Assignment Help | How could an organization measure the effectiveness of its pay-for-performance plan(s)?

“Pay for Performance” has made inroads in business, but has remained a hard sell in public school systems. There are some successful examples where teacher pay has been linked to student test scores. For example, in Minnesota, some districts have stopped giving automatic raises for seniority and base 60% of all pay increases on performance. In Denver, unions and school districts designed an incentive program where teachers receive bonuses for student achievement and for earning national teaching certificates. However, some plans have not worked. For example, Cincinnati teachers voted against a merit pay proposal and Philadelphia teachers gave their bonus checks to charity rather than cashing them. It appears that having teachers involved in planning the incentive system is one key factor to success. The same can be said for all incentive plans – if employees don’t buy into them, they will not work.

Your paper may be based on a business entity of your choosing from the public or private sector and must answer the following Research Questions:

1. How could an organization measure the effectiveness of its pay-for-performance plan(s)?

2. From an employee’s perspective, what are the advantages and disadvantages of using a pay-for-performance plan?

3. From an employer’s perspective, what are the advantages and disadvantages of using a pay-for-performance plan?

Research Paper Instructions:

IMPORTANT!!
Submit your work as an MS WORD ATTACHMENT in either a .doc, .docx, or .rtf format.

Please support your ideas, arguments, and opinions with independent research, and include at least three (3) supporting references or sources (NOT Wikipedia, unknown, or anonymous sources). References must include the name of the author and the date of publication. Websites are not acceptable. Format your work in proper APA format, include a cover page, an abstract, an introduction, and a labeled conclusion in accordance with the course rubric, a minimum of 3 FULL pages of written content, and a references section. Double-space all work and cite all listed references properly in text in accordance with the 7th edition of the APA manual.

MODEL ANSWER

HR Headline: Pay for Performance (PFP) Remains Controversial

Pay for performance system is a performance-based pay program that rewards employees with incentives after they achieve certain goals. Depending on the nature and policy of an organization, such payment programs can come in different ways. In the teaching sector, the system demands that policymakers drop their traditional ways of teacher compensation and rather establish some pre-ordained schedule dictated by the performance | PLACE YOUR ORDER NOW AT writtask.com | system has so far shifted from other organizations and is finding utility in the education sector, its effectiveness remains a point of | PLACE YOUR ORDER NOW AT writtask.com | critically evaluate the effectiveness of this method of compensation, its merits and demerits both from the employee and employers’ perspective.

Effectiveness of Organization’s PFP plan(s)

The main mandate of the plan should be to motivate and equip employees with the necessary knowledge and skills for better | PLACE YOUR ORDER NOW AT writtask.com | effectiveness of an organization’s pay for | PLACE YOUR ORDER NOW AT writtask.com | plans can be measured using various | PLACE YOUR ORDER NOW AT writtask.com | important to evaluate the competitiveness of a given workplace | PLACE YOUR ORDER NOW AT writtask.com | plan will motivate employees to a level that everyone will be attempting to work harder to receive extra | PLACE YOUR ORDER NOW AT writtask.com | such as teaching, the effectiveness of the plan can as well be evaluated by how much the teachers cooperate to achieve the set education standards (Mawhinney, 2019).

Other factors likely to display the efficacy of the plans include time management, setting of individual targets and working towards attaining | PLACE YOUR ORDER NOW AT writtask.com | program can be said to be efficient when there is a collaboration between organizations and the | PLACE YOUR ORDER NOW AT writtask.com | is, therefore, an indicator that the PFP plans are working. 

Advantages and Disadvantages from an Employee’s Perspective

To the employee, pay for performance plan can be an avenue through which efforts are | PLACE YOUR ORDER NOW AT writtask.com | may feel they are giving their all yet are never | PLACE YOUR ORDER NOW AT writtask.com | make some of the employees not to perform to their optimal abilities. However, with a PFP plan, employees are better motivated, and their productivity will also improve. It also gives employees incentives that make them more efficient in their work. Another advantage of pay for performance is that it helps improve the skills level of employees. By knowing that their better performance will lead to improved pay, employees will seek to be more innovative and hence have better competency levels.

Many drawbacks come with the PFP plan, | PLACE YOUR ORDER NOW AT writtask.com | from the perspective of | PLACE YOUR ORDER NOW AT writtask.com | employees can end up being demotivated if the goals set emerge to be too hard for them to | PLACE YOUR ORDER NOW AT writtask.com | organizations set targets and expect employees to work collectively towards achieving them. This can work well if the employees are ready to embrace the challenge and when the task is | PLACE YOUR ORDER NOW AT writtask.com | the task is too hard to accomplish, | PLACE YOUR ORDER NOW AT writtask.com | may easily fail to meet the expectations hence losing their | PLACE YOUR ORDER NOW AT writtask.com | disadvantage is that team spirit, and employee co-operation can at times, be | PLACE YOUR ORDER NOW AT writtask.com | may have personal targets and ambitions to achieve, some may end up being selfish intending to make personal steps that can warrant individual pay increments. The third disadvantage is that it reduces pay equity as some employees are…