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HBO Reporting

The document discusses performance management and rewards in organizations. It covers topics like what performance management is, staffing which includes job analysis and recruitment, and different methods of internal and external recruitment.

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0% found this document useful (0 votes)
52 views16 pages

HBO Reporting

The document discusses performance management and rewards in organizations. It covers topics like what performance management is, staffing which includes job analysis and recruitment, and different methods of internal and external recruitment.

Uploaded by

alfritschavez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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COURSE: HUMAN BEHAVIOR IN ORGANIZATION

PERFORMANCE MANAGEMENT AND REWARDS


How individuals and groups do their jobs is the main concern of those managing organizations. It
is easy to predict what will happen to organizations when members are not performing effectively and
efficiently. The task of management is to make sure that every member is doing what is expected of them.
How management will go about doing this task is the aim of performance management. Since the
principal means designed to motivate employees to perform is the reward system, it will be included in
the discussions that will follow.

WHAT IS PERFORMANCE MANAGEMENT (Chavez)


Performance management refers to the procedures and systems designed to improve employee
outputs and performance, often through the use of economic incentive systems.
Apart from economic incentives, the other means used to improve employee performance are:
• Goal setting
• Streamlined organizational structure.
• Better technology
• New arrangements of working schedules
• High involvement of employees
• Better motivation of employees
An effective performance management process considers human resource (HR)strategic planning as a
basic requirement. HR strategic planning is the process of providing capable and motivated people to
carry out the organization’s mission and strategy.
A key element of the HR strategic planning is the staffing function which implements the
provision of qualified people to the identified job openings.

STAFFING (Chavez)
Effective performance begins with getting the right people, and then providing them with the
right environment. To achieve this, the staffing function of the organization must be well implemented.
Staffing refers to the HR planning, acquisition, and development aimed at providing the talent
necessary for organizational success. The staffing process consists of the following:
• Job analysis
• Recruitment
• Selection
• Socialization
Job Analysis (Chavez)
The process of staffing starts with an understanding of the positions or jobs for which individuals
are needed in the organization. Job analysis is a technical procedure used to define the duties,
responsibilities, and accountabilities of a job.
The results of job analysis are very useful in:
• Preparing job descriptions
• Evaluating and classifying jobs
• Training and career development
• Performance appraisal
• Other HR aspects
The job description contains information concerned with the job. The information includes job duties and
responsibilities, equipment and materials used, working conditions and hazards, supervision, work
schedules, standards of performance, and relationships to other jobs.
To meet the job requirements specified in the job description, the job specification is derived. In a typical
job specification, requirements about the following are indicated:
• Education and experience.
• Technical knowledge.
• Physical aptitudes and abilities.
• Interpersonal and communication skills.
• Analytical aptitudes and abilities; and
• Creative abilities.

Recruitment (Cajayon and Oracion)


After job analysis, the next step in the staffing process is the drawing of people to apply for the various
positions identified. This step is called recruitment, and it may be defined as a human resource
management practice designed to locate and attract job applicants for particular positions.
Recruitment involves the following:
• Advertisement of a position vacancy
• Preliminary contact with potential job candidates
• Preliminary screening to obtain a pool of candidates.
Recruitment is of two types: internal and external.

(Cajayon and Oracion)


