Impact of Performance Appraisal and Compensation practices on job satisfaction at Telenore.
Abstract
This research is done to find out the impact of performance appraisal system and compensation plans and their impact on employee’s job satisfaction level at Telenor. Performance appraisals are hated by employees, largely dreaded by managers and often described as ineffective by HR professionals. So why do organizations still engage in this annual exercise? Rewards distribution is a key in other ways, too: It’s the biggest reason why employee-appraisal systems are failing to meet expectations. Proponents of tying rewards to appraisals argue that the overall organization will benefit if the best and the brightest see their pay or bonuses increase more than their average or below-average co-workers.
The result, besides cementing a dislike of appraisals, pits employees against each other – something that’s counterproductive to organizations that want employees to work collaboratively. In addition, employees are more likely to change their behavior to match the evaluation’s simplified criteria, which are typically not the overall goals of the organization. Promoting employees into higher positions should always be a component of performance review systems. Retail organizations face a large and distinct decision in this area, as a result of their workplace dichotomy. Retail organizations can decide to promote outstanding front-line employees to office positions from time to time or they can choose to fill entry-level office positions with outside applicants. The challenge in promoting employees from the store into the office is to find front-line employees whose educational pursuits or achievements match the profile of a good entry-level office employee, without discriminating against other high performers.
This research is using the simple random sampling technique and the data obtained is measured by mean test evaluation and correlation. Simple random sampling is the most convenient and gives the best and ease of handling the questionnaire to gather the data. From this research, it has been observed that majority of respondents have selected agreed option for the given questionnaire.
Performance Appraisal
The history of performance appraisal is quite brief. Its starts in the early 20th century by Taylor are pioneering with Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management. In a broader sense, the practice of appraisal is a very ancient. In the scale of things historical, it might well lay claim to being the world’s second oldest profession. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace.
Without a structured appraisal system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.
Compensation
Human resource management becomes a significant aspect for an organization’s prosperity. Because it is the human who built up and develop the organization, to effectively and efficiently achieve its objectives. Today human acknowledged as the most valuable asset for an organization so they should be properly administered (Kabene et al, 2006). Doctors are termed as the human capital of hospitals. So without proper compensation management, they can’t be properly managed and retained. And we all know that hiring cost is much higher than retaining cost. We all know about the famous phrase, “health is wealth”. So without a proper health protecting structure (hospitals), we can’t assure about a country’s prosperity. And it is necessary that doctors in hospitals are well compensated to achieve their goals effectively and efficiently.
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