Compensation Paper

8/2/2019 Compensation Paper

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COMPENSATION DECISIONS

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Compensation Decisions

1.0 Compensation Decisions1.1 Task Statement 2

1.2 KSA Statement 31.3 Job Description 41.4 Literature Review 6

1.5 Job Posting 102.1 Recruitment Plan 11

2.2 Selection Method Plan 12

2.3 Completed Performance Evaluation 14

2.4 Literature Review 163.0 Compensation Decisions 18

3.1 Substantiation 183.2 Risk analysis 20

3.3 Literature Review 21

References

Mary E. Lane

Devry Graduate School of Management

Author Note

This paper was prepared for Human Resource 590, Professor Carlos Jon.


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Compensation Decisions

Task Statements: Human Resource Administrative Receptionist

*Answer phones calls as needed using switchboard *Maintain filing & electronic mail system

*Screen and forward calls, provide information to caller, take messages, schedule appointments

*Accommodate and greets customers & clients *Assist customers and clients

*Maintain and Update files and records * Guide customers and clients to their destinations

*Provide administrative support *Proofread documents and letters * Support HR staff

*Demonstrates knowledge of computer use and business documents including invoices

*Delivers messages in a timely manner *Displays excellent written and verbal skills

*Sets up meetings and conferences *Organizes department and office

*Effectively use MS Excel spreadsheet program *Reimburse employees for expenses

*Manage incoming and outgoing mail *Monitor Staff time and payroll

*Handle directors calendar *Stock and distribute supplies

1.1 TASK STATEMENTS

StudentName

Mary Lane

What action is being

performed (verb)

To whom/what is the

action directed (receiver

of the verb)

How is the action

performed (procedure,

tools, equipment)

Why is action perform

(purpose)

Operates switchboard

telephone

Customers telephone Accept and receive

business calls

Greets customers,

visitors

Customer, visitors Person-to-person Customer relations

Escort customers andvisitors to their

destinations

Customers, visotors Person-to-person Customer relations

To screen and forward

calls, provide

information to caller,

take messages, schedule

Clients, customers Telephone Business purposes


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appointments

Creates and updates

employee records and

files

Records Filing Record-keeping

Provide administrative

support

employees Assist when needed Part of job description

Collects, sorts,

distributes mail; sends

and tracks overnight

deliveries

Mail Hand sort Shipping and receivin

Monitors and orders

office supplies

Office Supplies Checking supplies Office management

KSA Statements:Human Resource Administrative Receptionist

1. Operate multi-line phone with excellent customer service skills by means of switchboard.

2. Display professional appearance and demeanor.

3. Able to file and retrieve files with accuracy and keep internal information confidential.

4. Able to assist provide call screening and forwarding, set up appointments and assist co-

workers with others duties on a timely basis.

5. Proofread HR and Administrative documents and letters support by strong organizational

skills and attention to detail; Capacity to maintain confidentiality and work independently

6. Proficiency in Microsoft Office (Word, Excel, Outlook, PowerPoint); Excellent customer

service skills Exceptional written and verbal communication skills.


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7. Ability to work independently.

8. Proficiency in the use of 10-key calculator.

9. Ability to learn and understand HRIS systems.

1.2 KSA STATEMENTS

1 Operate multi-line switchboard phone to answer, screen and forward calls, provide

information to customers, take messages and schedule appointments.

2 Greets customers and visitors, determines reason or purpose for visit, and directs or

escorts them to specific destinations.

3 Creates and updates employee records and files.

4 Perform administrative support tasks such as proofreading, transcribing handwritten

information, and operating calculators or computers to work with pay records, invoices,

balance sheets and other documents.

5 Prepares information packages for new hire orientation and training sessions.

6 Delivers email, phone, other messages to the appropriate party in a timely manner.

Job Description: Human Resources Administrative Receptionist

1.3 Job Summary

The Human Resources Administrative Receptionist provides daily administrative and

receptionist support activities for Human Resources. These duties entail creating and

transmitting documents, maintaining and operating multi-phone line system, maintaining

employee files and records, greeting visitors, ordering office equipment/supplies and arranging

meetings.

