Pay, while not the most important motivational factor for most people, can be the most noticed and affecting factor simply because it can be measured. Companies need to have structure and policies when it comes to figuring out who will earn certain amounts of money and still create equitable feelings.
One interesting thing that I learned in that was just how off-balanced the pay to CEO and upper level business professionals is in relation to the lewest paid employeee in the firm. I believe the professor said it was a 400% difference! That means it takes 400 regular low paid workers' salaries to pay 1 CEO. I might not be very good with finances, but I cannot see anything fair about that. Sure the CEO might work harder, maybe, but I doubt they are working 400% harder.
Ben and Jerry's used to have a policy that the CEO could not earn more then 3 times the pay of their lowest paid employee. While this can be seen as a problem today, and is why they have gotten rid of that policy, it conveys to me a correct principle, that employees are the ones responcible for carrying out the work and getting things done, and should be compensated more in relation to how successful the firm is, and not so much on paying them the least amount they can, so the CEO can become overpaid with 400% more.
Thursday, March 4, 2010
Thursday, February 25, 2010
Chapter 12 Discussion
Concept and brief description:
Merit Pay / Raises
Linking pay increases to performances of employees through appraisals is one way companies can increase the motivation of its employees to work harder and more consistently.
Emotional hook (provocative question/ claim/real-life problem):
I used to work for a company that really seemed to struggle with appraisals and raises. They had a policy in place that stated that each employee would be evaluated every six months to rate their performance evaluation and appraisal. I worked there for nearly six years and received only about half of the appraisal interviews they said I would have, receiving a small raise about once a year. From what I can tell, the issue was probably a lack of time devoted to interviewing and evaluating the employees. The reviews were done only by the manager, who was always constantly on the move. He just didn’t have the time to spend interviewing all his employees and so times would be pushed back, and back again.
Key points to elicit in discussion
Required limits of reviews, Raises and amounts, Laws involved, and Effectiveness and motivation.
Facilitative questions
What options do employees have if they are having their review pushed further and further away, year by year? And should there only be one person doing the reviews? What if they are too busy all the time? Have you ever waited longer then you were supposed to for a raise / review / evaluation?
Merit Pay / Raises
Linking pay increases to performances of employees through appraisals is one way companies can increase the motivation of its employees to work harder and more consistently.
Emotional hook (provocative question/ claim/real-life problem):
I used to work for a company that really seemed to struggle with appraisals and raises. They had a policy in place that stated that each employee would be evaluated every six months to rate their performance evaluation and appraisal. I worked there for nearly six years and received only about half of the appraisal interviews they said I would have, receiving a small raise about once a year. From what I can tell, the issue was probably a lack of time devoted to interviewing and evaluating the employees. The reviews were done only by the manager, who was always constantly on the move. He just didn’t have the time to spend interviewing all his employees and so times would be pushed back, and back again.
Key points to elicit in discussion
Required limits of reviews, Raises and amounts, Laws involved, and Effectiveness and motivation.
Facilitative questions
What options do employees have if they are having their review pushed further and further away, year by year? And should there only be one person doing the reviews? What if they are too busy all the time? Have you ever waited longer then you were supposed to for a raise / review / evaluation?
Chapter 11 Reflection
Internal Equity was the main disscussion in our group today. We talked about how employees develope their own perpective about how faily they are being paid from a number of factors including the pay of others within the organization as wel as comparing other companies with similar jobs.
There must be a balance between the employees pay and why they are being paid the amount they are. If they are being paid less then someone else for the same job without believing that the other person works harder or is more qualified, there will be a sense of unbalance and disappointment. Companies should be responsible to inform their employees of why they are paid the way they are, by doing performance appraisals and/or showing the current rates in the general market for a job similar to theirs.
There must be a balance between the employees pay and why they are being paid the amount they are. If they are being paid less then someone else for the same job without believing that the other person works harder or is more qualified, there will be a sense of unbalance and disappointment. Companies should be responsible to inform their employees of why they are paid the way they are, by doing performance appraisals and/or showing the current rates in the general market for a job similar to theirs.
Thursday, February 18, 2010
Discussion - Chapter 11
James Ashworth
Discussion topic for: Chapter 11
Concept and brief description:
The concept I wanted to discuss is under the section of Overtime Pay in the textbook. Regarding “salaried” employees in which they are considered exempt from overtime pay. Firms are not required to pay salaried employees overtime because they expect the employee to be able to manage their time and get the work done.
