Performance Management Issues
You have been asked to return to your alma mater and speak to current students about performance management issues. To make the most of this experience for yourself and the students, write a three-to-five page paper (not including the title and reference pages) to help you prepare. Your paper should be written in a scholarly third-person tone; it should be in APA format. In addition to the introduction and conclusion, your paper should address the following:
Explain the concept of performance management.
Identify the most prominent types of performance management plans.
Compare the plans impact on the employee and the organization.
Discuss the relationship between performance management and compensation.
Evaluate the factors that should be considered when successfully implementing performance management within an organization.
In addition to the text, cite at least two scholarly references to support your discussion.
Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.
Please review the Incentive Pay (Links to an external site.) video which will provide an overview of incentive pay plans for employees.
In Week 2, this course will discuss the uses of incentive pay plans including the pros and cons of the various employee pay plans. This week will also discuss the relationship between performance management and compensation.
Employee incentive compensation programs grew from the philosophy that employees will be driven by rewards. As a result, organizations use incentive compensation programs to produce their targeted results. Organizations reward employees who produce. Organizations need to improve or keep employee motivation and the key is finding out what employees want and value as incentives. There are a variety of incentive pay plans. A few such plans are discretionary bonus plans, annual pay increase plan, profit sharing, retention bonusses and project-based bonus. A common compensation plan is based on the employees seniority and hence called seniority pay. An employee under this plan receives compensation due to the length of time he/she has been with the organization or tenure with the organization. Many times, this type of plan is found in unionized workforces, however it can be found in many different types of organizations as well. The one issue with this type of plan is the increase in compensation may not be appropriate, especially if the employee is not performing and as a result, it may have a negative impact on the organization. The employee may have an expectation of an increase regardless of performance or organizational productivity. If the organization doesnt produce, the employee will expect an increase regardless. Another incentive plan is the merit plan where employees are paid based on past performance usually during a specific period. The merit plan pays employees for meeting standards or performance goals and can be utilized in conjunction with annual performance evaluations. For this type of pay plan to work, the organization needs to set goals that are obtainable and realistic. Some organizations utilize SMART goals. SMART goals are goals that are set that are specific, measurable, attainable, relevant and time framed. Additionally, employees need to be made aware of the terms of the merit pay plan so they know how and when to reach their goals. Goals should be aligned with the organizational mission, vision and guiding principles. Merit pay programs are not appropriate for all companies and for the plan to be successful, top management must agree to reward the top performers with meaningful pay differentials that match the levels of the employee performance (Martocchio, 2017). Another incentive plan is the person-centered pay which is a plan that rewards employees for acquiring job related knowledge, skills or competencies (Martocchio, 2017). The person-centered play plan is not based on job performance. This plan is a means of rewarding employees for their actions acquiring skills. Furthermore, person-centered pay rewards employees for the promise of performance in the future based on the employee acquiring certain job-related skill sets.
As with most strategies and plans, there will be pros and cons. The advantages of an employee incentive plan are that it can motivate employees to be more productive and reduce turnover by creating loyalty. It can also reward employee performance. However, a disadvantage is that it could cause employee competition along with resentment among the employees. Students need to keep in mind that there is not a single incentive plan that will be appropriate for all employees within in an organization since employees may be motivated by different methods. Many times, an organization will use various compensation plans to achieve their organizational goals. The design and implementation of the compensation plans need to be most effective for the organization and the employee.
Please review the Incentive Pay (Links to an external site.) video which will provide an overview of incentive pay plans for employees.
References
Gregg Learning. (2016). Incentive pay (Links to an external site.) [Video file]. Retrieved from https://www.youtube.com/watch?v=cr5IdfWUpxc
Martocchio, J. (2017). Strategic compensation: A human resource management approach (9th ed.). New York, New York: Pearson.
grading rubric:
Explains The Concept of Performance Management
Total: 1.00
Distinguished – Thoroughly and accurately explains the concept of performance management.
Proficient – Explains the concept of performance management. Minor details are missing or inaccurate.
Basic – Somewhat explains the concept of performance management. Relevant details are missing and/or inaccurate.
Below Expectations – Attempts to explain the concept of performance management; however, significant details are missing and/or inaccurate.
Non-Performance – The explanation of the concept of performance management is either nonexistent or lacks the components described in the assignment instructions.
Identifies the Most Prominent Types of Performance Management Plans
Total: 1.00
Distinguished – Accurately identifies the most prominent types of performance management.
Proficient – Accurately identifies many of the most prominent types of performance management.
Basic – Accurately identifies some of the most prominent types of performance management.
Below Expectations – Accurately identifies few of the most prominent types of performance management.
Non-Performance – The identification of the most prominent types of performance management plans is either nonexistent or lacks the components described in the assignment instructions.
