COMPENSATION DECISIONS

Compensation Decisions 1.0 Compensation Decisions 1.1 Task Statement 2 1.2 KSA Statement 3 1.3 Job Description 4 1.4 Literature Review 6 1.5 Job Posting 10 2.1 Recruitment Plan 11 2.2 Selection Method Plan 12 2.3 Completed Performance Evaluation 2.4 Literature Review 16 3.0 Compensation Decisions 18 3.1 Substantiation 18 3.2 Risk analysis 20 3.3 Literature Review 21 References

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Mary E. Lane Devry Graduate School of Management

Author Note This paper was prepared for Human Resource 590, Professor Carlos Jon.

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Compensation Decisions

Task Statements: Human Resource Administrative Receptionist *Answer phones calls as needed using switchboard *Maintain filing & electronic mail system *Screen and forward calls, provide information to caller, take messages, schedule appointments *Accommodate and greets customers & clients *Assist customers and clients *Maintain and Update files and records * Guide customers and clients to their destinations *Provide administrative support *Proofread documents and letters * Support HR staff *Demonstrates knowledge of computer use and business documents including invoices *Delivers messages in a timely manner *Displays excellent written and verbal skills *Sets up meetings and conferences *Organizes department and office *Effectively use MS Excel spreadsheet program *Reimburse employees for expenses *Manage incoming and outgoing mail *Monitor Staff time and payroll *Handle directors calendar *Stock and distribute supplies 1.1 TASK STATEMENTS Student Name Mary Lane

What action is being performed (verb) Operates switchboard telephone Greets customers, visitors Escort customers and visitors to their destinations To screen and forward calls, provide information to caller, take messages, schedule

To whom/what is the action directed (receiver of the verb) Customers Customer, visitors Customers, visotors

How is the action performed (procedure, tools, equipment) telephone Person-to-person Person-to-person

Why is action performed (purpose) Accept and receive business calls Customer relations Customer relations

Clients, customers

Telephone

Business purposes

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appointments

Creates and updates employee records and files Provide administrative support Collects, sorts, distributes mail; sends and tracks overnight deliveries Monitors and orders office supplies

Records

Filing

Record-keeping

employees Mail

Assist when needed Hand sort

Part of job description Shipping and receiving

Office Supplies

Checking supplies

Office management

KSA Statements:Human Resource Administrative Receptionist 1. Operate multi-line phone with excellent customer service skills by means of switchboard. 2. Display professional appearance and demeanor. 3. Able to file and retrieve files with accuracy and keep internal information confidential. 4. Able to assist provide call screening and forwarding, set up appointments and assist coworkers with others duties on a timely basis. 5. Proofread HR and Administrative documents and letters support by strong organizational skills and attention to detail; Capacity to maintain confidentiality and work independently 6. Proficiency in Microsoft Office (Word, Excel, Outlook, PowerPoint); Excellent customer service skills Exceptional written and verbal communication skills.

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7. Ability to work independently. 8. Proficiency in the use of 10-key calculator. 9. Ability to learn and understand HRIS systems. 1.2 KSA STATEMENTS 1 2 3 4 Operate multi-line switchboard phone to answer, screen and forward calls, provide information to customers, take messages and schedule appointments. Greets customers and visitors, determines reason or purpose for visit, and directs or escorts them to specific destinations. Creates and updates employee records and files. Perform administrative support tasks such as proofreading, transcribing handwritten information, and operating calculators or computers to work with pay records, invoices, balance sheets and other documents. Prepares information packages for new hire orientation and training sessions. Delivers email, phone, other messages to the appropriate party in a timely manner.

5 6

Job Description: Human Resources Administrative Receptionist 1.3 Job Summary The Human Resources Administrative Receptionist provides daily administrative and receptionist support activities for Human Resources. These duties entail creating and transmitting documents, maintaining and operating multi-phone line system, maintaining employee files and records, greeting visitors, ordering office equipment/supplies and arranging meetings. Essential Job Functions

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Update all employee records and files them alphabetically as well as creating new records. Management a multi-phone line system.

Assist customers and visitors by greeting and directing them to the Human Resources department. Prepare and issue information packages for new hires during orientation and training sessions. Assists HR administrative support by calculating pay records, invoices and balance sheets proofreading letters, reports and memorandum Use MS Outlook to manage department calendar.

