Kishan Varma

The main purpose of this chapter is to show you how to establish a pay plan. We explain job evaluation–techniques for finding the relative worth of a job–and how to conduct online and offline salary surveys. We also explain how to price the jobs in your firm by developing pay grades and an overall pay plan. BASIC FACTORS IN DETERMINING PAY RATES Employee compensation  refers to all forms of pay going to employees and arising from their employment. It has two main components,  direct financial payments  (wages, salaries, incentives, commissions, and bonueses) and  indirect financial payments  (financial benefits like employer-paid insurance and vacations). In turn, there are two basic ways to make direct financial payments to employees: base them on increments of time or on performance. 1) Direct financial payments  2) Indirect financial payment Several factors determine the design of any pay plan: legal, union, company strategy and policy, an...

The main purpose of this chapter is to help you be more effective at managing your employees’ careers. We discuss the employee’s, manager’s, and employer’s roles in career development, and the procedures for managing promotions and transfers. We also discuss enhancing diversity through career management, and, finally, the career management steps an employer can take to foster employee commitment. THE BASICS OF CAREER MANAGEMENT We may define  career  as the “occupational positions a person has had over many years.” We can define  career management  as a process for enabling employees to better understand and develop their career skills and intertests, and to use these skills and interests most effectively both within the company and after they leave the firm. Caree development  is the lifelong series of activities (such as workshops) that contribute to a person’s career exploration, establishment, success, and fulfillment. Career planning  is th...

The purpose of this chapter is to show you how to appraise employees’ performance. The main topics we cover include the performance management process, appraisal methods, appraisal performance problems and solutions, and the appraisal interview. BASIC CONCEPTS IN PERFORMANCE MANAGEMENTR AND APPRAISAL We may define  performance appraisal  as any procedure that involves (1) setting work standards, (2) assessing the employee’s actual performance relative to those standards, and (3) providing feedback to the employee with the aim of motivating him or her to eliminate performance deficiencies or to continue to perform above par. Comparing Performance Appraisal and Performance Management We may define  performance management  as a process that unites goal setting, performance appraisal, and development into a single, common system whose aim is to ensure that the employee’s performance is supporting the company’s strategic aims. Why Performance Management The ...