Pay for Performance Best Practices Essay Example for Free

Pay for Performance scoop Practices EssayBest practice can be defined as an idea that suggests that there is some sort of technique, method, process, inducement or pay back which is considered to be more useful at producing the desired emergence or resoluteness for the caller-up than any other technique, method or a reward etc. The carrying out trump practice is roughlyly done with check comes or rating scales etc. so that the desired outcome can be achieved with fewer problems and complications. (Tech Target, 2008) Compensation When talking about remuneration best practice what comes to take heed is incentives and gain sharing of the employees. Compensation can be defined as what the employees of the phoner receive in exchange for their contribution to the company. When they are managed correctly, it helps the company to achieve its targeted goals and objectives and the company is able to obtain, maintain and retain a productive workforce. Without the right kind o f earnings, the current employees of the company are very likely to leave and the company will have a difficult time in replacing and the training the employees for that telephone line.The outcomes due to give birth dissatisfaction can be very harmful to productivity and can disrupt the quality of work life. If worsened comes to worst, deliver dissatisfaction can reduce the performance of the employees, which in return may lead to strikes which will energise grievances and that will lead to physical or psychological withdrawal ranging from absenteeism and turnover and it would also increase un expenditurey mental health of the employees. (DRMR, n. d) But it must be remembered that overpayment can also cause harm to a company and its employees.The affects of overpayment will decrease the companys competitiveness and it will lead to anxiety, guilt and vexation among many employees. The human resource part can contribute to the geological formations strategic objectives throu gh the companys compensation program. When it us seen that wages and salaries are linked with pay for knowledge and pay for skill the employees will have an incentive to pursue vocational training. Vocational training can be defined as training for a specific part of a work activity.For example, Dunkin Donuts mostly benefits from having break away trained workers, who are more productive. The result of linking compensation to continuous education is a perpetual learning machine that furthers an organizations system. Compensation is not only a way to align performance with strategy. Human resource planning, recruiting, selecting, placement, development, performance appraisals and career planning are also considered in individual efforts and company strategy.But unlike the recruiting and developing activities, compensation programs can be quickly modified and linked with clean strategies of the company. (Werther Davis, 1996) Strategic Objectives Strategy can be defined as a set o f decisions and actions that are employ to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve the stated goals and objectives of the company. Strategy basically shows that where is the organization standing in the market?Or where does the organization wants to be in the next 5 years? It is with the help of strategy that the executives of the company define an overall direction for the company. The strategy if the company is based on growth, entrenchment and stability. The strategic analysis begins when the executives of the company evaluate the current position of the company with respect to the mission, goals and strategies. The executives scan the companys internal and external environment and identify the strategic factors that require change.The internal and the external environment may show a need to redefine the mission or goals or to formulate a bare-ass strategy for the company at either corporate, business or functional level of the organization. (Fullmer, 1983) Dunkin Donuts specializes in the provide of doughnuts and beverages. Dunkin Donuts client and customers are mostly based of average income households. The company has established itself as one of the most formidable forces in the restaurant business. However, this does not undermine the fact that the company still has a down to learn from other competitors in the industry.Job Analysis and Evaluation It is a known fact that channel analysis collects education about jobs through surveys, observations and discussions among the workers and supervisors, to produce job and positions descriptions. With job analysis information as a part of the departments HR information system, compensation analysts have the minimum information needed to evaluate the work activities of their employees. Job evaluations are locomote and procedures that help to identify the relative worth of jobs or work activities.There are different kinds of approaches to the evaluation of a job these approaches consider the accountability of the employee, skills that are needed for the job, efforts done by the employee and the working conditions related to the job. Without job evaluation the HR department would not be able to create a rational approach to pay. The most common methods for job evaluation that helps with a compensation plan are job ranking, job grading system, factor compensation and the spotlight system. The Point System The methods that I would be suggesting for Dunkin Donuts would be the point system. Why?Because this system evaluates the compensation factors for each job instead of using wages as the factor comparison does, this method uses points and it is more easy to use and its not filled with complication plus this method is most normally used by most companies when they are evaluating their employees. This method is slightly hard to create in the initial stage, but it is more precise th an any other method because it is able to handle critical, compensable factors in more token. This system is based on six steps and theses steps are usually use by a job evaluation committee or by an individual HR analyst.The steps are as follows- Step 1 is the, determine critical factor stage. The point system uses the factors which are mostly used in the factor comparison method but it mostly adds more detail by breaking down the factors into sub factors for example, responsibility can be broken down into refuge for others, equipment and materials, assisting trainees and product or service quality. Step 2 is the, determine the levels of factors stage. In this stage the amount of responsibility or any other factor like skill may vary from job to job. The point system actually creates different kinds of levels which are associated with each other.This level actually helps the HR analyst to reward different degrees of responsibility, skills and other critical factors. Step 3 is th e, allocate points to the sub factor stage where the factors list down to one side. And the levels are placed across the top of the evaluation sheet the result is a point system matrix. Starting with a level IV, the job evaluation committee subjectively assigns the level best possible points to each sub factor. For example, if safety (75) is twice as important as assisting trainees (37), it gets twice as many points.