Appraisal of employees performance

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What are the two basic requirements of an effective incentive pay plan? Please remember to explain your reasoning.

students response

 

the two basic elements are the procedures and methods used for appraisal of employees performance and the rewards system being based on that performance.

There has to be a system in place to measure or mark employee’s performance. This can be a variety of measures but they must be applied equally to all personnel in that position so they feel that they are being evaluated fairly. For example; middle level managers will be evaluated based on department performance, completion of next level training modules, and production compared to last quarter. This would provide employees with the information they need to be evaluated against. Goals must be clearly outlined.

Rewards, incentives, bonuses, etc, must be based on an evaluation of these setpoints, or goals. Again, it has to be conducted in such a way as to make employees feel they’ve been evaluated fairly and against the same measuring stick, so to speak.

There’s nothing more frustrating than being in the same position as another person and watching them measure up to a different stick. We used to take the same rating exam as Machinist’s Mates. Nuclear Machinist’s Mates, Surface Machinist’s Mates, and Submarine Machinist’s Mates all took the same exact test; however, there were different scores required for advancement. Surface needed a score of 179, Nukes 199, and Sub MM’s 212. This made it SEEM like it was unfair, at least to us….lol It was based on score, but also needs to fill billets in each rate, numbers required throughout the fleet, etc. We just thought it was crappy, at he time

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