Performance Management & Compensation
Federal Urdu University Arts Science and Technology
Department Of Business Administration
MID TERM EXAM
Course Instructor: MISS RABAB
Submitted By: SAIMA SIRAJ
Seat No#1807191
Semester: VII
Section: C (Evening)
Date of Submission: 23rd of June 2021
Answer 1
Company Background:
The organization referred in this report is a multinational publishing firm specializing in
publication of scholarly journals and articles. The company has about 1300 journals and has
about 700 employees. The multinational firm has many locations globally.
Performance Management Issue:
Unequal Reviews, This was a major concern for the employees. The employees felt that the
rating was biased and their performance is more than what they are being rated. The employees
are provided this rating based on the team manager’s decision. The team manager reviews all the
evidence the employee has uploaded in the employee portal. Only if the evidence of proof that
the employee has contributed significantly to improve the efficiency of the business, does he
provide a good rating for the employee. Through employees work hard, there are concerns that
their work is not recognized and they are provided unequal reviews.
Compensation Management Issues:
Lacks a good compensation system, The Company provides Annual bonuses based on the rating.
The higher the rating, higher would be bonus. Since there are concerns that the employees are
not rated equally and fairly, the employees are not satisfied with the current compensation
provided to them. Some employees who strive hard and work over time are awarded fewer
bonuses than others. This lowers the morale of the employees thus leading to high attrition rate.
Causes for Improving the Performance & Compensation Management System:
It is necessary that the organization overcomes these issues by creating good strategies regarding
the two factors. The company needs to first understand the employees concerns. The employees
need to be content to have a harmonious and productive workplace. A good compensation is
required to retain employees and increase the job satisfaction level of the employees.
Steps for Improvement:
If the employee feels that he/she is not being rated properly, a second level of rating should be
done to have a fair rating system in the organization. Then, the employees would be equally
satisfied if they are awarded a good compensation package to the rating offered to them to which
they have accepted. Satisfied employees would significantly contribute to the growth of the
company.
Recommendations:
I strongly recommend the firm to have industry standards in incentives and use the competitor’s
competency framework as the basis for their new rating system. This would remove all unfair
practices in the organization.
Conclusion:
Thus, it is pertinent to say that both performance and compensation management issues are
interlinked and it is essential for the organization to remove all the inefficiencies in the process to
reward the employees with the incentives that they deserve.
Answer 2
a. As a senior HR Manager of ABC Logistics Ltd I would take SAIF resignation letter
seriously. Taking into account his duty record, the company will not like to lose her, yet
his complaint must be dealt with appropriately and judiciously.
Reject the resignation letter of SAIF assure him that there was no bias by
explaining to him that RAZA was given the top rating for his effective handling
of the crisis situations. Assure him that the company values his contributions,
motivate SAIF to handle crisis situations as well, and ask RAZA to improve his
performance on day to day activities. Award SAIF for his good performance and
improve personal relations between members of the team.
b. The present performance appraisal system offers incentives only to a single member of
the 15 member team.
SAIF & RAZA both are equally deserving on their own merits but the limitation of the
appraisal system resulted in the rejection of SAIF.
The system should be made flexible enough to accommodate multiple incentives in such
cases
Answer 3
Aligning with HR Division Goal In order to grow and succeed, HR needs to
integrate an efficient plan within the business
planning process to establish goals that meet
human resources objectives in support of the
company's overall strategy.
Aligning with Team goal 1. Get alignment on goals. Ensure that
everyone gets input on one another's goals and
on grading these goals. ...
2. Engage in broad communication. ...
3. Implement decision-making guidelines.
...
4. Find ways to surface issues. ...
5. Celebrate the wins and give validation
to incentivize people.
