Performance management requires accurate tools to measure and monitor the performance of employees. Performance appraisals allow managers to evaluate performance thoroughly, while also providing the employee with goals and objectives to increase future performance. This appraisal is then passed to human resource HR professionals for performance management.
Lawler "Managers should give constructive feedback to employees, so that Appraising and rewarding performance can improve their performance. Moss and Juan I. Complete Program Three incentive foundation of a complete pay program: Base Pay according to level of responsibility and market pressure 2.
Performance Rewards based on contribution of the employee 3.
Profit Sharing rates the organization in terms of its general economic performance Non- Comp time, on-site Reward Pyramid: Sacrifice Overtime, shift reward differential, etc.
Service Seniority Reward increases, etc. Real Pay Adjustment cost-of-living adjustment etc Skill-base pay adjustment Base pay Perfomance reward Internally aligned Profit reward Incentive and by job evaluation; Profit-sharing gain-sharing determined primarily systems, etc.
Base pay and skill-based pay motivate employees to progress to jobs of higher skills and responsibility. Performance pay is an incentiveto improve performance on the job. Profit sharing motivates workers toward teamwork to improve an organization's performance.
Money has status value when it is being received and spent. It represents to employees what their employer thinks of them.
It is also an idication of one employee's status relative to that of other employees. Their pay is a measure of their accomplishments. Needs Pay is viewed primarily as a hygiene factor, although it may have at least short-term motivational value as well. Money often has high valence.
This dual role means that most employees do respond to money as a reward. Behavior Modification The two desired conditions for applying contingent rewards under behavior modification principles, employees can see that there is a direct connection between performance and reward.
Cost-Reward Comparison The employee identifies and compares personal costs and rewards to determine the point at which they are equal.
Additional Consideration in the Use of Money Extrincsic and Intrincsic Rewards Money is essentially an extrincsic reward rather than an intrincsic one, so it is easily administered in behavior modification programs.
Four Interdependent Paths that lead to Intrincsic motivation: A sense of meaningfulness 2. A sense of choice 3. A sense of competence 4.
A sense of progress Compliance with the Law Compensation management is also complicated by the need to comply with a wide range of federal and state laws. Equal Pay Act of Affects employers who are engaged in interstate commerce and most employees of federal, state, and local governments.
People doing the same work receive equal pay regardless of the sex of the person holding the job. Comparable Worth Seeks to guarantee equal pay for equal work. This approach demands that reward systems be designed so people in different but comparable jobs those of equal value to the employer receive similar levels of pay.
Other Factors Equality, secrecy, control, and flexibility are considerations.View 7 Appraising and Managing Performance (1) from BUSINESS MAN at KDU University College.
HRM Human Resource Management 7. Appraising and Managing Performance -How to%(1). Template – Job performance appraisal 83 Fact sheet – Formal methods of performance management 85 Template – Employee exit checklist 86 4. MOTIVATE, MANAGE AND REWARD PERFORMANCE.
MOTIVATE, MANAGE AND REWARD PERFORMANCE Template – Ways to motivate and reward your employees. Appraising and Rewarding Performance Human Behavior in Organization Professor Melvin Vitug Moraga 2. Learning Objectives • Understand money as an economic and social medium of exhange • Discuss the role of money in motivational models • Examine the behavioral considerations in performance appraisals.
Performance appraisal provides a systematic basis for assessment of contributions, coaching for improved performance, and distribution of rewards. Modern appraisal philosophy focuses' on performance, objectives, goal setting, and feedback.5/5(1). Whether this is an appropriate use of performance appraisal - the assignment and justification of rewards and penalties - is a very uncertain and contentious matter.
Controversy Few issues in management stir up more controversy than performance appraisal.
The role of performance appraisal and reward systems in enhancing employee performance is discussed. A model is presented which argues that feedback is a powerful instrument in performance enhancement. Performance appraisal should provide a clear and realistic indication of the work that must be accomplished, performance expectations, and feedback on performance against expectations.