Internal Recruitment. It is a process for attracting job applicants from those currently working for the
firm. The advantages of internal recruitment are:
• It is good public relations.
• It builds morale.
• It encourages good individuals who are ambitious.
• It improves the probability of a good selection, since information on the individual’s performance
is readily available.
• It is less costly than external recruitment.
• Those chosen internally already know the organization.
• When carefully planned, promoting from within can also act as a training device for developing
middle and top-level managers.
The disadvantages of internal recruitment consist of the following:
• It can be dysfunctional to the organization to utilize inferior internal sources only because they
are there, when excellent candidates are available on the outside.
• It may generate infighting among the rival candidates for promotion.
• It may decrease the moral levels of those not selected.
• It may promote “inbreeding”.
Methods of Internal Recruitment. There are several methods of internal recruitment. These are the
following:
• Computerized career progression system
• Supervisor recommendations
• Job posting
• Career development systems
The computerized career progression system (CCPS) is one that stores extensive amounts of information
about employees of a company. It is useful means of recruiting people currently employed by the
organization. The system’s computer file contains information on employees such as job history,
education, strengths and weakness, leadership development needs, developmental needs, training, and
special skills.
The computer may also provide information on job title, location, skills requirements, and potential
successors to the position.
The advantage of CCPS is that candidates can be found quickly. A broad spectrum of candidates can be
identified, and it will not be limited to candidates working in the department where the vacancy exists.
The disadvantages of CCPS are that the skill inventory contained in the computer database is limited only
to objective or factual information, such as educational degrees, certifications, training courses taken, and
languages spoken. Information of a more subjective nature (like interpersonal skills, judgment, integrity)
is excluded. Yet, for many jobs, this type of information is crucial.
Supervisor recommendations are another method of internal recruitment. When a supervisor needs to fill
a certain vacancy in his unit, he is in the best position to identify the person who fits the job. He can be
asked to nominate internal candidates. Most likely, the supervisor will nominate those whose capabilities
are well-known to him.
The advantages of this method are:
• The supervisor is given total discretion in selecting the person who will report to him.
• The supervisor is generally in a good position to know the capabilities of potential candidates,
especially those who already work for him and seeking a promotion.
The disadvantages of using supervisors as source of internal recruitment are:
• The supervisor’s recommendation is usually very subjective and is thus susceptible to bias and
possible discrimination.
• Some qualified employees may be overlooked because the supervisor wants to help his or her
favorite, or he or she may simply be unaware of the capabilities possessed by some individuals.

Job posting is a method of internal recruitment in which a job vacancy notice is posted, and all qualified
employees may bid. The notice describes the job, the salary, work schedule, and necessary qualifications.
The most qualified applicants are chosen for interview.
The advantages of job posting are:
• It enhances the probability that the firm’s most qualified employees will be considered for the
job.
• It gives employees an opportunity to become more responsible for their own career development.
Many may attempt to improve their job skills and performance because they perceive that such an
effort can led to greater promotional opportunities.
• It enables employees to leave a “bad” work situation. In the same light, it encourages their
present supervisors to manage more effectively to discourage employees from leaving the
company.
There are also some disadvantages attributed to job posting. These are the following:
• This method takes time in filling vacant positions.
• The system may prevent supervisors from hiring the resort to other moves to make sure that their
favorites will get the jobs.
• Some employees may move from one job to another without any clear direction.
• Employees who did not get the job may become alienated from the organization.

Career development system constitutes another method of internal recruitment. Under this method, the
organization places” fast-track” or high -potential employees on a career path where they are groomed
for certain target jobs.
Career development systems have certain advantages which are as follows:
• The top performers are more likely to remain with the organization.
• It helps ensure that someone is always ready to fill a position when it becomes vacant.

The disadvantages of career development systems are as follows:


• An employee who is not selected even if he is good may become disenchanted and leave
the organization.
• The selected employee may become frustrated if the expected promotion does not materialize
because the targeted position never becomes vacant.

(Cajayon and Oracion)


External recruitment. It is a process of attracting job applicants from outside the organization. It is
undertaken when no suitable candidates are available from within the organization. This recruitment
source tends to bring in “new blood” and fresh ideas to the organization.
Methods of External Recruitment. There are several methods of external recruitment:
• Employee referrals is a method of recruitment in which organizations ask their employees to
solicit applications from qualified friends and associates.

The advantages of this method are:


• Applicants referred by employees tend to perform better and remain with the organization
longer than applicants recruited by other means.
• Employees tend to be good recruiters because they know a lot about both the job being filled
and the individual and can therefore accurately judge the “fit” character to fall under the job
requirement.
• Employees make good recruiters because believing their reputation is on the line, they are
encouraged to refer only the highest qualified applicants.
The disadvantage of this method is the limited choice offered to the organization. Employees will
tend to recruit only those they know. Even if some are better qualified, they cannot be considered
unless they are referred to by employees.
• Applicant-initiated recruitment is a method of external recruitment in which an organization
accepts unsolicited applications or resumes from individuals interested in working for the
organization.