Essential Job Functions


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Update all employee records and files them alphabetically as well as creating newrecords.

Management a multi-phone line system.

Assist customers and visitors by greeting and directing them to the Human Resourcesdepartment.

Prepare and issue information packages for new hires during orientation and trainingsessions.

Assists HR administrative support by calculating pay records, invoices and balance sheetsproofreading letters, reports and memorandum

Use MS Outlook to manage department calendar.

Performs videoconferences and travel, arranges meetings, and conference calls, fordepartment staff.

Maintain and keep up with expense reports.

Manage department office files.

Delivers email, phone and in a timely manner.

Manage ingoing and outgoing mail.

Performs extra projects as assigned.

Required Knowledge, Skills and Abilities

* Proficiency in Microsoft Office (Word, Excel, Outlook, PowerPoint) and Internet

applications. Knowledge in HRIS systems a plus.

Strong organizational skills and attention to detail.

Outstanding written and verbal communication skills.

Superior customer service skills.

Able to operate multi-line phone system.

Able to file and retrieve files at 100% accuracy.

Able to handle multiple projects and assignments.

Display professional appearance and demeanor.

Can maintain confidentiality and work independently.


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Education, Experience, Certification, and Licenses

High school Diploma and/or GED

Bachelors degree preferred. Associates business degree required.

2-3 years general office experience required; HR experience desirable.

Physical Requirements/Environmental Conditions

May be required to lift 40 pounds or less. Job may require sitting for long periods of time at

desk.

Tools and Equipment

Switchboard, Printer, Scanner, Photocopy Machine, Fax, Computer.

Employee Name___________________________________________________

Employee Signature: _______________________________________________

Manager/Supervisor:_________________________________

Date Signed:________________________________________

1.4 LITERATURE REVIEW

Job Analysis is the method used to describe and/or record certain aspects of the job and

determining the knowledge, skills and abilities that are needed for that job. Different companies

depend on the job analysis as a means to prepare job specifications and job descriptions for the

job. These are then used to hire the right applicants in the right position for the company. When

performing the job analysis, the purpose of the position needs to be identified. Concerning the

role of the HR Administrative Receptionist, it is being created to meet the demands of the

Human Resources department. Once established, this role will provide receptionist and

administrative support functions to the departmental staff.


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Going with the notion that this business has several departments, the larger departments

actually have their own administrative receptionists. Still, the Administrative Receptionist will

report directly to the HR Director, other prominent senior members of the HR department and

managers who also manage receptionists can be selected as analysts to the various job analysis

methods to be used for the role. Effective methods use to review the Administrative Receptionist

roles are Occupational Information and the Observation method.

Based on the article in http://www.job-analysis.net/G013.htm USLegal website, entitled

Direct Observation of incumbents performing their jobs enables the trained job analyst to obtain

first-hand knowledge and information about the job being analyzed.

The Observation method of Job Analysis is suited for jobs in which the work behaviors are 1)

observable involving some degree of movement on the part of the incumbent, or 2) job tasks are

short in duration allowing for many observations to be made in a short period of time or a

significant part of the job can be observed in a short period of time, or 3) jobs in which the job

analyst can learn information about the job through observation.

The analysts first trained and then tasked with observing or sampling the receptionists in

other departments as they perform their duties. This method is used to give the observers an idea

of what the receptionist day-to-day duties and responsibilities would look like within the

organization. The advantage to using this method is that the analysts can obtain first-hand

knowledge and information about the job. It allows the analyst to see the work environment,

tools and equipment used, complexity of the job and relationships with customers and co-

workers. The disadvantage to using this method is that the persons being observed may alter their

normal work behavior if they know they are being observed. With this knowledge, the analysts

are trained to be as unobtrusive as possible when conducting their observations.


