Question

Effectively linking rewards to performance means designing the three elements in the pay for performance chain – performance measures, performance targets, and the incentive plant with a number of success factors in mind.

True or False

Statistical process control is an approach to reviewing performance that looks for consistencies in measurement and discourages interventions accordingly.

True or False

Performance review meetings should happen at all levels of the organization, from the board to the shop floor work team.

True or False

Performance measurement systems typically include which four elements? Please list and describe.

Answer 1

1. True

By analysis and definiton rewards can be effectively linked to the performance by designing perfomance plan having three elements such as performance targets, measures and incentive plan along with many successful factors in mind as well

2. True

Statistical process is quality control approach that which detects changes and interventions by looking for consistencies in the product performance.

3. True

Yes, performance review meeting must happen from board to shop floor work team, to recognise the employees work and reward them accordingly.

4. The four key elements in performance management system are:

a) Goal setting: According to the job description of the employee, the targets of his job performance has to be set for the financial year. For example: A sales executive must have sales targets for the year.

b) Setting performance standards: The performance standards for measuring the employee's performance has to be set in the form of key performance indicators. For example: For the sales target of $1,00,000, if the employee has done $50,000 one incentive plan and if done less than that another incentive plan has to be set.

c) Conducting performance review meetings: A performance review meetings have to be conducted for the employee by the respective manager on quarterly, half yearly and annual basis to analyse whether the employee has met the targets or not.

d) Reward&Recognise: An employee can be awarded incentives or promoted based on the performance appraisal, if he meets or exceeds the targets set. If his performance is above average he can be given training to improve his performance and if his performance is very poor, he can be demoted or laid off as per manager's decision.