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Unformatted text preview: of all employees without elevating some above the others Which kind of organizations are likely to use Merit­based systems and which Parity­based systems? Approaches to PM Approaches to PM Merit­based system: private sector businesses especially in very competitive environments and where employee efforts translate directly into company revenues (for example; retail). Parity­based system: Public sector, community and not­for­ profit organizations and some large monopolistic organizations where there is less need to create employee incentives to do more. Manufacturing environments/highly controlled environments where it is difficult to differentiate productivity of workers. Important Terminology Important Terminology Relative Measures: performance ratings that assess employee contribution through comparisons with the contribution of other employees. Absolute measures: Ratings that assess an employee’s contribution in comparison to a fixed standard or benchmark Forced distribution: Performance ratings that spread out ratings by requiring raters to place a certain number of employees in each category – creates a Bell Curve. Free distribution: Raters are free to place as many employees as they wish into each category Linking Merit and Parity Linking Merit and Parity Systems to HR Strategy Bargain Laborer (Ext...
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This document was uploaded on 02/03/2014.

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