Compensation Administration Linking Performance Management with Strategies for Effective Performance

GROUP 1
Compensation Administration Management and Compensation

Definition: Setting Clear Goals and Expectations

Performance Management is a process that Establishing obvious objectives &
Topics: helps employees perform at their best and achieve anticipations is the foundation of productive
organizational goal. performance administration. It confirms that
1. Linking Performance workers comprehend what’s anticipated from
Management with Compensation Importance:
them & how their output will get evaluated.
Continuous Feedback and Reviews
Administration Matching performance administration alongside
Constant input & assessments are crucial for
2. Setting Performance Targets, payment is vital for encouraging a motivated and upholding excellent performance & worker
productive workforce. This arrangement confirms
Assessing Performance and involvement.
that workers are compensated reasonably for their Employee Engagement and Recognition
Rewarding Performance input l, which could result in boosted job Engaging and recognizing employees is
Effectively contentment and keeping employees. crucial for motivation and retention.

Benefits Alignment Setting Performance Targets, Assessing

Group Members: Improved Worker Drive
Better Employee Keeping
Performance and Rewarding Performance
Effectively
Obvious Work Goals
REIGN KYLA GUIAO Boosted Company Success Setting Performance Targets
KRYSTEL FABROA Types of Compensation
Introduction
Setting performance targets helps align
RENZ RAMOS Hourly Pay - is a typical way of paying where workers
employees with organizational goals, boosting
get a set rate for every hour they work.
productivity and accountability.
SEALTIEL GALLARDO Salary - Wage payment includes giving workers a set
yearly sum, seperated into normal pay stretches. Importance of Performance Targets
JANA CHELBY RONQUILLO Direction: Guides employees toward clear
Commission - based pay is frequently utilized in sales
outcomes.
ZHAN KYLE LADERA positions, where workers get a portion of the sale
Motivation: Clear goals increase focus and drive.
they produce.
JOHN LOUIE FRANCISCO Measurement: Tracks progress and identifies
Bonuses - Extras are supplementary given to workers areas for improvement.
DAVE PACTURAYAN founded on execution, organization gain, or different Accountability: Encourages ownership of results
standards.
 Steps for Setting Effective Targets
PERFORMANCE ASSESSMENT TECHNIQUES Why rewards are important?
1. Align goals with business priorities.
2. Use SMART goals (Specific, Measurable, 1. Key Performance Indicators (KPIs) – Measures Rewards can improve morale and employee
Achievable, Relevant, Time-bound). employee performance based on specific goals. engagement
3. Involve employees in target setting. They can help employees feel like their
2. 360-Degree Feedback – Collects feedback from
4. Set clear performance metrics. contributions are valued
managers, peers, subordinates, and customers.
5. Review and adjust regularly. They can encourage employees to continue
3. Performance Appraisals – Structured reviews to performing well
Best Practices discuss achievements, challenges, and They can help retain top talent
Combine both quantitative and qualitative development.
goals.
4. Management by Objectives (MBO) – Goal-setting Example of Effective Reward Performance
Be flexible and adapt to changes.
approach aligning individual and company
Provide necessary resources.
objectives. Monetary Rewards - are financial incentives given
Communicate expectations clearly.
to employees to recognize and reward their
5. Behaviorally Anchored Rating Scales (BARS) –
performance. These rewards typically involve
Conclusion Uses behavior-based criteria for objective
direct payments or benefits that have a tangible
Effective performance targets lead to better results, evaluation.
financial value.
motivation, and accountability. Regular feedback
and adjustments are essential for success. Rewarding Performance Effectively Performance-Based Bonuses: A one-time payment
tied to achieving specific performance goals,
Assessing Performance Effective performance rewards motivate such as exceeding sales targets or completing a
employees, increase productivity, and improve complex project on time and within budget.
Definition:
De employee retention. They can also help build a high-
Performance assessment is the process of Salary Increases: A permanent increase in base
performing culture.
measuring how well the employee is performing salary based on performance reviews,
the skills required for the job. demonstrating recognition of consistent high
Financial rewards: Merit increases, bonuses, and
achievement.
How Performance Assessment Relate to other financial incentives
Profit-Sharing: A system where employees share
Compensation Administration?
• Non-financial rewards: Recognition, praise, and in a percentage of company profits, aligning their
Compensation Decisions
other ways to show appreciation interests with the company's financial success.
Motivation • Psychological rewards: Creating an environment
Goal Alignment Stock Options: The right to purchase company
where employees feel valued and motivated
Fairness stock at a discounted price, providing a potential
Retention for long-term financial gain.