Professional Documents
Culture Documents
Compensation 3
Compensation 3
Employees Perspective
Indirect
Benefits
Employers Perspective
Employers Perspective
Ability to pay
Cost of living increases Government (FLSA, min. wage) Strategy
Influence of Equity
External
Market wages
Limited decision making by the incumbent. Progress of work is checked by others most of the time, and/or 60-90 percent of activities are defined by other than incumbent.
2nd Degree (89 points) Routine decision making bases on specific criteria. Progress of work is often checked by others, and/or 40-60 percent of activities are defined by other than incumbent. 3rd Degree (112 points) Significant decision making based on established guidelines and experience. Progress of work is check by others some of the time, and/or 25-40 percent of activities are defined by others than the incumbent. 4th Degree (180 points) Extensive decision making based on broad policies, procedures, and guidelines. Progress of work is seldom checked by others, and/or less than 25 percent of activities are defined by other than the incumbent.
40
Follows clearly prescribed standard practice and demonstrates straightforward application of readily understood rules and procedures. Analyzes noncomplicated data by established routine. Benchmark: Statistical clerk, billing clerk.
120
Exercises independent judgment in making decision involving nonroutine problems with general guidance only from higher supervision. Analyzes and evaluates data pertaining to nonroutine problems for solution in conjunction with others. Benchmark: Nurse, accountant, team leader
200
Uses independent judgment in making decisions that are not subject to review. Regularly exercises developmental or creative abilities in policy development. Benchmark: Executive director.
Pricing Jobs
"The acceptability of job evaluation hinges in large part on whether the results are consistent with the ranking of the same jobs in the external labor market."
Pricing Jobs
A. Use key or benchmark jobs
Jobs that are relatively stable in content and found in many organizations Compare your internal analysis to external wages
Pricing Jobs
C. Use points from job evaluation as a predictor
Inequities
Comparable worth
Salary compression
Not easy because there are fewer quantifiable factors Managers are often compensated for long term performance Are executives overpaid?
Procedures required
Advantages
Limitations
Financial Incentives
"The basic aim of an incentive should be to encourage good performance by linking performance and rewards, and this in turn requires valid, accurate performance appraisals.
Worker doesnt believe that plan will lead to rewards. Unfair standards too high or unattainable Changing standards obtain top management commitment to maintain standards
Recommendations
1. Ensure that efforts and rewards are directly related.
2. Incentive rewards are understandable and calculable. 3. Use accurate and effective standards.
4. Guarantee those standards.
Performance Evaluation
D. Defense of policies
Use to show job relatedness (performance)
Performance Measures
A. Comparative methods
1. Ranking 2. Forced distribution
3. Problems with comparative evaluations: No indication of potential performance Little specific feedback No feedback about where to improve
Performance Measures
B. Absolute methods
1. Trait rating scale Central tendency problems Doesnt capture specific behaviors 2. BARS (Behaviorally Anchored Rating Scales) Complex and costly Not applicable to a broad group of jobs Avoids contamination and deficiency errors 3. MBO set for individuals, not jobs
Administrative Challenges
A. Components that influence the performance appraisal process
1. Appraiser (rater) 2. Appraisee (ratee)
3. Method
4. Purpose of evaluation 5. Motivation to appraise
Administrative Challenges
B. Rater errors
1. Unreliability 2. Leniency
3. Severity
4. Central tendency
5. Recency 6. Halo
Administrative Challenges
C. EEO
Not only for your selection
Trends in PA Research
1. Focused on the accuracy of appraisal and improving method. 2. Focused on rater errors and reduction of errors.