Question

*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.

VERY URGENT
KINDLU ANSWER ASAP....

Answer 1

The organization that would be discussed in this post is my former employer, a multinational publishing company. The company publishes scholarly journals and articles and has several locations across the globe.

The global journals department had about 700 employees in our site. The company had several compensation and performance management issues.

The company provides an annual bonus based on the rating received by the employee for his/her performance. The Team Managers conduct annual performance appraisals to their team members to give feedback for their employees. The employees are rated on a scale of 1-5. Before the performance appraisal starts, the employees are required to update an intranet about their performance in that particular year. The employees are to choose a rating and defend their choice with evidence. For example, they need to show proof for process improvements to enhance the efficiency of the business. Then, the Team Managers would provide a final rating to their team members based on the justification. The employees are provided positive feedback for motivating them, advice on career development and negative feedback to improve on specific areas.

Performance management issues are –

1. Unbalanced reviews- employees felt that their performance was not reviewed in a balanced manner. This lack of balance has led to low morale and high attrition rate in the organization.

2. Lack of support post-feedback- Once the feedback is over, it is pertinent that the managers provide adequate support for their employees to follow-up on the discussed issues, train them, develop opportunities for career growth, etc. However, this was lacking in the organization eventually resulting in lack of focus.

Compensation management issues are-

1. Retention of qualified candidates – The company did not modify its compensation system to retain qualified candidates.

2. Lack of a perfect compensation package- The annual bonus received by the employees was based on the rating system which made most of the employees unhappy. This led to lower morale and increased attrition rate in the company.

It is pertinent that these performance and compensation issues need to be addressed in order to morale of the employees. A highly satisfied employee is more likely to contribute more to the organization’s growth than an employee who is not.

An analysis of industry practice showed that the competitors provided incentives based on their performance and the performance rating was based on mutual agreement between the employees and the respective manager. This participative style of performance rating resulted in happy employees thus increasing the productivity of the organization.

The steps that the organization needs to take to improve the current practice are-

- Satisfaction of employees- job ratings should be made on a mutual understanding between the manager and the employees. An employee is self-aware of his/her performance and would agree upon a fair rating rather than the rating being unfair and biased.

- 360 degree performance appraisal – should be done frequently to assess the efficiency of the managers as it was done rarely. I have had bad experience with working with a bossy manager who made the employees to work according to her style. This feedback to the managers would improve their management style thus improving the performance of the employees.

My recommendations that contribute to improvement and change in the organization are-

                - Career development and growth – the primary focus of the employer should be to support the career development and growth of the employees in their career. This would motivate and retain talented employees in the company.

                - Technological update- The company has been in the publishing industry for 34 years and they have been using only the traditional methods for publishing which is time consuming. This has to be changed to use of more technological updates in the publishing methods to improve the efficiency of the business.

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