Fastcat Phase 3 Essay

Each employee will be paid based on their capabilities rather than on the characteristics of their job. This will provide an incentive for employees to develop their skills and move into other roles.

Our team chose a job-based plan because we feel that this plan was the best decision for Fast Cat’s organizational structure. Fast Cat generates revenue based on the performance of the employees on the job so we believe that the best way to compensate its employees is based on the requirements and tasks of their specific job. By choosing a job based plan, employees will be able to clearly understand why and how they are paid based on the factors, weights, degrees and points of their specific job.

Performance management system makes a clear link between the performance and compensation, and allows the employees to understand the areas which need to be improved and directs them to appropriate training opportunities to enable improvement in performance to take place. Joseph Martocchio says, “Work with line managers to design the performance appraisal plan which best fits the specific duties and responsibilities of particular roles” (Martocchio, 2011). Compensation and reward decisions are likely to be arbitrary in the absence of a good performance management system. In short, performance management is a key component of talent management in organizations. It allows assessing the current talent and making predictions

FastCat's mission is to exceed customer's expectations of value, dependability and reliability by focusing on innovation and teamwork; to help our customers succeed; to support and share with our employees; and to respect and recognize individuals and their performance contributions. The following compensation plan

Good performance is rewarded through timely job promotions, special recognition and in some cases monetary rewards and incentives.

Finally, pay grades and ranges had to be established. Pay grades are groups of jobs that are similar in level of skill and comparable in value to the company. The decision was to have five pay grades based on the five natural groups of jobs: department directors, upper managers, middle managers, individual contributors and lowest level support staff. This decision was

The improved performance review process will also address the survey comments relating to the feeling there was little relationship between their performance and their pay. There will be a direct correlation between performance and pay. Based on the outcome of the annual reviews, employees will receive pay increases. At the annual merit raise time, performance factor, Utiliscan financial condition and the external market condition will be considered to determine the amount of the raise for each employee.

In the end, this will give employees a clearer understanding of how their pay is determined. One of the main problems in the employee engagement survey was that employees did not understand how their pay was determined. By pairing an appeals process with the training of the compensation plan that will occur when it is implemented, FastCat employees will have the opportunity to learn about the compensation plan and then to question their responsibilities and roles and how they fit in the grade assigned. This helps to achieve the compensation objective of being fair and easy to understand. Additionally employees will know what responsibilities and qualifications they need to move into the next level. This will make employees more committed to the company and more committed to achieving the growth and product development goals, because they are able to see that there is opportunity to grow within the

It has been a prevailing tradition from very long time; that a manager or a boss of a company had all right to scale his employees' performance and all this was done at the time, when the bonus or appraisal was given. At that time, the manager had to select the best employee on the basis of his performance. Though, this was a good procedure to appraise one's performance with bonus or any promotion.

There are times at which companies show their appreciation to their employees by giving them bonuses and pay increases. These bonus/pay increase amounts are determined by: how long one has been with the company, what level

Human Resource Professionals also design and install incentive pay systems. Incentives are pay systems that reward employees for their efforts beyond normal performance expectations. In order to pay incentives, organizations measure employee performance at three levels; Individual level, Group level, and Organizational level. Individual level incentives are merit pay, skill-based pay, competency-based pay, piece rate pay, standard hour systems, employee suggestion systems and commissions (Heneman & Gresham, 1998). Merit pay is provided to employees for their individual behavioural contributions to organization. In skill based pay, pay increases are based on skill mastery. It is used by organizations in order to improve organizational

In Phase II of FastCat’s compensation system, a dual focus on the base pay and providing incentives for their employees was recommended. It is ideal for FastCat to match the market to maintain their competitiveness. This pay policy is most suitable because it will maximize FastCat’s ability to attract and keep good employees, while still being within the company 's ability to pay its expenses. Also, this pay structure will link pay to performance. This will assist FastCat with improving their employee engagement, motivation, rewarding performances, and increasing productivity. Balancing the profitability of the company with the pay structure of their employees will greatly regulate the future success of FastCat.

It can be said that performance related pay has been motivating employees who works in companies/organisations from small to big, hence the distribution of bonuses definitely need to be taken into account. A bonus is an extra compensation given to an employee above his/her normal wage. A bonus also could be used as a reward for accomplishing specific goals set by the company, or for devotion to the company. However Performance related pay methods has broaden up into different topics, Individual-performance pay and group-performance pay being the most common methods. This essay will therefore discuss not only just identifying both distribution methods, but its relationship between one and another. Also, preferred ideals which

The purpose of this report is to use the compensation system we previously developed in Phases I and II to pay people, develop plans that reward performance, add benefits into the mix, and evaluate these results. First we will look at performance-based-pay as a policy for recognizing employee contributions. Performance-based-pay is a pay plan that varies with some measure of individual or organizational performance, such as merit pay, lump-sum bonus plans, skill-based pay, incentive plans, variable pay plans, risk sharing, and success sharing. It is basically a pay plan that moves away from the traditional base pay and across-the-board increases, and

From the interview with Ms. Lim, the managerial will rank their employees according to their relative level of performance. The employees will be call upon into the office by their own manager or even supervisor, and will be interviewed accordingly. Ranking is done on an annual basis during the annual planning cycle, which takes place worldwide during Quarter 1. There are three rank categories and a performance category for employees who are not ranked because they are not consistently demonstrating the performance expected of those in similar positions. The rank categories are: