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    HR Quiz 3

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    Shamim Iqbal
    The document discusses performance appraisal systems and their role in employee retention. It suggests a merit-based incentive plan that differentiates pay based on individual performance. The key advantages of this system are that it rewards high performers and encourages excellence. However, it also has disadvantages like introducing subjectivity and potentially dividing employees. Overall, performance appraisals are important for evaluating compensation packages as rewards that motivate improved performance going forward.

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    HR Quiz 3

    Uploaded by

    Shamim Iqbal
    84 views3 pages
    The document discusses performance appraisal systems and their role in employee retention. It suggests a merit-based incentive plan that differentiates pay based on individual performance. The key advantages of this system are that it rewards high performers and encourages excellence. However, it also has disadvantages like introducing subjectivity and potentially dividing employees. Overall, performance appraisals are important for evaluating compensation packages as rewards that motivate improved performance going forward.

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    HR QUIZ

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    HR QUIZ 3

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    The document discusses performance appraisal systems and their role in employee retention. It suggests a merit-based incentive plan that differentiates pay based on individual performance. The key advantages of this system are that it rewards high performers and encourages excellence. However, it also has disadvantages like introducing subjectivity and potentially dividing employees. Overall, performance appraisals are important for evaluating compensation packages as rewards that motivate improved performance going forward.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    84 views3 pages

    HR Quiz 3

    Uploaded by

    Shamim Iqbal
    The document discusses performance appraisal systems and their role in employee retention. It suggests a merit-based incentive plan that differentiates pay based on individual performance. The key advantages of this system are that it rewards high performers and encourages excellence. However, it also has disadvantages like introducing subjectivity and potentially dividing employees. Overall, performance appraisals are important for evaluating compensation packages as rewards that motivate improved performance going forward.

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    IBA, UNIVERSITY OF DHAKA

    ACBA BATCH 17 FALL 2020


    MANAGING HR FOR EXCELLENCE
    TIME 20 MINUTES
    TOTAL 15 MARKS
    QUIZ 3

    Name: Sk. Shamim Iqbal ID.: 17-58


    Proper performance appraisal system and reward and recognition are the key conditions of
    retention. For your organization which performance appraisal system do you suggest for merit
    based reward package that will add value to retention?
    Answer:
    Performance: Employees are performing well when they are effective, productive and reaching
    the set goals or company targets. An employee who is at work on time, rarely absent, who
    reduces the number of work-related accidents and who has an appropriate level of productivity
    will be considered a good performer.

    Performance Appraisal: A performance appraisal is an evaluation of employees by


    supervisors. Most employees wish to have feedback on their job performances. Appraisals are
    helpful in many human resource decisions: selection, training, promotion, transfer, wage, salary,
    appraisals may aid in improving overall personnel performance.

    For my organization I have chosen compensation/Incentive plan is the key retention policy.
    The reasons of such choice with pros & cons are given below:

    Compensation: Incentive Plans: Merit Pay: An incentive plan implemented on an institutional


    wide basis to give all employees an equal opportunity for consideration, regardless of funding
    source. The merit increase program is implemented when funds are designated for that purpose
    by the institution's administration, dependent upon the availability of funds and other constraints.
    Advantages of Merit pay:

     Allows the employer to differentiate pay given to high performers.


     Allows a differentiation between individual and company performance.
     Employees should be paid what they are worth
     Pay scales based on seniority or service perpetuate inequality (i.e., the equal treatment of
    employees whose job performance is not equal)
     Without recognition of high performing employees, the company risks the loss of highly
    competent, well-motivated people and at the same time fails to encourage high
    performance standards.
     Merit programs draw and hold superior performers, since these programs reward skill,
    effort, and provide opportunities for advancement.

    Disadvantages of Merit pay:

     The pay is subjective.


     Merit pay often depends on subjective judgments.
     Merit pay plans may create problems in employee relationships, problems in morale
    related to jealousy, fear, favoritism, undesirable competition, and job insecurity.
     Merit programs tend to develop divisive and competitive attitudes rather than cooperation
    among employees.
     Merit rating places employees in a competitive position for salary increases. This
    competition between employees might go against organizational objectives of teamwork
    and cooperation.

    Concluding Remarks: Performance appraisals help to evaluate compensation packages for


    employees. Packages, which include bonuses, higher salary rates, extra benefits and allowances,
    are dependent on how an employee is performing. Besides, Performance appraisals serve as a
    motivational tool. Through evaluating the performance of employees, if the targets are achieved,
    a person’s efficiency can be determined. This motivates a person to work toward perhaps a better
    job, and helps him or her to improve performance in the future.

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