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The Occupational Information Network (Onet) is the primary source of occupational

information in the United States. Onet describes occupations in terms of knowledge and skills

needed, how the work is performed and the work setting. The summary report in OIN allows for

one to view the skills, work activity, styles, context, and experience and training. The hiring

manager or analysts would simply need to go into the database and type the job title he or she

was seeking. In this case, the position performs receptionist duties within the human resources

department. It is fair to say that both the receptionist and HR Assistant duties need to be

reviewed.

One advantage to using the Onet Method is that the positions tasks, tools and equipment

used are clearly outlined for the analysts to see. It also allows the ability to combine tasks when

roles have more duties than is listed. Another is the wages and trend analysis so that you can

predict the future of the role for years to come. The disadvantage is that the outlines are very

general and may not take into account specific organizations, departmental differences,

educational levels, etc.

Once the data from the observations and Onet methods are collected, the information is

reviewed for commonality. The analysts must review to see if the tasks and duties observed are

similar to the ones described in Onet. Also, the hiring manager must assess to see if the methods

used are aligned with the departmental needs for this role. The Task Statements are then created

based on the action, who or what the action is directed to, how the action is going to be

performed and why or purpose of the action.

The job specification is a list of (Knowledge, Skills, Abilities and Other characteristics)

that one must have to perform a job. In my investigation of the site,

http://www.humanresources.-hrvinet.com/what-is-knowledge-skills-and-abilities-ksa-model, I


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discovered that knowledge is information that can be applied directly task performance. A skill

is the learned capacity to carry out pre-determined results often with the minimum outlay of

time, energy, or both. Skills can often be divided into domain-general and domain-specific

skills. Ability is the present power to perform a job function, to carry through with the activity

while applying or using the associated knowledge. Other characteristics are a general category

for other personal factors such as personality, willingness, interest and motivation and such

tangible factors as licenses, degrees, and years of experience. Next, the KSA Statement is then

created to draw out the necessary skills needed for the role. In some task statements, the KSAs

overlapped showing the strong need for those particular skills.

A job description is a list that a person might use for general tasks, or functions, and

responsibilities of a position. It may often include to whom the position reports, specifications

such as the qualifications or skills needed by the person in the job, or a salary range. Job

descriptions are usually narrative, but some may instead comprise a simple list of competencies;

for instance, strategic human resource planning methodologies may be used to develop a

competency architecture for an organization, from which job descriptions are built as a shortlist

of competencies.

job summary or a brief, general statement of the jobs most important functions

essential job functions

required knowledge skills and abilities

education, experience

environmental factors

equipment and tools utilized

Furthermore, it is necessary that the job description is reviewed by all parties involved

once the applicant is hired so as to have a good understanding about the responsibility of the role.


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To conclude, the job analysis process is very important for reviewing and developing a position

within an organization. It is important to follow proper guidelines to that the position is

necessary for the organization, how the need is measured, what are the tasks and the KSAs

needed and educational requirements and experience.

1.5JOB POSTINGPosition: Human Resource Administrative Assistant

Job Summary:

Assist Supervisors with data collection, and organization of data reports. Communicates with a

wide range of the general public, respond to inquiries and provide clerical support and as needed.

Qualifications:

(2 or 4 degree preferred) This is an entry level position in which employees will provide clerical

assistance, information and customer service inquires. These duties will be those associated withthe position of Sales Administrative Staff. Applicant must be highly proficient in Microsoft

Word, PowerPoint, and Excel.

Major Responsibilities:

Greet visitors, answers and screens telephone calls. Assess nature of business. Respondsto requests for information and provides assistance.

Establishes, selects, implements, and coordinates office procedures and systems.

Researches specific issues, retrieves information and generates data charts related tothose issues. Uses creativity to develop a variety of multi-media presentations as a means

to communicating information, i.e., PowerPoint presentations, Excel spreadsheets, etc.

and assists in archiving office data for retrieval.

Proofreads and edits material for grammatical and factual accuracy. Makes copies ofcorrespondence or other printed materials.

