Career & Performance Management-Unit 3

8/7/2019 Career & Performance Management-Unit 3

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Career & Performance

Management Sonalee Srivastava,

Lecturer,SMS,Varanasi


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Career PlanningCareer - It is a sequence of separate but related work activities that provides continuity ,order & meaning in a

persons life- Edwin B.Flippo

Career as an individually perceived sequence of attitudes& behaviors associated with work related, experiences &

activities over the span of the persons life- D ouglasT.Hall .


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Career StagesExploration. (mid-twenties-transition from college towork)

Establishment. (career stage one begins to search forwork)Mid-Career Stage. (continuous improvement inperformance, remaining productive at work is amajor challenge of career at this stage)

Late Career. (in which one is no longer learningabout job.)Decline. (person s attention may turn towardsretirement)


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Perform

ance

From collegeTo work

First job&Being

accepted

Will performanceIncrease or

Begin to decline

The elder state person

PreparingFor

retirement

High

Low 25 35 50 60 70

AGE

Exploration Establishment Mid-Career Late Career Decline


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Career PlanningCareer Planning is the deliberateprocess by which one selects careergoals & the path to these goals.Career planning refers to planned andsystemized progression of events and

development in the field of work orvocation of individuals during theemployable periods of their life.


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Objective/Needs of Career

Planning Attract & retain talent by offering careers, not jobs.Use human resources effectively & achievegreater productivity.Reduce employee turnover.

Improve employee morale & motivation.Meet the immediate & future HR needs of theorganization on a timely basis.


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Process/Steps of Career

PlanningI dentifying individual needs & aspirations(what kind of work would suit the employee most)

A nalyzing career opportunities . (org . has to

provide career progression possibilities toemployee)


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Planning

A ligning needs & opportunities (a) identify the potentialof employees & then undertake career development programs with a view to align employee needs &organizational opportunities .

( b) after identifying the potential of employees certain

developmental techniques such as special assignments, planned position rotation, job enrichment ,understudy programs can be undertaken to update employeeknowledge & skills .


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Planning

A ction plans & periodic review ( helps theemployee to know in which direction he ismoving, what changes are likely to takes place,

what kind of skills are needed to face new &emerging organizational challenges)


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Pre-requisites for the success

of career planningOrganization should take steps tominimize career stress.Organization should have fair promotionpolicy.Organization should publicize widely thecareer planning & development programs.


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Organizational career planning

& individual career planningHR needs development identifying your interests,

skills& potentialUpgrading of HR for Identifying your Increased productivity . Life-goal& career goals .Career paths definition developing a written plan

to achieve your goals .Assessment of Seeking & obtaining the

Individual Potential job best first .


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Organizational career planning

& individual career planningM atching of org . needs communicating to mang .

& career needs . your career plan .Career counseling for seeking counsel from

Quality of work life . Your manager .Audit & control of evaluating internal &

Career planning external opportunities .Development system .


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Career Development Career development consists of thepersonal actions one undertake toachieve a career plan.It looks at the long-term careereffectiveness of employees whereasemployee development focuses oneffectiveness of an employee in theimmediate future.


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Career Development Career development represents the entire sequenceof activities and events related to an individual's

career . Career development encompassesacquiring of educational qualifications andcertifications, career path, self-actualization as anindividual, shifting of careers and career growth,learning curve, family life, accomplishments andrecognitions or felicitations .


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Steps in Career Development Need -(defining the present system)

Vision - (determining new directions &possibilities & linked with theinterventions)


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Steps in Career Development Act ion plan- (deciding on practical aspect,an action plan should be formulated in orderto achieve the vision)

Re sul t s -(maintaining the change, careerdevelopment prog. should be integrated withthe organization s ongoing employee training& management development programs and it should be evaluated from time to time)


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Individual Career

Development Actions Various career development actionsprove useful if an employee iscommitted to career development

J ob p erf o rm an c e (employee must prove that his performance on the job isto the level of standards established)


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Individual Career

Development ActionsEx posu re (employee s desire for careerprogress should expose their skills,knowledge, qualifications,achievements, performance, etc tothose who take the decision about

career progress)


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Individual Career

Development ActionsL everaging (Resignations employees may resignthe present job in the organization ,if they find that

career opportunities elsewhere are better thanthose of the present organization)L oyalty to Career( employee do not think thatcareer-long dedication to the same organization so

to overcome this problem companies come outwith lucrative, innovative compensation packagesin addition to employee stock option plans for those who remain with the company for aspecified period .)


