Performance Management
Tutorial 1. Organization can reward employees in several ways, which is whether it can be tangible or intangible. Tangible reward that employee can received is includes cash compensation and benefits such as:
* Base pay: * It is given to employee in exchange for work performed. Base pay includes a range of value, focuses on the position and duties performed rather than an individual’s contribution
* Cost-of-Living Adjustment and Contingent Pay * Cost of living implies the same percentage increase for all employees regardless of their individual performance. It is given to combat the effect of inflation in an attempt to preserve the employee buying power. * Contingent pay, sometime referred to as merit pay, is given as an addition to the base pay based on past performance.
* Short term incentives * Similar to contingent pay, short term incentives are located based on past performance. However, incentives are not added to the base pay and are only temporary pay adjustment based on the review period.
* Long term incentives * Attempt to influence future performance over a longer period. Typically, it involves stock ownership or option to buy stocks at a preestablished and profitable price. * Work life focus * Benefits related to work life focus include programs that help employees achieve better balance between work and nonworking activities includes time away from work such as vacation time.
* Organization should use each reward when the employee is entitled to get the reward based on employee good performance or seniority.
2. There are several characteristic of an ideal performance management systems which are:
* Strategic congruence * The system should be congruent with the unit and organization strategy. Organization can achieve this characteristic where the individual goal must be aligned with unit and organizational goals * Thoroughness * The system should
* Base pay: * It is given to employee in exchange for work performed. Base pay includes a range of value, focuses on the position and duties performed rather than an individual’s contribution
* Cost-of-Living Adjustment and Contingent Pay * Cost of living implies the same percentage increase for all employees regardless of their individual performance. It is given to combat the effect of inflation in an attempt to preserve the employee buying power. * Contingent pay, sometime referred to as merit pay, is given as an addition to the base pay based on past performance.
* Short term incentives * Similar to contingent pay, short term incentives are located based on past performance. However, incentives are not added to the base pay and are only temporary pay adjustment based on the review period.
* Long term incentives * Attempt to influence future performance over a longer period. Typically, it involves stock ownership or option to buy stocks at a preestablished and profitable price. * Work life focus * Benefits related to work life focus include programs that help employees achieve better balance between work and nonworking activities includes time away from work such as vacation time.
* Organization should use each reward when the employee is entitled to get the reward based on employee good performance or seniority.
2. There are several characteristic of an ideal performance management systems which are:
* Strategic congruence * The system should be congruent with the unit and organization strategy. Organization can achieve this characteristic where the individual goal must be aligned with unit and organizational goals * Thoroughness * The system should