Determines equipment needs for in-house meetings i.e., audio visual etc., set up andoperates equipment for large meetings.

Assembles and arranges materials for distribution to school based customers as well ascommunity based customers.

Determine sources of data. Compiles, synthesizes and manipulates data.

Screens and responds to mail. Compose correspondence and written material.


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Reviews email, faxes and outgoing mail, for completeness, dates, and signatures.

Schedules and arranges meetings and appointments, prepares agendas, reserves andprepares facilities and records and transcribes minutes. Orders and maintains inventory

of supplies.

Compiles all materials and notebooks for major external funding reports.

Performs additional functions incidental to office activities.

Additional Requirements: Deadline: March 22, 2012

*** Send in completed application, resume and cover letter before deadline to address listed in

posting.

2.1 RECRUITMENT PLAN:

Our company plans to strongly recruit for this position for 45 days. If we do not find a

suitable candidate after 45 days, then, this position will remain open until it is filled. We plan to

recruit using the employee referrals, universities, newspapers and the companys website.

However, we will also consider highly qualified internal candidates as well. We will also offer

cash incentives for internal referrals upon the successful hiring of candidates who complete their

probationary period. Due to the nature of this position a degree is preferred as it may lead to a

position of more responsibility in the future. In order to consider new graduates, we will follow

through with alumni associations to have the job posted in their perspective career placement

locations as well.

We will also recruit by posting an ad in the classified section of the local newspaper. The

job doesnt require any travel, nor will the company pay for traveling expenses in relation to this

position. We actually prefer to hire someone locally. The hours of the position are from 9am to

5pm, during periods of high traffic. This position would be ideal for someone who lived with a 5


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mile radius of the firm since it would make job access easier, especially during rough winter

seasons.

Finally, we will recruit directly through our companys website as well as on commercial

job boards such as monster.com and career-builder. We feel that these sources will bring more

than enough qualified applicants for the posted position. Having a pool of qualified applicants to

consider, we feel that we will be in a position to select the best qualified candidate with the least

amount of pressure. This qualified pool of applicants will also provide us with a good source of

applicants for future position job openings. (Chapman)

Regardless of the recruiting methods we use, we will make sure the candidates have

access to our job listing and are able to apply for it should they become interested. We want the

job search to be refreshing and user-friendly for individuals work odd hours. To accommodate

them, we will have a 24 hour job hotline that answers important questions about the job. This

will make it easier for applicants to send their credentials without being discouraged by an

inability to contact us. We will also follow up on all job applicants who meet the qualifications.

Letters will be mailed to applicants who cannot meet the qualifications at the current time.

2.2 SELECTION METHOD

When using degrees and job experience to determine an applicants qualifications, we

feel that extreme care should be taken in order to select the best candidate from our pool of

qualified candidates. So, what is the best way to do this? Experience and degrees are great ways

of measuring an employees potential and qualifications for the job we have posted, but now we

need to select the right candidate who will fit into our companys profile. We select daycares for

our children with great care and often have checklists of strengths that we look for and things we

wont put up with. (Chapman)


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In order to get to know a specific daycare we may visit multiple times unannounced to

see their character and attributes in many different scenarios. We may even talk to long time

customers to determine their satisfaction level or perhaps check with the local Better Business

Bureau. Quite naturally, everyone puts on their best appearance during times of examination or

first interviews. Since we spend about 80% of our life at our jobs, we want to select someone

who not only has the qualifications and degrees we look for, but the best personality as well. So,

just as a parent would select a caregiver for their child, it shouldnt be any different when

selecting an employee for a company.

Then, after eliminating a list of potential candidates that qualify based on education and

experience, we would get feedback from our colleagues on what type of person they would like

to work with. In this way, we allow them to participate in the process. This is important because

they are the ones who will work with this person on a day-to-day basis, so the atmosphere should

be a pleasant one.

