Name: Soha Shamas

Chapter 3: Traditional Bases for Pay

Case: Appraising Performance at Precision

1. The problems of the Precision performance appraisal process that might cause challenges

for Jackson to implement a merit pay program are first, failure to differentiate among

performer since employees don’t have written job descriptions that clearly states their

performance expectations. Second, poor performance measures since supervisors tend to

rate almost all employees on average rating and rarely rate them based on high/low scales

which lead supervisors to biases in rating employee job performance. Third, there is a

lack to open communication between management and employee since there is little

communication between supervisors and employees about performance because they

don’t meet except if there is a problem. So, Jackson has to provide a reliable assessment

to support the merit pay program.

2. Aligning the performance appraisal process with the merit pay program has several

strategies. Firstly, analyzing job description by noting job duties, requirements, and

relative importance of a job which help reducing supervisor’s arbitrary decision about the

merit pay increase, by clarifying the standards against employee’s performance.

Secondly, communications are important since for merit pay programs to succeed

employees must clearly understand what they need to do to receive merit increases and

what the rewards for their performance will be. Because open communication helps an

employee to develop reasonable expectation and encourages him/her to trust the system

and who operate it. Thirdly, establish effective appraisals because, during performance

appraisal meetings with employees, supervisors should discuss goals for future
performance and employee career plans. Fourthly, empower employees since supervisors

must ensure that employee has access to the resources necessary to perform their job

because empowering employees to lead to more self-corrective action rather than reactive

courses of action to supervisory feedback. Lastly, differentiating among performers,

merit increase should consist of meaningful increments since when employees don’t see

significant distinctions between top performers and poor performers, top performers may

become frustrated and reduce their level of performance.