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Individual Career

Development ActionsM entors & sponsors (mentors offer advice&guidance on how to survive & get ahead in the

organization & sponsor is someone in theorganization who can create career developmentopportunities)


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Individual Career

Development ActionsK ey subordinates (qualified & knowledgeablesubordinates, often extend invaluable help that

enables their bosses to come up in life)Expand ability (employees who are career conscious must prepare themselves for futureopportunities that may come their way internallyor externally by taking a series of proactive steps .)


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Organizational Career

Development S elf-assessment tools (two tools arecommonly used in organization-career planningworkshops & career workbook . This guide throwslight on organizations structure, career paths,qualifications for jobs & career ladders)

I ndividual counseling (discussion of employees interests, goals, current job activities& performance and career objectives take place)


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Development I nformation services (employment opportunities

at various levels are made known to employeesthrough information services of various kinds . organization basically used 4 methods-

1. Job posting system ( through notice boards,newsletters & other company publications)


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Development

2 .Skills inventory (containing employeeswork histories, qualifications,accomplishments, career objectives,geographical preferences, etc which helporganizations in learn the characteristics of

their workforces so that they can use theskills of their employees, whenever required)


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Development 3 .Career ladders & career paths (it throw light on

career progression & future job opportunities in

the organization)

4.Career resource centre (it is a sort of library in theorganization established to distribute career development materials as reference books, career manuals, brochures ,newsletter & learning guide,self study tapes)


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Development Em ploy ee deve lop me n t al p rog ra m s (thisconsist of skill assessment & training efforts

that organizations use to groom theiremployees for future vacancies)C a reer p rog ra m fo r sp e c ial g roups(schemes such as part-time work, long

parental leave, child care centers, flexibleworking hours & promotions & transfers intune with the demands of dual careerconflicts)


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K ey Issues in Career

Development (Roles)I n d iv id ualShould be motivated.

Should accept responsibility for his owngrowth.Seek information & resources for his owndevelopment.Should establish career goals & plans.Utilize opportunities for growth.Talk to his boss.


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Development (Roles)Th e Manag er o r t h e Boss-Provide timely performance feedback.Provide developmental assignment &support.Participate in career development discussions.


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Development (Roles)O rganiza t ionCommunicate policies, procedures.Provide training & development opportunities & information.Offer if possible variety of careeroptions & provide monitoring.


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Succession PlanningThe process of ensuring a suitablesupply of successors for current &future senior or key jobs arising frombusiness strategy, so that the careers of individuals can be planned & managed

to optimize the organizations needs &the individuals aspirations.


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Succession PlanningSuccession planning is a process of determining critical roles within thecompany, identifying and assessingpossible successors, and providing themwith the appropriate skills and

experience for present and futureopportunities.


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succession planning comprises

of these important stepsRe c rui t me n t an d s t a ff ing - you recruit superiorand right employeesT r aining an d deve lop me n t - you train theemployees to develop their knowledge, skills andabilitiesP erf o rm an c e an d C o m p e nsa t ion m anag eme n t -prepare them for advancement or promotion into

ever more challenging rolesO t h er (in which talent management plays a role) -you are prepared to retain or replace superioremployees


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Typical activities covered by

succession planning includeDetermine what roles and skills are critical forthe growth of the company.

analyze and address the gaps revealed by theplanning process .identify and understand the developmentalneeds of employees to fill those positions .

ensure that all key employees understandtheir career paths and the roles they arebeing developed to fill.


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Typical activities covered by

succession planning includetrain people for skills and positions that are not presently existing in the company.understand the time needed to backfill key roles.enrich succession plans through regular executivediscussion of people and posts.identify top performers in all departments and makesure that they are engaged and satisfied to stay with

you for a long period.continually review and check the process of succession and whether planned individualdevelopment has taken place


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key issues the HR professionals should consider while developing a succession plan are

Strategic plans and future goalsWorkforce requirement K nowledge retention and critical rolesTalent management strategies


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Succession Planning In IndiaThe problem associated with successions planningare particularly acute in India, where family managedbusinesses proliferate.

