The Effect of Compensation Administration on Employee Productivity

Added on - 13 Apr 2021

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1.One alleged problem with performance appraisal is that most employees seem tothink they are above average and do not like to be told otherwise. Do you thinkthis is true, and, if so, how would you design an appraisal system that mightavoid this problem?(10 marks)Confident workers have it going for them, since they are self-motivated and optimistic, they areimportant assets for businesses. We have the qualities of leadership, do not fear taking chancesand are very reliable. Problems starts when employee’s confidence turns into over confidenceand gains arrogance[ CITATION EMI19 \l 1033 ].Turning a blind eye to the negative nature ofothers does not change it[ CITATION EMI19 \l 1033 ]. As team leader,it becomes necessary todirect this unreasonable employee until their conduct affects the effectiveness in organisation[ CITATION EMI19 \l 1033 ].Assessment programmes assess employee performance against previously established targets,define strategic goals and offer feedback to employees about their growth and training needs[ CITATION Mel17 \l 1033 ]. This helps managers recognise productivity strengths and failures andoffers a roadmap for potential changes[ CITATION Mel17 \l 1033 ].In the particular situation I would choose characteristic checklist as it describes the basic traitsand attributes of employees. It can calculate, timeliness, reliability, initiative, and interest. I mayassess unique organisational characteristics of workers, such as customer generosity[ CITATIONMel17 \l 1033 ].The key benefit of this approach is that it not only measures an individual'spresent performance but also forecasts potential jobs results[ CITATION Per20 \l 1033 ].In this system workers have to take part in social-simulation activities, including in-basketsimulations, informal meetings, fact-finding activities, decision-making issues, role-playsimulations, and other activities that ensure the involvement of a person in a task. Improveawareness, encourage thinking, and improve employee performance[ CITATION Per20 \l 1033 ].2.If one were to be introduced, whichOrganizational Performance Pay Planwouldbe best for your most recent employer? Discuss also why the other options wouldnot be preferable. (If you are using a different employer than previously noted inTest I and II, briefly introduce the employer)(10 marks)Organizational performance pays plansinclude employee profit-sharing plans, employee stockplans, and other organizational pay plans”[CITATION Ric181 \l 1033 ].Preferable plan for my position at e commerce company would be groupincentive plan as we work in team and I have always been a team player. The implementation ofgroup reward programmes can be used to address the difficulty and interdependence of
employees, the need for collaboration with a work group and the presence of working groupnorms and also have a motivational opportunity for specific goals, consistent pay-to-performanceties and fairly small pay increases[ CITATION Geo91 \l 1033 ]. Many of today's communitybenefits, such as opportunities to share income and benefit, are consistent with reward plans;they are bound up with relative quantitative performance metrics, give comparatively largepayouts and do not include payouts in simple wages[ CITATION Geo91 \l 1033 ].Team benefits areconnected to more collective performance metrics – at the working group, facility / plant / officeor company level – in order to dramatically attenuate the relation between the individual workers' performance and compensation[ CITATION Geo91 \l 1033 ].Including merit-based incentives, partial incentive schemes, various types of premium schemesand commissions, a wide range of strategies can be found between individual incentive schemesthat could make employees work more individually and simply focus on pay and not for efficientperformance[ CITATION Org12 \l 1033 ]. Most organisations have used company or corporatecompensation programmes to fix some of these deficiencies[ CITATION Org12 \l 1033 ]. Groupincentive programmes base on group or organisational productivity at least some employeesreceive[ CITATION Org12 \l 1033 ]. Employees are therefore encouraged to collaborate with eachother and the company in order for every employee to support[ CITATION Org12 \l 1033 ].Initiatives such as income sharing or revenue sharing systems are structured to connect thepotential benefits and wealth of workers to that of the company and reduce the antagonismbetween the two for years. The outcome is often dramatic[ CITATION Org12 \l 1033 ].3.Gain-sharing and goal-sharing programs have high discontinuation rates. Why doyou think this may be?(10 marks)Gainsharing is better characterised as a management programme in which the engagement andparticipation of its workers aims to achieve higher levels of success. For improved results,workers share the benefit financially[ CITATION Rob15 \l 1033 ]. It is a team strategy, generallyinvolving all the workers at a site or project[ CITATION Rob15 \l 1033 ]. The standard companyGainsharing tracks efficiency and transfers savings with all workers using a pre - specifiedformula. The real performance of the organisation is compared to the minimum performance toassess the sum of the profit[ CITATION Rob15 \l 1033 ].Goal Sharing is a system by which performance reward is related to particular goals that are met,including bonus rewards for those responsible for the objectives that are accomplished[ CITATIONEco20 \l 1033 ].
Typically, a weak or slow manufacturer is a root cause[ CITATION Kat16 \l 1033 ]. Instead,companies often come up with brilliant ideas after a contract has first been signed that contains awinning clause[ CITATION Kat16 \l 1033 ]. Some of them in other situations. The question is notthe lack of imagination but instead of the institutional deficiencies that prevent changes fromgaining momentum in the contract and governance system. Unfortunately, the Good IdeaGraveyard will take these thoughts[ CITATION Kat16 \l 1033 ]. Gainsharing is not achieved becausethe issue is outsourced, the working reach of the producer is not controlled and is limited and theterm of math is short[ CITATION Kat16 \l 1033 ].4.“Defined contribution pension plans are nothing more than an attempt byemployers to shift risk from themselves to employees, who are much less able tobear this risk.” Do you agree or disagree with this statement? Discuss why(10marks)I assume that, yes defined contribution plans in a way arean attempt by employers to shift riskfrom themselves to employees, who are much less able to bear this risk. Employer should becareful choosing retire plan for employee, he should opt for less risky plan. This would helpchange employee’s perspective towards pension plans.The employer and often the employee contribute annually to the pension plan of the employee.Contributions are usually defined as a fixed portion of income, although that portion does notneed to be consistent in a profession[ CITATION Zvi88 \l 1033 ]. TheDefined contribution pensionplanscalculation is simple, only the market value of the retirement plan resources is calculated[CITATION Zvi88 \l 1033 ]. Nevertheless, theDefined contribution pension plans ispart of theframework that also provides employees a lifetime lump sum that starts at a retirement age andwhich can be bought with a gain on their account in variousconditions as a reference forpersonal financial management[ CITATION Zvi88 \l 1033 ]. Clearly, the real value of the pensionannuity would depend on the investment performance of the pension fund, the retirement rateand the employee's final compensation trajectory[ CITATION Zvi88 \l 1033 ].Defined contribution pensionplan providers are focused on cost savings and personalisedprogrammes, along with increased insights and investment. “Nonetheless, a defined contributionplan has considerable legislative / regulatory risks, said Robert Landry, Chief Council Officer forAurora, Ontario based Magna International, Inc. with most of its employees on defined
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