Reference no: EM132609573

You're a software development manager for a multi-national organization.

The organization prides itself in caring for its employees by providing them health care facilities and yearly performance-based bonuses and increments. The performance management procedure is 360-degree appraisal system. The organization have a performance management scale of 1-4 (1 being the best and 4 being the worst) and rewards are as follow,

I. For employees with rating 1, the pay bonus is 2x their current salary plus an increment of 20% in salary.
II. For employees with rating 2, the pay bonus is 1.5x their current salary plus an increment of 15% in salary.
III. For employees with rating 3, the pay bonus is 1x their current salary plus an increment of 10% in salary.
IV. For employees with rating 4, the pay bonus is 0.2x their current salary and no increment. And they're at risk of losing their job if performance stays same for next 3 months.

Questions:

a. Considering the equity theory, if the employees with same rating receive different rewards (higher or lower) what impact will it have on their performance?

b. If your team member has received a performance rating of 4 and is at the brink of losing his/her job, what measure you can take to motivate him/her to perform better?

c. Do you think such performance management scales are important for justifying rewards and procedures? Also, explain the 360-degree appraisal system considering its benefits and drawbacks.

d. Do you think the reward system of this organization attractive and will keep you motivated?