Human Resource Management in Business Context

Performance appraisal is a method which is increasingly used to evaluate employees to determine the degree to which they are performing effectively and encourage them to direct their energies towards organizational performance. Although the appraisal is being practiced, there are criticisms made against the system which generally arise from within the Orthodox and radical management frame work.

carefully planned out and considered, the total closure or failure of the organization could be at hand in the near future. In our modern age, employers know that salary is not the only factor that should be considered and that salary alone will not lead to better or more highly profitable workers alone. This is why compensation planning is important and why pay should have some connection between performance and compensation. This is why the human resources department should consider many monetary and non-monetary factors when considering how to properly compensate and motivate employees (Dessler, 2013).

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

The performance appraisals process is flawed in many ways. Lack of preparation, time, training, and professionalism are a few examples of how the system is flawed. The individual completing the application often has many tasks that supersedes taking the appropriate time necessary to accurately keep notations of an employee's performance throughout the year. The lack of time leads to an employee receiving a performance review on the most recent accounts of his or her job performance instead of his or her performance throughout the entire year. Lack of professionalism can also hurt the appraisal process. An employee should be rated by his or her job duties instead of the personal opinion or feelings the manager or supervisor completing the form. All

Pay and Rewards – pay and rewards attract, motivate and retain staff. The employment contract which lists rewards, whether it be pay, bonus or benefits, can remove animosity amongst employees and employers. However, recent research reveals that employees are no longer motivated by a financial reward alone, but

Pay for performance systems have further been proven to have two advantages for organizations: attracting more high-quality employees and motivating employees to exert more effort at their jobs. (Gordon, Kaswin) This paper will show the positive benefits of performance pay as

Ferracone, R. A., & Borneman, J. P. (2001). Putting pay for performance back into incentive programs. Compensation & Benefits Management, 17(4), 29.

“Performance appraisal is the process through which employee performance is assessed, feedback is provided to the employee, and corrective action plans are designed.” (Youssef, 2012). Performance appraisals can be very effective, by doing them carefully it will improve employee performance. Consistency with the evaluations is an important part of the process. During the evaluation express positive and negative accomplishments from the employee by using examples. Use goals, job related data that support ratings and focus on outcomes the employee can control and work towards. List specific areas the employee can improve on. Also it is important to compliment and show your appreciation to the employee.

P&G Canada needs to align rewards with performance within employee’s control. The more employees see a link between their performance and reward, the more they are motivated to improve their performances. They may link bonus reward for the executives with the overall performance of the company, whereas sales and marketing front line

Rewarding employees with bonuses for a job well done is one of the more popular ways of streamlining the payroll budget. As an employer you tie several stipulations to the employees’ job duties for them to obtain in order to receive the bonus. Bonus structures are no longer as popular as they were during the boom years, however, some employers still employ the idea and the performance of their employees proves that it still works. Although bonus plans have begun to disappear, the increased performance of individual employees through the rewarding of set goals has allowed bonus structures to withstand the test of time in the workplace. A structured bonus plan is a great way of rewarding those employees that are producers without killing a company’s budget. Implementing a sound bonus plan is a great way to encourage performance as long as the employee’s goals are attainable. Be careful however because a simple bonus plan to motivate employee’s performance can also be demotivating due to employee’s inability to attain the set goal. Implementing a ratio significantly outside of what is normal for the industry

A Key Performance Index (KPI) also called Key Performance Indicator which is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPI at multiple levels to evaluate their success at reaching targets. Hence, performance appraisal involves determining and communicating to an employee how he or she is performing the job and, ideally, establishing a plan of improvement. Performance appraisal of workers that apply KPI has its own advantage and disadvantage.

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).

“Performance appraisals can enhance employee performance as well as advance the mission and goals of an organization. There are many advantages of performance appraisals if they are applied fairly, consistently and objectively. Performance appraisals not applied fairly can be counterproductive and even destructive to

To work in the Human Resource management field you must maintain and improve the company by planning, implementing, and evaluating employee relations and human resource policies, programs, and practices. It is a challenging and yet rewarding field to work in. However, just like every business field, people who work in the human resource department face many challenges when it comes to discrimination.

A performance bonus is a remittence beyond normal wages rewarded following a performance appraisal and analysis of projects fulfilled by the individual or a group of employees over a certain period of time. Bonus programs are effectuated in businesses to encourage employees to focus on tasks by rewarding employees for fulfilling a myriad of key businesses and human resource objectives. Accordingly, this essay examines options available for distributing the bonus including group and individual bonuses whilst critically appraising both the benefits and ill effects of individual and group performance bonuses. This essay will suggest that group bonuses are the most effective for the organisation. First, both individual and group bonuses