W h a t t h e C EO n eed s t o d oMany CEOs fail to handle succession planningeffectively for a variety of reasons:

They forget the big picture and stay focused on dayto day operations.They have an exaggerated sense of self importanceand begin to think they are indispensable.


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Succession Planning In IndiaThey are poor in building a second layer of

management because of an unwillingness to

tolerate good people or to delegate.They try to avoid conflict and hesitate to senda clear message who the successor is goingto be.They continue to play a role in the companyeven after the new CE O has been put inplace.


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G ui de lin e s fo r effe ct ive

su cc e ssion planningSuccession Planning should be customized to suit the needs of theorganization.Succession planning should be driven by the line function and not HR

executives.Succession planning should develop key candidates, in anticipation of

future openings.Succession planning is not just selection. Development through job

rotation, mentoring and formal training programs is equally important.Succession planning must take into account the culture of theorganization.

Succession planning must be consistent with the future strategicdirection of the company.


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Job EvaluationIt is a systematic way of determining thevalue/worth of a job in relation to other jobs

in an organization.Job Evaluation is a technique to rank jobs inan organization on the basis of the duties andresponsibilities assigned to the job. The jobevaluation process results in a job beingassigned to a pay grade. The pay grade isassociated with a pay range that is defined bya minimum and a maximum pay rate.


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Objectives of Job Evaluation

To provide a basis for a simpler, more rational wagestructure;

To provide an agreed-upon means of classifying new orchanged jobs;To provide a base for individual performance measurements;To reduce pay grievances by reducing their scope andproviding an agreed-upon means of resolving disputes;To provide incentives for employees to strive for higher-level

jobs;To provide information for wage negotiations;To provide data on job relationships for use in internal andexternal selection, personnel planning, career management,and other personnel functions.


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Process of Job EvaluationG aining acceptance (top management mustexplain the aims & uses of the program to the

employees & unions)Creating job evaluation committees (consist of experienced employees, union representatives &HR experts)Finding the jobs to be evaluated (certain key

jobs in each department may be identified)


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Process of Job EvaluationA nalyzing & preparing job description (this requires the

preparation of a job description & also an analysis of jobneeds for successful performance)S electing the method of evaluation (keeping the jobfactors s well as organizational demands in mind)Classifying jobs (the relative worth of various jobs in anorganization may be found out after arranging jobs in order of importance using criteria such as skill requirements,experience needed, under which conditions job is

performed, etc)


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Process of Job EvaluationI nstalling the program ( once the evaluation

process is over & a plan of action is ready,

management must explain it to employees & put itinto operation)Reviewing periodically


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B enefitsIt tries to link pay with the requirements of the job .It offers a systematic procedure for determining the

relative worth of jobs .An equitable wage structure is a natural outcome of jobevaluation .Employees as well as unions participate as members of jobevaluation committee while determining rate grades for different jobs .

job evaluation, when conducted properly & with care,helps in the evaluation of new jobs .


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Job Evaluation M ethods ( Ranking M ethods)

R anking jobs is the easiest, fastest, and least expensiveapproach to job evaluation . It is also most effective in

smaller organizations with few job classifications . To rank positions, order jobs from highest to lowest based on their relative value to your organization .

The process of job ranking typically assigns more value to jobs that require managerial or technical competencies . For example, a job-ranking system might rank the job of CEO as the most valued job within the organization and the jobof product assembler as the least valued .


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Job Evaluation M ethods ( Ranking M ethods)A dvantages Simplicity is the main advantage in using aranking system . It is also easy to communicate the resultsto employees, and it is easy to understand .

D isadvantages R anking jobs is subjective . Jobs areevaluated, and their value and complexity are oftenassessed on the basis of opinion . Also, when creating anew job, existing jobs must be re-ranked to accommodatethe new position .


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Job Evaluation M ethods (ClassificationM ethods)

The general purpose of job classification is to create andmaintain pay grades for comparable work across your

organization .

To conduct a job classification: First, write descriptions for a category of jobs; next, develop standards for each jobcategory by describing the key characteristics of those jobs

in the category; finally, match all jobs to the categories based on the similarity of tasks, the decision-makingexercised, and the job's contribution to the organization'soverall goals .


