Performance and Management Essay
A. Policy For Recognizing Employee Contributions
The purpose of this report is to use the compensation system we previously developed in Phases I and II to pay people, develop plans that reward performance, add benefits into the mix, and evaluate these results. First we will look at performance-based-pay as a policy for recognizing employee contributions. Performance-based-pay is a pay plan that varies with some measure of individual or organizational performance, such as merit pay, lump-sum bonus plans, skill-based pay, incentive plans, variable pay plans, risk sharing, and success sharing. It is basically a pay plan that moves away from the traditional base pay and across-the-board increases, and …show more content…
b. Determining Relevant Market(s)
When selecting market competitors to establish our suggested pay policy line for FastCat our team tried a few different markets before deciding on the one we felt most reflected the values of the company. The first market group we chose to try was all the surveyed industries provided to us by FastCat. This line fit well with our benchmark jobs being fairly close to the line on both the high and low end. The second fit we looked into was just using the data regarding Software companies, this line seemed to fit slightly better than the previous with jobs on both the high and low end of the JE scale being fairly evenly distributed above and below the line. The final fit we tried was software companies with the exception of company 15 because we found that their compensation data created a huge outlier from the average of the other companies. We decided to go with the final fit of only software companies excluding company 15 because we felt this line best reflected our views on which jobs were most important.