Week 2 Discussion HRM 5010
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Week 2 Discussion HRM 5010
Definition of Person-Focused Pay Plan
Present-day organizations under intense stress to gain and keep the best talent have implemented unique compensation plans, like person-focused pay plans. Moin (2021) notes that the person-focused pay plan is the pay structure that recognizes and rewards the individual’s unique talents, skills, and the contribution they make to the organization. This can differ from conventional pay structures that only consider the employee’s job title and responsibilities. These are based on how the employee is supposed to perform, the level of expertise, and the growth potential. It creates fairness, motivation, and engagement toward employees within the workplace.
Developing the Performance Plan
We will refer to our new hypothetical employee as Tasha. Tasha is a digital marketing specialist on our marketing team. The capability of designing a performance plan that incorporates being person-focused enables us to focus on her strengths, goals, and development needs:
- Set Goals: Work with Tasha to develop SMART goals that are supportive of departmental goals and that leverage her potential in digital marketing
- Performance Appraisal: Implement a structured appraisal process that will provide constructive feedback on Tasha’s performance, identifying areas for improvement and opportunities for career growth.
- Recognition and Rewards: Reward high performance by Tasha, for example, through bonuses, promotions, or special projects that better answer the type of contribution and career accomplishments she wants. The rewards should relate to the organizational goals and reinforce her worth to the company.
- Lifelong Learning and Development: Help Tasha develop professionally by running workshops, attending online courses, and mentoring. Support and encourage keeping skills up-to-date.
References
Moin, N. E. (2021). Compensation Management Practices and Employees Satisfaction of Little Group of Companies. Uiu.ac.bd. http://dspace.uiu.ac.bd/handle/52243/2151