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Job Evaluation M ethods (ClassificationM ethods)

A dvantage Job classification is simple once youestablish your categories . You can assign new jobsand jobs with changing responsibilities within theexisting system .

D isadvantages Job classification is subjective,so jobs might fall into several categories .

Decisions rely on the judgment of the jobevaluator . Job evaluators must evaluate jobscarefully because similar titles might describedifferent jobs from different work sites .


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Job Evaluation M ethods (P oin t ev alua t ionM ethods)

Point evaluation is the most widely used jobevaluation method. In a point evaluation system, youexpress the value of a particular job in monetaryterms. You first identify compensable factors that agroup of jobs possess. Based on these factors, youassign points that numerically represent thedescription and range of the job.

Examples of compensable factors are skills required,level of decision-making authority, number of reporting staff members, and working conditions.


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Job Evaluation M ethods (P oin t ev alua t ionM ethods)

A dvantage This method is often viewed as less biasedthan other methods because the job evaluator assigns each

job's total points before the compensable factors become part of the equation .

D isadvantages Subjective decisions about compensablefactors and the associated points assigned might bedominate . The job evaluator must be aware of biases andensure that they are not represented in points assigned to

jobs that are traditionally held by minority and femaleemployees


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Job Evaluation M ethods (Factor ComparisonM ethods)

Job evaluators rank jobs that have similar

responsibilities and tasks according to pointsassigned to compensable factors . The evaluatorsthen analyze jobs in the external labor market toestablish the market rate for such factors . Jobsacross the organization are then compared to the

benchmark jobs according to the market rate of each job's compensable factors to determine jobsalaries .


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Job Evaluation M ethods (Factor ComparisonM ethods)

A dvantage This method results in customized job-ranking .

D isadvantage Compensable factor comparison isa time-consuming and subjective process .


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A performance management system

includes the following actions .Develop clear job descriptions .

Select appropriate people with an appropriate selection process .

Negotiate requirements and accomplishment-based performance standards, outcomes, and measures .

Provide effective orientation, education, and training .

Provide on-going coaching and feedback .


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A performance management system

includes the following actionsConduct quarterly performance development discussions .

Design effective compensation and recognition systemsthat reward people for their contributions .

Provide promotional/career development opportunities for staff .

Assist with exit interviews to understand W HY valuedemployees leave the organization .


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PERFORMANCE APPRAISALOn e of thos e sp ecial hum a n e n cou n t ers wh ere th e m a n ager ge t s n o sleep th e n ig ht b e f ore, a nd th e e m ployee ge t s n o sleep th e n ig ht a ft er.

Th o m as B. W ilso n


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Wha t is rf r ance ra isa l?


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It should ..


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Performance appraisal process

Establishing performance standards

Communicating standardsMeasuring actual performance

Comparing actual with desired

Discussing results

Decision making


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Evaluation Criteria

Whom the company should evaluate

What criteria should be used toevaluate.

TRAITBEHAVIORJOB RESULT


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Ob jec ti es f e rf r ance

app ra isa l

M otivation .

Insight into staff and supervisors .

R ewards on a fair and credible basis

Clarify organizational goals


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WHO SHOULD APPRAISE

Immediate supervisor Peer appraisalR ating CommitteesSelf- R atings

A ppraisal by subordinates360 -Degree feedback


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P erformance A ppraisal M ethodsTraditional M ethods M odern M ethodsStraight ranking method Assessment CentreM an-to-man comparison M anagement B y O bjectivesGrading Human Asset AccountingGraphic R ating Scales B ehaviorally Anchored R ating

Scales

Forced distribution

Check listCritical IncidentsGroup A ppraisal


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TY P E S OF P ERFOR MAN CEAPP R AISALS

G raphic Rating S cale M ethod

S imple to use P rovides a

quantitativerating

Advantages

Standards may be unclearAll characteristics areequally weighted

Disadvantages


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Alternative ranking Method

Advantages

Simple to useAvoids central tendency andother problems of rating.

Disadvantages

Disagreements amongst employees.


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Paired comparison method


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Forced Distribution MethodSimilar to grading on a curve.

Rating is categorized.Category need not be symmetrical.

GE proposed the 20/70/10 split.


