1. Tomax Corporation has 400 employees and wishes to develop a compensation policy to correspond to its dynamic business strategy. The company wishes to employ a high-quality workforce capable of responding to a competitive business environment. Suggest different compensation objectives to match Tomax’s business goals. The pay for performance standard is the first place a company should start. This would be a reflection of if you perform, then you are rewarded. This type of standard raises productivity and lowers labor costs due to only paying top dollar for the people driving and contributing to the organization. Included within this compensation strategy, the company should institute a market-competitive compensation program as well. Most …show more content…
The job ranking system is the easiest system and focuses on a jobs value to the business. It can be valuable to a small organization of no more than 14 job assessments. This process is accomplished by one person who is well-informed on all of the positions in the corporation or can be completed by a committee. The downside to this type of system is it is not a very accurate job rating system and does not truly reveal the differences in the degree of importance between the jobs. The next job evaluation system is the Job Classification System and this is done through categorizing and grouping jobs according to prearranged salary levels. The positives would be the straightforwardness and ease of the system, but the downfalls would be inaccurate ratings of the jobs being …show more content…
Once the system has been put into place, it is rather easy to use. The main advantage of the point system is that it is a more precise way to evaluate a job. It is a more comprehensive job evaluation system in that it includes the talents, energies, duties and working environments from one job to the next. Financial responsibility, leadership, collaboration and other key indicators are included as well. The fourth type of system is the Work Evaluation system and this system measures a job’s value through its importance to the business and the goals set forth. By using this type of system, an energetic business can truly see how a job contributes and relevance in attaining the company goals or objectives. The disadvantage to this type of evaluation is that certain jobs that are important and needed are overlooked due to the main focus on its worth to helping the company achieve its
Mujtaba, B. G., & Shuaib, S. (2010). An Equitable Total Rewards Approach to Pay for Performance Management. Journal of Management Policy and Practice vol. II (4), 111-121.
The focus of this paper is to researching different types of incentive plans offered by companies as a means to retain the best and brightest employees. Additionally, this author will research and discuss two of the incentive plans previously mentioned. Moreover, this author will emphasize the possible advantages and disadvantages of each of those incentive plans.
The above examples of pay show that the more skills, experience employees are with the organization the more they are compensated. Organizations would benefit by utilizing the same practice’s Disney extends to their workforces. For those businesses whose primary purpose of their plan is to only meet compliance requirements could greatly benefit by developing a comprehensive benefit plan. This could help increase their return on investment. The value I believe a business may gain from Disney’s compensation plan is to appeal to competent workers, to maintain those workers, and to motivate workers to direct their energies towards achieving the goals of the organization. Companies can set up policies to conduct a market study on a regular basis to implement a real performance appraisal system and then work on retaining good employees and elimination of poor performing workers. By following Disney’s lead of in obtaining those who best fit their company’s culture and supporting the company’s Mission. To guarantee that the pay structure is externally competitive, a pay survey should be shown. The results of a survey to be valid, the market pay data must be from the relevant labor market for each benchmark job. I would advise that a survey of regional and global pay data should be collected from the company, because for example, most of the office support, HR and operations jobs will be filled by local applicants. A job analysis is the procedure of reviewing jobs in an alike business. The result of this process is a job description “that includes the job title, a summary of the job tasks, a list of the essential tasks and responsibilities, and a description of the work context “(Burke, 2008). A job description consists of the knowledge, skills and aptitudes necessary to do the job. A job evaluation is the process of adjudicating the comparative value of job within a company
The four categories do have different requirements per job. The knowledge, skills, abilities and other characteristics have to be considered in each position. Keeping this in mind, we have decided to use different grades per job family. It is important to have each grade clearly defined so that the route of the career path is easily understood by all members of the organization. The steps to promotion should also be clearly defined. If employees understand how they can improve and move up in the company then that will lead to an increase in employee productivity and motivation.
Benefits are a key component in the total compensation plan for any company. Critically thinking and analytically processing must dominant the discussion when selecting which benefits to offer as part of a benefit plan. This is necessary to ensure that the right benefits will not only connect to the employees preferences but also protect the company’s financial health. These goals can be accomplished by, 1). Determining what benefits are important to the various employees groups by conducting surveys, analyze and interpret the data logically and implement changes accordingly. 2). Research the current business market and industry standards to ensure the organization benefits are competitive and positioned to attract top performers. 3) Determine the current financial health and impact on the organization to ensure the benefits program is both financially cost effective and targeting the desired results. These items will allow the company to foster an effective compensation program while establish a long-term collaborative working relationship between management, employees and the organization.
In April 2010, KK BB, the CEO of Marshall & Gordon, a leading public relations firm met with the firm’s leadership committee off-site in Miami. This off-site brought together Marshall & Gordon’s executive committee, practice and regional heads, and senior HR officers to discuss on redesigning the firm’s compensation system. A global advisory taskforce, under the direction of an external consulting firm, had spent three months collecting and analyzing data. Marshall & Gordon hired external specialists to design the new performance management program. The specialists proposed that the senior managers and human resource form a global advisory unit together with Marshall & Gordon partner to represent the firm’s five regions of the firm and lead the design process. The advisory unit surveyed all consultants in February in order to understand their way of thinking about the fairness, worth, and effect of the current performance management system. Majority of the interviewees responded to the corporate surveys implying that the subject was topic was especially exciting to them. Interviews gave insights on present and prospective business plans and direction. The survey also showed that specific focus across certain employee populations should be given. Six current hires from key competitors were also interviewed to comprehend competitor pay practices and compensation program structures. Further focus groups discussions and key information interviews enabled the taskforce’s to understand the needs of certain groups within Marshall & Gordon’s worker population. The survey culminated with the taskforce conducting interviews of 20 partners and principals togeth...