Compares the Performance Management Plans Impact On the Employee and the Organization
Total: 1.25
Distinguished – Fully and accurately compares how performance management plans impact employees and organizations.
Proficient – Compares how performance management plans impact employees and organizations. Minor details are missing or inaccurate.
Basic – Somewhat compares how performance management plans impact employees and organizations. Relevant details are missing and/or inaccurate.
Below Expectations – Attempts to compare how performance management plans impact employees and organizations; however, significant details are missing and/or inaccurate.
Non-Performance – The comparison of how performance management plans impact employees and organizations is either nonexistent or lacks the components described in the assignment instructions.
Discusses the Relationship Between Performance Management and Compensation
Total: 1.25
Distinguished – Thoroughly and accurately discusses the relationship between performance management and compensation within organizations.
Proficient – Discusses the relationship between performance management and compensation within organizations. Minor details are missing.
Basic – Somewhat discusses the relationship between performance management and compensation within organizations. Relevant details are missing and/or inaccurate.
Below Expectations – Attempts to discuss the relationship between performance management and compensation within organizations; however, significant details are missing and/or inaccurate.
Non-Performance – The discussion of the relationship between performance management and compensation within organizations is either nonexistent or lacks the components described in the assignment instructions.
Evaluates the Factors That Should Be Considered When Successfully Implementing Performance Management Within an Organization
Total: 1.50
Distinguished – Thoroughly and accurately evaluates the factors to consider when successfully implementing performance management within an organization. Utilizes scholarly sources to support the evaluation.
Proficient – Evaluates the factors to consider when successfully implementing performance management within an organization. Utilizes scholarly sources to support the evaluation. Minor details are missing or inaccurate.
Basic – Partially evaluates the factors to consider when successfully implementing performance management within an organization. Somewhat utilizes scholarly sources to support the evaluation. Relevant details are missing and/or inaccurate.
Below Expectations – Attempts to evaluate the factors to consider when successfully implementing performance management within an organization; however, does not sufficiently utilize scholarly sources to support the evaluation and significant details are missing and/or inaccurate.
Non-Performance – The evaluation of factors to consider when successfully implementing performance management within an organization is either nonexistent or lacks the components described in the assignment instructions.
Written Communication: Control of Syntax and Mechanics
Total: 0.25
Distinguished – Displays meticulous comprehension and organization of syntax and mechanics, such as spelling and grammar. Written work contains no errors and is very easy to understand.
Proficient – Displays comprehension and organization of syntax and mechanics, such as spelling and grammar. Written work contains only a few minor errors and is mostly easy to understand.
Basic – Displays basic comprehension of syntax and mechanics, such as spelling and grammar. Written work contains a few errors which may slightly distract the reader.
Below Expectations – Fails to display basic comprehension of syntax or mechanics, such as spelling and grammar. Written work contains major errors which distract the reader.
Non-Performance – The assignment is either nonexistent or lacks the components described in the instructions.
Written Communication: APA Formatting
Total: 0.25
Distinguished – Accurately uses APA formatting consistently throughout the paper, title page, and reference page.
Proficient – Exhibits APA formatting throughout the paper. However, layout contains a few minor errors.
Basic – Exhibits limited knowledge of APA formatting throughout the paper. However, layout does not meet all APA requirements.
Below Expectations – Fails to exhibit basic knowledge of APA formatting. There are frequent errors, making the layout difficult to distinguish as APA.
Non-Performance – The assignment is either nonexistent or lacks the components described in the instructions.
Written Communication: Page Requirement
Total: 0.25
Distinguished – The length of the paper is equivalent to the required number of correctly formatted pages.
Proficient – The length of the paper is nearly equivalent to the required number of correctly formatted pages.
Basic – The length of the paper is equivalent to at least three quarters of the required number of correctly formatted pages.
Below Expectations – The length of the paper is equivalent to at least one half of the required number of correctly formatted pages.
Non-Performance – The assignment is either nonexistent or lacks the components described in the instructions.
Written Communication: Resource Requirement
Total: 0.25
Distinguished – Uses more than the required number of scholarly sources, providing compelling evidence to support ideas. All sources on the reference page are used and cited correctly within the body of the assignment.
Proficient – Uses the required number of scholarly sources to support ideas. All sources on the reference page are used and cited correctly within the body of the assignment.
Basic – Uses less than the required number of sources to support ideas. Some sources may not be scholarly. Most sources on the reference page are used within the body of the assignment. Citations may not be formatted correctly.
Below Expectations – Uses an inadequate number of sources that provide little or no support for ideas. Sources used may not be scholarly. Most sources on the reference page are not used within the body of the assignment. Citations are not formatted correctly.
Non-Performance – The assignment is either nonexistent or lacks the components described in the instructions.
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