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Date: November 26, 2011 Utley Food Markets Pay-for-Performance System Changing to a pay-for-performance pay system always has several implications. The most important of these are discussed in the succeeding paragraphs. The first implication is determining what to reward. Management must first align overall strategy with projected business outcomes, and decide what type of performance will be measured, analyzed and considered in a pay for performance program. Key factors such as support from the management, establishing a valid and fair measuring system, along with a credible evaluation system and projecting effectiveness of the program in the long term are all needed in order for the plan to function…show more content…
324). The second change is incorporating more than one performance related variable. Utley used one single question to determine performance. Utley needs to utilize several rating approaches to ensure accurate and reliable determinations. For example, by using summary ratings, a corporation can rate performance on a scale of 1 through 5 which covers several areas of skill, task, and efficiency. Summary labels measure current performance based on past performance; which can lead to effective future expectations and forecasts. And multirater assessments allow for a fair and accurate balance. Multirater assessments incorporate an active relationship with more than one assessor. For example, assessments are gathered not only by management, but also, co-workers, customers, and the employee themselves. This type of assessment can result in a valuable and motivational tool toward long term progress. In addition, results should be disclosed to the employee, and rebuttals or modifications should be encouraged and accepted. I think the employee has a right to know how the evaluation is measured, scored, and who were the participants involved. The evaluation should mention past performance versus present performance, and what expectations the employer needs for the long term. The WorldatWork handbook for Compensation, Benefits & Total Rewards suggests using objective performance feedback

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