Performance Measures

This study material discusses the means to measure the performance of each member in a team and the recommended compensation plan based on performance. It covers topics such as tying team results to organizational goals, measuring team and individual performance, providing adequate training, and using performance indices. The compensation plan includes base salary and performance-related pay.

Running head: PERFORMANCE MEASURES
PERFORMANCE MEASURES
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Author Note

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Q5: Means to measure the Performance of each member in the team
In order to ensure that all the members in firm are performing considerably well, it
becomes extremely important for all the firms as present in the business environment to ensure
that, they are able to successfully develop a performance measurement system for the team
which is essentially able to measure the overall performance of the team as present (Cascio,
2015). According to Landy, Zedeck and Cleveland (2017), the following five keys can be used
to design a measurement system which not only supports the different team members but also
measures the performance of the team members.
 Tying up the results of the team to the organizational goals: When the team results are
essentially tied to the overall goals of the firm then it becomes considerably easy for the
firm to perform well and also becomes easier to motivate the different members.
 Secondly, the firm should take initiatives to measure both team as well as the individual
performance which helps in identifying the overall contribution (Robinson & Sensoy,
2016).
 Moreover, adequate training needs to be provided to the different team members which
will help to perform well (Noe et al., 2017).
 Performance indices like number of hours worked, Amount of sales made and the number
of customers attended can also be considered to be a good alternative.

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Q6: Compensation Plan
The compensation can be rightfully defined as the combination of wages, benefits and the
salary which is provided to an employee in exchange of their contribution to the organization.
The overall compensation plan which is recommended for the employees is based on the
performance based compensation system (Cascio 2015). In this kind of a payment system, the
organization aims to make use of various practices and systems to provide benefits and levels of
pay to the employees and can be stated to be as follows:
Base salary
The base salary is provided to the different employees whereby the employees are paid a
fixed amount in lieu of the service which they render to the organization. The base salary
remains fixed irrespective of the performance of the employee.
Performance Related pay
In addition to the fixed payment which is offered to the different employees, the
employees will also be offered with a performance related pay with respect to which they will be
provided with incentives based on the level of contribution they provide to the firm. A well
designed incentive as well as reward system can encourage the employees to achieve their goals.
Hence, a good incentive system will be believed to understand the overall relationship between
motivation and behaviours at work (Landy, Zedeck & Cleveland 2017).
In line of this, the firm shall set a performance target and then, the employees will be
provided with incentives when they achieve their target and additionally, the incentives will also
increase to the extent of the high performance being the targeted performance. Cash is the mode
of incentives which will be provided.

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This system has been designed based on the Herzberg’s Motivating factors and the
Expectancy theory at large.

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References
Cascio, W. F. (2015). Managing human resources. McGraw-Hill.
Landy, F., Zedeck, S., & Cleveland, J. (2017). Performance measurement and theory. Routledge.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Robinson, D. T., & Sensoy, B. A. (2016). Cyclicality, performance measurement, and cash flow
liquidity in private equity. Journal of Financial Economics, 122(3), 521-543.