Performs videoconferences and travel, arranges meetings, and conference calls, for department staff. Maintain and keep up with expense reports. Manage department office files. Delivers email, phone and in a timely manner. Manage ingoing and outgoing mail. Performs extra projects as assigned.

Required Knowledge, Skills and Abilities * Proficiency in Microsoft Office (Word, Excel, Outlook, PowerPoint) and Internet applications. Knowledge in HRIS systems a plus. Strong organizational skills and attention to detail. Outstanding written and verbal communication skills. Superior customer service skills. Able to operate multi-line phone system. Able to file and retrieve files at 100% accuracy. Able to handle multiple projects and assignments. Display professional appearance and demeanor. Can maintain confidentiality and work independently.

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Education, Experience, Certification, and Licenses High school Diploma and/or GED Bachelors degree preferred. Associates business degree required. 2-3 years general office experience required; HR experience desirable.

Physical Requirements/Environmental Conditions May be required to lift 40 pounds or less. Job may require sitting for long periods of time at desk. Tools and Equipment Switchboard, Printer, Scanner, Photocopy Machine, Fax, Computer. Employee Name___________________________________________________ Employee Signature: _______________________________________________ Manager/Supervisor:_________________________________ Date Signed:________________________________________ 1.4 LITERATURE REVIEW Job Analysis is the method used to describe and/or record certain aspects of the job and determining the knowledge, skills and abilities that are needed for that job. Different companies depend on the job analysis as a means to prepare job specifications and job descriptions for the job. These are then used to hire the right applicants in the right position for the company. When performing the job analysis, the purpose of the position needs to be identified. Concerning the role of the HR Administrative Receptionist, it is being created to meet the demands of the Human Resources department. Once established, this role will provide receptionist and administrative support functions to the departmental staff.
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Going with the notion that this business has several departments, the larger departments actually have their own administrative receptionists. Still, the Administrative Receptionist will report directly to the HR Director, other prominent senior members of the HR department and managers who also manage receptionists can be selected as analysts to the various job analysis methods to be used for the role. Effective methods use to review the Administrative Receptionist roles are Occupational Information and the Observation method. Based on the article in http://www.job-analysis.net/G013.htm USLegal website, entitled Direct Observation of incumbents performing their jobs enables the trained job analyst to obtain first-hand knowledge and information about the job being analyzed. The Observation method of Job Analysis is suited for jobs in which the work behaviors are 1) observable involving some degree of movement on the part of the incumbent, or 2) job tasks are short in duration allowing for many observations to be made in a short period of time or a significant part of the job can be observed in a short period of time, or 3) jobs in which the job analyst can learn information about the job through observation. The analysts first trained and then tasked with observing or sampling the receptionists in other departments as they perform their duties. This method is used to give the observers an idea of what the receptionist day-to-day duties and responsibilities would look like within the organization. The advantage to using this method is that the analysts can obtain first-hand knowledge and information about the job. It allows the analyst to see the work environment, tools and equipment used, complexity of the job and relationships with customers and coworkers. The disadvantage to using this method is that the persons being observed may alter their normal work behavior if they know they are being observed. With this knowledge, the analysts are trained to be as unobtrusive as possible when conducting their observations.

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The Occupational Information Network (Onet) is the primary source of occupational information in the United States. Onet describes occupations in terms of knowledge and skills needed, how the work is performed and the work setting. The summary report in OIN allows for one to view the skills, work activity, styles, context, and experience and training. The hiring manager or analysts would simply need to go into the database and type the job title he or she was seeking. In this case, the position performs receptionist duties within the human resources department. It is fair to say that both the receptionist and HR Assistant duties need to be reviewed. One advantage to using the Onet Method is that the positions tasks, tools and equipment used are clearly outlined for the analysts to see. It also allows the ability to combine tasks when roles have more duties than is listed. Another is the wages and trend analysis so that you can predict the future of the role for years to come. The disadvantage is that the outlines are very general and may not take into account specific organizations, departmental differences, educational levels, etc. Once the data from the observations and Onet methods are collected, the information is reviewed for commonality. The analysts must review to see if the tasks and duties observed are similar to the ones described in Onet. Also, the hiring manager must assess to see if the methods used are aligned with the departmental needs for this role. The Task Statements are then created based on the action, who or what the action is directed to, how the action is going to be performed and why or purpose of the action. The job specification is a list of (Knowledge, Skills, Abilities and Other characteristics) that one must have to perform a job. In my investigation of the site, http://www.humanresources.-hrvinet.com/what-is-knowledge-skills-and-abilities-ksa-model, I

