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Page 3 of 3
Final rating scores typically feed additional systems or processes, including:
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Compensation – for annual salary adjustments
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Reward Programs – for bonuses and variable compensation programs
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Succession Planning – to identify candidates with high potential
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Performance Improvement – to assign improvement plans to low performers
Another aspect of the final evaluation is to assess an employee’s demonstration of leadership or organizational core competencies during the performance period. While most conduct competency assessments, very few factor competency assessment results into compensation or reward programs. Competency scores are included when the organization wants to identify top performers to retain and develop and to determine low performers who may need performance improvement plans to get on a path to satisfactory performance levels.

One person has commented on this article. (1) Unilever 2008-01-12 03:48:37 This is really a good article to understand the overview the rating procedure of different companies. These are thoughts and definitely individual thoughts have positive impact on their own company performance.
I am not a guy of HR or even one of top management people. Here my question is, let there are 20 members in a team. 50% people are in the reward box. 20% falls under Improvement plan. But uncertainly 1 of those 4 low performers are facing lack of support from the business group, he is dealng with. Though his superiors are very much supportive. But when the group is huge in number, how a company can evaluate that unfortunate guy. I think, while evaluating, there should have another option, where reason for his performance or non-performance is clearly stated. On the basis of this, the unlucky guy will get some extra point that he has missed due to his tough and non-cooperative environment. It is just an idea. I think only then all the employees will be equally evaluated.
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