Question

Question 4: What are the advantages and disadvantages of including discussions of compensation during a performance management interview?

Answer 1

Ans 4) The Advantages of Compensation Discussion in a Performance Management Interview:

- Small businesses are often equated with small paychecks.
- When the actual performance appraisal meeting occurs on an employee's first anniversary with your company, it's too far down the road to discuss how compensation and performance management are intertwined.

- The advantage of discussing it earlier in the employment relationship is fundamental to both the employer and the employee understanding their respective roles. The employee performs the assigned duties in exchange for the employer honoring its promise to pay for the employee's work.

• Performance Management
- An organization's performance management system begins long before the employee reports for her first day on the job. Performance management starts with discussing the job duties, responsibilities and expectations with candidates during the recruitment and selection process.

- Ideally, a job posting should contain a summary of the job, the qualifications the company is looking for and what the company expects from employees in that particular role.

- Consequently, when a recruiter hands a job applicant the full job description, she's essentially saying, "This is what we expect from the person we hire to fill this position and if you accept this, we can move forward with the selection process."

• Compensation
- Compensation weighs significantly in job performance, whether formally or otherwise. Performance management -- as it starts during the recruitment and selection process -- has elements of compensation within the performance management discussion, because the candidate wouldn't be in the running if the compensation level wasn't somewhere near his expectations.

- Some employers have formal methods of tying compensation to performance, such as in pay-for-performance compensation structures.

- Other employers simply indicate that high performance will position the employee for receiving more generous raises without providing any guarantees.

- Nevertheless, connecting compensation to performance expectations is an ideal way to lay the groundwork for a solid working relationship.

• Compensation and Performance
- The conversation about compensation as it relates to performance matters to the employer, prospective employees and current employees. For current employees, they should know precisely how their performance will be rewarded.

- Workers who aren't certain that high performance will result in corresponding rewards -- such as salary increase, raises and adjustments -- may not be fully engaged employees because there are no guarantees the employer actually values their efforts and accomplishments.

- Prospective employees need to know how they will be rewarded so they can determine if your company is the right fit. The employer must determine how compensation and performance management are connected to develop both a compensation structure and performance management system that benefits the employer as well as employees.

• Job Satisfaction
- While compensation alone isn't one of the top-rated reasons why employees leave their jobs for opportunities elsewhere, the combination of compensation and performance management may affect the way employees interpret how the company values, or devalues, their contributions.

- Employees want to feel their work is valued and appreciated, which is in the top seven reasons why employees leave for other jobs, according to the Saratoga Institute's study of nearly 20,000 exit interviews with employees from 1999 to 2003.

- Among the reasons employees gave for leaving their current positions, three of them have to do with the employee's expectations for guidance, advancement and appreciation.

- A performance management discussion incorporates all of these factors and, thus, they correlate to compensation once an employee gains the knowledge, expertise and confidence in performing to his employer's expectations.

7) The joint commission has a primary requirement for hospitals and related health organizations to have performance management systems.

- This is an accreditation set to ensure health facilities receive financial support and related aspects from Medicare and Medicaid programs.

- The introduction and implementation of performance management systems in health care organizations is an aspect of ensuring they meet the primary federal requirements.

- The performance management systems are health organizations:

standards set by the joint commission, to help health facilities in improving their focus in maintaining and improving the safety of patients, reducing operational costs, solidifying the positions of the health of organizations, increasing their professional recognition, and improving health care facilities access to the necessary resources.

- The general significance of health facilities:

performance management systems is to define and outline the measures necessary to come up with the best health care practices. The systems are effective in improving the safety standards, quality, and national health, as they guarantee the delivery of best care services. Thus, the joint commission functions to assure healthcare organizations have accreditations, offering high-quality care outcomes.