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discovered that knowledge is information that can be applied directly task performance. A skill is the learned capacity to carry out pre-determined results often with the minimum outlay of time, energy, or both. Skills can often be divided into domain-general and domain-specific skills. Ability is the present power to perform a job function, to carry through with the activity while applying or using the associated knowledge. Other characteristics are a general category for other personal factors such as personality, willingness, interest and motivation and such tangible factors as licenses, degrees, and years of experience. Next, the KSA Statement is then created to draw out the necessary skills needed for the role. In some task statements, the KSAs overlapped showing the strong need for those particular skills. A job description is a list that a person might use for general tasks, or functions, and responsibilities of a position. It may often include to whom the position reports, specifications such as the qualifications or skills needed by the person in the job, or a salary range. Job descriptions are usually narrative, but some may instead comprise a simple list of competencies; for instance, strategic human resource planning methodologies may be used to develop a competency architecture for an organization, from which job descriptions are built as a shortlist of competencies. job summary or a brief, general statement of the jobs most important functions essential job functions required knowledge skills and abilities education, experience environmental factors equipment and tools utilized Furthermore, it is necessary that the job description is reviewed by all parties involved once the applicant is hired so as to have a good understanding about the responsibility of the role.

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To conclude, the job analysis process is very important for reviewing and developing a position within an organization. It is important to follow proper guidelines to that the position is necessary for the organization, how the need is measured, what are the tasks and the KSAs needed and educational requirements and experience. 1.5 JOB POSTING Position: Human Resource Administrative Assistant

Job Summary: Assist Supervisors with data collection, and organization of data reports. Communicates with a wide range of the general public, respond to inquiries and provide clerical support and as needed. Qualifications: (2 or 4 degree preferred) This is an entry level position in which employees will provide clerical assistance, information and customer service inquires. These duties will be those associated with the position of Sales Administrative Staff. Applicant must be highly proficient in Microsoft Word, PowerPoint, and Excel. Major Responsibilities: Greet visitors, answers and screens telephone calls. Assess nature of business. Responds to requests for information and provides assistance. Establishes, selects, implements, and coordinates office procedures and systems. Researches specific issues, retrieves information and generates data charts related to those issues. Uses creativity to develop a variety of multi-media presentations as a means to communicating information, i.e., PowerPoint presentations, Excel spreadsheets, etc. and assists in archiving office data for retrieval. Proofreads and edits material for grammatical and factual accuracy. Makes copies of correspondence or other printed materials. Determines equipment needs for in-house meetings i.e., audio visual etc., set up and operates equipment for large meetings. Assembles and arranges materials for distribution to school based customers as well as community based customers. Determine sources of data. Compiles, synthesizes and manipulates data. Screens and responds to mail. Compose correspondence and written material.
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COMPENSATION DECISIONS

Reviews email, faxes and outgoing mail, for completeness, dates, and signatures. Schedules and arranges meetings and appointments, prepares agendas, reserves and prepares facilities and records and transcribes minutes. Orders and maintains inventory of supplies. Compiles all materials and notebooks for major external funding reports. Performs additional functions incidental to office activities. Deadline: March 22, 2012

Additional Requirements:

*** Send in completed application, resume and cover letter before deadline to address listed in posting.

2.1 RECRUITMENT PLAN: Our company plans to strongly recruit for this position for 45 days. If we do not find a suitable candidate after 45 days, then, this position will remain open until it is filled. We plan to recruit using the employee referrals, universities, newspapers and the companys website. However, we will also consider highly qualified internal candidates as well. We will also offer cash incentives for internal referrals upon the successful hiring of candidates who complete their probationary period. Due to the nature of this position a degree is preferred as it may lead to a position of more responsibility in the future. In order to consider new graduates, we will follow through with alumni associations to have the job posted in their perspective career placement locations as well. We will also recruit by posting an ad in the classified section of the local newspaper. The job doesnt require any travel, nor will the company pay for traveling expenses in relation to this position. We actually prefer to hire someone locally. The hours of the position are from 9am to 5pm, during periods of high traffic. This position would be ideal for someone who lived with a 5

