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Mod 6 Discussion 1

Mod 6 Discussion 1

Q Discussion One: a) Discuss the benefits, challenges and tradeoffs of pay-for-performance, or merit pay. How would a pay-for-performance policy support the organization’s strategic goals? What factors should be considered in evaluating the effectiveness of this practice? b) Select three methods for conducting an evaluation of an employee's performance and discuss the advantages and disadvantages for each method. Discuss what level of employee (management, administrative, clerical, laborer, etc.) you would use each method to evaluate. Be sure to provide the references for the sources of the information you used including the material provided in the classroom.

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Measuring employee performance is of immense importance for ensuring success for both individual and the organization. Feedback on employee performance and regular performance feedback helps in improving performance of the employees. In addition to that, pay for performance policy is used by organization as an important means of intrinsic motivation. Pay for performance policy is particularly designed in a way that it not only contributes in easy attainment of organizational goals, but also replenish the skills of concerned employee.