DAY 3
Topic of the day
Remuneration
Amount and types of remuneration
Performance appraisal
Objectives of performance appraisal
Process of performance appraisal
Purpose of performance appraisal
Advantages of performance appraisal
Importance of performance appraisal
WHAT IS REMUNERATION
Remuneration is the payment or compensation received for service or employment. Remuneration includes base salary and any bonus or other economic benefits that an organization or executive receive during employment.
Remuneration is also any type of compensation or payment that an individual or employees receive as a payment for their services or work done for that organization or company. This includes bonuses, holiday allowances; expenses account funds, and base salary etc.
AMOUNTS AND VARIOUS TYPES OF REMUNERATION
The amount of remuneration an individual receive and what form it takes depe3nds on several factors. These are;
It is important to note that remuneration values and types will differ depending on an employee’s value to the company.
Taking into consideration things like;
The individual employment status. Whether you are a full time staff or part time staff and also the level of position will also be considered.
TYPES OF REMUNERATION
Minimum wage
Deferral compensation or retirement funds
Bonuses and incentives
MINIMUM WAGE
This is the lowest amount that can legally be offered for a specific position or to do a certain job. This is usually maintained by the federal government and it varies from state to state or region to region. However, no matter the state or region, the lowest amount offered cannot be lower than the minimum wage set by the federal government.
DEFERRAL COMPENSATION OR RETIREMENT FUNDS
This is where part of the earnings of an employee is withheld in order to receive them at a future time.
BONUSES AND INCENTIVES
Employees might be paid bonuses at various times and for various reasons. Some of these bonuses are paid based on performance related while others are given to all employees in the company or to a workgroup at the end of a big project or particularly at the end of a good year. An example of these bonuses and incentives includes holiday bonuses or vacation etc.
Incentives are motivational in a way that it is used as a reward for a job well done, that is, a thank you. It is mostly used for appreciation of the employees.
PERFORMANCE APPRAISAL
performance appraisal is a process of evaluating how well an employee is carrying out his or her job and also to understand the abilities of a person for further growth and development.
OBJECTIVES OF PERFORMANCE APPRAISAL
1. To promote the employees on the basis of performance and competence.
2. To help employees in understanding where they stand in terms of performance.
3. To take decision regarding the hike in employees pays and incentives .
4. To facilitate communication between superior and subordinate.
5. To identify the requirement for training and development of employees.
6. To provide confirmation to those employees who are hired as a probationary employees upon completion of the terms.
PROCESS OF PERFORMANCE APPRAISAL
This process first begins with determining the objectives of performance appraisal by
- establishing job expectation
- designing appraisal programs
- identify appraisal performance
- conducting performance interview
- analyzing appraisal data
- using of appraisal data for it's purposes
Note: this process is conducted periodically, usually twice a year in order to determine the performance of an employee and identify their growth and lapses.
In an organization, we have some factors affecting employee performance because as an HRM expert it is important to know why the performance of an employee is very poor. These factors include;
1. Poor cross team communication
2. No goals defined and no tracking against the goal set
3. Workload imbalance
4. Lack of transparency
5. Uninspiring leadership
6. Culture fit
7. Lack of motivation
POOR CROSS TEAM COMMUNICATION
Communication is key for everything we do in life, we have to communicate and the same goes to an organization or company.
NO GOAL DEFINED AND NO TRACKING AGAINST THE GOAL SET
Every organization must define their goals and how to achieve the set goals and this must be communicated openly to the employees so as to serve as a guide in their day to day activities in the organization.
WORKLOAD IMBALANCE
When an employee is overworked it can affect their performance drastically by the employees losing interest in the job.
LACK OF TRANSPARENCY
When the employees feels the company is not being open to them, like something they should know has not been communicated to them it can affect the performance of such employees as they feel they are being denied some benefits or opportunities.
UNINSPIRING LEADERSHIP
A good leader matters. As a leader, you must look after your followers by making them your priority and objectives.
CULTURAL FIT
Different organization have different cultures ranging from their beliefs, the way and manner that they behave , the way they approach situations, their mode of dressings etc. the moment an employee does not seem fit and comfortable with the organizations culture, it will affect the employees performance in one way or another.
LACK OF MOTIVATION
Motivation is very important. As an HRM expert, once in a while you just have to appreciate and motivate your employees to keep them working at their best performances and happy with doing their job.
PURPOSE OR GOALS OF PERFORMANCE APPRAISAL
1. Ensure employees feel valued - in order to be productive and really at the top of their performance. It is important to regularly check in with them to give feedback that both express your appreciation for their work and helps them understand the impact of their work on the business which in turn makes them more likely to stay engaged and continue performing well. While performance appraisals do give you the opportunity to offer constructive criticism and address any shortcomings it also gives you a great opportunity to recognize the hard work of the employees.
2. Resolve problems - whether an employee has a problem with their workload, teammate or a project, a formal review gives you the opportunity to work on solving these issues and retaining your team members . It also like a key opportunity to share any grievances you have with their performance or progress.
3. Maintain positive managerial relationship - the best teams are those with the best relationships with their coworkers and managers. It therefore help to maintain productivity and progress in the organization.
4. Access opportunities for promotions advancement and raises.
5. Performance appraisal system helps to evaluate how well an employee performs his or her job duties or tasks, her supervisory and leadership capabilities and other soft skills and how well she manages workplace relationships and conflict resolution.
ADVANTAGES AND IMPORTANCE OF PERFORMANCE APPRAISALS
1. Promotion - performance appraisal helps the supervisors to chalk out promotion programs for efficient employees in this regard inefficient workers can be dismissed or demoted in case.
2. Compensation - performance appraisal helps draft out compensation packages for employees, compensation packages includes bonus, high salary, extra benefits, allowance. Note this criteria should not be merit rather than seniority.
3. Communication - it helps in effective communication between employees and employers.
4. Motivation - performance appraisal serves as a motivational tools.
5. Employment development - this systematic procedure of performance appraisal helps the supervisors to frame training and polices programs. It helps to analyze the strength and weaknesses of employees so that new jobs can be designed for efficient employees.
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