Seniority and Pay Systems LO8597

Brock Vodden (brock.vodden@odyssey.on.ca)
Mon, 22 Jul 1996 01:26:37 -0400

Replying to LO8585 --

At 09:04 PM 7/20/96 -0700, Jerry Talley wrote:
>On Fri, 19 Jul 1996, MR GEOFFREY F FOUNTAIN wrote in part:
>> We
>> have since been tasked with defining the relationship of this
>> performance evaluation/development system to
>> the compensation system. The scope includes developing one system for
>> both exempt and non-exempt.
>
>Geoff,
>(1) It is imperative to separate evaluations leading to pay/bonus from
>evaluations leading to development plans. If my pay is on the line, my
>candor about my shortcomings and openness to criticism quickly evaporate.

Jerry:

I agree entirely with your recommendation. Geoff, however, may have a
difficult time to convince management that separation is necessary.

I advise clients against including any kind of ranking process, such as
size of bonus, verbal ratings (Excellent, good, fair, unsatisfactory),
numerical ratings which compare people to each other. For every person who
may be inspired by the prospect of getting a top rating, there is at least
one person who is going to be hurt, angry, frustrated, or demoralized by
the perceived unfairness of the system. These methods raise many questions
about fairness, favouritism, objectivity, etc. and since it is virtually
impossible to defend a PA system on the basis of these qualities, ratings,
I believe, are mostly counter-productive.

Brock Vodden
--------------------

H. Brock Vodden
Vodden Consulting

Blyth, Ontario, Canada
brock.vodden@odyssey.on.ca

---------------------

-- 

Brock Vodden <brock.vodden@odyssey.on.ca>

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