The second step would be to narrow the pool of candidates down to perhaps 10-14 and

set up interviews, having 2 to 3 people from different departments to help with the selection

based on character and personality. Since no single predictor can determine how that person will

perform on the job, skills assessment/personality test and a background check will be

administered. Once these processes have been completed, we would reduce the list to our top

four candidates.

The third step would include observing the 4 potential candidates in different situations.

For example, we could take them to meet others employees by inviting them to lunch perhaps.

Then, allow other employees to ask them questions and notice their response. Since, the setting

is more relaxed, the candidates may be more apt to express themselves more candidly. In


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addition, we would allow the candidates to shadow different employees performing their daily

duties and retain feedback from these employees concerning the candidate. We feel that by

investing to see if a person is a good fit, we are investing in our future as well as the job

candidate. (Feeley)

Last but not least, we will collect all the information gathered during the selection

process and make a decision based on those findings. By combining the information outlined in

this report we should be able to make the best possible selection for the candidate that is the best

match for our company.

2.3 PERFORMANCE EVALUATION

Annual Performance Review

Employee Name Cathy Smith

Title HR Receptionist

Date of Review Period 2010

Supervisor Name Mary Hoffman

Department Human Resource

Exceeds

Expectations = 5[employee hasexceeded objective,time and quality]

More Than

Satisfactory = 4[employee has slightlyexceeded either timeand/or quality]

Satisfactory = 3

[employee has metobjective, may be just

under objective ontime and quality]

Less Than

Satisfactory = 2[employee has not metobjective on eithertime or quality]

Needs Improvement = 1

[employee far below on both timequality]

Task Objective/Measureme

nt

Results Comments Ran

Typing 96% accuracy 90% Great Job, keep up the good work. 4

Complete within 48

hours of submission

Within 24 hours Excellent job. 5

Filing 98% accuracy 82% Good job, work to better accuracy 3

Complete by end of the

day

By end of each

week

Improvement needed 2

Answer

phones

Answer within 3 rings Within 2 rings Great Job. 1

Screens calls Forwards all calls Improvement needed---be selective before forwarding

calls

3

Provide messages upon

return or availability of

staff

Messages not

always given to

staff

Improvement needed---put for effort in return calls 3


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Provide

information

Provide prompt and

accurate information

Customers often

request to speak

to someone else

Improvement needed---work on increasing knowledge

company

2

Input

application

s

100% accuracy 70% Manage task more effectively 3

Complete by job ad

deadline

Completed by

deadlineMail job

flyers

No returns of flyers 20% of flyers

returned

Great job. 4

Mailed day jobs open Mailed on time

Distribute

staff mail

100% accuracy Unable to track,

staff states not

receiving mail

Improvement needed---manage tasks more efficiently 4

By end of day Mail sometimes

not received by

staff

Overnights within 10

minutes

Overnights not

timely, resulting

in staff missed

deadlinesLog checks 100% accuracy 100% accuracy Great job 5

Provide log/checks to

payroll by end of each

day

Payroll often

calling for logs

Recruitmen

t folders

Created before job ad

opens

Files always

ready

Good job, improve accuracy. 3

Applications properly

filed

Applications

often misfiled,

discovered when

applicant calls.

Job hotline Recorded evening

before job opens

Recorded timely Great job 5

Information accurate

and clear

Information

accurate, difficult

to understand due

to accent

Personnel

forms

Completes by weekly

deadline

Always behind,

missing deadlines

resulting in

employee changes

not processed

timely

Needs ImprovementOrganize work better byplanning

2

98% accuracy 77% accuracy

OVERALL PERFORMANCE EVALUATION RANKING

Developme

nt Plan

Work on development in weakest areas first, then improve in other areas. Check with employee weekly to help

keep on task and help to solve problems with accuracy and efficiency.


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Based on the Journal of Applied Communication Research, a large portion of turnover is

caused by miscalculated decisions made during hiring and can prove very costly for companies.

