Achieving high performance in an organization requires a mix of tools and processes incorporated with organization commitment to support their management team. Assessing the employee skills, effort and talent in the organization is important but the support needed by the respective manager is more important. Purchasing manager and warehouse manager are some of the jobs in an organization that will be used as a point of references for the different cases.
Performance management system (PMS) is a management process that brings together employees in an organization (Bhattacharyya, 2011). The process contributes to the effective administration of the different teams and groups within the organization to achieve the organization development and performance goals. It concerns the establishment of culture whereby the individual and teams take responsibilities for the development and the general organization performance. Performance management systems in an organization serve two major functions. First, it helps in employee decision-making and the employee development. When performance is used to make decisions in an organization, the appraisal information will be used as to increase their wages, used for transfers and promotions and also help reduction in force. Using performance management system for development in an organization will help guide the employee training, monitor job experience, and other development activities in an organization. These functions in an organization will affect the outcome of an organization.
Performance management system is recommendable for both the organization, management and employee benefits. It is important towards achieving the organization primary goal and will help create a framework for employee encouragement, guidance, and support and performance oriented culture in the organization. This is because the system will help employees understand the importance of their contribution to the organization and ensure the employees are aware of their expectation. Furthermore, an effective performance management system will enhance communication in an organization and facilitate a cordial relationship between the employee and the management.
Performance management system will ensure that the management works towards their goals and objective through linking performance and organization goals hence making the employees to the organization more explicit. Research has shown that performance management system will improve employees understanding and the performance dialog in an organization. It is there for recommended for the overall success of the organization. Effective performance management in the organization will promote a collaborative approach towards individual performance, development and organization success.
The objective of job evaluation is to provide a hierarchical structure for the jobs in the organization. It ensures there is no discrimination, and there is fairness in the organization. The management can ensure that the job evaluation is felt fair in the organization by involving the employee representatives and continuous communication with them. Additionally, it is important to gather information regarding the organization in a thorough and systematic way and ensure consistency in evaluation.
Job evaluation is necessary for an organization to assess the worth of jobs in the entire organization (Armstrong, Baron & IPD, 2005). Often, this is performed by personal attributes, performance and the employee qualifications and skills. The organization needs to determine employment in the organization that attracts high pay than the rest. There exist different forms of job evaluation for the various job positions in an organization. Job grading or job ranking are some of the methods that can be applied in job evaluation. Job grading involves classification of employees into category structure. In this case, each level in the category is given titles and assigned to the category providing almost the same job. To ensure equity in an organization when using the job grading as an evaluation method, a uniform set of standards are applied. These standards identify the key characteristics of the occupation. Purchasing manager will have a different job description to the warehouse manager.
The ranking is another job evaluation method that can be used to evaluate the employees in an organization. In this case, jobs are compared based on the overall worth of an organization. These include work environment, responsibilities, and experience.
These job evaluation methods have some advantages and disadvantages. Job ranking method is simple and effective when applied to organizations with less employee workforce. On the other hand, it poses difficult to implement in an organization as jobs increase in an organization. Ranking method is also seen as subjective since there is no standard for judgment in the organization.
The grading method is also simple to incorporate into an organization since the method applies to the independent jobs. Purchasing Manager will be graded independently to the warehouse manager. The disadvantages that will come with the grading method to evaluate the employee are the subjectivity and job conflict in the organization.
Compensation acts as the primary motivator for almost any job position. Often the employees look for the jobs that suit their creativity and their acquire talents but will compensate them. Compensation is currently undergoing changes in the Human resource management and organizations are trying hard to incorporate the different ways of compensation. It is vital for corporations to understand the variations in the wages and salaries to compensate the warehouse manager and the purchasing manager (Gomez-Mejia& Balkin, 2009). Wage compensation is often based on hours worked while the salary is the monetary compensation regardless of the hours worked. This amount is often fixed. Their differences should be defined and set the correct compensation mix applied for the different positions.
Compensation involves to both monetary and non-monetary benefits the employee receives for the work done to be motivated. Monetary compensation for a Purchasing manager and warehouse manager may include hourly and monthly wages, bonus payments retirement savings accounts. Non-monetary compensation can be recognitions for an achieved task, being assigned a more complicated task or job training. A compensation plan involves all the monetary and nonmonetary compensation and the manner in which the benefit is given to the employee.
Purchasing manager and warehouse manager can be compensated based on wage compensation, and promotion at the job place. It is important to understand the employee skills and keep the highly qualified personnel through proper compensation for the organization benefit. With the job, positions presented being highly competitive, and the number of new employees entering the job market also increase. The employees, therefore, should be more creative and responsive to the organization design, and generosity of the benefits. The more progressive the organization is, the more flexible it will be in response to the challenges in an organization. Organizations using traditional programs in management have experienced many challenges that comprise their operations.
Importance of Employee benefits plans
Employee benefits plans are very vital to the motivation and success of the organization. Often the new bees in the job market, especially those from colleges, are often underrated when applying for the job positions. However, the small organizations have used employee benefits plans for the benefit of both the organization and the employee development. These employee benefits plans help the organization to attract a potential and productive workforce. Many employers do not advertise their benefits plans when advertising for the job positions in the organization. They use this as a leverage point. For example as the purchasing manager and the warehouse manager in the organization, they undergo a lot of stressful times. When the company offers these positions discounted prices or free delivery for the supply, they have opened another door that could cost the managers some money. When recruiting for the positions, they can only use clues as leverage to win the applicants. Employees are not just after hourly wages and monetary benefits anymore. They are also considering non-monetary benefits and extras. In case the employer applies these benefits for the applicants unaware of the positions they want, it becomes hard to turn down such positions as purchasing manager and warehouse manager. Providing the best benefits plan for the organization makes the position more fun and reduces employee turnover rate in the organization. A significant number of employee turnovers are as a result of low benefits plans.
Employee benefits plans can be expensive when the organization uses them on their own or with the government intervention. Employee benefits offered through the employment position become more inexpensive and acts as a job security. The employees will be exempted from additional charges like taxes and fines when it comes to tax season. Benefits plan provided in a group can offer waivers for medical expenses regardless of the medical condition of the covered employee.
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Armstrong, M., Baron, A., & Institute of Personnel and Development. (2005). The job evaluation handbook. London: Institute of Personnel and Development.
Bhattacharyya, D. K. (2011). Performance management systems and strategies. Dehli: Pearson.
Gomez-Mejia, L. R., & Balkin, D. B. (2009). Compensation, organizational strategy, and firm performance. Cincinnati, Ohio: South-Western Pub. Co., College Division.
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