PERFORMANCE-BASED COMPENSATION PLAN

FOR MANAGERIAL EMPLOYEES

(PAGE 1)


POLICY


1. Application
The Kean University Performance-based Compensation Plan shall be applicable to all
its managerial employees that were appointed to a managerial job title prior to
January 1
st
of the calendar year in which the evaluation is being conducted. (The
President is evaluated under separate procedures by the Board of Trustees).

The Office of Human Resources must receive all completed evaluation documentation
by the deadline published in the Review and Notification Timetable in order to process
any recommendations for managerial salary increases, if funded.


2. Performance Assessment Criteria

Performance assessment criteria must be established in writing by the immediate
supervisor. The assessment criteria should include job related standards for each of
the following categories as well as any additional criteria that may be specific to the
job and the department:

a. Effectiveness in performing the duties and responsibilities of the position.

b. Effectiveness in supervision and staff development.

c. Effectiveness in achieving established annual objectives.

d. Level of contribution or distinction in service to the university or professional
activity.

e. Evaluation and motivation of subordinate employees.


3. Overall Performance Assessment Levels

Each managers performance will be thoroughly evaluated and the immediate
supervisor must then select one of the following overall ratings.

a. Satisfactory Performance Salary Increase Recommended

When selecting this rating, areas that need improvement must be identified. A
performance improvement plan must be included with the evaluation to
address the areas that require improvement. List and number these areas
separately and outline strategies to improve performance in each
corresponding area.

b. Unsatisfactory Performance, Retained No Salary Increase Recommended

When selecting this rating, areas that need improvement must be identified. A
performance improvement plan must be included with the evaluation to
PERFORMANCE-BASED COMPENSATION PLAN
FOR MANAGERIAL EMPLOYEES
(PAGE 2)

address the areas that need improvement. List and number these areas
separately and outline strategies to improve performance in each
corresponding area.

c. Unsatisfactory Performance No Salary Increase and Separation
Recommended

Human Resources will provide sixty (60) days notice of separation due to
unsatisfactory work performance. Employees may appeal this determination
(See Procedures Below, Item #2 Appeal Process).


4. Recommendation/non-recommendation

Salary increase recommendations/non-recommendations, if funded, shall be made by
the managerial employees supervisor and by the Department Director/Dean (if
applicable) to the Divisional Vice President and will be based upon the performance
criteria (refer to item #2 above). The salary increase recommendation/non-
recommendation will be based on an overall judgment, which characterizes the entire
performance record as either satisfactory, unsatisfactory and retained, or
unsatisfactory and separated.

The Divisional Vice President will review the documentation, and make her or his
recommendation to the President. The President will render the final determination.

Salary increases are contingent upon the funding available to support the
Performance-Based Compensation Plan for Managerial Employees.


PROCEDURES

1. In accordance with the Review and Notification Timetable, content for the
Performance-Based Compensation Plan for Managerial Employees shall be
completed by each managerial employees supervisor, and shall minimally include:

a. A meeting with the managerial employee to review performance assessment
criteria and discuss the employees ratings in each category.

b. The completed Assessment of Performance Recommendation for Managerial
Employees form.

c. The completed Managerial Employee Overall Performance Evaluation form.

d. The completed Performance Improvement Plan form, if applicable (See item
#3 below Performance Improvement Plan).

e. Review and recommendation by the appropriate Department Director/Dean (if
applicable).

f. Review and recommendation by the appropriate Divisional Vice President.

g. Review and final determination by the University President.
PERFORMANCE-BASED COMPENSATION PLAN
FOR MANAGERIAL EMPLOYEES
(PAGE 3)



2. Appeal Process

A managerial employee whose overall performance is evaluated as unsatisfactory
and separated, may appeal in writing to his/her Divisional Vice President. This appeal
must be filed within five (5) working days following the date of the overall performance
rating and include the reasons why the overall performance rating should be
reconsidered.

The Divisional Vice President will conduct a review of the evaluation and the appeal,
and issue a determination by the time the evaluation is forwarded to the President.
The candidate will receive written notification from the Divisional Vice President,
regarding the appeal decision, prior to submission to the President.

If applicable, an appeal to the President must be filed within five (5) working days
following the decision of the Divisional Vice President and must include the reasons
why the overall performance rating should be reconsidered. The President will
consider the appeal and make the final determination.


3. Performance Improvement Plan

A performance improvement plan must be implemented for managers who receive an
unsatisfactory and retained overall rating. The performance improvement plan is also
required for managers who receive a satisfactory overall rating, but may have areas
identified as needing improvement or unsatisfactory in some categories.

The performance improvement plan must be in writing. The managerial employees
supervisor may use the sample Performance Improvement Plan form or develop his
or her own format.

The supervisor and the employee must both sign the performance improvement plan
and attach it to the Overall Performance Evaluation Form. A copy must be provided to
the employee and to Human Resources.

No salary increase will be granted for managers who receive an unsatisfactory and
retained overall rating. Evidence of consistent and continuous performance
improvement should exist by the next evaluation cycle in order to receive an overall
satisfactory rating and be eligible for the next salary increase, if funded. Failure to
produce such evidence may warrant the initiation of termination proceedings.

If performance has not improved to a level that can be designated as
satisfactory performance in the next evaluation cycle, the employee may be
subject to termination and Human Resources will provide sixty (60) days notice.
(Refer to item #2 above regarding the appeal process).