Question

Q.1 Below is your assignment for this subject. Please read the brief and instructions thoroughly. You are required to identify one specific performance management issue and one compensation management issue in your organisation or an organisation that you are familiar with. Your task is to write a report that includes the following: • A brief description of the organisation, the performance management issue and the compensation management issue. It is highly desirable if the two issues are linked. This happens in most cases as many remuneration incentives are dependent on achieving performance objectives. • An analysis of the performance management issue and an analysis of the compensation management issue. Describe the two issues using relevant performance and compensation management concepts. Explain in detail why the issues need to be improved in the organisation. You have to justify the need to change the current practices. You could include in your analysis, a comparison of practice in your own organisation with industry best practice or with practice in another organisation. • An explanation of what could be done to bring about improvement. Write a set of recommendations that contribute to improvement and change. Explain and justify what could be done to bring about improvement and the benefits your organisation will achieve when this is done. The recommendations should follow logically from the analysis above.

Answer 1

Company background- The organization referred in this report is a multinational publishing firm specializing in publication of scholarly journals and articles. The company has about 1300 journals and has about 700 employees. The multinational firm has many locations globally.

Performance measurement- An annual performance appraisal is provided to employees. The employees need to update the performance appraisal criteria in the intranet. Once the performance appraisal is completed, the team manager approves the rating and feedback in the intranet employee portal.

Performance management issue- Unequal Reviews. This was a major concern for the employees. The employees felt that the rating was biased and their performance is more than what they are being rated. The employees are provided this rating based on the team manager’s decision. The team manager reviews all the evidence the employee has uploaded in the employee portal. Only if the evidence of proof that the employee has contributed significantly to improve the efficiency of the business, does she/he provide a good rating for the employee. Though employees work hard, there are concerns that their work is not recognized and they are provided unequal reviews.

Compensation management issue- Lacks a good compensation system. The company provides annual bonuses based on the rating. The higher the rating, higher would be the bonus. Since there are concerns that the employees are not rated equally and fairly, the employees are not satisfied with the current compensation provided to them. Some employees who strive hard and work over time are awarded fewer bonuses than others. This lowers the morale of the employees thus leading to high attrition rate.

Cause for improving the performance and compensation management system- It is pertinent that the organization overcomes these issues by creating good strategies regarding the two factors. The company needs to first understand the employees’ concerns. The employees need to be content to have a harmonious and productive workplace. A good compensation is required to retain employees and increase the job satisfaction level of the employees.

Steps for improvement- If the employee feels that he/she is not being rated properly, a second level of rating should be done to have a fair rating system in the organization. Then, the employees would be equally satisfied if they are awarded a good compensation package to the rating offered to them to which they have accepted. Satisfied employees would significantly contribute to the growth of the company.

Recommendations – I strongly recommend the firm to have industry standards in incentives and use the competitor’s competency framework as the basis for their new rating system. This would remove all unfair practices in the organization.

Conclusion- Thus, it is pertinent to say that both performance and compensation management issues are interlinked and it is essential for the organization to remove all the inefficiencies in the process to reward the employees with the incentives that they deserve.

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