All for One

Their program is created to drive performance through a mixture of near-term finances, working goals and long-term focus on their stock price performance. The reliability in how the company achieves their compensation program and their objectives under that program has proven to be a significant influence. Their viewpoint remains to accentuate fairness within compensation as the most important element of the NEOs’ total program that supports our pay-for-performance purposes. (EXECUTIVE AND DIRECTOR COMPENSATION, 2016)

From a total rewards perspective, the reorganization allowed the company to develop ways to improve the satisfaction of its employees. Linking pay to performance and other compensation incentives was an asset when recruiting talented technology professionals to come in and build

The new system was solving a problem where a bulk employees were getting high rating when their department was failing to achieve production goals and time-to-market

3. Total Rewards Strategy – This structure is very complex, yet comes with a lot of flexibility to allow for growth and internal satisfaction. The pitfalls with this structure come with the implementation, which could be treacherous and difficult to convey to our employees.

Benchmarking jobs was a critical step in developing grades and ranges. Some of the job descriptions in the survey data did not clearly relate to the jobs in FastCat, which caused us to avoid those particular survey jobs. Due to these discrepancies among the job descriptions, we decided to evaluate the descriptions that most clearly matched the FastCat jobs. For example, in the Business and Marketing pay structure, the Administrative Aide requires very basic qualifications, such as a high school diploma and competencies in basic skills, such as word processing and simple administrative tasks. We felt that this most closely identified with the Office Support 1 position because its description involved simple word processing tasks as well

How an employee performs throughout the year is rewarded each year they remain at FastCat. This reflects the company objective to implement a point system based on level of education, skills and experience, performance, accountability and customer interaction, which will attract and retain qualified and talented individuals to represent our company. The following table displays the recommended merit increase for each year. Though all employees are included in the merit plan, they do not receive the same pay. This plan encourages employees to continue to strive for excellence by attaining higher levels of education and increasing their skills. If workers fail to meet any requirements in a year, they can see where they need improvement in order to increase their base pay. Those that far

The company’s compensation programs are result oriented market focused and flexible. Pay for Performance is one of the key compensation program, which includes various pay, benefits and special programs offered by the company.

Instead of an incentive payout, a recognition program was created. This program will recognize team members on a monthly, quarterly and yearly basis. This program will also bring back the holistic view of individual team members that was a possible loss considered in the functionalism chart, when implementing reviews based on quality control. The monthly recognition will be based on leader nomination with categories that such as; most improved,

As stated by Peter F. Drucker, “Management is about human beings. Its task is to make people capable of joint performance, to make their strengths effective and their weaknesses irrelevant.” Performance management is essential to achieving an organization 's mission statement and business goals, and also in attracting, retaining, and motivating qualified employees. There are many benefits and reasons why an organization should execute a performance management system. Performance appraisals establish the basis for qualifying, recognizing, and rewarding employee contributions. In this paper, I will discuss what performance management is, the problems with the current performance management system at my organization, how other organizations have succeeded in their performance management system and how I would advise management at my current organization to improve our performance management system.

1) Evaluate the design and the implementation of the performance bonus program at DPC. What changes would you suggest, if any?

Recognizing and rewarding high-performance is a key recommendation for any approach when managing any merit pay program (HRIS 2012). Merit pay is a compensation system where base pay increases and is determined by an individual’s performance. Using a merit pay plan is a good way for an organization to reward high performance is one benefit when using merit pay programs. The first step in implementing or improving a merit pay program is to have a solid performance management program, and this is another way a merit pay program is beneficial. Merit pay is a way to be successful and effectively implement merit pay with a uplift in salaries, and this is a third way using a merit pay program is beneficial to an organization. There are some drawbacks when using merit pay programs, such as paying some employees more than others. If you pay high-performing workers more than low- performing employees, the high- performers may stay, causing the low- performers to complain or leave the organization. A second drawback in using merit pay program is that employees become less motivated if not paid to their satisfaction. For example, if employees feel they should be making more money for their performance, this causes them to have low self esteem, and want to find employment at other organization. The last drawback associated with

360 degree feedback system as a performance evaluation tool as long as the understanding of its intent is understood. “There are three key steps in the successful implementation of 360 degree feedback systems in an organization. The three steps are that it must fit the organizations culture, make it psychometrically sound, and used with care” (“Best Practices”, 2012). It is also important to train the feedback providers to be sensitive, respectful and polite. Treating employees in a friendly and respectful manner and offering constructive advice will make them more open to accepting the performance

Some managers rotated the highest ranking between their employees from one year to the next. So the objective of developing new evaluation system was unfulfilled.

Although research generally confirms that pay-for-performance plans can influence greater outcomes, it is unclear how effective different pay plans are relative to each other (Park, 2012). Like most things in business, compensation is something that requires evaluation, study, assessment, strategy, modeling and integration.  Achieving a pay for performance culture does not happen without paying attention to the behaviors, activities, rewards and motivations that have to be linked and reinforced through a well engineered and successfully executed process.  Actually if that process does not tie rewards to shareholder financial objectives, employ the proper mix of compensation elements, result in meaningful dollars, embrace performance that employees can impact and are effectively communicated and reinforced, then the results it produces will likely fall short (Vision Link Advisory Group, 2013).

Today, competition between the businesses is extremely high thus companies need to find ways to be competitive. Organizations prepare the best market strategy to increase the company performance and the ways to keep their employee motivation on the highest level to perform well within the competition. At that time, several incentive pay programs play an important role for every organization to perform well within the competition.