The advantages of this method are:


• It is both efficient and low cost.
• The candidates are likely to be highly motivated, since they have taken the time to learn about
the organization.
The disadvantage of this method is one which concerns timing. When applications and resumes
remain “on file” for some time, applicants may no longer be available when they are needed.
• Help-wanted advertisements is a method of external recruitment in which an organization places
an advertisement for the position in the appropriate media such as newspaper, magazine, and the
like. The advantage of this method is that it allows the organization to reach a large audience in a
relatively short period of time. The disadvantage is that studies found out that people hired
through newspaper advertisements perform their job less efficiently and are absent from work
more often than those hired through other recruiting methods.
• Private employment agencies and executive search firms constitute another method of external
recruitment. Under this method, the hiring organization initiates the recruitment process by
contacting the appropriate agency or firm and informing if of the qualifications needed for the job
in question. The agency of firm assumes the task of soliciting and screening applications, and
then refer stop applicants to the hiring organization for further screening.
Private employment agencies are those that provide organizations for a fee, with clerical, blue collar,
technical, and lower-level managerial personnel. Their services are especially useful when many
individuals are expected to apply for a job or when qualified candidates are hard to find.
Executive search firms are employment agencies used to recruit middle and top-level managers.
These firms can locate successful executives working elsewhere who are not even actively seeking a
new job.5.
• Campus recruiting is an external recruiting method in which the organization’s recruiters visit
various college and university campuses to recruit individuals for positions requiring a certain
degree. The advantage of this method is that it can be used to fill specialized entry-level jobs in
such fields as engineering, finance, accounting, computer science, law, and supervisory
management. The disadvantage of this method is that it is costly and time consuming.

Selection (Cajayon and Oracion)


After recruitment, the next step in the staffing process is selection. This involves assessing and choosing
among job candidates. The selection process involves the following steps:
• Completing the application form.
• Conducting an interview.
• Completing any necessary tests.
• Background investigation.
• Physical and medical examination; and
• A decision to hire or not.
At each step, applicants are screened out by the organization, or some applicants accept other job offers
and drop from the list of applicants.
Socialization (Cajayon and Oracion)
The final step in the staffing process is socialization, and it involves orienting new employees to the
organization and its work units, especially the work units where the newly hired employee will be
working. The purpose of socialization is to enable new employees to quickly become productive members
of the organization.
In socialization, the new employees are provided with information about the following:
• Key organization factors which include an overview of the organization, policies and procedures,
compensation, benefits, safety and accident prevention, employee and union relations, physical
facilities, and economics factors; and
• Department and job-related issues including department functions; job duties and responsibilities;
policies, rules, procedures, and regulations; the autonomy of the department; and socialization
into the work group.

TRAINING AND CAREER PLANNING AND DEVELOPMENT (Malate and Mapoy)


After the selection effort, the organization will have to undertake measures that will ensure that
the knowledge, skills, and abilities of employees are at par with the requirements of their respective jobs.
Even if the organization hires only very qualified individuals, it cannot ensure that all jobs will be staffed
by fully competent people. Nearly all employees require some additional training in order to perform their
jobs optimally.

Training (Malate and Mapoy)


Training is the process of changing employee behavior, attitudes, or opinions through some type
of guided experience. Training the individual employee occurs not only initially but anytime improved
skills are needed to meet changing job requirements.
There are many ways to conduct training programs and they may be classified as follows:
• On-the-job training; and
• Off-the-job training.

On-the-job training. This training method is conducted while employees perform job-related tasks. It is
the most direct approach to training.
The common forms of on-the-job training are
• Internships
• Apprenticeships
• Job rotation
Internships are opportunities for students to gain real world experience. They are often offered during
summer breaks and may be with or without payment.
Apprenticeships involve learning a trade from an experience’s worker.
Job rotation provides a broad range of experience in different kinds of jobs in an organization. It is
often used to provide background for future managers and is sometimes used to try to alleviate
worker boredom.

Off-the-job training. This type of training deals with work skills in setting away from their ordinary
workplace.
The various off-the-job training techniques are:
• Classroom lectures. These consist of lectures designed to communicate specific interpersonal,
technical, or problem-solving skills.
• Videos and films. This training method uses various media production to demonstrate specialized
skills that are not easily presented by other training methods.
• Simulation exercises. This is a training method that occurs by actually performing the work. This
may include case analysis, experiential exercises, role playing, or group decision making.
• Computer-based training. This is a training method that simulates the work environment by
programming a computer to imitate some of the realities of the job.
• Vestibule training. This is a training method where training materials are condensed into highly
organized, logical consequences. It may include computer tutorials, interactive video disks, or
virtual reality simulations.