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Forced Distribution Method


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Annual confidential report

(ACR)


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CriticalIncident

Method


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Behaviorally Anchored Rating

Scales (BARS)

P f P i B h i


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P erformance P oints BehaviorExtremely good 7 Can expect trainee to make valuable

suggestions for increased sales and to have

positive relationships with customers allover the countryGood 6 Can expect to initiate creative ideas for

improved salesA bove average 5 Can expect to keep in touch with the

customers throughout the year Average 4 Can manage, with difficulty, to deliver thegoods in time .

B elow average 3 Can expect to unload the trucks when asked by the supervisor .

Poor 2 Can expect to inform only a part of thecustomers

Extremely poor 1 Can expect to take extended coffee breaksand roam around purposelessly


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Management By

Objectives(MB O)


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Six Step MB O Process


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360

Feedback


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Psychological

Appraisals

Under this Technique, Psychologists are used for Evaluations, they assess an individuals Future Potentialand not the Past Performance . The A ppraisal normallyconsists of In-depth Interviews, Psychological Tests,Discussions with Supervisors and a review of other Evaluations .


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A ssessment Centre

An Assessment Centre is a central location where

managers may come together to have their participation inJob-related exercises evaluated by Trained O bservers . byobserving their B ehavior across a series of select exercisesor Work Samples such as- In- B asket exercises, Work Groups ( Without leaders), Computer Simulations, R olePlaying, and other similar activities which require the sameattributes for successful performance, as in the actual job .


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Why performance appraisals

fail?


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Problems with Appraisals


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How to avoid appraisal

problems?


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Performance management system


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FeedbackPerformance appraisal process is incomplete withoutthe feedback given to the employee about his appraisal andhis performance . B ut the way of giving as well asreceiving the feedback differs from person to person andtheir way of handling and their outlook towards the issue .

Feedback describes the situation when output from (or

information about the result of) an event or phenomenon inthe past will influence the same event/phenomenon in the

present or future .


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Feedback According to a popular saying:

"A SUCCESSFUL MAN ISONE WHO CANLAY A FIRM FOUNDATION WITH THEBRICK S OTHERS HAVE THROWN AT

HIM."


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On the part of the person receiving the feedback, the

following points are important to be taken care of :The employee should have a positive attitude towards the feedback process

He should listen to the suggestions of the appraiser calmly and try to

incorporate them in his plans .

He should not hesitate to ask for the help of his superiors .

Should have a co-operative attitude during the feedback meeting .

Dont judge the appraiser as a person .Should take the feedback objectively .

Should not judge the appraiser as a person on the basis of the feedback .

On the part of the appraiser or the manager / person


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On the part of the appraiser or the manager / persongiving the feedback, the following points are to be

taken care of:The appraiser should make the receiver feel comfortableduring the feedback meeting .

The appraiser should make it a two way conversation i .e. let the employee speak .

Listen to the employee and note his points, suggestions, problems etc .

The appraiser should not adopt a confrontational approachtowards the meeting . The goal is not to criticize theemployee .

O h f h i h /


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On the part of the appraiser or the manager / persongiving the feedback, the following points are to be

taken care of:Provide a constructive feedback to the employee i .e. in away which will motivate him to perform better .

Have a positive attitude towards the processTry to understand the reasons of his failure .

B e fair and objective .

Prepare yourself for what to say and how to say .M ake the appraisal feedback meeting useful and

productive for the organization and the employee .


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Compensation & RewardsIt may be defined as money received in the

performance of work, plus the many kinds of

benefits &services that organizations provide their employees .


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Objectives of Compensation administrationTo establish a fair & equitable remuneration offeringsimilar pay for similar work .To attract qualified & competent personnel .To retain the present employees by keeping wage levels intune with competing units .To control labor & administrative costs in line with theability of the organization to pay .

To improve motivation & morale of employees & toimprove union-management relations .To project a good image of the company & to comply withlegal needs relating to wages & salaries .


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CompensationM

anagementProcess of determining cost-effective pay structure .

Designed to attract & retain .

Provide an incentive to work hard .

Structured to ensure that pay levels are perceived as fair .


