Assignment #2 Henderson Printing

docx

School

Lambton College *

*We aren’t endorsed by this school

Course

2004

Subject

Management

Date

Apr 3, 2024

Type

docx

Pages

Uploaded by GrandTurkey3645

ASSIGNMENT #2 HENDERSON PRINTING 2024W POD_2004_1: TOTAL REWARDS Submitted by: Cheryl Anne Chaves (C0905144) Timyas Del Mundo (C0903112) Kathryn George (C0905907) Mary Jane Husayan (C0901218) Nikka Lorenz Lucero (C0920089) Harmanpreet Singh (C0902314) Submitted to: Ms. Nancy Wilson March 19, 2024

2 1. "Henderson Printing" in the Appendix currently has no formal performance appraisal system. The CEO, Georgette Henderson, thinks that a performance appraisal system might be useful, and she has hired you to assess the company and recommend whether to implement one. She also wants to know whether she should link pay to the appraisals. She expects your report to include the pros and cons of each idea, along with a detailed justification for your recommendations. Based on the narrative above and the earlier situation of the company’s compensation strategy wise, since there is no formal performance system currently in place, the task or requirement is to assess whether Henderson Printing should implement a performance appraisal system or not. As hired advisors, we would propose the CEO, Georgette Henderson to conduct a reasonable presentation examination structure in the organization. Before planning and executing the new framework or system, it implies that a performance appraisal system is efficient in distinguishing effective from ineffective performers and translating job requirements into levels of acceptable or unacceptable employees. Implementing a performance appraisal system for the company would be a great idea for administrative, symbolic, and developmental reasons. Though implementation would have some disadvantages such as cost and time factors, it would be beneficial to the company in the long run as it will be used to routinely evaluate an employee's productivity, performance and overall value to a business or company. Moreover, a performance evaluation, or also known as an annual review, or employee appraisal, evaluates a worker's skills, accomplishments, contributions, and growth—or lack thereof in the same way gauges areas of improvement, training and development requirements if they need be. Furthermore, a performance appraisal system would help the individuals who are not performing well as per company standard be guided and overall, monitor and assess total performance of the organization. Implementing this system would give employees a strong impression that the company cares about good employee performance and recognizes it, thus both employee and company expectations would meet leading to mutual benefits, for employees and the whole organization.

3 In linking pay to the appraisal system, let us first identify the objective that is meant to be achieved. One is to retain and reward valued employees. We must determine too whether the focus should be on task behavior, membership, or citizen behavior. For these reasons certainly, Henderson Printing can benefit by considering a structured performance appraisal system and linking it to pay and pay increases. These can be done in various methods such as Behaviorally Anchored Rating Scales (BARS), Graphic Rating Scales, and the Ranking and Forced Distribution Method. This would give a firm foundation to the decisions relating to pay, instead of paying by assumptions, spur of the moment, gut feelings, sentimentalities, and apparent random factors, which can result in unnecessary biases and partiality among and between employees. Additionally, it will give more employees the motivation to do better performance. Henderson Printing can do it annually or semi-annually as an option based on the practicality. However, like any other system introduced and new one, there will always be challenges on it. Giving feedback, even constructive ones, may impact employee behavior making them defensive, low morale, and resistance especially if the supervisor or immediate superior is not proficient and not well-skilled on how to implement the performance appraisal system. A climate of trust and open communication should be established with the employees to make the performance appraisal system effective ensuring that it is valid and reliable. In addition, the results must be clearly presented and properly explained to the employees with concrete feedback on what areas they need to improve in their performance. Likewise, informal feedback can be given regularly to continuously provide the employees with ongoing advice on their individual progress and further development. Pay system wise, it can be accomplished through procedural justice which comprises transparency and accountability. Transparency in the sense that any pay decisions are openly communicated to employees while accountability means that supervisors are held accountable for fairly applying the merit pay system. It is very important to have a review and appeal procedure and let employees know they are being heard and treated fairly and equally throughout the process. In conclusion, Henderson Printing can align strategically its company’s goals and objectives by implementing a performance appraisal system, considering the methods to use based on their company’s structure and dynamics, setting up feedback

