The Effect of Effort and Result-Oriented Contracts on Human Resource Productivity: An Important Component of Sustainable Development Study of Dairy Farm in Iran

Abstract

Human resource productivity is one of the essential components of the sustainable development of human resources. Human resource efficiency means the optimal use of people's capabilities, skills, knowledge, and experiences in society or organization. The sustainable development of human resources can be aided by raising productivity levels. The management of human resources systems and performance evaluation techniques may need help in evaluating the performance of employees under the influence of its complexities, which can cause inaccurate evaluation results. As a result, the organization will need help achieving the predetermined goals with proper productivity. Therefore, The present study examines the effect of effort and result-oriented contracts on the productivity of human resources in a 20,000-head state cattle farm in Iran. A comparative approach was used to investigate the effect of effort-based and result-based payments on human resource productivity. It analyzed ten projects in a set, where five were used for effort-based contracts and five similar projects used for results-based contracts. The findings of the study show that result-based contracts have a substantial impact on the productivity of labor in terms of effectiveness and efficiency. The study likewise discussed the implications of its results.