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mile radius of the firm since it would make job access easier, especially during rough winter seasons. Finally, we will recruit directly through our companys website as well as on commercial job boards such as monster.com and career-builder. We feel that these sources will bring more than enough qualified applicants for the posted position. Having a pool of qualified applicants to consider, we feel that we will be in a position to select the best qualified candidate with the least amount of pressure. This qualified pool of applicants will also provide us with a good source of applicants for future position job openings. (Chapman) Regardless of the recruiting methods we use, we will make sure the candidates have access to our job listing and are able to apply for it should they become interested. We want the job search to be refreshing and user-friendly for individuals work odd hours. To accommodate them, we will have a 24 hour job hotline that answers important questions about the job. This will make it easier for applicants to send their credentials without being discouraged by an inability to contact us. We will also follow up on all job applicants who meet the qualifications. Letters will be mailed to applicants who cannot meet the qualifications at the current time. 2.2 SELECTION METHOD When using degrees and job experience to determine an applicants qualifications, we feel that extreme care should be taken in order to select the best candidate from our pool of qualified candidates. So, what is the best way to do this? Experience and degrees are great ways of measuring an employees potential and qualifications for the job we have posted, but now we need to select the right candidate who will fit into our companys profile. We select daycares for our children with great care and often have checklists of strengths that we look for and things we wont put up with. (Chapman)

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COMPENSATION DECISIONS

In order to get to know a specific daycare we may visit multiple times unannounced to see their character and attributes in many different scenarios. We may even talk to long time customers to determine their satisfaction level or perhaps check with the local Better Business Bureau. Quite naturally, everyone puts on their best appearance during times of examination or first interviews. Since we spend about 80% of our life at our jobs, we want to select someone who not only has the qualifications and degrees we look for, but the best personality as well. So, just as a parent would select a caregiver for their child, it shouldnt be any different when selecting an employee for a company. Then, after eliminating a list of potential candidates that qualify based on education and experience, we would get feedback from our colleagues on what type of person they would like to work with. In this way, we allow them to participate in the process. This is important because they are the ones who will work with this person on a day-to-day basis, so the atmosphere should be a pleasant one. The second step would be to narrow the pool of candidates down to perhaps 10-14 and set up interviews, having 2 to 3 people from different departments to help with the selection based on character and personality. Since no single predictor can determine how that person will perform on the job, skills assessment/personality test and a background check will be administered. Once these processes have been completed, we would reduce the list to our top four candidates. The third step would include observing the 4 potential candidates in different situations. For example, we could take them to meet others employees by inviting them to lunch perhaps. Then, allow other employees to ask them questions and notice their response. Since, the setting is more relaxed, the candidates may be more apt to express themselves more candidly. In

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COMPENSATION DECISIONS

addition, we would allow the candidates to shadow different employees performing their daily duties and retain feedback from these employees concerning the candidate. We feel that by investing to see if a person is a good fit, we are investing in our future as well as the job candidate. (Feeley) Last but not least, we will collect all the information gathered during the selection process and make a decision based on those findings. By combining the information outlined in this report we should be able to make the best possible selection for the candidate that is the best match for our company. 2.3 PERFORMANCE EVALUATION
Annual Performance Review
Employee Name Title Date of Review Period Supervisor Name Department Cathy Smith HR Receptionist 2010 Mary Hoffman Human Resource

Exceeds Expectations = 5
[employee has exceeded objective, time and quality]

More Than Satisfactory = 4

[employee has slightly exceeded either time and/or quality]

Satisfactory = 3
[employee has met objective, may be just under objective on time and quality]

Less Than Satisfactory = 2

[employee has not met objective on either time or quality]

Needs Improvement = 1
[employee far below on both time and quality]

Task Typing

Objective/Measureme nt 96% accuracy Complete within 48 hours of submission 98% accuracy Complete by end of the day Answer within 3 rings Screens calls Provide messages upon return or availability of staff

Results 90% Within 24 hours 82% By end of each week Within 2 rings Forwards all calls Messages not always given to staff

Comments Great Job, keep up the good work. Excellent job. Good job, work to better accuracy Improvement needed Great Job. Improvement needed---be selective before forwarding calls Improvement needed---put for effort in return calls

Ranking 4 5 3 2 1 3 3

Filing

Answer phones

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COMPENSATION DECISIONS

Provide information Input application s Mail job flyers Distribute staff mail

Provide prompt and accurate information 100% accuracy Complete by job ad deadline No returns of flyers Mailed day jobs open 100% accuracy