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4 system and linking it to a pay or merit pay system without compromising their business operational policies, procedures, and outcomes. 2. CEO Henderson has decided to go ahead with a performance appraisal system, and she has decided to link it to merit pay. Impressed with your earlier work for the company (see Question 1), she has hired you to design the performance appraisal system and a merit pay system that will be linked to it. She expects your report to be sufficiently comprehensive that it can serve as the blueprint for implementing these systems . Merit pay is a compensation approach used by employers to reward their top- performing employees. It is an increase in their base salary and/or bonuses based on their performance. It may take the form of a merit increase in salary, bonuses, and/or commissions. Human Resources, Finance and the Management are involved in creating the merit pay system of an organization. They are responsible for implementing, allocating, and communicating the merit pay system to all the employees. Organizations must develop fair and clear guidelines for merit pay that allows feedback and comments to be reviewed. This is created to understand if employees are meeting these performance standards. The schedule can be weekly, monthly, quarterly, bi-annually, or annual check-ins and reviews. Merit pay is usually determined over a period or may be around the fiscal year of the organization. Designing a merit pay system requires the important elements such as realistic and attainable performance goals and indicators, clear evaluation approach, meaningful increase in compensation for deserving employees, and commitment from the senior management. Merit pay also has its advantages and disadvantages. For advantages, merit pay allows recognition of individual performance and it increases the productivity of the employees, especially those who are motivated by incentives. It also improves the retention rates of talents with a high-performance level. Most importantly, it promotes and encourages high-performance standards within the company.

5 However, merit pay also has its disadvantages as it can cause conflicts between the employees, lead to unhealthy competition, and employees developing feelings of jealousy and favoritism from the management. Implementing a successful merit pay system should have following components: 1. Developing the merit pay strategy – As an example, using the average pay of the employee to determine the benchmark using performance scale and aligning the merit pay with the goals of the organization. Examples: Excellent, Good, Satisfactory, Unsatisfactory, Needs Improvement 2. Establishing a comprehensive understanding of the organization objectives for the upcoming year. 3. Formulating guidelines to outline performance expectations and distinguish between poor, satisfactory, and exceptional performances, linking these standards to merit based pay. 4. Developing a merit pay policy, which includes, calculation, merit pay increase timeline, performance standards policy, and structure of rewards. 5. Disseminating the merit pay framework to all employees. Using constant feedback to ensure it is improved each year. In alignment with Henderson Printing, our group has also created the Performance Appraisal Overview, Sample Performance Appraisal Form, and the Merit Pay System that we deem will help CEO Henderson to improve the organization and its processes. The three appendices show an excellent performance appraisal system and merit pay system fit to Henderson Printing and that is expected to lead to higher retention and boost of employee morale, which will eventually lead to long-term organizational productivity and success.

6 APPENDIX 1 PERFORMANCE APPRAISAL OVERVIEW SCHEDULE: during mid-year and year-end STEP 1: Initial Evaluation Talk with Employee -Discuss about Performance Rating Plan with employee -Talk about concerns and do high-level questions -Get the overall feelings and thoughts of the team member STEP 2: Scoring and Assessments -Do performance evaluation form and answer questions STEP 3: Measure Overall Performance Rating Score -Get the overall performance rating, consider all quantitative and qualitative factors STEP 4: Final Performance Evaluation Talk with Employee -Discuss and relay the Final Performance Rating for each employee -Recommend performance improvement or retention plan -Apply applicable merit, bonus, or reward, if applicable

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

7 APPENDIX 2 SAMPLE PERFORMANCE APPRAISAL FORM

8 APPENDIX 3 MERIT PAY SYSTEM List of Rewards Description Percentage Amount Merit Pay - Annual Raises George believes that a good employer should acknowledge and recognize contributions made by employees throughout the year, hence giving annual pay to eligible employees who made exemplary contributions in the company. 10% - Excellent 8% - Good 5% - Satisfactory (based on annual salary) Individual Performance- Based Bonus Additional Bonus that was given by the employees for achieving specific goals. 50% - Excellent 40% - Good 30% - Satisfactory (based on monthly salary) Loyalty Bonus Henderson values Loyalty of the employees of their company. - $2,500 - 5 years $5,000 - 10 years $7,500 - 15 years Year-end bonus Holiday bonus, given every end of the calendar year. - Equivalent to one (1) month salary Employee of the Month Recognition and bonuses are given to employees who not only perform exemplary work, achieve specific goals, but also have no absences or tardiness. - $1,000 with certificates GRADE SCORE RANGE (%) RANK A 95% - 100% Excellent B 88% - 94% Good C 77% - 87% Satisfactory D 60% - 76% Unsatisfactory F 60% - Below Needs Improvement

9 REFERENCES Merit Pay. Academy to innovate HR. https://www.aihr.com/hr-glossary/merit-pay/#:~:text=Merit%20pay%20is%20a %20compensation,salary%2C%20commission%2C%20or%20bonuses .

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Assignment #2 Henderson Printing

Related Documents