Human Resource Managemnt Essay

Words: 1008
Pages: 5

Human Resource Management

Application case
Inserting the team concept into compensation -or not?

1. Does the pay- for- performance plan seem like a good idea? Why or why not?
I believe that pay for performance plan is not a good idea, first of all this may improve the performance of workers but at the same time it might create a competition culture within the organization. And the new culture that was implemented was team culture, which is expressed in the phrase “Excellence Together”. I believe that the team based pay for performance would be a contradicting the culture of the organization. Yes the workers would perform there jobs better at a certain level but the team spirit would be absent. The employees would compete with
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Sandy should have approached this with more calm and not showing that he is rushing through the decisions. This change might have had employees thinking many negative things. When employees are not happy with their pay and compensation they don’t give as much as they could give because they feel as the employer does not appreciate the skills and abilities that the worker gives to the organization. One thing that Sandy should have in mind is that employees are very important to organizations because they are the people that make everyday sales possible, they make up the excellent or bad organization.

4. Assuming the new pay plan were eventually accepted, how would you address the fact that in the new performance evaluation system, employees’ input affect their peers’ pay level?
Performance evaluation is obtained from supervisors, subordinates, peers, internal and external customers. First of all there would be too many people involved in this decision because people can have different opinions bout one person. Judgment might be made with little information, for example the supervisor might give his opinion on the worker based on two weeks of observation, and not the total amount of time the employee should have been observed doing the job. Subordinates could say good thing about the supervisors because they could feel threatened by the supervisor. The information gathered from all these persons could be