Staffing

Compensation/Wages &
Performance Evaluation
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Definition of
Terms
Compensation/Wages
All forms of pay given by
employers to their employees
for the performance of their
jobs.
Performance Evaluation
A process undertaken by the
organization, usually done
once a year, designed to
measure employees’ work
performance.
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Types of
Compensation  Direct Compensation – includes workers’ salaries,
incentive pays, bonuses, and commissions
 Indirect Compensation – includes benefits given by
employees other financial renumerations
 Nonfinancial Compensation – includes recognition
programs, being assigned to do rewarding jobs, or
enjoying management support, ideal work environment,
and convenient work hours.

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EFFORT PAY

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Compensation: A
Motivational  Pay Equity - related to fairness; a motivation theory
Factor for focusing on employees' response to the pay that they
Employees receive and the feeling that they receive less or more
than they deserve.
 Expectancy Theory - predicts that employees are
motivated to work well because of the attractiveness of
the rewards or benefits that they may possibly receive
from a job assignment.

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Bases for
Compensation  Piecework basis – when pay is computed according to
the number of units produced.
 Hourly basis – when pay is computed according to the
number of work hours rendered.
 Daily basis - when pay is computed according to the
number of work days rendered.
 Weekly basis - when pay is computed according to the
number of work weeks rendered.
 Monthly basis - when pay is computed according to
the number of work months rendered.
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Internal Factors
Affecting
 organization's compensation policies,
Compensation
 importance of the job,
Rates
 employees' qualifications in meeting the job
requirements, and
 employer's financial stability..

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External Factors
Affecting
 local and global market conditions,
Compensation
 labor supply,
Rates
 area/regional wage rates,
 cost of living,
 collective bargaining agreements, and
 national and international laws

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Purposes of
Performance  Administrative Purposes - fulfilled through appraisal/
Evaluation evaluation programs that provide information that may
be used as basis for compensation decisions,
promotions, transfers, and terminations.
 Developmental Purposes - fulfilled through appraisal/
evaluation programs that provide information about
employees' performance and their strengths and
weaknesses that may be used as basis for identifying
their training and development needs.

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Performance
Appraisal Trait Methods
Methods designed to find out if the
employee possesses important
work characteristics such as
conscientiousness, creativity,
emotional stability, and others
Behaviorally Anchored
Rating Scale (BARS)
includes five to ten vertical scales,
one for each important strategy for
doing the job and numbered
according to its importance
Graphic Rating Forced-Choice
Scales Method
each characteristic to be
requires the rater to choose
evaluated is represented by a
from two statements
scale on which the evaluator
purposely designed to
or rater indicates the degree to
distinguish between positive
which an employee possesses
or negative performance
that characteristic
Behavior observation
scale (BOS)
a behavioral approach to
performance appraisal that
measures the frequency of
observed behavior
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Why Some
Evaluation  inadequate orientation of the evaluatees regarding the
Programs Fail objectives of the program
 incomplete cooperation of the evaluatees (e.g. proper
answering of evaluation questionnaire)
 bias exhibited by evaluators
 inadequate time for answering the evaluation forms
 ambiguous language used in the evaluation
questionnaire
 employee's job description is not properly evaluated by
the evaluation questionnaire used

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Why Some
Evaluation  inflated ratings resulting from evaluator's avoidance of
Programs Fail giving low scores
 evaluator's appraisal is focused on the personality of the
evaluatee and not his or her performance
 unhealthy personality of the evaluator
 evaluator may be influenced by organizational politics

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Employee Relations
the connection created among
employees/workers as they go about their
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assigned tasks for the organization to which they
belong
Want big impact?
Use big image.

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Barriers To Good
Employee  Anti-social personality; refusal to share more about oneself
Relations to co-employees; being a loner
 Lack of trust in others
 Selfish attitude; too many self-serving motives
 Lack of good self-esteem
 Not a team player
 Being conceited
 Cultural/subcultural differences
 Lack of cooperation
 Communication problems; refusal to listen to what others
seek to communicate
 Lack of concern for others' welfare
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Ways To
Overcome  Develop a healthy personality to overcome negative.
Barriers To Good attitudes and behavior
Employee  Find time to socialize with coworkers.
Relations  Overcome tendencies to be too dependent on
electronic gadgets.
 Develop good communication skills and be open to
others' opinions.
 Minimize cultural/subcultural tension.

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Want big impact?
Use big image.

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Thanks!
Any questions?
You can find me at:
▫ @DroopyEyedGirl
▫ marynellmoralita16@gmail.com

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 “ “Who is a God like you, who
pardons sin and forgives the
Micah 7:18
transgression of the remnant of his
inheritance? You do not stay angry
forever but delight to show mercy.”

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 Quiz!
1. Choose any three barriers to good
employee relations mentioned in this
lesson and explain their adverse effects to
the attainment of the organization’s
objectives.
2. What is the relationship between the Pay
Equity Theory and the employees’
motivation to perform well?

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