Career Planning and Development (Malate and Mapoy)


Organizations need to grow and develop, and this is possible if the individual workers including
managers are given the opportunity to grow and develop. Such relationships indicate a need for individual
employees to adapt a positive outlook in career planning and development. A requirement, however, is for
the employee to have some basic knowledge of careers and its various aspects.
Career may be defined as the pattern of work-related experiences that span the course of a
person’s life.
Career stages. This item refers to the distinct stages that individuals go through in their careers,
typically including establishment, advancement, maintenance, and retirement.
The establishment stage is one of the apprenticeships where the young employee enters an
organization who may be technically able but often without an understanding of the organization’s
demands and expectations. As a consequence, they work fairly closely with more experienced people.
In the advancement stage, the employee seeks growth and increased responsibility through the
continued development and utilization of his skills. This stage calls for the employee to work as
an independent contributor of ideas in a chosen area. He is expected to rely much less on direction from
others. Advancement may be pursued through internal career paths within the organization or through
external career paths that involve taking advantage of opportunities that require a change of employer.
During the maintenance stage, the employee may experience continued growth of performance
and accomplishments, or he may encounter career stability. Sometimes, further change in employers is
necessary to sustain advancement, but often the employee loses career flexibility. This may be a result of
personal considerations such as:
• Limited interest in learning new skills;
• Organizational considerations, such as a basic lack of opportunity; and
• Family considerations that make it difficult to change jobs or to take additional work
responsibilities.
Many people experience career plateau during the maintenance stage. A career plateau is a
situation in which, for either organizational or personal reason, the probability of moving up the career
ladder is low.

Career plateau is of three types:


• Structural plateau – which marks the end of promotions and the affected employee, will now
have to leave the organization to find new opportunities and challenges.
• Content plateau – which occurs when a person has learned a job well and is bored with day-to-
day activities.
• Life plateau – which occurs when an employee experiences a loss of identity and self-esteem
when there is no longer success in his work area.
Career plateau can be a cause of low employee performance. However, a leader’s understanding of
individual needs can help in developing appropriate responses on these occasions. For instance, leaders
can make organizations help individuals cope with plateaus by providing opportunities for lateral growth
where opportunities for advancement do not exist.
The retirement stage is that stage when formal preparation for retirement is made. The individual
learns to accept a reduced role and less responsibility. Depending on the individual, this can be either a
positive or a highly upsetting stage of one’s career.

PERFORMANCE APPRAISAL (Oracion and Malate)


Performance appraisal is a key aspect of performance management. It may be defined as the
process of evaluating the performance of employees, sharing the information with them, and searching for
ways to improve their performance.

Functions of Performance Appraisal (Oracion and Malate)


Performance appraisal is undertaken for the following reasons:
• To give employees feedback on performance,
• To identify the employee’s developmental needs.
• To make promotion and reward decision,
• To make demotion and termination decisions; and
• To develop information about the organization’s selection and placement decisions.

Criteria for Performance Appraisal (Oracion and Malate)


In performance appraisal, there are certain criteria that are used. The three most popular sets of criteria
are:
• Individual task outcomes;
• Behaviors; and
• Traits.

Individual task outcomes. One way of appraising performance is evaluating the employee’s Task
outcomes. For instance, the manager of a bank could be judged on criteria such as deposit generation and
loans collected. In the same light, a credit investigator could be judged on the number of good accounts
that turned out from the credit applications he investigated and recommended for approval.
Behavior. There are instances when it is difficult to measure an individual’s task outcomes. This is so on
advisory jobs or support positions and those who are assigned to work in a group. Examples of jobs
encountering this difficulty are those of teachers, nurses, and filing clerks. In such cases, management
tend to evaluate the employees behavior. Teachers, for instance, are evaluated according to how well they
manage classroom activities, the quantity and quality of professional training attended, research output,
community service, and the like.
Traits. Many organizations use traits as criteria in appraising employee performance. Thesis true even if it
is a very weak means. It is weak because it has little connection with the actual performance of the job.
The traits commonly used as basis for performance appraisal include
• Good attitude
• Showing confidence
• Being dependable
• Looking busy
• Possessing a wealth of experience

The Process of Performance Appraisal (Oracion and Malate)


