Case incident 1 1. What implications can I draw from this case regarding pay-for-performance?
Answer: Pay for performance: Pay for performance is not just a pure compensation and benefits concept. The pay for performance is a right mix of the HR Processes, which supports the optimal performance of the organization and it pays the most performing employees significantly differently, includes special compensation schemes for the selected groups of employees and gives career opportunities to the best talents in the organization. The pay for performance is not just a tool; it is more about the philosophy of the organization to reward the best performing employees and building the sustainable competitive advantage. The high performing organizations differs themselves from the other organizations on the market, they reach higher profitability and they have more satisfied employees, who bring innovative ideas and solutions. The “pay for performance” concept has to be based on the clever mix of the different HR Processes, the right corporate culture and the managerial behavior as the CEO feel the support for reaching the challenging goals and visions. The “pay for performance” concept cannot be based on the exceptions and poor systems, how to work with the top performers and top talents of the organization. Implementation of “Pay for Performance” The implementation of the pay for performance is not easy and it requests the full commitment of the CEO, HR and the top management. When the pay for performance starts cascading through the organization The middle management starts to act as it is required by the pay for performance concept. The CEO has to follow strictly the rules given by the pay for performance and The whole idea will spread in the organization quickly. Managers will follow the positive role play given by the top management.
2. If I were Sean Neale; what can I offer employees as an alternative to compensation that will not place an undue hardship on my organization’s bottom line? Answer: Seon Neale follows pay-for-performance method in accordance with salary process and profit sharing also for the payment of the employees. Before assessing the payment method we need to discuss in brief the payment methods. There is several process of payment system; these are given below. Payment methods Managers can motivate staff by paying a fair wage. Payment methods include:
a company car or staff discounts. Fringe benefits: are payments in kind. Potential pitfalls with merit pay systems in addition to performance appraisals is the failure to distinguish high performance.
. rather than on a fixed periodic basis. In accounting practice. In the sum mission I can say that this process of payment could be more authentic and reliable for the company as well as profitable and cost effective.
If I were Sean Neale. and the development of unhealthy competition between employees that erodes teamwork. Commission: Staffs are paid for the number of items they sell. a lack of communication about expectations. e. Merit pay systems depend upon effective performance appraisals. I can offer employees as an alternative to compensation that are: 1. Merit Pay: Merit pay systems based salary increase on performance over time. salary can be deemed as the cost of acquiring human resources for running operations and is then termed personnel expense or salary expense.g. Salary: A salary is a form of remuneration paid periodically by an employer to an employee. Salary: Staffs are paid monthly no matter how many hours they work. 2. From a business point of view. Performance related pay: staffs get a bonus for meeting a target set by their manager. salaries are typically recorded in payroll accounts.
Time rate: Staffs are paid for the number of hours worked. hour. The success of merit pay programs depends upon the employee recognizing that personal effort will translate into pay increases. Performance could include output or some other factor deemed important to the firm such as customer feedback. Piece rate: Staffs are paid for the number of items produced. Overtime: Staffs are paid extra for working beyond normal hours. the use of biased performance measures. the amount and frequency of which may be specified in an employment. Merit Pay: Merit pay systems based salary increase on performance over time. Profit sharing: Staffs receive a part of any profits made by the business. where each job. or other unit is paid separately. Firm management will need to invest in the necessary funds and training to insure positive perceptions of the performance appraisal process. It is contrasted with piece wages.
A communication problem is the main reason in this situation. Although it is a performance appraisal tools but managers don‟t ever giving “Thanks” to their subordinate‟s job performance. But one thing to be aware is financial
. As a manager. The managers and companies do not see how praising can boost morale and therefore it is overlooked.Case incident 2 1. immediately the manager should tell the appreciation for their effort. Thirdly. If praising employees for doing a good job seems to be fairly easy and obvious motivational tool. This is an absolute motivator for employees when manager praising them in front of the co-workers for the performance that they done so well. they will think as they pampered and will not doing their job quotation. They will take too lightly about their current job and this will affect the current organization performances. Based on my opinions with logic. Not only saying the appreciation. profit sharing and so on. manager should say thank or praise employees for performing the job well neither in word or letter to the employees. For the verbal rewards. Also. performance feed back as they did good performance and how many that employees results contribute to the organization result. It could be either verbal or physical rewards. 2. base on the how much that result worth to the organization you can give the bonus. once the employees perform well on the projects. If the company or manager does too much praising to the employees. Then they will know how much they are important for their organization and they will know their value. employees do not receive praise for their good work. They will be more motivated and they will put more effort n focus on the next projects. Secondly. is the communication problem between manager and employees? Most of the manager knows only to point out and pressuring on mistake and failure for doing the job. There are several factors why companies and manager do not praise employees for doing a good job. If the manager has noticed an excellent performance from the employees. There are several reliable causes for not to give “Thanks”. Communication is very important and when it happened. Manager also should treat a lunch for the employees when they reach certain goal of performances for the companies. he should follow up the performance with some recognition or rewards. many managers and companies do not think to ask if employees want recognition and what type of recognition they would like. what steps would you take to motivate your employees after observing them perform well? Answer: Basically. Employees always wanted recognition for their performance on the job but no one has told the managers what they want it. gifts. why do I think companies and managers don’t often do it? Answer: Literally companies and managers don‟t often give “Thanks” to their employees thus they are doing their job very well.