Emotional hook (provocative question/ claim/real-life problem):
The issue I have with this is that in some situations employees are working all day, come home and continue to work until they go to bed. My wife is a first grade school teacher, and she is expected to be at work at 7:30am until 4pm everyday as far as her contract says. She leaves at 6:45am in the morning and gets home at 5pm. After getting home she continues to work until about 9pm, when she then goes to bed. To me, she is working at her job for over 10-12 hours a day. Legally, everything is fine, however I feel that situations like this employees are being overused, and while her salary pay looks average, if you calculate all the extra time she puts into the job her pay isn’t much better then someone making French fries at Mc. Donald’s.
Key points to elicit in discussion
Exempt employees and the benefits and costs
Overtime
Facilitative questions
What kind of job do you want? One where you go to work to work, but when you come home you are done. Or would you rather work at work and then work some more when you get home? Is this type of situation more common then I think?
Discussion topic for: Chapter 11
Concept and brief description:
The concept I wanted to discuss is under the section of Overtime Pay in the textbook. Regarding “salaried” employees in which they are considered exempt from overtime pay. Firms are not required to pay salaried employees overtime because they expect the employee to be able to manage their time and get the work done.
Emotional hook (provocative question/ claim/real-life problem):
The issue I have with this is that in some situations employees are working all day, come home and continue to work until they go to bed. My wife is a first grade school teacher, and she is expected to be at work at 7:30am until 4pm everyday as far as her contract says. She leaves at 6:45am in the morning and gets home at 5pm. After getting home she continues to work until about 9pm, when she then goes to bed. To me, she is working at her job for over 10-12 hours a day. Legally, everything is fine, however I feel that situations like this employees are being overused, and while her salary pay looks average, if you calculate all the extra time she puts into the job her pay isn’t much better then someone making French fries at Mc. Donald’s.
Key points to elicit in discussion
Exempt employees and the benefits and costs
Overtime
Facilitative questions
What kind of job do you want? One where you go to work to work, but when you come home you are done. Or would you rather work at work and then work some more when you get home? Is this type of situation more common then I think?
Chapter 10 Reflection
Discipline on the job was the main topic of our groups discussion. We were all in agreement or had experienced situations in our jobs where there was poor management of discipline to employees who break the rules and regulations of employment.
It seems to me that some managers/employers do not treat all employees the same when it comes to discipline. Two employees that break the rules should have the same consequence, however sometimes if one is more "liked" the punishment tends to be less. For example at my job we had a person that consistantly was late, and would joke around with the manager about it. He never really got more then a reminder here and there to be on time. On the other hand there was an employee that was not late everyday, but sometimes would have a hard time getting there on time. He was given three chances, and on the third late day, he was fired.
Obviously this could have turned out very badly if the fired employee had taken legal action for unfair treatment. It just shows me how important it is to make sure that policies are in place, and the consequences are carried out regardless of how well the employee is liked.
It seems to me that some managers/employers do not treat all employees the same when it comes to discipline. Two employees that break the rules should have the same consequence, however sometimes if one is more "liked" the punishment tends to be less. For example at my job we had a person that consistantly was late, and would joke around with the manager about it. He never really got more then a reminder here and there to be on time. On the other hand there was an employee that was not late everyday, but sometimes would have a hard time getting there on time. He was given three chances, and on the third late day, he was fired.
Obviously this could have turned out very badly if the fired employee had taken legal action for unfair treatment. It just shows me how important it is to make sure that policies are in place, and the consequences are carried out regardless of how well the employee is liked.
Monday, February 15, 2010
Discussion - Chapter 10
James Ashworth
Discussion topic for: Chapter 10
Concept and brief description:
Meeting job satisfaction in order to retain employees, at least for most companies, is highly recommended and saves in the long run to the bottom line. There are several ways to measure job satisfaction including surveys in which employees can rate on a scale how much their job meets the needs they have. If several employees are leaving for the same reason, it might be good for management to consider some changes in their current setup.