Customers often request to speak to someone else 70% Completed by deadline 20% of flyers returned Mailed on time Unable to track, staff states not receiving mail Mail sometimes not received by staff Overnights not timely, resulting in staff missed deadlines 100% accuracy Payroll often calling for logs Files always ready Applications often misfiled, discovered when applicant calls. Recorded timely Information accurate, difficult to understand due to accent Always behind, missing deadlines resulting in employee changes not processed timely 77% accuracy

Improvement needed---work on increasing knowledge company Manage task more effectively

Great job.

Improvement needed---manage tasks more efficiently

By end of day

Overnights within 10 minutes

Log checks

100% accuracy Provide log/checks to payroll by end of each day Created before job ad opens Applications properly filed

Great job

Recruitmen t folders

Good job, improve accuracy.

Job hotline

Recorded evening before job opens Information accurate and clear

Great job

Personnel forms

Completes by weekly deadline

Needs ImprovementOrganize work better by planning

98% accuracy

OVERALL PERFORMANCE EVALUATION RANKING Developme nt Plan Work on development in weakest areas first, then improve in other areas. Check with employee weekly to help keep on task and help to solve problems with accuracy and efficiency.

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2.4 LITERATURE REVIEW Based on the Journal of Applied Communication Research, a large portion of turnover is caused by miscalculated decisions made during hiring and can prove very costly for companies. In most cases, it costs at least one-third of a new employees salary to replace them. When bad selections are made this cost is reflected in the money spent on recruiting, selecting and training the new hires. If fact, there are even additional costs in covering the duties and responsibilities until the position is filled. (Feeley) When a company makes a decision to hire a new employee, there are different selection methods that may be used. Deciding to hire from within can usually same the company lots of money in the recruitment process, mainly if the move is in connection with a job promotion. In these cases, it is good to send company emails indicating that certain positions have become available often gets a swift response, especially if an incentive bonus is offered for referring a good solid qualified applicant. In many cases, this method produces the most qualified new hires. If this method proves to be unsuccessful, then, it time to look for candidates on the outside of the organization. This can benefit the company by opening the position up to a diverse pool of job applicants. It is advisable, however, to have a cut-off date so as not to gather too many resumes to choose from, especially if you dont have enough time analyze and screen them all. This could result in making a bad hiring decision or overlooking a great candidate. College Career Placement and college websites are also excellent places for recruiting since fresh graduates are plentiful and looking forward to entering into the workforce. Many universities have alumni associations who work hand-in-hand in helping qualified candidates find employment. In addition, posting an ad in newspapers about the position will help turn up quite a few candidates as well. If all else fails, companies can recruit on commercial job boards

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like monster or career-builder. However, caution should be used since this can cause huge numbers of resumes to pile up with a slim chance of drawing out the best candidate. (Elsevier)) At the end of the searching through resumes, and narrowing down the candidates based on all the required elements and criteria (interviews, employee feedback, personality and skills assessment tests, background checks, shadowing other employees) the time has come to select the best candidate. These tools serve best in helping to identify the right candidate for the job; the hiring manager must now make a decision. To get the best out of this experience, if a hiring team is able to put the candidates in a position that is unfamiliar to them, this usually helps with the interview process since it brings out their natural inclinations. It will definitely help employers to see how well a person thinks on their feet. (Chapman) After the company hires the best candidate and allows them to perform for a certain amount of time (three to six months) a performance evaluation is due. This, however, should be an on-going process and there should be good communication between the employee and the manager. Manager should be mindful to give feedback should be regularly so that employees are not shocked to see areas of improvement on their performance evaluations. When managers build mutual trust and respect with their employees, all are open and able to address uncomfortable situations when they arise. For the good of the order, evaluations are an integral part of an organizations very existence. They help to help develop an employees job performance and character within an organization. They provide a systematic and orderly evaluation of an employees performance that is witnessed by their superiors and others. A performance evaluation just how well the employee has performed based on how well they have applied themselves. During this time, the manager and employee can work together and discuss areas of improvement and set goals for

