indirect forms of employee participation Given the constrict connection between economic survival and productivity in the last decade increase productivity has become a strategic goal for many firms Currently many organizations find that hiring qualified individuals can be advantageous where the organization would not need to squander much on staff development In the short run it can be
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