Performance at Precision Essay

630 Words3 Pages
Performance at Precision/Case Study #1 Jackson Smith has his work cut out for him in his task to implement a merit pay program that would tie to Precision’s performance appraisal process. According to Martocchio, a merit pay program assumes that employee’s compensation over time should be determined by differences in job performance. In other words, employees earn permanent merit increases based on their performance. The overarching challenge to overcome is that merit pay is considered an entitlement by the employees at Precision since everyone has received the same percentage increase across the board regardless of performance. Jackson is likely to experience strong resistance to the change, especially by those who are low…show more content…
To be able to support a merit pay program, it must be perceived by employees as fair, competitive in the market, motivating and easy to understand. Therefore, Jackson should begin by creating a comprehensive communication plan outlining the business rationale and implementation timeline for the new pay structure. This should be communicated to the employees by the President/CEO of the organization. Additionally, a comprehensive training program will need to be created or outsourced for the supervisors on how to manage the performance appraisal process. Jackson essentially needs to start from the beginning in terms of developing job descriptions for each differing role within the organization. To do this, he will begin by performing a job analysis for each role with the outcome being a description to include a summary of the job tasks, essential responsibilities as well as the knowledge, skills and abilities needed to perform the job. He then needs to conduct a job evaluation to judge the relative worth of the jobs at Precision. This will determine the internal structure and hierarchical ranking of jobs. This process helps to ensure that pay is internally aligned. Precision also needs to make the decision where they want to be as it relates to the marketplace. In other words, do they want to be a leader or pay at a mid-point range or lower? Part of this process will be to
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