Traditional Bases for Pay

1. Traditional Bases for Pay Chapter #4

2. Length of service • Human capital Seniority and Longevity Pay

3. Rewards differences in performance • What does it take to • make merit pay • systems be effective? • Meaningful increases • Clear Performance standards • Performance appraisals Merit Pay #81

4. Historical Overview #77

5. Effectiveness of Seniority Pay Systems • 12% US workforce (declining) • There is no research that demonstrates the effectiveness of seniority pay systems • Does it reduce turnover? What do you think?

6. Federal Employees General Schedule • Rewards ees who have reached pay grade limits. (GS) • Look #80 • What are advantages to • Seniority based pay? • But what about incentives? • Motivation? • Competition? Design of longevity pay systems

7. Types of Appraisal Plans • Trait System Look #84 • Advantages • Easy to quantify • Disadvantages • Subjectivity Performance Appraisals

8. Comparison Systems

9. Comparison Systems • Forced Distribution • Paired comparisons • Behavioral Systems • Critical incident techniques • Behaviorally anchored rating scales (BARS) • Behavioral observations scale (BOS) • Management By Objective (MBO)

10. 1. Job Analysis • 2. Structure Rating instrument • 3. Train supervisors adequately • 4. Formal appeals mechanism Four Activities to Promote Nondiscriminatory Appraisal Practices

11. 360 Degree Performance Appraisals • (Class Demonstration)

12. Bias errors • First impression effect • Halo effect • Similar to me effect • Contrast errors • Central tendency errors • Leniency errors • Strict errors Rating Errors in the Performance Process

13. Using Yahoo: go to federal government’s General Schedule by clicking on the advance search link. Type in “general schedule” • Using Yahoo: Type IOMA Institute of Management and Administration. www.ioma.coma Do you think this site may be helpful to you? How? Class Exercise