Question:
Critically evaluate the issue of executive pay and reward. Select a business with which you are familiar, and based upon this business, discuss this very issue and how the topic is handled. Comment on how the business deals with the issue and any good practices that you have seen in practice.
All submissions should be in the region of 1,000 – 1,500 words and references should be added in the Harvard Referencing Format. There is a Harvard Referencing tutorial in the Resources Area which outlines the formatting required
Answer/Solution:
Back in the days, senior executives in large companies had a simple goal for themselves and their organizations: stability. Shareholders wanted little more than predictable earnings growth.
This presents most senior executives with an unfamiliar challenge. In major transformations of large enterprises, they and their advisors conventionally focus their attention on devising the best strategic and tactical plans. But to succeed, they also must have an intimate understanding of the human side of change management — the alignment of the company’s culture, values, people, and behaviors — to encourage the desired results. Plans themselves do not capture value; value is realized only through the sustained, collective actions of the thousands — perhaps the tens of thousands — of employees who are responsible for designing, executing, and living with the changed environment.
A performance evaluation system is a systematic way to examine how well an employee is performing in his or her job. The word systematic implies the performance evaluation process should be a planned system that allows feedback to be given in a formal—as opposed to informal—sense.
There are four reasons why a systematic performance evaluation system should be implemented. First, the evaluation process should encourage positive performance and behavior. Second, it is a way to satisfy employee curiosity as to how well they are performing in their job. It can also be used as a tool to develop employees. Lastly, it can provide a basis for pay raises, promotions, and legal disciplinary actions.
Before designing or revising an existing performance appraisal system I considered a number of things. Some researchers suggest that the performance appraisal system is perhaps one of the most important parts of the organization (Lawrie, 1990), while others suggest that performance appraisal systems are ultimately flawed (Derven, 1990), making them worthless. That’s why we have created a performance appraisal system that would provide value to the organization and the employee. When designing this process, we recognized that any process has its limitations, but if we planned it correctly, we can minimize some of these.
The first step in the process was to determine how often performance appraisals should be given. Managers should constantly be giving feedback to employees, and this process is a more formal way of doing so.
The Second consideration should include goal setting. In other words, what goals does the organization hope to achieve with the performance appraisal process?
Once the frequency, rewards, and goals have been determined, it is time to begin to formalize the process. First, we needed to develop the actual forms that will be used to evaluate each job within the organization. Every performance evaluation should be directly tied with that employee’s job description. A 360-degree performance appraisal method is a way to appraise performance by using several sources to measure the employee’s effectiveness. Organizations must be careful when using peer-reviewed information. For example, in the Mathewson v. Aloha………………………………………………………………………………………………………………………………………..Please contact us to receive guidance and support on this assessment based on your level of expectations and organisation of work
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