Question

You have decided that the Fit Stop would be well suited to Organizational Performance Pay. Select the specific organizational performance pay plan that would seem to work best; then design it, describing specifically how you would deal with various design issues. When you are done, the plan should be ready for implementation.

Answer 1

I think merit based pay along with incentive schemes will work best to each kind of organizations. For example, If , Human resource managers hire suitable candidates who work hard and offer huge returns then the credit of performance should also be recognized to such recruitment team.

It will motivate them to take best selection decisions among qualified people. Employees inventory should be made and as per their roles, responsibilities, criticality, hazardous process and other specific factors must be given consideration while designing the pay schemes.  

Various design issues should be discussed with each stakeholders then any policy level decision might be framed. Internal benchmarks must be make to equalize the pay differences but there should be integrated mechanism to take severe decisions .

All the standard performance management tools related to individual, group and organization must be reviewed to take unique decisions . Some of the tools which can be utilized; are listed as below,

1) Management by Objectives

2) 360 Degree Feedback system

3) Critical incidents

4) Behavioral anchored rating scales ( BARS)

5) Customized design for employees and organizational performance

6) Balanced scorecard

7) Financial methods like ROI, Dividend yield, Profit Earning Ratio etc.

Pay plan should be implemented in a phase wise manner. Each division should be dedicated to launch such pay policy based on merit approach. A review board should be established which may suggest solutions to implementation of the pay schemes.