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CompensationM

anagement

L evel of Compensation

& benefits

EmployeesTenure&

performanceCompany

Profitability

Kind of job performed

Kind of business

unionizationLabor or

Capital intensive

M anagement philosophy

Geographicallocation

Size of company


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Principles of Wage &

Salary

Administration

Wage & salary plans should be sufficiently flexible .Job evaluation must be done scientifically .

Wage & salary administration plans must always beconsistent with overall organizational plans & programs .Its plans & prog . Should be in conformity with the social& economic objectives of the country .These plans should simply & expedite other administrative

processes .


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The WageD

eterminationP

rocessJob Analysis

Job Description& Specification

PerformanceStandards

Job Evaluation

Wage Survey & Analysis of

Relevant Organizational

Problems

Wage & BenefitsLegislation

Wage Structure

Rules of Administration

Differential employee Appraisal

Wage & Benefits

Payments


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Criteria (Factors influencing) for

Wage Fixation

W ag e &Sala ryC r it er ia

A bili t y t o pay

G oing ra t e

P ro d u ct ivit y

Union Ba rgainingP ow er

J ob req ui reme n t s

Supply & D em an d Fa ct o r

C os t o f Living

Living W ag e


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FactorsA

ffecting CompensationP

lans

Organization

S upply & D emand

S upply & D emand

P eople for work

Exchange

I n t er na t ional L eve l I n fo rm a t ion

N ational levelG oing wageWage leaders

S ocialTrendsEconomicForceslegislation

unions

Regional L evelG oing wageWage leaders

L ocal L evelG oing wageWage leaders

P eopleS eekingemployment

TheOrganizationP hilosophyA bility to payproductivity

EconomicD evelopments

EnvironM entalmonitorin

surve

Wa e levels/structure


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Wage policy

It is in the widest sense mean any economiccompensation paid by the employer under some

contract to his workers for the services rendered by them . Wages therefore, include familyallowance, relief pay, financial support & other

benefits .


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Minimum, fair & living wage.M inimum wage- the wage which must provide not only for the bare sustenance of life, but for the preservation of theefficiency of the worker .L iving Wage- one which should enable the earner to

provide for himself & his family not only the bareessentials of food, clothing & shelter but a measure of frugal comfort, including education for his children,

protection against ill-health, requirements of essentialsocial needs & a measure of insurance against the moreimportant misfortunes, including old age .


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Minimum, fair & living wage.Fair wage- it is the wage which is above the minimumwage but below the living wage . It consider the followingfactors i .e. the productivity of labor, the prevailing rates of wages in the same or neighboring localities, the level of thenational income & its distribution & the place of industryin the economy of the country .


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Elements or ingredients of a good wage planIt should be easily understandable .It should be capable of easy computation .

It should be capable of effectively motivating theemployees .It should provide for remuneration to employees as soon as

possible after the effort is made .It should be relatively stable rather than frequently varyingso that employees are assured of a stable amount of money .


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Types of WagesTime Rate- workers are paid according to the work doneduring a certain period of time, at the rate of so much per hour, per day, per week, per fortnight or per month or anyother fixed period of time .P iece Rate- workers are paid according to the amount of work done or the number of units completed, the rate of each unit being settled in advance, irrespective of the time

taken to do the task . WE=NR (workers earnings, N-no . of pieces produced and R for the rate per piece .


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Types of WagesBalance or D ebt M ethod- combination of both time &

piece rate . The worker is guaranteed an hourly or a day-rate with an alternative piece rate .


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WageIncentive

Plans

Halsey Premium Plan .Halsey Weir Premium Plan .R owan Premium Plan .The 1 00% Premium Plan .The B edeaux Point Plan .Taylors Differential Piece R ate Plan .

M errics M ultiple Piece R ate Plan .Gnatt Task Plan .Emerson Efficiency Plan .


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P iece rate :Taylors differential P ieceRate S ystem-

There shall be two piece work rates, one is lower & theother is higher .The standard of efficiency is determined either in terms of time or output based on time & motion study .If a worker finishes work within standard time (or

produces more than standard output within time) he will begiven high piece rate .This system penalizes the slow worker by paying low rate

because of low production, etc .


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M erricks D ifferential P iece RateS ystem

It is a M ultiple Piece rate system .Upto8 3% of the standard output workers are paid at theordinary piece rate .83% to 1 00% at 11 0% of the ordinary piece rate .A bove 1 00% at 1 20% of the ordinary piece rate .Workers producing below the standard output are not

penalized by the low piece rate .


