Traditional Bases for Pay Chapter #4
Seniority and Longevity Pay Length of service Human capital Seniority and Longevity Pay
Merit Pay #81 Rewards differences in performance What does it take to make merit pay systems be effective? Meaningful increases Clear Performance standards Performance appraisals Merit Pay #81
Historical Overview #77
What do you think? Effectiveness of Seniority Pay Systems 12% US workforce (declining) There is no research that demonstrates the effectiveness of seniority pay systems Does it reduce turnover? What do you think?
Design of longevity pay systems Federal Employees General Schedule Rewards ees who have reached pay grade limits. (GS) Look #80 What are advantages to Seniority based pay? But what about incentives? Motivation? Competition? Design of longevity pay systems
Performance Appraisals Types of Appraisal Plans Trait System Look #84 Advantages Easy to quantify Disadvantages Subjectivity Performance Appraisals
Comparison Systems
Comparison Systems Behavioral Systems Forced Distribution Paired comparisons Behavioral Systems Critical incident techniques Behaviorally anchored rating scales (BARS) Behavioral observations scale (BOS) Management By Objective (MBO)
Four Activities to Promote Nondiscriminatory Appraisal Practices 1. Job Analysis 2. Structure Rating instrument 3. Train supervisors adequately 4. Formal appeals mechanism Four Activities to Promote Nondiscriminatory Appraisal Practices
360 Degree Performance Appraisals (Class Demonstration)
Rating Errors in the Performance Process Bias errors First impression effect Halo effect Similar to me effect Contrast errors Central tendency errors Leniency errors Strict errors Rating Errors in the Performance Process
Using Yahoo: go to federal government’s General Schedule by clicking on the advance search link. Type in “general schedule” Using Yahoo: Type IOMA Institute of Management and Administration. www.ioma.coma Do you think this site may be helpful to you? How? Class Exercise