ECE _DSST _ Human Resource MGMT

In the late 1960s and early 1970s organizations

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In the late 1960’s and early 1970’s organizations became obsessed with management by objectives . Management by objectives (MBO), is based on Peter Drucker’s admonition that management can only be judged by results. Organizations began to develop objectives for their total structure: divisions and departments, sections and individuals. Supervisors were required to meet with employees individually and have them state objectives they would achieve during the next 3, 6, or 12 months. There are three types of appraisal interview: tell and sell, tell and listen and problem -solving interview. The problem-solving interview requires, listening, accepting and responding in such a way that employee growth and development are possible . The tell and sell interview requires the rater to use persuasion to change the employee’s behavior, whereas in the tell and listen interview the rater relates the positive and negative aspects of the employee’s performance and then the employee can respond . The tell and listen interview allows the employee to express their feelings about the appraisal and vent any feelings of frustration, in the hope that it will not affect their job performance. When diagnosing an employee’s performance, the three factors to consider are ability, motivation and environment . Environmental factors that could affect job performance include management support, equipment and economic conditions. Paired comparisons, narrative ratings, and critical incident appraisals are all used for employee comparisons. All have disadvantages . Paired comparisons force supervisors to compare not only overall performance but various attributes, such as job skills, to those of other employees. Narrative ratings require supervisors to make a written descriptive assessment of each employee’s performance. Critical incident appraisals involve recording both good and poor performance that deviates from the norm. Compensation Issues Traditionally, compensation packages have been concerned with the market rates of pay for specific roles; however, in the modern globalized world economy, strategic compensation planning has developed to reward employees to stimulate motivation and growth in line with the overall goals of the organization. The consequence of adopting a strategic compensation package is that employees are no longer paid the market rate but are instead rewarded on the basis of their personal achievements or group contribution to the firm’s success. This is a consequence of such planning – companies are paying employees based on their abilities and contributions to organizational success. A value-added compensation program is one in which the components of the program, such as wages and incentives, are beneficial to the employee and employer in advancing the needs of the organization. Value-added compensation can also be called value-chain compensation.
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In the late 1960s and early 1970s organizations became...

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