The thing I need to do is maintaining the equilibrium between different personality types. one who received much praise. trophies. A good strategy used to combat this problem is giving the rewarded employees different tasks. It meets an intrinsic psychological need for appreciation for one‟s efforts and can support business strategy by reinforcing certain behaviors (e. Awards can be cash or non-cash (e. Also. there are many downsides in giving employees too much verbal praise. I need to ensure that the praise is given in conjunction with the specific accomplishment. plaques. In fact. his or her work may start to slack off and this will affect the productivity of the business.
3.incentives may be more motivating in the short term.. In this way. usually without predetermined goals or performance levels that the employee is expected to achieve. as well as with various forms of recognition. etc. work-life improvements. recognition programs acknowledge employee contributions immediately after the fact. Verbal praise can be an effective way to motivate employees and make them feel valued.. efforts.g. when praising employees for a job well done. Whether formal or informal. Traditional methods for keeping and motivating workers utilize compensation and benefits. extraordinary accomplishments) that contribute to organizational success. When a certain person is receiving too much praise. verbal recognition. in the long run. There are those who need more verbal praise than others to attain confidence and encouragement in performing a job well. but will also know what actions to make to be rewarded in the future. employees may not only feel valued. However. Jealousy amongst employees can arise when a person feels they are better than the other. As a manager. including with pay.g. So I will be generous with praise. benefits. for example. This insures a
. this way they won‟t feel as if they were any better than the next employee because they would all be capable of doing each other‟s job. and incentives for pre-determined job performance. but also quick and easy to distribute. dinners. but. As a manager. tickets. World at Work defines recognition as practices that: „Acknowledges or gives special attention to employee actions. organizations can reward their workers in many ways. Are there any downsides to giving employees too much verbal praise? What might these downsides be and how could you alleviate them as a manager? Answer: Yes. nonfinancial incentives are more motivating. Too much verbal praise can boost one‟s ego as well. I must know my personnel and be aware of their personalities. inquire them about how they went about accomplishing the particular task and what improvements they feel are needed in the organization. behavior or performance.). At this time. certificates. I can ask some questions about work related issues to show my sincerity. verbal praise is not only inexpensive for the company to hand out. others begin to feel uncomfortable and this is because of their perception and insecurity. too much praise can make it ether meaningless or insincere to employees.
In some situations. and non financial incentives might be more motivating in the long run period. Some may even lose the respect to you they think that too many compliments is a sign of weakness from a manager and may use the compliments against you when you try to asses incorrect performance. Basically the rewards are the intrinsic value in the form of recognition programs and the extrinsic value is in the form of compensation systems. As a manager. The employee‟s recognition programs are range from a spontaneous and private “thank you” up to widely publicized formal programs in which specific types of behavior are encouraged and the procedures for attaining recognition are clearly identified. and this accommodates those who are somewhat productive. I think it‟s better to reward the unit instead of the person. Let say. in order to improve the employee‟s satisfaction. For instance. but may lack the talent or experience to be as productive as their counterparts. how would you ensure that recognition given to employees is distributed fairly and justly? Answer: The recognition basically means an appreciation. it means that the managers have to deal with the reward and in addition. In other words. I think I need to challenge my employees to perform as best as they can.
. Thus. the manager should conduct a survey to know the satisfaction of the employees towards the organization. if the employees who are friendly to the customers. why the researchers had suggested that the financial incentives might be more motivating in the short term period. As a manager. that the recognition programs has been set up in order to appreciate the employees when they had accomplished a particular task very well. The manager might give the employees some reward or praise to the employees as a tool to motivate them. as a manager. they should motivate the employee‟s performance. Therefore. The manager can get to know the employees workload. which are needed for them. if the employees who are on time. but also keep them in checks. there is also a recognition programs which was set by an organization. or are they happy with their salary or not. Due to this reason.balanced distribution of recognition by simply identifying the team‟s accomplishments and not the individual. The manager should give a recognition to the employees for a good works and even if it involves a routine tasks such as. if the employees do not satisfied. if the employees who had improved the quality of the work and the quantity of the works. a manager can conduct a survey through the questionnaire to know the problem faced by the employees. The downsides in giving employees too much verbal praise may make some employees overly confident and start to overlook the details in their work. motivate them by giving sincere praise.
4. As for the further detail explanation on the recognition programs. then what kind of suggestion that they can provide for their organization. in order to ensure that recognition given to employee is distributed fairly and justly. or else the responsibilities which was delegated to them were fairly and justly.
. it is fairly and justly to receive recognition when someone put more effort to increase the productivity of the output and put more hard work in his or hers work. The manager can get to know about the employees abilities from previous performance in the organization. the manager should make sure that everyone gets the credit for all their work. it is important for the manager to know the employees ability and performance very well. give a recognition to the employees if they do deserve for it. and not be the bias. Therefore. and always communicate the importance of the employees‟ performance as a motivator guide for the employees. Due to that. so that they can treat the employees fairly and justly. and if one of the employees get the recognition due to his or her effort then it should motivate the other employees to perform very well in the organization as well.Furthermore. the manager should also.