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F. S .Halsey plan-standard hour plans

Standard time is fixed for each job or operation .Time rate is guaranteed & the worker receives theguaranteed wages irrespective of whether he completes the

work in the time allowed or takes more time to do thesame .If the job is completed in less than standard time, theworker is paid a bonus of 5 0% (33 1/3 % under Halsey-Weir Plan) of time saved at time rate in addition to hisnormal time wages .Total earnings =time taken* hourly rate plus bonusB onus =50% of time saved .


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Rowan P lan

Under this plan bonus is that proportion of the wages of time taken which the time saved bears to the time allowedor standard time .B onus = Time save *Time Taken* Hourly rate

Standard time or time allowed

Total earnings = Time taken * hourly rate+ bonus


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G antt Task & Bonus P lan

This plan combines time, piece & bonus system .Day wages are guaranteed .Standard time for task is fixed & both time wages as wellas a high rate per piece are determined .A worker who cannot finish the work within the standardtime is paid on time basis .If a worker reaches the standard, he will be paid time wage

plus a bonus at fixed percentage (20% )of normal timewage .If the worker exceeds the standards, he is paid a higher

piece rate .


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Bedeaux P lan

Every operation or job is expressed in terms of so manystandard minutes, which are called B edeaux points or B s ,each B representing one minute through time &motion study .Up to 1 00% performance, i .e. up to standard B s a worker is paid time wages without any premium for efficiency .If the actual performance exceeds the standard

performance in terms of B s then 75 % of the wages of thetime saved is paid to the worker as bonus & 2 5% is earned

by the foreman .


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Emersons Efficiency P lan

When the efficiency of the worker reaches 6 7% he gets bonus at the given rate .The rate of bonus increases gradually from 6 7% to 1 00% efficiency .A bove 1 00% bonus will be at 20% of the basic rate plus1% for each 1 % increase in efficiency .

Ch i i d i i i


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Choices in designing a compensationsystem

I nternal & External pay -Compensation policies areinternally equitable when employees believe that the wagerates for their jobs approximate the jobs worth to theorganization . Perceptions of external equity exist when thefirm pays wages that are relatively equal to what other firms are paying for similar types of work .Fixed vs. Variable pay- (a) should performance be

measured & rewarded on the bases of individual ,group or organizational performance? (b) should the length of timefor measuring performance be short-term or long term?

Ch i i d i i i


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P erformance vs. M embership -knowledge based organizations thesedays follow a performance based payment plan offering awards toemployees .J

ob vs. individual pay -1.Jobs do not change often 1 .The firm has educated

employee to learn different jobs .2 .Technology is stable 2 .Technology frequently changing3 .Employees are expected to 3 .Vertical growth opportunities are limited .

move up through the ranksovertime .

Ch i i d i i i


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Below market vs. above market compensation- in hightech firms workers might be paid better then their counterparts in the manufacturing division .Open vs. secret pay -openness is likely to be moresuccessful in organization with extensive employeeinvolvement .


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Reward/ I ncentives ( I t can be anything that attractsa employees attention & stimulates him to work)

Rewards orI ncentives

I ntrinsic Extrinsic

ParticipationIn decision-

making

Greater JobFreedom &

Direction

M oreR esponsibility

Diversity of Activities

D irectCompensation

Stock optionsProfit sharingPerformance

B onusOvertime &

Holiday

B asicwage

I ndirectcompensation

O pportunitiesFor Personal

Growth

Services & perquisitesPay for time Not work

Protection programs

N on-financialcompensation

Companytransport

ImpressiveJob titlesCredit cards

Preferredwork

assignmentsPreferredLunch hrs .


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How organization manage exit

Exit interviews are interviews conducted with departing employees, just before they leave . From the employer's perspective, the primary aim of the exit interviewis to learn reasons for the person's departure, on the basis that criticism

is a helpful driver for organizational improvement .Exit interviews, are also an opportunity for the organization to enabletransfer of knowledge and experience from the departing employee toa successor or replacement, or even to brief a team on current projects,issues and contacts .Good exit interviews should also yield useful information about theemployer organization, to assess and improve all aspects of theworking environment, culture, processes and systems, managementand development, etc .; in fact anything that determines the quality of the organization, both in terms of its relationship with its staff,customers, suppliers, third-parties and the general public .

