Sustaining Employee Performance

Topics: Management, Human resource management, Human resources Pages: 5 (1442 words) Published: July 19, 2013
Sustaining Employee Performance
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Sustaining Employee Performance
In this paper, team D will address the course design objectives of Riordan Manufacturing. First of all, the team will pick two job positions within the company, and discuss the general functions of performance management systems, job evaluation methods, compensation plans, and the importance of employee benefit plans. The two job positions discussed in this paper will be the Director of Administration, and Human Resources/recruiter. These positions were selected due to the extreme amount of importance their roles play in completing Riordan Manufacturing’s Mission. General functions of performance management systems

The general function of performance management systems in organizations is for employers to manage employees’ performance and development by providing individual feedback on their performance evaluation to identify and plan measurable areas for personal development to ensure the organization’s strategic goals are being met (DeCenzo and Robbins, 2007). For years, many organizations provided appraisal type performance reviews to their employees that ranked them against other employees. This type of ranking system is problematic, as it is unfair to compare employees from different departments who’s primary goals may be different from one another and can viewed as putting down employees who may be unable to put in as many hours or as much effort as others who have only one set project at a time and can bog down to set higher numbers. If employee development is not properly measured and managed, the organization may find it difficult to meet their strategic goals. This in turn can create complications between mainstream workers and management, as well as the company, and their customers.

Riordan Manufacturing uses a behavioral-anchored rating scale for their annual performance evaluations. The employees are rated by their performance in different areas of competencies to determine if they met, exceeded, or if they did not meet the standard expectations of the job. “Behaviorally anchored rating scales specify definite, observable, and measurable job behavior” (DeCenzo and Robbins, 2007, p. 264).This rating is issued and determined by managers and is a sufficient measure for performance management. Though this rating style eliminates competitive work habits that may assist in high productivity, it is a proven system that works much more consistent (Noe, Gerhart, & Wright, 2012) .

Job evaluation methods
Job evaluations are important for every organization to use because it ranks each position in the organization and is used to determine the pay structures for positions. Positions are usually broken down by responsibility, skill, effort, and work conditions. It is also helpful to separate the positions into groups such as managerial, professional, sales, and so on. This makes the rankings more valid within the job categories. To evaluate the director of administration a good evaluation method would be the ordering method. The ordering method uses a committee composed of managers and employee reps to arrange jobs in ranking order from highest importance to lower importance. The base of this is to compare two jobs and decide what job is more important or difficult. Then to add another job to the comparison until all of the positions have been compared and ranked. There are two major drawbacks to doing evaluations this way. One is there can be many positions within the organization which can make the processes confusing and long. Two, there are no consistent standards in the ranking evaluations. Another way to evaluate the director of administration position is through the classification method. This method was developed so that a standard was set in the evaluation processes. Classifications are set based off of skills, knowledge, and responsibilities and then by classes such as managerial, sales staff, and so...

References: Apollo Group, Inc. (2011) Riordan Manufacturing, Human Resources/Policies & Procedures/Annual Pay Adjustment. Retrieved from HRM/300--Fundamentals of Human Resource Management course website.
Apollo Group, Inc. (2011). Riordan Manufacturing. Legal: Corporate governance plan. Retrieved from HRM/300--Fundamentals of Human Resource Management course website.
DeCenzo, D., & Robbins, S. (2007). Fundamentals of human resource management (9th ed.). Hoboken, NJ: John Wiley & Sons.
Noe, R. A., Gerhart, B., & Wright, P. M. (2012). Human Resource Management 8th ed.). (Columbus, NY: McGraw-Hill / Irwin.
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