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PERFORMANCE MANAGEMENT, REWARD & LEGAL ISSUES - Coggle Diagram
PERFORMANCE MANAGEMENT, REWARD & LEGAL ISSUES
LEGAL ISSUES
TRADITIONAL & CONTINGENT PAY (CP)
Definition
A traditional approach
in implement reward system is to reward employees for the positions they fill as indicated by their job descriptions and not necessarily by how they do their work.
Traditional Pay
salary increase: position & seniority
Contingent Pay
salary increase: Job Performance
Reason for introducing CP / Benefits
1) Performance Management is more effective when rewards are tied to results.
2) supervisors & employees are better able to understand what really matters
3) CP plans project good corporate image.
Possible Problems Associated with CP
1) Poor performance management system is in place:
Poorly designed , poorly implemented PMS, bias rating.
2) Rewarding counterproductive behavior ( rewarding a while hoping for b)
: When the system rewards results and behavior that are not those that will help the organization succeed.
3) Reward is not significant considered:
Pay increases and other rewards so small that they don't differentiate between outstanding & performance
4) Manager are not accountable:
Managers are not accountable regarding how they handle the performance & the performance evaluation of their employees.
5) There exists extrinsic motivation at the expense of intrinsic motivation:
There is so much emphasize on rewards. Employees may start to lose interest \in their jobs, which is in turn can decreased motivation.
1 more item...
Issues to consider (CP)
b) Strategic direction in organization
a) Culture Organization
REWARD SYSTEM