In most cases, it costs at least one-third of a new employees salary to replace them. When bad

selections are made this cost is reflected in the money spent on recruiting, selecting and training

the new hires. If fact, there are even additional costs in covering the duties and responsibilities

until the position is filled. (Feeley)

When a company makes a decision to hire a new employee, there are different selection

methods that may be used. Deciding to hire from within can usually same the company lots of

money in the recruitment process, mainly if the move is in connection with a job promotion. In

these cases, it is good to send company emails indicating that certain positions have become

available often gets a swift response, especially if an incentive bonus is offered for referring a

good solid qualified applicant. In many cases, this method produces the most qualified new

hires. If this method proves to be unsuccessful, then, it time to look for candidates on the outside

of the organization. This can benefit the company by opening the position up to a diverse pool

of job applicants. It is advisable, however, to have a cut-off date so as not to gather too many

resumes to choose from, especially if you dont have enough time analyze and screen them all.

This could result in making a bad hiring decision or overlooking a great candidate.

College Career Placement and college websites are also excellent places for recruiting since

fresh graduates are plentiful and looking forward to entering into the workforce. Many

universities have alumni associations who work hand-in-hand in helping qualified candidates

find employment. In addition, posting an ad in newspapers about the position will help turn up

quite a few candidates as well. If all else fails, companies can recruit on commercial job boards


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like monster or career-builder. However, caution should be used since this can cause huge

numbers of resumes to pile up with a slim chance of drawing out the best candidate. (Elsevier))

At the end of the searching through resumes, and narrowing down the candidates based

on all the required elements and criteria (interviews, employee feedback, personality and skills

assessment tests, background checks, shadowing other employees) the time has come to select

the best candidate. These tools serve best in helping to identify the right candidate for the job; the

hiring manager must now make a decision. To get the best out of this experience, if a hiring

team is able to put the candidates in a position that is unfamiliar to them, this usually helps with

the interview process since it brings out their natural inclinations. It will definitely help

employers to see how well a person thinks on their feet. (Chapman)

After the company hires the best candidate and allows them to perform for a certain

amount of time (three to six months) a performance evaluation is due. This, however, should be

an on-going process and there should be good communication between the employee and the

manager. Manager should be mindful to give feedback should be regularly so that employees are

not shocked to see areas of improvement on their performance evaluations. When managers

build mutual trust and respect with their employees, all are open and able to address

uncomfortable situations when they arise.

For the good of the order, evaluations are an integral part of an organizations very

existence. They help to help develop an employees job performance and character within an

organization. They provide a systematic and orderly evaluation of an employees performance

that is witnessed by their superiors and others. A performance evaluation just how well the

employee has performed based on how well they have applied themselves. During this time, the

manager and employee can work together and discuss areas of improvement and set goals for


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better performance in the future and be used to help the employee to develop and grow.

(Elsevier)

In conclusion, performance evaluations are critical for career development, advancement,

employee motivation, communication, character, attitude, and maintaining a positive relationship

between manager and employee. Performance evaluations also provide a track-record of an

employees performance that will help in their future progression within the company.

3.0 COMPENSATION DECISION AND PROJECT REVIEW

This particular project has concentrated on the real world application of HR principles,

techniques and evaluative skills by focusing on HR decisions and functions centered around

creating a job opening, the selection process, the evaluation process for current employees, and

making compensation decisions for present employees. It is also geared toward demonstrating

skilled-learning and making real-world application of those skills. The 3 different parts included

creating a job profile for the job tasks, creating a job ad, conducting an annual performance

review for an employee, and making compensation decisions for employees.

3.1 SUBSTANTIATION

One of the main purposes of conducting job analysis is to prepare job description and job

specification which in turn helps to hire the right quality of workforce into the organization. The

general purpose of job analysis is to document the requirements of a job and the work performed.

