Pay for Performance Case
22 August 2010
Job Evaluation Case
1. The new Utley management would like to establish a pay-for-performance system. What does this mean to the Utley management
Pay for performance system is designed to reward employees that meet and exceed performance objectives and exhibit behaviors that are aligned with company’s goal. Utley management must determine what does the organization values, which type of individual employee contribution should be rewarded, their ability to pay, administer and willingness to communicate a merit pay plan before it is created. Management must also establish ...view middle of the document...
As soon as management communicates those expectations to employees, the organization must commit to reward employees’ contributions that are aligned with the organization’s goals. Incentive bonuses for high performers at the end of the year can motivate employees to achieve higher performance. Non monetary rewards such as recognition certificates, engrave plaques and privilege parking are considered excellent motivators to increase performance. It is important that management and employees are in agreement when establishing and documenting a group of performance standards that best describes the organization needs. By implementing those changes, employee’s negative perception and mistrust about the system will decrease; therefore, employee’s willingness to act upon those standards will increase (WorldatWork, pg.314).
3. How might these changes be implemented?
Utley management should start communicating to its employees about the new changes in the pay for performance plan. Non union employees and management should be in agreement with the changes and they must provide details of the plan to union elements so they can disseminate to their union members. It is important for management to assure employees about the standards that will be rewarded on the pay for performance plan. For instance, performance appraisal process will be flexible and credible. It will also be used to reward desired behavior, productivity and future promotions within the organization. Employees would have the chance to express their disagreement about performance ratings and received timely responses from management. Management should also seek support from the union so pay for performance plan can be perceived as fair and consistent by the workforce. Finally, incentive bonuses can be implemented at the end of the year after all...