The Harding Trust Essay

Changing to a pay-for-performance pay system always has several implications. The most important of these are discussed in the succeeding paragraphs.

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).

The role of a Human Resource department is ever changing in today’s volatile business environment. Over the years HR have become strong strategic partners within an organization by providing functions such as recruitment,

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:

After reviewing the Wilson Brothers Case Scenario, as Director of Human Resources for the organization, what conclusions can you draw with respect to the status of the company’s compensation strategies that are currently in place? What would you do to begin to address this situation? (3 Marks)

The old Performance Management system was ineffective and did not lead to a fair incentive or salary raise for the employees of the company. Employees who worked hard and did well for the company received the same rating as low performing employees. There was frustration among the scientists for getting the

I think the overall idea sound great but the performance appraisal system need to enforce at the same standard for all employees. If an employee is consistently performing and producing stellar result, there should be a type of incentive in place to award employees. This type of incentive motivates employees to do their very best to accomplish daily task at a higher level. I think adopting new labor-management procedures at a time when the United States is deeply involved with homeland

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

O’Neil (1998) suggests six minimal criteria for the design of a performance based pay system. The first of these criteria is that the reward system should be self-funding, that is, the performance increases should as a minimum offset the cost of the rewards provided. The second criterion is that the distribution of the rewards must be consistent, fair and justifiable. In addition reward plans must be transparent and clearly communicated. The third criterion

Author, Otis White, wrote the article “The Worst Idea in Government Management: Pay for Performance,” to educate the public on the issues of the concept of “pay for performance.” First the definition of “pay for performance” is when a company or agency pays its employees based on ratings, scores, or public approval. The theme of this article is the danger of the concept of “pay for performance” in government public service. Especially, since that government employees generally must work as a team or doing complex tasks, making the idea of the incentive for performance difficult. The reason White wrote this article was to explain how “pay for performance” can cause issues and does not contribute to productivity in government settings.

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

For many years, the federal government has been operating with certain performance appraisal procedures to strengthen the relationship between pay and performance. These programs have not achieved the desired objectives despite the series of adjustments and changes. The ability to demonstrate the relation between performance, merit, and pay in civil service has remained problematic for the federal government. The Performance Bonus was started to reward all the civil servants who perform beyond their requirements. Additionally, the Merit Increment framework was started to relate increments with performance and potential in civil service. Ingraham (2006) argues that reform should allow more flexibility for the manager and be structured to place more focus on performance as a measure of merit. Thompson (2006) argues that you can’t have merit without protection, and while reform may be necessary, the current system has value and should not be completely swept aside. Throughout this paper, both positions on this relationship will be discussed along with the implications of their arguments for performance evaluation and constitutional protections for public employees.

In today’s competitive workforce, compensation and benefit packages plays a crucial role on recruitment and retention for both the organization and the employee. Bumpbie finds itself in a situation where it could positively affect its employee’s morale, turnover rate and longevity; by making a strategic decision to implement compensation and benefit packages that will encourage current workers to stay and entice new applicants. Money is not always the inherent reason businesses experience high turnover rate, the constant shifting in the job market will always be a contributing factor as well as employee’s moral. Mayhew, R. (2016), explains that an “employee compensation plan” refers to all the components offered as well as the way in which they are paid, and the reason behind the employees getting the compensation case bonuses, salary increases and incentives. The fact that there are voluntary and mandatory benefits that organization provides to their employees give employees the freedom of choice, as well as the option to make the whether to stay with or leave an organization based on the benefits it provides. Variable Pay is also an option that some employers offer their employee which is performance based or results oriented. Whether it is profit sharing, merit based programs or incentive bonuses; it all comes down to which organization can provide employees with the compensation or benefits packages that best satisfy their needs.

Thompson (2006) argues that the performance system should work in line with the merit ideals (496). However, the performance system that has been put in place has created a noticeable bias against disregarding hierarchical authority in ways that undermine merit ideals. The pay-for-performance system gives the supervisors greater ability to influence the amount of the annual pay increases their juniors receive (Thompson, 2006, 498). Therefore, Thompson (2006) suggests that in civil service, merit and performance are related. However, in the current system, the

Linking pay to performance involves twelve critical steps. The first step involves succinctly defining the organization’s strategic objective. The second step involves establishing the structure and size of the resources in the organization. Thirdly, the resources are then linked to the objectives and budgets. Fourthly, the objectives are shared with the workforce while the fifth step involves aligning the workforce with the work. The sixth step entails setting production quotas for employees while the seventh and eighth step involves performance review and competencies and training respectively (Martocchio, 2013). The ninth step