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Employee Performance Essay

The process of producing an environment in which individuals can perform duties to the best of his or her ability is known as performance management. The processes of performance management start when the company requires an employee to perform a specific and ends when an employee departs from the organization (Heathfield, 2013). At Riordan Manufacturing there are many important positions that depend on the performance management system to ensure that employees achieve company set goals and objections. Riordan Manufacturing performance management systems are very important.

The two positions chosen by Team D to discuss in this paper are the customer service rep and chief financial officer. Team D will describe the general function of performance management systems, suggest two job evaluation methods for the positions, suggest two job evaluation methods for each position, and determine the advantages and disadvantages of the methods concerning each position. Team D will also compare and contrast possible compensation plans for the two positions and explain the importance of providing employee benefit plan to the customer service rep and chief financial officer positions at Riordan Manufacturing.

General Function of Performance Management

Riordan Manufacturing uses performance managing systems that include annual pay modifications based upon performance, along with employee recognition programs. Riordan’s determines the company’s annual pay changes by the position in relation to the external market, along with performance expectations set by the company. The performance expectations fall into three categories, which are does not meet, meets, and exceeds. Increase in pay is always a motivator for increasing performance and productivity among employees. Riordan Manufacturing also offers three kinds of awards/programs for their employees under their performance management systems. The company offers an outstanding employee award once a year. Riordan’s management and employees nominate high performance employee who have achieved high rating in employee performance. The company’s committee of executives reviews the candidates selected and presents the winner with the most outstanding employee’s award.

One qualification is modeling respect for diversity, which is something that Riordan is serious about. Riordan rewards the value the company has in the morals of employees. The other award given by Riordan is the seniority award. The company gives these awards to employees as he or she complete career milestones at one year, fifth year, tenth year, and 20th year. Although the seniority award is not monetary, it is important for the employees to notice that Riordan is noticing their loyalty and contributions to the company. The last program offered by Riordan under their performance management systems is the employee suggestion program.

The company gives this reward to employees when he or she make suggestions for products put into place. The employees receive a $25 check and their picture in the company newsletter; although this does not measure the staff’s daily performance it does motivate them to make contributions for the good of the company. Using performance management systems helps Riordan rate the employee’s performances and motivates each employee to work as a team. For example, using the annual pay adjustments it would becoming apparent to Riordan executives that employees were not doing their jobs if they rated “does not meet” for two years in a row, it would be time for a face-to-face.

Job Evaluation Methods

Riordan Manufacturing currently employs 550 employees. The company has positions ranging from production to chief legal counsel. The company takes pride in attracting highly qualified employees. Each position at Riordan plays a vital role to the company’s success. Therefore, company expects each employee to focus on achieving the company’s mission and goals. Many of the company’s job functions performed by employees assist Riordan in maintaining a competitive advantage on the market. Two important positions held at Riordan Manufacturing are the customer service representative and the Chief Financial Officer. The customer service is one of the many faces of Riordan as the employee interacts directly with the customers of Riordan. The Chief Financial Officer takes on the responsibilities within Riordan and directs the human resources functions along with the financial operations. The customer service representative is a valuable position that would work well with the classification method.

The classification method works well with organizations that have several locations or many employees. Therefore, Riordan classifies each customer service representative with other similar job content or classes. The advantage of using the classification method is that it will allow Riordan to organize easily the many positions along with establishing a compensation package for each position based upon their classification. Some of the disadvantages may include several positions appearing to fit in more than one class or the classifications may seem biased or subjective judgments. With the chief financial officer (CFO) possessing a more critical position and role within the company, the ranking method may also be beneficial to Riordan.

The ranking method for job evaluations is quite simple and in most instances inexpensive. This can often reduce the money spent on implementing strategic techniques and be applied in other areas of Riordan such as company improvements, or employee rewards. The disadvantage of the ranking method is that it can be subjective or rely heavily on a person or group of people to determine the worth of each position. There are several job methods used to perform job evaluations; however, it is essential for Riordan or any organization to determine which one will most suites the company and aid in its success.

