1

Fundamentals of Public Administration

MPA - 406

FACILITATORProf. Dr. Mohammad Majid Mahmood

Lecture – 22

Reflections

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MANAGING POOR PERFORMANCE

Specify the Improvement required

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MANAGING POOR PERFORMANCE

Be Supportive

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MANAGING POOR PERFORMANCE

Keep Records

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MANAGING POOR PERFORMANCE

Schedule a Follow Up Meeting

7

MANAGING POOR PERFORMANCE

Provide Training, Support, Coaching, etc

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MANAGING POOR PERFORMANCE

Consideration of Alternative Action before Dismissal

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DEAL WITH PROBLEMS PROMPTLY

Otherwise:

The poor performers can reasonably assume their performance is acceptable

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DEAL WITH PROBLEMS PROMPTLY

Otherwise:

Others may become de-motivated and stressed

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DEAL WITH PROBLEMS PROMPTLY

Otherwise:

The problem behaviour will become a habit

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DEAL WITH PROBLEMS PROMPTLY

Otherwise:

A precedent may be set

13

DEAL WITH PROBLEMS PROMPTLY

Otherwise:

Your credibility may be damaged

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• A well-designed performance management system supports an integrated human resource strategy which enables the attainment of organizational and individual goals

Performance Management

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Compensation Management

Compensation Management

Compensation Management is the process of developing, implementing, maintaining, communicating & evaluating the remuneration in order to get ,motivate & retain the competent employees.

-Stephen P. Robbins

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Compensation Management - Meaning

• It is one of the functions of administration that deals with every type of reward individuals receive in exchange for performing organizational tasks.

• It is an exchange relationship.

-Stephen P. Robbins

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Compensation should be…

Equitable-Patton

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Compensation should be…

Balanced

-Patton

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Compensation should be…

Cost- Effective

-Patton

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Compensation should be…

Secure-Patton

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Compensation should be…

Incentive- providing-Patton

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Compensation should be…

Acceptable to the Employee-Patton

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Non financial rewardsNon financial rewards

Financial rewards Financial rewards Types ofTypes of

CompensationCompensationTypes ofTypes of

CompensationCompensation

Employee Compensation and Benefits

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Compensation Management - Types

– Financial• Direct (Wages, salaries, bonuses, commissions)• Indirect ( Vacation, insurance, childcare

services)

-Stephen P. Robbins

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Non Financial

Enhance dignity & satisfaction from work

Compensation Management - Types

-Stephen P. Robbins

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Non Financial

Constructive social relationships

Compensation Management - Types

-Stephen P. Robbins

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Non Financial

Allocation of sufficient resources

Compensation Management - Types

-Stephen P. Robbins

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Non Financial

Offer supportive leadership

Compensation Management - Types

-Stephen P. Robbins

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Non Financial

Enhance physiological health, intellectual growth

Compensation Management - Types

-Stephen P. Robbins

31

Purposes of Compensation

Motivate &

Retain Staff

Attract Talent

Contribution based Remuneration

Administratively Efficient

Reward Valued Behavior

Effective Compensation

Ensure Equity

-Stephen P. Robbins32

Relationship Between Pay, Equity & Motivation

INEQUITY(feelings of being Underpaid)

EQUITY(Feeling of being paid fairly

INEQUITY(Feelings of being Overpaid)

My Input/Output Ratio

My Input/Output Ratio

ComparisonPerson’s

Input/outputratio

My Input/Output Ratio

ComparisonPerson’s

Input/outputratio

ComparisonPerson’sInput/outputratio

-Harold Koontz33

Aspects of Compensation Planning

Linking Compensation to Organizational Objectives

-Harold Koontz

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Aspects of Compensation Planning

Pay-for- Performance Standard

-Harold Koontz

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Aspects of Compensation Planning

Motivating Employees through Compensation

-Harold Koontz

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Components of Compensation

Wages – wages is the remuneration given periodically for the services of labor in the process of production

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Components of Compensation

Salary is the remuneration paid monthly or yearly basis to the office staff.

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Components of Compensation

Incentives– Payments by results. Are paid with salary for extra productivity.

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Components of Compensation

Fringe benefits– extra benefits provided to the employees e.g. medical care, etc

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Components of Compensation

Perquisites are the indirect benefits generally allowed to executives such as furnished homes, stock options, club membership etc

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INTERNAL FACTORS

Compensation strategy of organization

Worth of job

Employee’s relative worth

Employer’s ability to pay

EXTERNAL FACTORS

Conditions of the labor market

Area wage rates

Cost of living

Collective bargaining

Legal requirements

WAGEMIX

Factors Effecting Compensation Policy

-Patton42

Conclusion

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FACILITATOR

Prof. Dr. Mohammad Majid Mahmood 44