Performance Evaluation and Compensation
Perhaps one of the most challenging aspects of managing a company is to provide a performance evaluation technique that does not frighten employees. The fear in my organization, among those marginal performers, is that the evaluation may cause their being fired. "One of the most controversial tools for boosting performance is ranking employees and dismissing the laggards. Proponents argue that the practice stretches star employees...(Marchetti 2005 16). Those at the bottom of the performance scale tend not to be as motivated as they might be, simply because the fear of being poorly evaluated stifles their determination to improve. While there are many companies which automatically provide a cost of living raise to their employees (sometimes due to labor contracts), the idea of providing bonuses or merit awards also can cause some serious problems, and such "merit raises" often cause more conflict within a business than they solve in the way of increased productivity and/or efficiency. Here is one author's proof: "It's clear that employers' compensation systems aren't making the grade. Only 10 percent of organizations describe their merit pay programs as "very ef
One problem with many businesses today is that management is too lenient, too worried about hurting someone's feelings. In today's competitive world, where every worker must pull his weight or make way for someone who can, such leniency may be costly. Wells (2005) suggests something called "tough love.": What is needed to ease the pain and strain of performance evaluation and resultant merit increases or bonuses is the fact that top management must now set specific targets and goals, by the month, by the quarter, by six months, annually, and even provides some projections for one, two and five years into the future. With such goals specifically outlined, employees- whether on a production line or white collar, now know exactly what is required of them. Therefore, what will make performance evaluation and compensation tied to it far more effective in my company is to focus on these mid-=level performers as well as providing a means "up the ladder" for the marginal ones, knowing the top performers will always continue to shine. By also stressing teamwork, it becomes the responsibility of everyone within a section or department to make sure everyone contrib
Some common words found in the essay are:
Maritz Inc, University Chicago, , Rodger Stotz, performance evaluation, Hay Insight, Philadelphia-based HR, galea 2005, merit pay, 10 percent, top performers,
Approximate Word count = 794
Approximate Pages = 3 (250 words per page double spaced)
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