SCM Assignment 3.docx - STRATEGIC COMPENSATION MANAGEMENT...

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STRATEGIC COMPENSATION MANAGEMENT BBA 8A GROUP MEMBERS Alizah Mansuri 02-111171-226 Maham Khan 02-111171-279 Areena Perwez 02-111171-214 Mariam Jamil 02-111171-095 ASSIGNMENT 3 ASSIGNED BY: Sir Shair Muhammad
Ques 1: There are four strategies to better understand and measure job performance. Pick one that you think is the most prominent and promising. Defend your position. (Chapter # 7, minimum 1 to 1.5 pages) Strategies to Understand and Measure Job Performance Ans-Understanding and measuring job performance is very crucial for any organization to run successfully. It is because measuring job performance helps in increasing the productivity of the overall firm as measuring it gives managers an idea that which employees are being productive and which aren't. It also helps assess the efficiency of the workers and lastly, it helps the managers with their compensation system. As measuring job performance is important, there are four strategies that managers can use to better understand and measure job performance. These are: 1) Improve Appraisal Format 2) Select the Right Raters 3) Understand How Raters Process Information 4) Training Raters to Rate More Accurately Out of the four of these, the one that's the most promising and prominent is the second strategy, Select the Right Raters. This strategy is important because many organizations try to improve the accuracy of their performance appraisal procedures by mainly focusing upon the raters more than the appraisal formats. This is because, even if the format used to asses job performance is correct, the way a rater is rating an employee has a huge impact on the accuracy of job performance. Through using this strategy, the firms will be able to improve the accuracy of their job evaluations by selecting a correct and suitable rater for rating the employees. There are a lot of reasons why it is considered that raters don't rate the employees accurately, first, the raters could be biased. The biasness will motivate them to favour someone who doesn't deserve it or to give a low rank to someone who deserves to be ranked high. Another reason is that the raters don't take their job seriously, and they're not very diligent. Lastly, if the rater is too agreeable then he might agree with everything and end up giving a high rating to an employee who's evaluation shouldn't be high. For the purpose of selecting the right raters, a 360-degree feedback method is used to minimize the impact of a rater in measuring the job performance. In this method, the employee is assessed from five people, supervisor, peer, self, customer and subordinate.
Self as raters include asking employees to rate themselves. This is very effective as the evaluation is done by someone who has the most knowledge regarding an employee's performance. Subordinates as raters then rate the employees by assessing their strengths and weaknesses as a leader. Supervisors as raters is also very effective as a supervisor assigns tasks to employees so he/she knows which employee completes the task well and on time. They also have a previous experience on evaluating employees. Lastly,

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