HRM 301

Course Code: HRM 301

Section: 03

Submitted To:
Laila Zaman

Assistant Professor

Department of Business Administration

East West University

Submitted By:

Imrul Hasan Arnab

ID: 2014-3-10-074

Department of Business Administration

East West University

Date of Submission: May 12, 2020

 Carter Cleaning Company

The Performance Appraisal

1. Is Jennifer right about the need to evaluate the workers formally? The managers? Why
or why not?

Answer: Yes, Jennifer is right about the need to evaluate the workers formally. The reasons are
explained bellow,

They need to evaluate employees and workers formally to understand better about the job, to
know what type of skills are required for this job, and it will be clear to the organization about
what too look in an employee for a certain position.

Performance appraisal helps the organization to know about how an employee is performing and
helps supervisors to provide feedback based on their performance. Because of this employee who
are performing better get recognition and motivation from organizations. So, if there is no
performance appraisal hard work from those workers will not be noticed and appreciated which
demotivated employees.

It also helps them to plan a better compensation program so that their employees stay motivated
and satisfied. Because without satisfied employees it will be more difficult for the organization
to achieve its goals. Carter Cleaning company also have a high turnover rate. And the reason
behind this is there is no proper compensation plan as they lack the performance appraisal. As
they lack a proper performance appraisal, they could not provide a proper compensation plan and
because of this their turnover rate is high. High turnover is a problem for the organization as it
often increases costs for training new employees. To reduce this cost, they should plan a proper
compensation plan and they need a performance appraisal for this.

She is also right that managers need to have a list of quality standards for matters such as store
cleanliness, efficiency, safety etc. it provides a better outcome in the eyes of customers. These
certain standards will help organization and their employees to know about what they have to do.
If there is no established standard then employees will know what type of performance and
results are expected and it will be clearer about what to do and how to do.

Because of this I think Jennifer is right about the need to evaluate the workers formally and to
establish a quality standard by the managers.
 The New Pay Plan

1.Is the company at the point where it should be setting up a formal salary structure based
on a complete job evaluation? Why?

Answer: Yes, at this point the company should set up a formal salary structure based on job
evaluation. As it will help to plan a better salary structure and compensation program. And it will
also motivate employees who work hard as they are getting recognition and receive a payment
that justifies their hard work.

A formal salary structure will also reduce their turnover rate as most employees change
organization because the feel, they are getting less. Proper salary structure will solve this issue.

2. Specifically, what would you suggest Jennifer do now with respect to her company’s pay
plan?

Answer: Jennifer can do several things for the betterment of the company with respect to her
company’s pay plan.

Firstly, setting up a formal pay structure will make the employee feel fair and unambiguous and
will make the payment process easier for the managers. It will also motivate employees to
continue working hard.

The organization can also conduct internal survey. This will let them know about employees and
workers thought regarding the salary structure. It will help them to prepare a compensation plan
that is more accurate and that the employees more appreciate.

Thirdly, instead of paying everyone 10% more than the prevailing rate will demotivate hark
working employees and will encourage employees to work less. Company should pay extra
amount to only those who are performing better. This will encourage everyone to work harder to
get that extra amount.

Lastly, the policy of paying men about 20% more than women for the same job have to change.
Instead of discriminating based on gender they should give equal opportunity and pay raise,
regardless of their gender. Whoever works hard and show a great performance should get the
right amount of salary and appreciation.