Compensation Plans

It is important to have competitive and attractive compensation plans to ensure that Riordan attracts highly qualified employees. There are many options or approaches to use with compensation plans. The employee’s position often dictates what type of compensation plan he or she receives. For a customer service representative (CSR), compensation plans may include a basic wage structure along with a merit pay incentive. With merit pay, the CSR receives an increase in pay based on a percentage (DeCenzo & Robbins, 2007). Employees who perform better typically receive a greater percentage increase. Another option is a pay-for performance program. This option uses performance measures to determine the employee’s pay rate and not just time spent on the job.

Each employee’s pay rate depends on his or her individual, team, department, or organizational productivity (DeCenzo & Robbins, 2007). Both of these compensation plans are effective but some employees may worried about not knowing what his or her pay rate is ahead of time in the pay-for-performance program. The compensation plans for the CFO are different from those provided for CSR’s. As an executive member of Riordan, the CFO’s salary is substantially higher than the lower-level employees. For example, the current Riordan CFO, Dale Edgel, received an annual salary of $125, 00 with the ability to earn up to 30% of his salary in executive bonuses (Riordan, 1999).

Compensation plans for executive employees are considerably higher because of his or her level of responsibility. That responsibility not only provides the executives with higher salaries but also compensation plans that include stock option plans. Executive compensation plans serve the same purpose as those used from lower-level employees. Executive positions typically require specialized or advanced education and employees who meet those requirements can be very selective when choosing a job. The compensation plans for those positions must be very attractive to appeal to those individuals.

Importance of Employee Benefits

Riordan understand that benefits are essential in today’s workforce to retain current talent and attract new high-level talent. Riordan has benefit packages required by law, such as Social Security, Workers’ Compensation, Unemployment Compensation, and FMLA. The company also offers vacation benefits, 401k plans, childcare assistance plan, dental, educational assistance, flextime scheduling, and holiday pay to attract and retain employees. The company offers these benefits to full-time employees when hired into the company, and he or she can accrue more perks as tenure at Riordan grows. Riordan understands that employees need a benefit package that promote a work life balance, the ability to take care of his or her family in case of a medical emergency, and to plan for his or her future.

Whether the employee is the CFO or a CSR the benefit package does not change. Employees who believe a company is willing to take care of him or her makes job satisfaction and employee engagement much easier to achieve. Furthermore, employees who believe he or she is capable of advancing his or her career and the company paying for it helps entry-level employee. The company encourages customer service rep to believe that he or she has a future in becoming a future chief financial officer.

Riordan provides Education Assistance Programs to help employees grow a skill set that relates to his or her role in Riordan. Although it does not guarantee advancement, it does promote engagement and sustain performance for the company’s staff. Riordan commits to making each employee know he or she is a value to the company from the top of the company to the entry-level jobs. The company understands that providing benefits in today’s economy is important in attracting the most talented and motivated individuals and believe the company’s array of benefits help accomplish goals and promote a healthy work environment.


Riordan Manufacturing recognizes the processes of performance management are essential in today’s working environment. Riordan Manufacturing Corporation’s process of performance management will assist the company in enhancing employee job satisfaction and commitment. Riordan Manufacturing used various job performance methods for each individual job position the company. These job performance methods help the company to maintain financial strength and promote employee growth. Riordan performance management’s process also includes an attractive compensation, employee benefits plan to attract highly qualified employees. Using this process is what helps Riordan Manufacturing ensure employees achieve company goals, and objections, and sustain the company’s employee job satisfaction.


DeCenzo, D., & Robbins, S. (2007). Fundamentals of human resource management (9th ed.), retrieved from The University of Phoenix eBook Collection database. Heathfield, S., 2013, Performance Management, Retrieved from http://humanresources.about.com/od/glossaryp/g/perform_mgmt.htm Riordan, Michael (August 15, 1999) Retrieved from https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/docs/HR/EmpFiles/Dale%20Edgel%20Offer%20Letter.pdf

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