Job and task analysis is performed as a basis for later improvements, including: definition of a

job domain; describing a job; developing performance appraisals, selection systems, promotion

criteria, training needs assessment, and compensation plans. The tasks for the job analysis were

outlined and separated and then, combined into different segments that required a specific

knowledge set. (Wikipedia, 2012)


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Next, the tasks were labeled to establish their functionality, which was basically breaking

them down into simple forms. From this point a determination of what knowledge or skills

would be necessary for the average individual to perform these actions was made. At this point

we have a very basic profile of the actions that the employee would perform and the knowledge

and skills necessary for the employee to fulfill these duties in a satisfactory manner. This led to

the simplification of the knowledge and skills necessary to perform each task to form the KSA

statements. The combination of the task and KSA statements would make up a large portion of

the job profile that could determine how well a successful employee could perform his/her

duties. The last thing was to create a job ad from the task and KSA statements that featured the

main functions of the job, a job summary, and the skills, education and work experience needed

to perform out the job. The job ad also included a summary of the work environment and a

description of the tools and equipment necessary for doing the job.

Performance Review

In this section the task was to analyze the results of a Performance Review for an

employee who had held the job for 1 year and critiqued them in connection with the goals and

objectives of the company. In the process, the employee was evaluated by means of a ranking

system. Using the quantification method, the task required analyzing certain skills and the

employees overall performance in each task. The goal was to try and turn a very subjective

process into an objective measurement of the employees performance. Being objective is

crucial in making important judgments about how employees perform their duties. Objectivity in

cases are determined by quantifying the end results using a ranking rubric, basically from one to

five, with one being the least desired performance and 5 being the most desired performance.

(PR, 2012)


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My goal was to interpret from an objective point of view. Then, determining how the

employees performance faired in comparison to meeting the companys goals and scoring them

by rank based on the companys calculated projections. After determining the employees rank

it was much easier to give input that the employee could use to make progress over the next year.

In actuality, the main goal of this input was to create a plan of achievement for an employee

increase their performance and maintain their current productivity along the way.

The initial employee results that were provided were a little less than impressive; the

objectives of the company were not met, and oftentimes, were below standard for an employee

working in that capacity. In representing the employer, my goal was to create a master plan for

the employees improvement. Severely criticizing the employee and telling them that theyre

failing the company objections would not benefit the employee or the company; this would only

threaten their job security and lower performance. In all consideration, the employee is new to

the company and it should be brought to his/her attention that improvement is needed to help the

company meets it goals and objectives. Actually, the employee did fairly well, but had some

difficulty in maintaining all tasks simultaneously.

3.2 RISK ANALYSIS

During performance reviews, it is of utmost importance to keep in mind that a

supervisors role and responsibility is just as important as that of the employees. To be totally

effective, a manager should be able to support their teams in such a manner that team members

are able to complete their job duties at high levels and continue to improve and grow. This

shows that a manager is not only concerned about themselves, but about helping the employees

and improving the overall concern and welfare of the company as well. During the

performance review, I felt I made suggestions and comments that were stated in a manner to


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encourage the employee. This process has helped me to see that no single performance review is

perfect, and when adding in compensation, sometimes it must be handled differently. First, a

plan of action must be taken that the employee agrees with and is encouraged to work on. Next,

it should be structured to help them to meet their goals within a timeline. Then, after analyzing

the employees progress based on how the goals were accomplished, a compensation

determination could be made. (10 Secrets, 2012)


The end of the project required us to read a number of employee appraisals, then

summarize the budget allotted for pay raise and additional compensations. The goal here was to

experience the decision-making process that goes along with compensating employees by

following a tight budget and making risk evaluations according to each employee. While

evaluating this part of the project I was privied to some very interesting literature dealing with

general compensation options and the decision making process for employees. Mainly, the

literature discussed the growing need for companies to make their compensation plans attractive

for employees. This would help the company to maintain a stronger position in gaining skilled

and motivated employees; this would lead to a more productive workforce. (Krukoff, 2006)

Another source of literature discussed using compensation options rather than pay raises

and bonuses. This, however, did not apply to this part of the project. It did highlight some

interesting insight into the behavior of employees when given the option of receiving stock

benefits as compensation. It also showed strong possibilities in their general increase in

productivity when met with early returns and strong increases in compensation. This article

alluded to the fact that employees who considered themselves well compensated, displayed more


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productivity and a willingness to grow with the company as opposed to selfishly pushing ahead.

