Employee Performance Management
Fixation of compensation or wage rates for different categories of employees in a company is an important task of management. The employees are not only concerned with the wages received but also concerned with the level wages received by same level of employees in similar organizations. Hence wage structure may be considered very important. The relative wage-rules must be fixed carefully, because they have implications for promotion, transfer, seniority and other important personnel matters.
Wage plan should possess certain fundamental characteristics if the long term interests of the worker, management and the consumer are to be served. The wage plan must be linked with the productivity of the workers. Unless higher pay scales of workers are linked in some way to the productivity of workers, a wage plan will not be fair either to the management or to the consumers.
Basic wage for each job classification should be related to skill job requirements of job. Due consideration should be given to such factors as skill, length of time required in learning, versatility required and working conditions. In all fairness to management, the plan should usually result in a reduction of unit cost of manufacture, making possible lower prices and higher profits.
In all fairness to the consumers a share of higher efficiency should be passed on to them by way of lower price. This will be possible when there is reduction in cost due to higher efficiency. Thus the wage plan must ensure that all participate share the gains of higher productivity. The wage plan should include an incentive system for the efficient workers. The system should ensure higher pay to the workers who perform work at higher level of efficiency. The wage plan should guarantee minimum wage to protect the interest of workers against conditions over which they have no control.
Employee Performance Reviews – Dealing With Disagreements
Most of the time, you have a reasonably good understanding of the areas where disagreements are likely to pop up in the course of the performance review discussion
What do you do when an employee disagrees with something you’ve written on their performance review? How can you prepare for this and deal with it effectively?
Start by listening to figure out the source of the disagreement. Is it an issue of fact (you wrote that the employee received a customer satisfaction score of 79 but the employee says that his score was actually 83), or is a matter of judgment (you wrote that the employee’s customer service skills were unsatisfactory; she feels that her skills are terrific)? If the disagreement involves an issue of fact, get the facts and make any corrections necessary. If it’s a matter of judgment, ask the employee for additional evidence. Then determine whether that evidence is weighty enough to cause you to change your mind, revise your judgment, and amend the rating that you assigned on the employee’s performance review.
Most of the time, you have a reasonably good understanding of the areas where disagreements are likely to pop up in the course of the performance review discussion. Before beginning the discussion, re-read the review you wrote and try to spot the areas where you and the individual may not seem eye-to-eye. Then ask yourself, What am I going to say when George disagrees with my assessment that his performance on the Thompson project just barely met expectations? If you’ve taken to time to review the appraisal you’ve written for potential hot spots, and given some thought to how you’ll respond, you’re much less likely to be caught off guard.
During the employee performance review discussion, start with your higher ratings and move toward the lower ones. Be prepared to give additional examples besides the ones you’ve included on the formal written appraisal. Refer back to the informal conversations you have had with the individual over the course of the year.
Of course, if you haven’t had on-going, informal performance review discussions with the individual over the course of the appraisal period, then it’s much more likely that disagreements will surface during the review. That’s one more reason for scheduling periodic, How’s it going? discussions with each person on your team.
As soon as a disagreement pops up, switch into active listening mode. Active listening involves allowing the other person to clarify both the facts and feelings about an issue so there’s nothing left under the surface. For example, using phrases as simple as, Tell me more . . . or, What else can you share with me about that . . . ? or, Really . . . ? can encourage people to talk more about their perceptions. Simply nodding without saying anything encourages people to expand on what they have said. It’s not at all unlikely that the employee, allowed a sufficient chance to think aloud about what you have written, will end up saying, Yeah, I guess I see what you mean.
In dealing effectively with employee performance review disagreements, remember what your objective in the discussion is and what it isn’t. Your objective in a performance review discussion is not to gain agreement. It is to gain understanding. If the employee agrees with you, that’s great. But particularly if your appraisal is a tough-minded assessment of the fact the Charlie’s contribution toward achieving your department’s objectives was only mediocre, you’ll probably never get him to agree. That’s OK. What you want is for him to understand why you evaluated his performance the way you did, even if his personal opinion is different.
Finally, if you have several employee performance reviews to deliver, don’t start with the individual whose performance was the worst and where disagreements are the most likely to arise. Start with the easiest your best performer and move toward the more difficult. In this way, you’ll build your skills and become more comfortable with the performance review process. Remember the advice that John Dillinger, the 1930’s public-enemy #1, once provided: Before you rob your first bank, knock off a couple of gas stations.
Employee Recognition Awards Create Progress
In difficult situations, when companies are in crisis and can only be saved by major effort, group morale often rises to far higher levels than before. Individual objections and objectives are bypassed in the collective drive to do what must be done. This is where recognition awards take its importance. High group morale can enrich individual motivation and performance remarkably!
I. Planned Awards:
1. Recognition Awards
On its basic concept, recognition awards are effective ways of increasing and boosting a person’s morale. It encourages them to accept of and have a desire for change at all times. The change they will make is not entirely for the advantage of the company but to his or her own personal achievement as well. Basically, the common recognition awards given to an employee are based on the three categories of recognition. These can be planned, immediate, or formal. If a recognition award is set on a formal approach, the award should focus more on the employee’s exceptional contribution to the organization for a given year. Some of the examples of formal recognition awards are:
2. Employee Service Award
This may refer to the remarkable service extended out by an employee. This means that he or she had taken responsibility of not only doing their assigned task but were able to complete other work that made the entire organization benefit from it.
3. Customer Relations Employee Awards
This is to recognize people who constantly make effort in reaching out to the company’s most important asset the customers. And by merely providing them with exceptional customer service is good enough in such a way that the company is too grateful to just take it for granted.
4. Retiree Recognition Award
This goes out to employees who gave almost half of their life serving the company, providing exceptional service, and undivided loyalty throughout the service period. On the other hand, if the recognition award is planned, meaning giving out these kinds of recognition awards are pre-set and the frequency of conducting them is on a routine basis, then it should be focused on simply recognizing an employees simple yet notable achievements or manifests a good area for advancement.
5. Employee of the Month
This is given to employees who where noted to have done outstanding performance in a given month. This type of recognition award usually boosts the person’s morale in terms of emotional satisfaction and personal fulfilment. This, in turn, encourages and motivates them that if their colleague was able to achieve it, so can they.
6. Best in Attendance
In order to motivate people to come to work on time and avoid habitual absences, this type of recognition award should be given. This, in turn, reflects the company’s value for the employee’s presence, that a day or even a fraction of missed work is detrimental to the entire organization’s development.
7. Best in Customer Service
This type of recognition award is given to those who have exceptionally rendered customer service to their clients, thereby, motivating more people to opt for their services because of the kind of satisfaction they will get from the organization’s staff. In many cases, it is usually the customer service that keeps people from coming back to the company. And so, if carried out well by an employee, it is just right to acknowledge it. And last, if the recognition is based on immediate recognition, the recognition awards should reflect the urgent need to take note of a person’s commendable completion of a given task, in which, when done by anyone else may not have resulted as well.
II. Unplanned Awards:
1. Teamwork Effort
This type of recognition award is given to a group whose outstanding performance had contributed to the company’s growth.
2. A special project award
This refers to the immediate completion of a special project which reaped good results. This recognition award is effective in motivating people that the earlier they complete their work at the same time maintain the quality of output, they will be rewarded.
3. A simple employee appreciation
This type of recognition award is a simple way of uplifting the confidence and drive of the employee to continue and keep up the good work. The bottom line is that, if a company knows how to take car of its people by giving recognition award, the employees will take good care of the company in return.