Reference no: EM133044971
Performance-related Pay
Rewards must help organisations attract and retain employees; they must make high performance an attractive option for employees; they must encourage employees to build new skills and gradually foster commitment to the organisation. (Milkovich et al; p.327)
Recently, two articles from The Straits Times provided some highlights on performance-related pay:
- Civil servants to get 0.8-month bonus:
Singapore civil servants will get a year-end bonus of 0.8 month this year amid a slowing economy, with lower wage officers receiving a minimum payout of $1 200. These are down from the figures last year, when civil servants received a year-end bonus of 1.1 months and lower wage workers got at least $1 600.
- (ii) Rise in Asia's wages outpaces rest of the world:
Annual average incomes rose 6 per cent in the region, compared to a global average growth of 2 per cent last year. Wages in China rose up to 9 percent. Average wages in developed countries have grown only 0.4 per cent.
During the performance appraisal exercise, trained performance appraisal raters measure the performance achieved by the employee fairly. The common errors in appraising performance affect criterion contamination (that is, allowing non-performance factors to affect performance scores). Inaccurate performance appraisal ratings from errors like, halo error, leniency, and central tendency will affect the issue of pay-for-performance.
Pay-for-performance plans sort out those who perform and those who are below average performers.
1 (a) Explain the concept of pay grades, pay ranges and broadbanding. Present the explanation with one challenge and one usefulness of each of the plan.
1 (b) Describe the different pay-for-performance plans that are accepted in the following performance appraisal format:
- Behaviourally anchored rating scales format
- Management by objectives format
1 (c) Senior Human Resource Executives current annual salary range is between $40 000 and $50 000. Recent wage recommendations proposed an increase of between five percent and ten percent for average performers.
Syaza has been an above average performer for the last five years. Furthermore, she will be graduating from UniSIM with Bachelor of Human Resource Management in Year 2015. She has been informed that she will be promoted to "Regional HR Manager" in mid-2015.
- Define mean and quartile concept.
- Define market pricing.
- Examine two (2) employer factors and two (2) employee factors that has influence on Syaza's benefit entitlement as "Regional HR Manager."
NOTE: Kindly do NOT provide answers in point forms
Cite any reference used for your answers
REFERENCE: Gerhart, B., & Newman, J. M. (2020). Compensation (13th ed.). McGraw-Hill.