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COMPENSATION DECISIONS

better performance in the future and be used to help the employee to develop and grow. (Elsevier) In conclusion, performance evaluations are critical for career development, advancement, employee motivation, communication, character, attitude, and maintaining a positive relationship between manager and employee. Performance evaluations also provide a track-record of an employees performance that will help in their future progression within the company. 3.0 COMPENSATION DECISION AND PROJECT REVIEW This particular project has concentrated on the real world application of HR principles, techniques and evaluative skills by focusing on HR decisions and functions centered around creating a job opening, the selection process, the evaluation process for current employees, and making compensation decisions for present employees. It is also geared toward demonstrating skilled-learning and making real-world application of those skills. The 3 different parts included creating a job profile for the job tasks, creating a job ad, conducting an annual performance review for an employee, and making compensation decisions for employees. 3.1 SUBSTANTIATION One of the main purposes of conducting job analysis is to prepare job description and job specification which in turn helps to hire the right quality of workforce into the organization. The general purpose of job analysis is to document the requirements of a job and the work performed. Job and task analysis is performed as a basis for later improvements, including: definition of a job domain; describing a job; developing performance appraisals, selection systems, promotion criteria, training needs assessment, and compensation plans. The tasks for the job analysis were outlined and separated and then, combined into different segments that required a specific knowledge set. (Wikipedia, 2012)

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COMPENSATION DECISIONS

Next, the tasks were labeled to establish their functionality, which was basically breaking them down into simple forms. From this point a determination of what knowledge or skills would be necessary for the average individual to perform these actions was made. At this point we have a very basic profile of the actions that the employee would perform and the knowledge and skills necessary for the employee to fulfill these duties in a satisfactory manner. This led to the simplification of the knowledge and skills necessary to perform each task to form the KSA statements. The combination of the task and KSA statements would make up a large portion of the job profile that could determine how well a successful employee could perform his/her duties. The last thing was to create a job ad from the task and KSA statements that featured the main functions of the job, a job summary, and the skills, education and work experience needed to perform out the job. The job ad also included a summary of the work environment and a description of the tools and equipment necessary for doing the job. Performance Review In this section the task was to analyze the results of a Performance Review for an employee who had held the job for 1 year and critiqued them in connection with the goals and objectives of the company. In the process, the employee was evaluated by means of a ranking system. Using the quantification method, the task required analyzing certain skills and the employees overall performance in each task. The goal was to try and turn a very subjective process into an objective measurement of the employees performance. Being objective is crucial in making important judgments about how employees perform their duties. Objectivity in cases are determined by quantifying the end results using a ranking rubric, basically from one to five, with one being the least desired performance and 5 being the most desired performance. (PR, 2012)

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COMPENSATION DECISIONS

My goal was to interpret from an objective point of view. Then, determining how the employees performance faired in comparison to meeting the companys goals and scoring them by rank based on the companys calculated projections. After determining the employees rank it was much easier to give input that the employee could use to make progress over the next year. In actuality, the main goal of this input was to create a plan of achievement for an employee increase their performance and maintain their current productivity along the way. The initial employee results that were provided were a little less than impressive; the objectives of the company were not met, and oftentimes, were below standard for an employee working in that capacity. In representing the employer, my goal was to create a master plan for the employees improvement. Severely criticizing the employee and telling them that theyre failing the company objections would not benefit the employee or the company; this would only threaten their job security and lower performance. In all consideration, the employee is new to the company and it should be brought to his/her attention that improvement is needed to help the company meets it goals and objectives. Actually, the employee did fairly well, but had some difficulty in maintaining all tasks simultaneously. 3.2 RISK ANALYSIS During performance reviews, it is of utmost importance to keep in mind that a supervisors role and responsibility is just as important as that of the employees. To be totally effective, a manager should be able to support their teams in such a manner that team members are able to complete their job duties at high levels and continue to improve and grow. This shows that a manager is not only concerned about themselves, but about helping the employees and improving the overall concern and welfare of the company as well. During the

performance review, I felt I made suggestions and comments that were stated in a manner to

