traditional bases for pay chapter #4. seniority and longevity pay length of service human capital
TRANSCRIPT
Traditional Bases for Pay
Chapter #4
Seniority and Longevity Pay
Length of serviceHuman capital
Merit Pay #81
Rewards differences in performanceWhat does it take to
◦make merit pay ◦systems be effective?
◦Meaningful increases◦Clear Performance standards◦Performance appraisals
Historical Overview #77
What do you think?
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?
Design of longevity pay systems
Federal Employees General ScheduleRewards ees who have reached pay
grade limits. (GS)Look #80What are advantages toSeniority based pay?But what about incentives?Motivation?Competition?
Performance Appraisals
Types of Appraisal Plans
Trait System Look #84 Advantages
Easy to quantify
Disadvantages◦Subjectivity
Comparison Systems
Comparison Systems Forced Distribution Paired comparisons
Behavioral Systems Critical incident techniques Behaviorally anchored rating scales (BARS) Behavioral observations scale (BOS) Management By Objective (MBO)
Four Activities to Promote Nondiscriminatory Appraisal Practices
1. Job Analysis2. Structure Rating instrument3. Train supervisors adequately4. Formal appeals mechanism
360 Degree Performance Appraisals
(Class Demonstration)
Rating Errors in the Performance Process
Bias errorsFirst impression effectHalo effectSimilar to me effectContrast errorsCentral tendency errorsLeniency errorsStrict errors
Class Exercise
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?