Performance appraisal is a process in an organization whereby each employee is evaluated to
determine how he or she is performing. It consists of the following steps:
• Establishment of performance standards
• Mutually set measurable goals
• Measure actual performance
• Compare actual performance with standards
• Discuss the appraisal with the employee
• If necessary, initiate corrective action.
Performance standards are those by which performance is to be evaluated. It should be clearly defined
and communicated to the employee. These standards should be based on job-
related requirements derived from job analysis and reflected in the job descriptions and job specifications.
An example of performance standard is: “all customer orders will be filled in 4 hours with a 98 percent
accuracy rate.”
When goals are set with the active participation of the employees, appraising employee performance will
be an easy task.
Measuring performance is the third step in the appraisal process. To determine what actual performance
is, it is necessary to acquire information about it. Information may be derived from the following sources:
• Personal observation
• Statistical reports
• Oral reports
• Written reports

Methods of Performance Appraisal (Oracion and Malate)


There are three different approaches which can be used for appraising employees:
• Absolute Standards.
Under this approach, the subjects of appraisal are not compared with other persons. This approach
consists of the following methods: the essay appraisal, the critical incident appraisal, the checklist, the
adjective rating scale, forced choice, and behaviorally anchored rating scales.
• The essay appraisal is a performance appraisal method whereby an appraiser writes a narrative
about the employee. The employee’s strengths and weaknesses are
described and recommendations for development are indicated.

The essay method provides an excellent opportunity to point out the unique characteristic of the
employee being appraised. The disadvantages, however, are the following:
• it is very time consuming.
• the quality of the appraisal may be influenced by the appraiser’s writing skill and
composition style.
• it tends to be subjective and may not focus on relevant aspects of nonperformance.
• The critical incident appraisal is a performance appraisal method which requires effective or
ineffective performance for each employee being appraised. These incidents are critical incidents.
• The checklist is a performance appraisal method wherein the evaluator uses list of behavioral
descriptions and checks off those behaviors that apply to the employee. A checklist developed
for motorcycle salespersons might include a number of statements.

The advantage of checklist method is that it reduces some bias since theater, and the scorer
are different. The disadvantage is where there are many job categories; a checklist of items
must be prepared for each job categories that is costly in terms of materials and time
consumed.

• The adjective rating scale, also known as graphic rating scale, is a performance appraisal
method that lists a number of traits and a range of performance for each. The traits listed are
assumed to be necessary to successful job performance. Examples of traits are quality of
work, quantity of work, job knowledge, and dependability. Each trait is accompanied by a
five or seven-point rating scale.

The advantage of adjective rating scale is that it is practical and cost little to develop. The
disadvantages, however, are as follows:
• It does not clearly indicate what a person must do to achieve a given rating.
• It does not provide a good mechanism for providing specific, nonthreatening
feedback.
• Accurate ratings are not likely to be achieved because the points on the rating
scale are not clearly defined.

• The forced-choice appraisal is a type of performance appraisal in which the rater must choose
between two or more specific statements about an employee’s work behavior. The supervisor or
others familiar with the ratee’s performance evaluate how applicable each statement is.
Oftentimes, the statements are ranked from most to least descriptive. This appraisal can be used
by superiors, peers, subordinates, or a combination of these in evaluating employees.

• Behaviorally anchored rating scale (BARS) is a rating instrument composed of traits anchored by
job behaviors. Appraisers select the behavior that best describes the worker’s performance level.
The typical BARS includes seven or eight traits called “dimension” each anchored by seven or
nine-point scale. A BARS anchors each trait with examples of specific behaviors that
reflect varying levels of performance.
The greatest advantage of BARS is its ability to direct and monitor behavior. The behavioral
anchors let employees know what types of behavior are expected of them which give appraisers
the opportunity to provide behaviorally based feedback.

The weakness of BARS is the difficulty of selecting the one behavior on the scale that is most
indicative of the employee’s performance level. Sometimes, an employee may exhibit behaviors
at both ends of the scale, so the rater would not know which rating to assign.

• Relative Standards. This category of appraisal methods compares individuals against other
individuals. The most popular in this category are:
o Group order ranking is a relative standard of performance characterized as placing
employees into a particular classification such as top “one-fifth.” Under this method, the evaluators are
asked to rank the employees as follows: top 5percent, second 5 percent, third 5 percent, and the like. This
evaluation method prevents evaluators from inflating their evaluations or from homogenizing the
evaluations. The disadvantage of this method is its inapplicability when the number of subjects is small.
o Individual ranking method requires the evaluator merely to list the employees in order from
highest to lowest. This method does not show the difference between the first and second, or between the
second and third.
o Paired comparison is an appraisal method whereby subordinates are placed in all possible
pair and the supervisor must choose which of the two in each pair is the better performer. This method
ensures that each employee is compared against each other, but the method can become unwieldy when
large numbers of employees are being compared.

