PERFORMANCE APPRAISAL COMPENSATION EMAILS
Situation: The OL
organization is a medium to large-sized service organization in New
England. The OL organization’s
performance appraisal system, which was designed by the HR Department several
years ago, requires that all employees be evaluated by their supervisor on an
annual
basis except for new employees, who are appraised after the
first 90 days (the probationary period).
The performance appraisal form, which is used for all employees, is
shown below. Supervisors are required to
complete this form covering each of their employees at the appropriate time.
They should discuss the evaluation with the employee, ask
each employee to sign the form at the end of the interview, and return the
completed form to the HR department.
The organization has several different wage structures,
including one for executives, one for managers, and one for all the other
workers. The job evaluation is the point
factor technique in which all jobs receive a point value based on an assessment
of compensable factors. Jobs are then
assigned to a grade level, and each grade has an entry or
minimum rate and a maximum salary payable for the jobs in that grade. The amounts between the entry rate and
maximum comprise the salary range for the grade. Adjustments to the ranges are made
periodically as area market rates
change.
Salaries are directly related to the work they do and how
well they do it. The salary is based on
the point evaluation and the survey results. The company is generally
considered to be competitive when surveyed in their market. Usually employees begin at the bottom of each
pay grade.
Employees are considered for a merit increase after six
months of service and then they annual receive a merit increase at the end of
each year. Cost-of-living increases are
also granted periodically by the organization to all employees.
You are Sandy, the Human Resource Manager, and have received
the following memos and emails over the last several days while you were out of
the office. Please respond to each of
them. Before you respond to the email or
memo, state the importance of each as
either critical,
medium, or of low importance.
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