a) Discuss the benefits, challenges and tradeoffs of pay-for-performance, or merit pay. How would a pay-for-performance policy support the organization’s strategic goals? What factors should be considered in evaluating the effectiveness of this practice?
b) Select three methods for conducting an evaluation of an employee’s performance and discuss the advantages and disadvantages for each method. Discuss what level of employee (management, administrative, clerical, laborer, etc.) you would use each method to evaluate.
Be sure to provide the references for the sources of the information you used including the material provided in the classroom.
Discussion Two: Application
Read the Module 4 Case and scenario 1. After reviewing the module material, answer the following taken from the module:
The acting head of software development advises you that she wants to develop an effective performance appraisal system for her department. She remembers, from having taken a human resource management class as an undergraduate, that there are a number of different ways to measure performance and she wants your guidance in selecting one.
She also wants to make sure that the method chosen to measure performance fits the technical nature of the workers she supervises who work in teams. Knowing what an individualistic society the USA is, she suggests there be an individual and a team component.
a) Discuss the different alternatives that you recommend as the most effective for measuring the performance of software developers working in teams. Share at least three alternatives with the pros and cons of each alternative you suggest.
b) Answer/discuss the following: 1) What information will need to be gathered to develop the new appraisal system; 2) How you will make the performance appraisal job-related and valid; and 3) How you will mitigate the risk of rater errors when evaluating performance.