There is usually a multitude of different positions within an organization. The different positions are determined by the size of the organization. While many positions may have similar characteristics when it comes to performance and compensation many are also at opposite ends of the spectrum. Based on the position, companies may choose different methods of evaluating performance. Companies also choose different pay scales and incentives based on each position. Two positions that may be compared would be a triage nurse and an admission receptionist. While both of these positions exist in the hospital, they are going to be reviewed and compensated in different ways.
Function of Performance Management Systems
Performance management system is a process in which companies focus on the performance of the employees and organization. It’s a process to improve or build products or service to accomplish the company’s mission and goals. Performance management system can include planning work, continually monitoring employees, setting expectations, rating performance, rewarding good performance, and developing performance. Performance management mainly consists of feedback, positive reinforcement, and measurement. Currently, the hospital has information systems for accounting and finance, human resources, customer relationship management, and knowledge management but doesn’t have a performance management system in place. It has been recommended that a performance management system be put into place for the triage nurses and admissions receptionist to enhance employee engagement and performance. Enforcing a performance management system will allow the hospital to focus on employee’s job performance as well as manage them effectively for the business results the organization wants to see and achieve.
The hospital will use integrated software to track employee progress and from the results be able to narrow down what improvements need to be met by the employees, as well as the company. Management will be able to be more responsive and flexible to employee needs while communicating strategic goals, and documenting the communication process. Performance appraisals will also help with the organizational development. Performance appraisal is “part of a system that seeks to motivate employees to maximum performance by evaluating the employee’s effort on the job, comparing it to standards, and using those results to help employees improve (DeCenzo, p. 244).” Coaching will be provided from their manager, and performance feedback will be given based upon the coaching.
Performance planning will also be relayed as part of the performance management system to establish goals and objectives so that no employee is unaware of what is expected of them as we implement the performance management system. Implementation of the performance management system at first will be on a short term basis while employees and management are getting use to the software. It will be carried out on a weekly base during each employee’s one on one with their manager, and results will be gathered and feedback will be given. From those results, the employee will receive praise or coaching on what they will need to improve on. The overall goal is to get all employees on the same page and work towards the company’s goals while developing strong employees that will be an asset to the company’s future.
Job Evaluation Methods
Job evaluations are used to evaluate an employee’s work and productivity. It not only helps to determine their performance, but it also helps to recognize accomplishments, it helps to determine if there are any future training opportunities and helps the employee develop new skills and set performance goals for the following year (DeCenzo, p. 132). There are two types of appraisals I would use to evaluate a Triage Nurse and an Admissions Receptionist. The first evaluation type would be Critical Incident method, and the second would be the Graphic Rating Scale. Critical Method job evaluation would be good for a Triage Nurse and an Admissions Receptionist because this evaluation is a task-focused based evaluation. Both of these jobs come in contact with clients, and they have certain tasks and procedures to follow with each client. Critical Method focuses on those
tasks an employee has and how he or she performance those tasks. The evaluations are done mostly by the managers, by doing observations of the employees and gathering that information for the year.
Critical Method job evaluations are very effective relationship building tool because it requires the manager to spend most of their time in the work area working, observing, and interacting with there in employees (DeCenzo, p. 251). This situation could be a disadvantage because your manager is most likely to be there every day and see everything that is going on, but if they are a good manager they are there to provide support and guidance. The Second Performance Job evaluation I would use to evaluate A Triage Nurse and an Admissions Receptionist would be the Graphic Rating Scale method because of the number of Nurses and Receptionist you will have; this will help to identify the very best and poor employees. This type of evaluation helps to separate employees into tiers.
This separation can help determine which employees receive promotions or training (DeCenzo, p. 252). However; this evaluation does have disadvantages because it could become difficult to differentiate between employees who are placed in the average group. These employees could have several strengths, but their weaknesses play a role in their tier evaluation. For this method to be effective, the manager must communicate with each employee about their weaknesses and strengths. The result of this coaching session should result in the employee reaching a higher position on the graphic rating scale evaluation in the future.
The pay grade for the Triage Nurse at this particular hospital is a U7 that is a benchmarked position. The pay grade compensation amounts run from $53,400 to $76,200. The median range of this pay grade is $64,100. This pay grade leaves room for growth and advancement, but also can compensate a Triage Nurse who has more than five (5) years of experience which will still leave room for promotions within the pay grade for this position. There are promotional increases every year that this position can earn a total of 5% of the annual increase on the base salary. This bonus is determined on the overall individual performance of the employee. There are 2% increases on the base annual salary for an annual merit increase on top of the individual bonus program. The Admission Receptionist compensation has a lower pay grade than the Triage Nurse.
The pay grade is a U. The range of compensation is between $17,600 and $34,300. The median range of compensation for an employee with about five (5) years’ experience for an admission receptionist position is $22,800. There are promotional increases every year for this position that depends on individual performance. The highest percentage that can be earned is 3%. This position is eligible for merit increases every year at a 2% increase on the base salary. This position is benchmarked and cannot earn compensation over the pay grade.
Importance of Benefits Plans
In today’s tough recruiting environment, simply providing a competitive salary will not be enough to attract top talent to the organization. Most prospective employees take the benefits package into consideration before accepting a job offer. A well-designed benefits program will increase the appeal of working for the organization, minimize turnover, increase morale, better job performance, and healthier employees. An organization that invests in a benefits program demonstrates to its staff members the length to which it is willing to invest in their future. A company that chooses to invest in its workforce proves the business is stable, that management and ownership believe in the ability of the business to succeed, and it will attract the best talent to the organization (Mann, 2013). It becomes difficult for a company to make progress if it is forced to train new employees continuously because it cannot retain talent.
When a business suffers from a high turnover rate, it is very difficult to build that cohesive team of veteran employees that lead the way. Often, offering a well-rounded benefits package will be the difference between an employee choosing to stay with the company or seek employment elsewhere. Providing employee benefits can better the morale of the workforce. By understanding the needs of the company’s workforce and addressing those needs, it is very likely that employees will be more dedicated to the company and take their positions and performance more seriously.
A business that demonstrates that it cares about their employees can increase loyalty and get better performance from its staff. Healthier employees can also be a benefit to the company as a result of offering these benefits. Providing a dental plan, medical plan, and sick leave helps employees maintain or better their health. Offering paid sick leave keeps employees who may have a contagious illness from entering the workplace and infecting other staff members. Employees who have a medical and dental plan are more likely to obtain regular checkups resulting in fewer sick days (Mann, 2013).
Based on the information presented, it is clear that differences exist between positions within the same organization. Some similarities may be salary increase percentages from one position to the next, but the pay scales are very different. There are many different methods to evaluate job performance and vary from company to company. Position structures also vary greatly from company to company as well. It is important to figure out what works for the specific type of company and the service or goods. No single way has been shown to be most effective for every company that is why it is important to tailor the structure and evaluation process to each company’s needs.
DeCenzo, D. A. (2013). Fundamentals of Human Resource Management (11th ed.). Saddle River, NJ: John Wiley & Sons. Mann, N. (2013). Top 5 Reasons to offer Employee Benefits. Retrieved from http://businessbee.com