The questions that are most relevant to the


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leaving circumstances, the interviewee andyour organization situation

Tell me about how you've come to decide to leave?What is your main reason for leaving?What can you say about the processes and procedures or systems thathave contributed to the problem/your decision to leave?What specific suggestions would you have for how the organizationcould manage this situation/these issues better in future?How do you feel about the organization?What has been good/enjoyable/satisfying for you in your time with us?What has been frustrating/difficult/upsetting to you in your time withus?

The questions that are most relevant to the


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leaving circumstances, the interviewee andyour organization situation

What extra responsibility would you have welcomed that youwere not given?

What training and development that you had did you find most

helpful and enjoyable?

Would you be happy to take part in a briefing meeting withmanagers/replacements/successor/colleagues so that we canbenefit from your knowledge and experience, prior to yourleaving?

We'd be grateful for you to introduce (name of successor) toyour key contacts before you go - are you happy to help withthis?

VO LUN T A RY RET I RE M E N T S CHE M E (VR S )


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VO LUN T A RY RET I RE M E N T S CHE M E (VR S )

The Government had announced a VoluntaryR etirement Scheme (VR S) vide OM No. 2 (36 )/86 -B PE(WC) dated 5th October, 1988 .

In no case shall the compensation exceed 60 dayssalary for each completed year of service or thesalary for the number of months service left,whichever is less . Salary for the purpose of VR Sshall consist of basic pay and DA only and noother element .


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P ink slip (Origin)

P ink slip refers to the American practice, by a personneldepartment, of including a discharge notice in anemployee's pay envelope to notify the worker of his or her termination of employment . R eceiving a "pink slip" has

become a metaphor for the termination of employment ingeneral .

I NFOR M AL notice to an employee of termination of employment .


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P ink slip

Its an informal way of letting the employees know thattheir services are no more required . There is a practiceearlier that the salaries will be given in Envelopes and

while handing the envelopes, personal department peopleused to keep a pink slip in the cover which means that theyhave been discharged from their duties and the finalsettlement has been made .

THE PI NK SLIP


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THE PI NK SLIP

IT IS NOT T HE END OF THE WOR LD.

HO W T O SPOT TRO UB LE AT THE WOR KPL ACE AND DEA L WIT H THE PI NK SLIP

SIGNS TH A T YO U A RE IN TRO U BL E


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1. Gap between what your B oss expects & what youdeliver .

2 . An adverse performance review .

3 . A negative appraisal or a promotion denied .

If you do not know what you are doing wrong or feelyou cannot do more, the company might ask you to go .

SPOT A SI NKI NG S HIP


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A M erger or a Takeover .

Signs of financial trouble: If your salaries are consistentlylate without clear explanations .

Loss of the companys biggest client: If there is noreplacement for the loss of revenue, your company is instormy times .

PRE PAR I NG F OR THE PI NK SLIP


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If you have even the slightest suspicion that your job is not as

secure as it should be, it is time for you to be ready .

Save copies of your work and important documents, especiallyletters of recommendations and promotion, special notices of awards,etc .

PREPAR I NG FOR THE PI NK SLIP


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M ake a copy of your personal list of contacts and phonenumbers . It will come in handy on a job hunt .

Start looking for a new job . The best time to seek is whenyou are already working and financially secure .

HO W T O REAC T


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If you are fired for reasons beyond your control such asM ergers or Takeovers, you can ask for a letter of recommendation .

If your company has a severance package, and you areeligible, negotiate .

Do not shout or insult your B oss or Company .

SURV IVING T HE SAC K


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SURV IVI NG T HE SAC K

Introspect about your career

Is there something else you

always wanted to do?Think about a career change

Do not repeat the mistake

of accepting a position you arenot suited for .

Struggle now than get firedagain .

DON 'T JUST B ROOD!


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DON T JUST ROOD!

Update your resume

Go for a functional resumeformat instead of a chronologicalone .

Network . Tell everyone youknow that you are job hunting .

You can freelance or do non-

Career & Performance Management-Unit 3

Documents

Transcript of Career & Performance Management-Unit 3