Question

In a typical division of compensation responsibilities, the HR unit is responsible for evaluating specific employee performance.

Answer 1

Ans ………………………

The overall responsibility of compensation and benefits managers is to manage an organization’s compensation and rewards program. Because compensation and benefits programs are designed to attract top talent and retain valued employees, the work of these professionals is a crucial one within a company’s HR division.

Compensation and benefits managers must also ensure that the costs associated with compensation and benefits are in line with the organization’s objectives, culture, and philosophy. As such, the strategic role fulfilled by these HR professionals involves benchmarking, ensuring current documentation, and strategizing compensation and benefits with performance.

Compensation and benefits specialists often enjoy more visibility and prestige because their work is linked directly to the performance of the organization and they therefore work alongside the highest levels of management.

Due to the highly specialized nature of this profession, compensation and benefits specialists work in larger organizations that employ 1,000 employees or more. Otherwise, the responsibilities of compensation and benefits fall to more generalized HR personnel or the finance department

Accordingly, HR must continuously evaluate the system to determine if it is effective and to identify opportunities for improving it. Perception is reality when it comes to employee and managerial acceptance of a performance management process.

A good way to determine whether the system is being used consistently and administered fairly is to conduct an independent audit of the way the appraisal system affects various groups of employees. Adverse impact on a protected class raises legal concerns, but adverse impact on any group should raise equity concerns. HR must take the responsibility for monitoring the system outcomes to make certain that all employees are being treated in a consistent and fair manner, and that the system is supporting organizational goal.

An employee's performance is subject to various factors such as required skill set and possessed skills, motivation and willingness to work, compensation and welfare benefits, organizational environment, relationship with superiors, peers and subordinates and functioning of the organization..

While an HR should ensure continuous motivation of employees and should keep interacting them with regards to grievances and feedback about their work. It is important for the HR to do a constant performance and potential appraisal and keep attrition rates to the lowest.