Question

Analyze the pros and cons of compensation, performance management, and career development practices in the organization AND make recommendations for improvement if any?

Answer 1

Ans- Pros and Cons of Compensation practices-

Hourly Wages

Pros- Paying the hourly wages is the ideal method when some set number of hours are required for completion of project. It gives the flexibility to the manager to decide on how much hours you have to pay according to your budget.

Cons- The Disadvantage of hourly wages is that you have to pay the extra for overtime or to work on the holidays.

Salary

Pros- The Advantage of salary is that it is not necessary to pay for the ovetime work. Employees have to finish their work regardless of the time.

Cons- The Disadvantage of Salary is that you have to give the extra perks to the employees to make them happy like flexible work hours, health insurance etc.

Bonus

Pros- Paying the bonus to the employees or team motivates them to give more exceptional results.

Cons- Somtimes it is very difficult for the manager to determine which employee should receive the bonus when whole team has contributed for the work.

Commission

Pros- Paying the commission to the sales persons motivates them to get more sales when the sales structure is attractive.

Cons- A Low commission rate doesn't attract the employees so much. It may affect the loyalty of the company as the employees can join the other company because of the high commission rate.

Pros and Cons of Performance Management-

Pros-

• Performance based conversations- Performance Management process forces the managers to do the discussion of the performance issues with the employees.
• Targeted Staff Development- All Employees works on the journey of development. It is the responsibility of the organization to prepare them for more responsibility in the future.
• Encouragement to Staff- There should be no surprise if the issues or problems are addressed in real time. It is the moment to enjoy all the things that employees do over the period of time
• Rewards staff for good job- The reality people go to work because they need the pay and the employees are always look for the learnings they can do to get good job.

Cons

• Time consuming- It is recommended that managers have to write about hours to write for the performance appraisals and it takes more time when it involves more employees.
• Discouragement- The process needs to be encourgement, positive reinforcement. But it is not always a pleasant experience which discourages the staff.
• Inconsistent Message- All the employees feel struggle to remember the things when they are busy. It mostly happens when we remember the bad times and forget to thanks for the great things which gives the inconsistent message to the employees.
• Biases- It is very much difficult to find out the biasness in the performance appraisal process.

Pros and Cons of Career Development

Pros-

• Separation- Employees who do the improvement in thmeselves by the development programs tend to outpace the peers in learning the new skills.
• Talent- Companies with more career development programmes attracts more talented employees. It benefits both the organization and the workers.
• Succession Planning- It is a proactive effort to the employees who do the develpment in themselves when they retire. These types of development plans helps the company to maintain the stability in the work force and production. It helps to plan the employees for future and make their career advancement in the same company.

Cons

• Uncertaininty- Despite the best career develooment programs, no employees can give the guarantee of the successful outcome. Some peoples find the good career but that are unrelated with their degree.
• Multiple solutions- Putting the career development program and sticking themselves for that can limit your choices. Many carrer goals have so many options.
• Beneficiary Activities- Career Development programs that put together may fail the employees to learn the beneficiary activities.
• Flexibility- One of the disadvantage of career development is the lack of flexibility. A company always might not give you the choice of developing the skills you want.

So, this was about the pros and cons of compensation, performance management and carrer development.

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