(Irwin, 2003)

The next piece of literature centered on how to create employee performance reviews for

compensation. This method utilizes peer performance reviews and evaluations and shows the

biased intent in peer reviews when compensating employees. At this point, I formed a personal

opinion of the processes used in this compensation decision. The final piece of literature zoned

in on compensation and showed what part of a salary should be fixed, and what part should be

considered variable in relation to minimizing tax withholdings. This literature once again

showed the pros and cons of keeping compensation at a mostly fixed (salary) state with some

latitude when it comes to variable compensation. Based on this information, depending on the

difficulty of the job, there should be a higher raise in variable compensation. (Mngt Sys, 2010)

Overall, I feel that this was a smooth and easy-going project; theres really not much to

change. However, when I attempted to put a dollar amount for each individual without

considering the budget, it actually resulted in exhausting the budget by a significant amount

($4,000 to $5,000). After looking closer into the matter and using each employees ranking,

longevity, and guarantee for the company to give the proper percentage of the whole budget

distribution to each employee in comparison to another. In lieu of this, if I could change

anything it would be a change in the budget to make room for increased salaries. Since I must

make compensation decisions with the budget that I have to work with, the results are based on

the information provided through the course material.


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References

Analysis." Social Forces 83.4 (2005): 1535-566.

Chapman, Jack. 2012 February 12. The Ladders Gets You a New Job Quicker . The LaddersRetrieved from http://www.theladders.com/career-advice/interviewing.

Elsevier. Web. (2012, February 6). Journals. Performance Evaluation.Retrieved from http://www.journals.elsevier.com/performance-evaluation.

Feeley, Thomas Hugh, Jennie Hwang, and George Barnett. (2008) "Predicting Employee

Turnover from Friendship Networks." Journal of Applied Communication Research 36.1 56-73.

Irwin, Grace. Compensation. Belleville, Ont.: Epic, 2003.

"Job Analysis." Wikipedia, the Free Encyclopedia. Web. 16 Feb. 2012.

Retrieved from http://en.wikipedia.org/wiki/Job_analysis.

"Knowledge, Skills and Abilities." HR Management. Web. 23 Jan. 2012.

Retrieved from http://www.humanresources.hrvinet.com/what-is-knowledge-skills-and-

abilities-ksa-model/.

Krukoff, Devin. Compensation. Saskatoon, Sask.: Thistledown, 2006.

Laubach, Marty. "Consent, Informal Organization and Job Rewards: A Mixed Methods

O*NET Resource Center. Web. 23 Jan. 2012. .

Performance Reviews: (2010)Using Performance Information to Improve Service Delivery ; a

Performance Management Systems Audit (Mngt Sys). Brisbane: Queensland Audit Office.

"Performance Reviews (PR)- How To Information | EHow.com." EHow | How to Videos,Articles & More - Discover the Expert in You. | EHow.com. Web. 16 Feb. 2012.

Retrieved from http://www.ehow.com/performance-reviews.

"10 Secrets to an Effective Performance Review: Examples and Tips on Employee Performance

Evaluation, Writing Employee Reviews, a Sample Performance Review and Employee

Evaluation Forms." Business Management Daily.FREE Reports on Business, Management,

Leadership, Career, Human Resources, Employment Law, Technology, and Small Business Tax.Web. 16 Feb. 2012.

Retrieved from http://www.businessmanagementdaily.com/glp/25459/performance-review-

examples.html.
http://www.theladders.com/career-advice/interviewinghttp://www.humanresources.hrvinet.com/what-is-knowledge-skills-and-http://www.humanresources.hrvinet.com/what-is-knowledge-skills-and-http://www.theladders.com/career-advice/interviewing

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