Concerning employment practices in general, the order not only strictly prohibited discrimination in hiring, but it also entered into the lexicon the now commonplace idea of Equal Opportunity Employment and established the premise of Affirmative Action. In doing so, this order would also explicit the prohibition of discriminatory treatment of employees once hired, seeming to build a legal case for those who would argue that a compensation system demonstrates elements of individual discrimination.
6. Explain the sorts of errors that can arise in the performance appraisal process.
The quality of an organization's project will only be as good as the performances which are dedicated to its completion. Thus, it is central that proper oversight and leadership acknowledge individual and group performance markers in order to properly interpret the ongoing effectiveness of meeting a project's goals.
A crucial and preemptive approach to ensuring that project contributors are meeting expectations is to provide in advance all such contributors with benchmarks of achievement. This way, individuals are made aware of concrete and easily definable responsibilities. "The importance of establishing baseline measurement" is both instrumental to maintaining a gauge for performance quality and to ensuring that project contributors know how to read and respond to this gauge.
TSG, 1) Indeed, one of the most likely shortcomings in a performance evaluation process is the failure of organizational leaders to properly arm employees with the knowledge required to meet expectations. Here, we find that clarity becomes a key to success in both encouraging and gaining desired employee performances.
It is also important to tailor evaluation strategies to individual strengths and abilities. As such, proper performance monitoring will be stimulated by close interaction between management and those under consideration, with a project's advancement hinging on proper exploitation of talents and virtues. The breakdown in rapport between leadership and personnel is a critical factor which might derail the real value of conducting performance assessments. This can lead to critical errors in comprehending that which a person is or is not contributing to the organization's overarching goals and objectives.
7. Summarize some possible limitations of merit pay programs.
The single greatest conflict in the execution of a merit pay program is the demand which it implies for excess compensation resources which can be used to differentiate the pay raises entitled to those meeting performance-excellence standards and those who are simply entitled to the average compensation increase that is standard. The result is that in many organizations where compensation resources are limited, it becomes very difficult to implement this strategy with any real nuance.
Particularly, employers run into a danger of failing to create a significant enough numerically gap between that which is offered the 'average' performer and that which is given to the performer whose merits have warranted a meaningful compensatory increase. On the flip side of this coin, the idea of failing to offer compensatory increases even to those who are not merit-based performers will provoke a danger of negatively impacting morale and leading to high levels of employee turnover. It becomes extremely challenging for the organization then to simultaneously offer motivations for performing to a standard of excellence while ensuring that all members of an organization are compensated fairly and competitively.
The ultimately outcome of this condition, therefore, is a circumstance where merit pay tends to lose much of its meaning while at the same time risking the alienation of the average performer. This means that such an approach to compensation should probably be reserved for those companies that are possessed in the resources to execute it without these limitations.
8. Explain five key factors HR professionals and line managers should consider when designing an incentive pay plan.
An incentive pay plan will only succeed if executed with the most sensible of implementation processes. First and foremost, HR professionals should be aware of the resources which are available for distribution. The financial standing of the organization will be a key to defining the nature of an incentive-based plan. Two other key factors are the degree to which an incentive pay system is planned within the context of existing organizational goals and the effectiveness and clarity with which this system is explained and justified to personnel. To the point, research denotes that "strategic communication and implementation of a plan can help increase the overall effectiveness of the compensation and business strategy." (Chingos, 275) fourth consideration is the factor of the organization's actual standing within the marketplace. Such external matters as the state of the economy, the public...
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