Wednesday, January 16, 2013

How to Use the Result of Performance Appraisal?


A good evaluation system is enough to motivate the employees. The motivated one will work more diligently and effectively. You may as well combine the evaluation system with other decisions about salary, bonus or even incentives.
The Boss and mangers of the company want to apply the result of Performance Evaluation for many purposes such as considering human resource, training, motivation, salary or delegation. The evaluation and compliment system are normally closely related to each other but the implementation is separated. Besides, matter relating to money may sometimes affect negatively on the performance.
Based on the general performance, managers may decide on matter relating to salary as follows:
• Performance below medium requirement - not increase the salary
• Meet the medium requirement - increase by 2%
• Above medium - increase by 3%
• Excellent - increase by 5%
Moreover, the bonus can be company shares - the better you fulfill you job, the more shares you will receive as bonus. This kind of bonus shall strengthen the financial benefit relationship between the employee and the company and will help increase the share price. Simultaneously, the employee may be considered to be promoted if he does his job well and takes over more responsibilities.
Bonus can be a very good method to motivate the employee to work, but it also needs caution to be taken. If not being paying adequate attention, this method may result in opposite effect to expectation. One reason for which Bonus often fails it usefulness is when one employee notices and wonders or disagrees that other employee got higher bonus. As a manager, you should supervise the bonus program to assure your expectation. The bonus needs to be fair and all employees need to be treated squarely.

Article Source: http://EzineArticles.com/3827974

No comments:

Post a Comment