Mike Duke's Pay Essay

Performance management system makes a clear link between the performance and compensation, and allows the employees to understand the areas which need to be improved and directs them to appropriate training opportunities to enable improvement in performance to take place. Joseph Martocchio says, “Work with line managers to design the performance appraisal plan which best fits the specific duties and responsibilities of particular roles” (Martocchio, 2011). Compensation and reward decisions are likely to be arbitrary in the absence of a good performance management system. In short, performance management is a key component of talent management in organizations. It allows assessing the current talent and making predictions

Defined as “a process by which managers and employees work together to plan, monitor, and review an employee’s work objectives and overall contribution to the organization,” performance management represents an integral aspect of human capital management that has evolved dramatically over the last few decades (HR Resource Center). From the 1970s where annual evaluation was the standard, to results-based evaluations measured by outcome-oriented goals, present day performance management focuses on continuous communication, coaching, and feedback between a supervisor and an employee to accomplish both the strategic objectives of the organization and the career goals of the employee (UC Berkeley Human Resources, 2016). However, an efficacious performance management system requires more than an update of an organization’s performance management process and strategies.

Performance Management consists in the implementation by the organisations of strategic and integrated actions that enhance performance and individual and team skills, in order to generate higher levels of job performance. It is executed through leadership management, training, development and appraising the whole system.

Performance management is a process, which supports employee engagement and where an employee’s work reflects organisational goals. It is about achieving results through individuals and teams to improve the performance of the organisation (Armstrong, 2009). The outcome of performance management is visible through financial performance, productivity, quality of the product and service, customer satisfaction, employee engagement and talent retention. Performance management offers competitive advantage and brings positive benefits including increased profits, higher cash flow, and stronger stock value. Productivity is lower if performance management is not present (Maley, 2012). To measure effectiveness of performance management it is important to define the goals of the organization as well as indicators of success. The measures method should provide balanced information based of financial and non-financial performance (Dti.gov.uk, accessed on 01/03/2014). There are several methods used to measure performance management. Armstrong, 2009 lists good ways to measure performance management effectiveness to be KPI’s, business results, engagement level or customer satisfaction. Another way to assess performance management is to use score card, which can also help to align individual performance with strategy.

Performance management relates to an organization’s ability to implement a system to evaluate and advance employee performance. Achieving peak performance requires consistency, clear objectives, and constructive employee evaluation. According to Mithas, Ramasubbu, & Sambamurthy (2011), an organization must design the performance management system based on extensive research about the organization’s mission, and then properly communicate the purpose of the system to employees, stakeholders, and decision makers. After the performing the research, the information should be used to establish the appropriate performance management specialized for the organization. In addition, an effective performance management system should align

Performance management is a tool that managers use to ensure that their companies remain at the top of their competitive edge. The Chartered Institute for Personnel Development (CIPD, 2008), defines performance management as a method by which individuals and teams are managed in a way that achieves high performance at an organisational level. The individuals within the organisation share an understanding of the achievement goals of the organisation. In order to achieve this, a general strategy is created, with each individual within the organisation understanding his or her role and requirements within such a strategy

According to Matsumura and Shin (2005) the ratio of executive to worker pay has climbed from 42:1 in 1982 to 301:1 in 2003. This has invited a lot of criticism from the shareholders, employees and has attracted the attention of restrictive regulators. Perel (2003) tried to assess the issue by examining both the claims that CEOs are overpaid for the value they add to an organization and that CEO pay is inherently

The closer we come to satisfying one need, the more we want to satisfy the next need in the hierarchy. If we are unable to satisfy one of the needs, we become focused wholly on meeting that need, and the desire to meet other needs is reduced”.

Ethically speaking, let’s analyze the disparity regarding overall compensation of that a Chief Executive Officer (CEO) and that of whom are front line employee. Compensation, which is the total of all rewards provided to employees in return for their services takes on a

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.

Because of their compensation sets the pattern the criticism particularly focus on the CEO’s high pay as well. Just like the previous criticism, there are current complaints which focused on at least two issues: Executives are paid too much and because the connection between executives current incentive-pay schemes are flawed. Because of these issues the company performance at best is mixed and at worst has led to a series of dysfunctional behaviors (Lorsch & Khurana, 2010). As the pay gap between chief executive officers and American workers of public companies grow; the question has aroused as to what drives the pay of the CEO’s and what’s behind the disparity. It is a known fact that it is a big disparity between the pay of other worker and the CEO pay in corporate America but what is the reason this disparity exists? The first major justification is an incentive for performance that is put forth by corporations; this helps explains the CEO pay level. They thought in order to attract the right candidate who will impact the performance of the organization is that they have to pay big. If this happens the shareholders of the company can get a better return on their investments. What has been justified as compensation for executives is to provide them with some form of stock grants as a form of incentive with

This report explores the issue of the pay that top executives make, and the reasons why they do. It also suggests improvements that can be made to make the system better. High Pay Seems Small When Compared To Company Profits Many companies pull in profits that are extremely high. When an employee of such a companies salary is compared to the amount of profit that the company earns, it starts to seem reasonable. It only makes sense that if the employee is directly responsible for the success of their company, then they deserve to get their payback. It seems ironic, but many salaries even look small once compared with a companies profits. Top Executives Are Under A Lot Of Pressure Being the CEO of a

In 2003 the average pay for CEOs at 200 of the largest U.S. companies was $11.3 million--but there are a good number whose compensation packages approach the $100 million mark. Faced with these figures, Americans from all walks of life--who revile CEOs as greedy fat cats--are overcome with bewilderment and indignation. Astonished to learn that what an average worker earns in a year, some CEOs earn in less than a week--people ask themselves: "How can the work of a

The annual assessment is performed by supervisor, employee himself and colleagues. The comparison of performance to set objectives, standards and required competencies together with the planning and improvement and evaluating development needs is performed. To successfully implement Performance Management Program, reinforcement is done through promotions and annual increment plan, top Management compliments of distinguished achievements, link-to-job Route Planning and replacement

Companies Performance Management system need to concentrate on the overall improvement the way the company performs. They achieve this by managing the performances of all personnel within the company no matter who they may be. This can be attained by ensuring that everyone within the company truly understands what the overall mission and goals that have been set for them within the company. Performance Management system has a very distinct way that it can manage the performance of the entire company and as long as everyone understands the goals that the company sets forth than the company as a whole will meet those goals. The developmental objective is fulfilled by defining the training requirements of the employees based on the results of the reviews and diagnosis of the individual and organizational competencies. (MSG)