• . The third approach to appraisal makes use of objectives. This approach, also known as
management by objectives (MBO), is a process of joint goal setting between a supervisor and a
subordinate. It is also a process of converting organizational objectives into individual objectives.
MBO consists of four steps: goalsetting, action planning, self-control, and periodic reviews.
In goal setting, the individual objectives are set based on the organization’s overall objectives. These
goals are agreed upon and then become the standards by which the employee’s results will be evaluated.
In action planning, realistic plans are developed to attain the objectives.
Self-control refers to the systematic monitoring and measuring of performance. Periodic reviews are
the means used to determine whether there is a need for corrective action.

The advantages of MBO are the following:


• It improves job performance by monitoring and directing behavior,
• It is practical and inexpensive; and
• It fosters better communication between employees and supervisors.
The disadvantages of MBO are the following:
• It does not specify the behavior required to reach goals,
• It tends to focus on short-term goals,
• The successful achievement of MBO goals may be partly a function of factors outside the
worker’s controls.
• MBO does not provide a common basis for comparison of performance standards; and
• It often fails to gain acceptance.

Errors in Performance Appraisal (Oracion and Malate)


A perfect performance is an ideal goal and to make it happen, errors should be prevented from
happening. To eliminate the possibility of errors, they must first be identified.

The following are brief descriptions of errors in performance appraisal.


o Halo Error. This is a rating error that occurs when a rater assigns ratings on the basis of an overall
impression (positive or negative) of the person being rated. For example, a teacher who topped the board
examination for electrical engineers is regarded as outstanding in the aspect of professional qualification.
If that impression spills over the other aspects of evaluation, a halo error is committed.
o Leniency Error. This is a rater’s tendency to give relatively high ratings to virtually. everyone. The
opposite of this is strictness error where the raters tend to give everyone allow rating. Most often,
leniency errors happen when peers’ asses one another.
o Central Tendency Error. This occurs when a rater lump everyone together around the average, or
middle, category. The idea is that there are no very good or very poor performers on the dimension being
rated. As a result, no true performance discrimination is made.
o Recency Error. This is a biased rating that develops by allowing the individual’s most. recent behavior
to speak for his or her overall performance on a particular dimension. The results is a false picture of the
individual’s job performance during the entire period.
o Personal Bias Error. This occurs when a rater allows specific biases, such as racial, age, and gender, to
enter into performance appraisals. For example, a rater may intentionally give higher rating to a member
of a certain fraternity than to a non-member.

REWARDS (Paule)
After staffing, training, career planning and development, and performance appraisal, a final
requirement is necessary to ensure effective performance. The requirement refers to the design and
implementation of reward systems.

Types of Organizational Incentives


Organizational incentives consist of rewards to motivate people to work. Rewards may be classified as
either:
• Intrinsic or Extrinsic
Intrinsic rewards are those that the worker receives from the job itself, such as pride in one’s work, a
feeling of accomplishment, or being part of a team. These rewards are self-regulated as the worker is not
dependent on an outsider, such as the manager, to provide for them. Managing intrinsic work rewards
present the additional challenge of designing a work setting so that employees can, in effect, reward
themselves for a job well done.
Extrinsic rewards are those that the workers get from the employer, usually money, a promotion, or
benefits.
• Financial or Nonfinancial
Financial rewards are those that enhance an employee’s financial well-being directly through wages,
bonuses, profit sharing, and the like.
Nonfinancial rewards are indirect enhancement of an employee’s financial well-being. This is done
through supportive benefits like pension plans, paid vacations, paid sick leaves, and purchase discounts.
• Performance-based or Membership-based
Performance-based rewards are those given using performance as basis. These rewards take the form of
commissions piecework pays plans, incentive systems, group bonuses, or other forms of merit pay.
Membership-based rewards refer to those that are given to all employees regardless of performance. This
type includes cost-of-living increases, benefits, and salary increase attributable to labor-market
conditions, seniority or time in rank, credentials such as a college degree, or future potential such as new
MBA degree from a prestigious university.

REFERENCES

Gani, S. (n.d.). Performance management and rewards. [Scribd]. Retrieved from

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