MOUNT KENYA UNIVERSITY

NDUNGA MOREEN MUKAMI

ADM: DHRM/2019/54073

SCHOOL OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

EMPLOYEE PERFORMANCE AND COMPENSATION

DR. KEMBU

UNIT CODE: DBM 1301

CAT 1

Question 1.

A. Explain the issues to be considered in setting effective performance goals standards (

5 marks)
i) Goal establishment

In order for a firm to be effective there should be a specific goal laid in place for all the
employee to be able to achieve.

ii) Reward your employees by recognition

If a certain employee does a good job he/she would want to be recognized and mostly publicly.

iii) Empower managers with skills

Managers who manage different sectors should also be skilled in order for them to distribute skill
to others.

iv) Motivation to employees.

Makes sure the employees are rewarded mainly through compensation.

v) Set a culture of a firm.

This culture will be able to be followed by all employees.

B. Briefly explain the following concepts in relation to performance management.

i Performance standards- these are the expectations laid above by the management to the
employee so that they can know what is expected from them and how to do a good job.
ii Job evaluation- this is the plan whereby the management set aside rewards and gifts to be
assigned to different employees according to their performance.
iii Incentive plans- this is a plan whereby the management set aside rewards and gifts to be
assigned to different employees according to their performance.
 iv Pay structure- this is designed structure in terms of grades level, brands, hierarchy that
provide a framework to implement reward strategic.
v Employee benefits- these are the benefits that the employees records due to good work
therefore good results and it acts like a motivation.

Question two

1. In a business scenario evaluation of jobs are considered a vital aspects that would thrust
the competitiveness of an organization outline. Some of the factors that would be
considered in selecting an appropriate job evaluation scheme in the application.
a) Gender equity

The evaluation should not discriminate any gender. It should be able to weigh both the abilities
of men and women.

b) Communication skills

The employees should be able to have a good communication structure in order to be able to
earn.

c) Reliability

The practice and procedure should be reliable all through. It should be ever updated and
circulated within the organization.

d) Knowledge in every different jobs the applicants should be knowledgeable on

skills needed.
e) Mental stability- the order of a job evaluation mental stability is key. This is
because instability will be an effect.
f) Thorough and impartial-

It should be explicit and comprehensive to avoid the results of evaluation being influenced by
subjective hours.
 2. Managing performance is running a business. It is not a set of technique and it is certainly
not all about performance management system. Therefore performance management is
all-embracing/ holistic approach to the management or performance that should be
adapted in an organization.
Discuss the factors/aspects that make organizations, teams and individuals perform well.
a) Communication skills

An effective method of communication is a good enhancement. This is because if there is a a

good communication network the teams will be able to develop their skills.

b) Members/ team size

The size of the team is a key factor. This is because the larger the size of team the more the
availability of materials.

c) More effective role identity

In the team, the team members should be able to identify themselves according to different
abilities. There should be an able leader who leads the group for quicker efficiency.

d) Higher levels of group cohesion.

Once a team is highly cohesive, a member’s commitment and willingness to strive for excellence
thrives.

e) Group think

This is whereby the members of the group are able to come together and discuss what is
necessary. This is very efficient because members will bring their divergent thoughts.