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COMPENSATION DECISIONS

encourage the employee. This process has helped me to see that no single performance review is perfect, and when adding in compensation, sometimes it must be handled differently. First, a plan of action must be taken that the employee agrees with and is encouraged to work on. Next, it should be structured to help them to meet their goals within a timeline. Then, after analyzing the employees progress based on how the goals were accomplished, a compensation determination could be made. (10 Secrets, 2012) 3.3 LITERATURE REVIEW The end of the project required us to read a number of employee appraisals, then summarize the budget allotted for pay raise and additional compensations. The goal here was to experience the decision-making process that goes along with compensating employees by following a tight budget and making risk evaluations according to each employee. While evaluating this part of the project I was privied to some very interesting literature dealing with general compensation options and the decision making process for employees. Mainly, the literature discussed the growing need for companies to make their compensation plans attractive for employees. This would help the company to maintain a stronger position in gaining skilled and motivated employees; this would lead to a more productive workforce. (Krukoff, 2006) Another source of literature discussed using compensation options rather than pay raises and bonuses. This, however, did not apply to this part of the project. It did highlight some interesting insight into the behavior of employees when given the option of receiving stock benefits as compensation. It also showed strong possibilities in their general increase in productivity when met with early returns and strong increases in compensation. This article alluded to the fact that employees who considered themselves well compensated, displayed more

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COMPENSATION DECISIONS

productivity and a willingness to grow with the company as opposed to selfishly pushing ahead. (Irwin, 2003) The next piece of literature centered on how to create employee performance reviews for compensation. This method utilizes peer performance reviews and evaluations and shows the biased intent in peer reviews when compensating employees. At this point, I formed a personal opinion of the processes used in this compensation decision. The final piece of literature zoned in on compensation and showed what part of a salary should be fixed, and what part should be considered variable in relation to minimizing tax withholdings. This literature once again showed the pros and cons of keeping compensation at a mostly fixed (salary) state with some latitude when it comes to variable compensation. Based on this information, depending on the difficulty of the job, there should be a higher raise in variable compensation. (Mngt Sys, 2010) Overall, I feel that this was a smooth and easy-going project; theres really not much to change. However, when I attempted to put a dollar amount for each individual without considering the budget, it actually resulted in exhausting the budget by a significant amount ($4,000 to $5,000). After looking closer into the matter and using each employees ranking, longevity, and guarantee for the company to give the proper percentage of the whole budget distribution to each employee in comparison to another. In lieu of this, if I could change anything it would be a change in the budget to make room for increased salaries. Since I must make compensation decisions with the budget that I have to work with, the results are based on the information provided through the course material.

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COMPENSATION DECISIONS

References Analysis." Social Forces 83.4 (2005): 1535-566. Chapman, Jack. 2012 February 12. The Ladders Gets You a New Job Quicker. The Ladders Retrieved from http://www.theladders.com/career-advice/interviewing. Elsevier. Web. (2012, February 6). Journals. Performance Evaluation. Retrieved from http://www.journals.elsevier.com/performance-evaluation. Feeley, Thomas Hugh, Jennie Hwang, and George Barnett. (2008) "Predicting Employee Turnover from Friendship Networks." Journal of Applied Communication Research 36.1 56-73. Irwin, Grace. Compensation. Belleville, Ont.: Epic, 2003. "Job Analysis." Wikipedia, the Free Encyclopedia. Web. 16 Feb. 2012. Retrieved from http://en.wikipedia.org/wiki/Job_analysis. "Knowledge, Skills and Abilities." HR Management. Web. 23 Jan. 2012. Retrieved from http://www.humanresources.hrvinet.com/what-is-knowledge-skills-andabilities-ksa-model/. Krukoff, Devin. Compensation. Saskatoon, Sask.: Thistledown, 2006. Laubach, Marty. "Consent, Informal Organization and Job Rewards: A Mixed Methods O*NET Resource Center. Web. 23 Jan. 2012. <http://www.onetcenter.org/>. Performance Reviews: (2010)Using Performance Information to Improve Service Delivery ; a Performance Management Systems Audit (Mngt Sys). Brisbane: Queensland Audit Office. "Performance Reviews (PR)- How To Information | EHow.com." EHow | How to Videos, Articles & More - Discover the Expert in You. | EHow.com. Web. 16 Feb. 2012. Retrieved from http://www.ehow.com/performance-reviews. "10 Secrets to an Effective Performance Review: Examples and Tips on Employee Performance Evaluation, Writing Employee Reviews, a Sample Performance Review and Employee Evaluation Forms." Business Management Daily.FREE Reports on Business, Management, Leadership, Career, Human Resources, Employment Law, Technology, and Small Business Tax. Web. 16 Feb. 2012. Retrieved from http://www.businessmanagementdaily.com/glp/25459/performance-reviewexamples.html.

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