Question

1. What are some problems with Precision's performance appraisal process that might cause challenges for Jackson to implement a merit pay program?

Answer 1

Merit pay is defined as a raise in pay based on a set of criteria set by the employer.

When considering Precision’s situation, there are a few problems with their performance appraisal process that might cause Jackson some issues when he attempts to implement a new merit pay program. Jackson may encounter is that the employees do not have defined job descriptions and the expectations of the employees are not clearly outlined by upper management. This will be challenging when implementing a merit pay program because job descriptions are a product of job analyses. Performing a job analysis is essential for the development of content-valid performance appraisal systems which displays connections between the measureable factors upon which the employee is being appraised and the job itself.

Precision’s performance appraisal process is that employees and supervisors communicate very little about performance.

The reviews that they are getting now are average and they don’t seem to encourage the employees to do better. The supervisors don’t seem to encourage their employees; they only address them if they are having issues with performance.