Our Session Long Project (SLP) for Module 1 transforms the evaluation essay into a job evaluation. The type of job evaluation used in this SLP identifies the responsibilities of the job and bases the individual’s performance on these responsibilities. What does this mean to the employee; it means that if they understand the responsibilities of their job they are better able to perform it to the satisfaction of the evaluator. However employees who are not informed of their responsibilities can invalidate your evaluation process very quickly and wreck havoc in any organization.
A job analysis a great way to analyzed whether or not the individual is fit for the position. By creating a questionnaire that relates to the daily tasks for the position will narrow done the selection process into a smaller portion. The information given from the Job Analysis is also used to create a Job Description and Job Specification. “Job description identifies the tasks, duties, and responsibilities. The “job specification list the KSAOCs that individuals need to posses to perform a job successfully”(Pynes, 2013). After an individual is hired we must train that individual with the proper format in order for them to understand the concept of work. In this process I will develop a training program that includes all the organizations policies, procedures and daily tasks.
Job analysis helps determined selection criterion that is both legal and practical for the selection process. This process also aids in identifying and detailing competencies needed to perform the job as well as any gaps that exist between those competencies and incumbent performance, this is crucial information for training and development. The identifying of concrete standards and cataloging evaluation criteria is another use for job analysis, this can potentially aid with employee appraisals. Lastly, job analysis is critical in making reasonable accommodations for those individuals who are disabled and in the redesigning jobs
Individual evaluation method such as checklist and weighted check list is one of the methods that used to evaluate the employees individually by the supervisor. It is a simplest form, a set of objectives or descriptive statement that frequently used to evaluate the employees’ behaviour. Weighted checklist is variation of the checklist which used to evaluate the effective and ineffective employees’ behaviour on jobs. The rating score of the checklist will helps the supervisor to evaluate the performance of the employee and rated the employees from the excellent to the poor follow the ranking. However, this method is similar to critical incident technique which is costly and time consuming.
Pay for performance structure is critical to business overall performance. It is one of the effective ways that a firm can motivate its employees to improve their effort and remain loyal to the firm. As noted earlier, the pay for performance influences the labor supply and demand curve to create a competitive labor market. Two exemplary companies in Singapore that have managed to attract employees and retain high performance are SAP and ChapmanCG. The SAP, an IT and software firm, for instance, implements the SAP Success Factor compensation, a program meant to align compensation with the firm’s goals in order to retail qualified and talented employees (SAP 2016). This compensations program
Merit pay is a vehicle for employers recognizing individual performance and motivating employees to reach higher achievement. Competition is a natural human instinct and healthy competition compels employees to perform at their highest level. Employees must have clear, attainable goals and supervisors must provide continuous feedback, publicly praising employees to motivate performance. Additionally, employers that recognize and reward individuals for their exceptional performance in tangible ways, ultimately increase employee’s self-esteem and encourage them to maintain a high level of commitment to the organization. Employees are more apt to stay with a company when they feel that their hard work is appreciated and compensated. When employees are highly driven, it decreases absenteeism, tardiness, and results in a positive work attitude. In fact, employers use merit pay not only to retain highly motivated performance individuals, but also to attract new employees who are motivated by monetary rewards cultivating a productive workforce. Personally, I think merit pay plans are a great incentive if they are implemented fairly, equitable, and based on individual performance. Furthermore, I feel nothing demoralizes a high performing employee faster than knowing that all employees who contribute less to performance will receive the exact pay increase. If merit pay programs are instituted, they must ensure that
Reward systems have been evolving and growing throughout the years, but there are many types that have always been there. Base pay is the most common, which is an employee’s base wages and salary that they are paid on hourly, weekly, monthly, or annually (Luthans, 2011, p.94). Merit based pay is another type of incentive, which rewards and motivates an individual to perform their jobs to the standards of their employers. According to the text Organizational Behaviors, by Fred Luthans, there are three other options for paying an employee for their performance: individual incentives pay plans, using of bonuses, and the use of stock options. Individual based pay plans are based on the employees output and/or quality. Some organizations use bonuses as incentives to their employees. These are offered sometimes as op...
Formalized compensation goals serve as guidelines for managers to ensure that wage and benefit policies achieve their intended pur¬pose. The more common goals of compensation policy include to reward employees’ past performance, to remain competitive in the labor market, to maintain salary equity among employees, to motivate employees’ future performance, to maintain the budget, to attract new employees, and to reduce unnecessary turnover. It is important for the organ...
According to Chaneta (2014), job evaluation is the process of analyzing and assessing the relative worth of various jobs in an organization for the purpose of comparison and pay grading, and based on qualifications and skills required for a range of jobs. In other words, it forms the basis for pay and benefits negotiation. It helps to compensate employees accurately based on their job grades or values, and hence avoid issues of inequity and indifference at the workplace. To ensure effective job evaluation process, market-driven and job worth systems are largely used. While market-driven system is determined by the existing pay grade or structure in the opened market based on workforce demand and availability for particular positions, job-worth system depends on the value of the job or position to the organization. Both systems can be influenced by the external labor market and there become difficult for managers to apply as they would be torn between fulfilling internal and external demands. Another significant resemblance between market-driven and job worth systems is that they both require the same qualifications and other characteristics from the job performer as the basis for occupying a specific position. For instance, before HR practitioners decide on which system to use to determine Quality Specialist 's pay, they must make sure the potential worker has the job requirements and competencies to execute the job. One of the criteria for rewarding an employee is his or her ability to complete tasks in a proficient, productive, and effective way (Kaifi, Khanfar, Nafei, & Kaifi,