Web & Social Media Analytics Previous Year Question Paper.pdf
Performance of appraisal, related pay and hr
1. PERFORMANCE OF APPRAISAL, RELATED
PAY
&
HR AS STRATEGIC ASSET
Presented by :
Mohnish Madkaikar
Deepshikha Parashar
2. PERFORMANCE-RELATED PAY
Performance-related pay is money paid to someone relating to
how well one works. Car salesmen, production line workers, for
example, may be paid in this way, or through commission.
Performance related pay is generally used where employee
performance cannot be appropriately measured in terms of output
produced or sales achieved.
Performance-related pay has grown widely in recent years –
particularly in the public sector.
3. o Performance-related pay is a financial reward to employees
whose work is:
o Considered to have reached a required standard, and/or
o Is above average
o Impact of PRP
Motivational
incentive Low impact
PPR Performance
Derived effects
Organisational and
management Positive effects in
changes, new working the right
methods and tools managerial
conditions
4. Well-designed performance-related pay scheme would have
the following elements:
Objective setting
Communication and understanding of objectives
Consideration of performance against objectives
Translation of evaluation into performance rating
A link between ratings and the determination of pay
A separate appeals procedure
5. DISADVANTAGES OF PERFORMANCE RELATED PAY
There may be disputes about how performance is measured
and whether an employee has done enough to be rewarded
Rewarding employees individually does very little to
encourage teamwork
It may encourage unhealthy rivalry between managers
There is much doubt about whether performance-related pay
actually does anything to motivate employees.
6. PERFORMANCE - APPRAISAL
Performance appraisals tend to rely more on dialogue with line
management than on strictly quantifiable indicators.
Generally, the aims of an appraisal are to:
Give employees feedback on performance
Identify employee training needs
Document criteria used to allocate organizational rewards
7. Form a basis for personnel decisions
Provide the opportunity for organizational diagnosis and
development
Facilitate communication between employee and employer
Validate selection techniques and human resource policies to
meet federal Equal Employment Opportunity requirements.
To improve performance through counseling, coaching and
development.
8. HR AS A STRATEGIC ASSET
HR is a strategic asset because it can play a critical role in both
strategy implementation and management systems.
As strategic asset people must be :
Valuable
Differentiating
Hard to imitate.
9. HOW HR CAN BE A STRATEGIC PARTNER
Leadership
Knowledge of Business
Strategic Thinking
Process Skill
Technology
11. SEVEN STEPS TO MAKING HR A STRATEGIC ASSET
Step 1: Clearly Define Business Strategy.
Step 2: Build a Business Case for Why and How HR Matters for
Strategy Implementation.
Step 3: Build a Strategy Map Describing the Causal Flow of Strategy
Implementation.
Step 4. Link HR Architecture to Strategy Map.
Step 5: Design HR System in Alignment with HR Deliverables
Step 6: Design HR Strategic Measurement System
Step 7: Implement Management by Measurement.