Emotional hook (provocative question/ claim/real-life problem):
Speaking on the topic of job satisfaction, I have a personal experience that involves me having to let my job go even though I did not want to. My previous employer, that I had worked for the last 6 years, was unable to work with my education schedule, and asked me to choose between continuing my schooling, or working for them in that position. Looking into the future, an education would be more beneficial to me than a simple dead-end job, and so I decided to quit.
Key points to elicit in discussion
What I have experienced makes me wonder why a company, that hires mostly college students, does not work around their schedules. If their goal is to reduce employee turnover, wouldn’t working with student schedules be at the top of their list?
Facilitative questions
In addition, a huge issue right now is the reduction of employee benefits, primarily health insurance. The costs of health insurance on companies puts a huge strain on their backs, but I wonder if it actually results in less job satisfaction, and motivation to work their best. Why work hard for a company that tries to give you the least back that they legally can?
Discussion topic for: Chapter 10
Concept and brief description:
Meeting job satisfaction in order to retain employees, at least for most companies, is highly recommended and saves in the long run to the bottom line. There are several ways to measure job satisfaction including surveys in which employees can rate on a scale how much their job meets the needs they have. If several employees are leaving for the same reason, it might be good for management to consider some changes in their current setup.
Emotional hook (provocative question/ claim/real-life problem):
Speaking on the topic of job satisfaction, I have a personal experience that involves me having to let my job go even though I did not want to. My previous employer, that I had worked for the last 6 years, was unable to work with my education schedule, and asked me to choose between continuing my schooling, or working for them in that position. Looking into the future, an education would be more beneficial to me than a simple dead-end job, and so I decided to quit.
Key points to elicit in discussion
What I have experienced makes me wonder why a company, that hires mostly college students, does not work around their schedules. If their goal is to reduce employee turnover, wouldn’t working with student schedules be at the top of their list?
Facilitative questions
In addition, a huge issue right now is the reduction of employee benefits, primarily health insurance. The costs of health insurance on companies puts a huge strain on their backs, but I wonder if it actually results in less job satisfaction, and motivation to work their best. Why work hard for a company that tries to give you the least back that they legally can?
Tuesday, February 9, 2010
Chapter 8 Discussion
Concept and brief description:
Rating Individual employee’s performance. One of the more difficult things to track is how efficient employees are doing their jobs. Instead of companies arranging their employees from best to worst, they can use performance measurement to see about where each employee stands on a scale, usually 1 to 5 with 5 being the best.
Emotional hook (provocative question/ claim/real-life problem):
I used to work for a company that used self-evaluation scales for measuring job performance. It was a 1 to 10 scale with 10 being the best. After filling out my first one, I was later informed that I am not allowed to give myself 10’s in any area, because 10 means perfect, and there is no such thing… I was a little shocked and offended that I wasn’t allowed to think I could do something at a level 10, or that I even had the potential to reach it. Several other employees I talked with had also gone through the same discussion about not being able to do something perfectly and we all felt kind of weird about it. Why not just set the scale 1 to 9 then?
Key points to elicit in discussion
Do you think that telling employees that they are not capable of achieving a certain level of performance is a good idea? Rating behaviors and TQM.
Facilitative questions
Does a scale system really work? If employees rate themselves, wouldn’t they score themselves higher than they actually are? What about managers who may not even know about the job, and what is considered good performance?
Rating Individual employee’s performance. One of the more difficult things to track is how efficient employees are doing their jobs. Instead of companies arranging their employees from best to worst, they can use performance measurement to see about where each employee stands on a scale, usually 1 to 5 with 5 being the best.
Emotional hook (provocative question/ claim/real-life problem):
I used to work for a company that used self-evaluation scales for measuring job performance. It was a 1 to 10 scale with 10 being the best. After filling out my first one, I was later informed that I am not allowed to give myself 10’s in any area, because 10 means perfect, and there is no such thing… I was a little shocked and offended that I wasn’t allowed to think I could do something at a level 10, or that I even had the potential to reach it. Several other employees I talked with had also gone through the same discussion about not being able to do something perfectly and we all felt kind of weird about it. Why not just set the scale 1 to 9 then?
Key points to elicit in discussion
Do you think that telling employees that they are not capable of achieving a certain level of performance is a good idea? Rating behaviors and TQM.
Facilitative questions
Does a scale system really work? If employees rate themselves, wouldn’t they score themselves higher than they actually are? What about managers who may not even know about the job, and what is considered good performance?
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