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Total Rewards and Performance Management. The Total Reward Principles. Create a positive and natural reward experience. Align rewards with business goals to create a win-win partnership. Extend people’s line of sight. Integrate rewards. Reward individual ongoing value with base pay

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the total reward principles
The Total Reward Principles
  • Create a positive and natural reward experience.
  • Align rewards with business goals to create a win-win partnership.
  • Extend people’s line of sight.
  • Integrate rewards.
  • Reward individual ongoing value with base pay
  • Reward results with variable pay.
four components of total rewards
Four Components of Total Rewards

Total Reward Components: The Better Workforce Deal

  • Individual Growth

Compelling Future

Total Pay

Positive Workplace

four components of total rewards1
Four Components of Total Rewards

Total Reward Components: The Better Workforce Deal

  • Individual Growth
  • Investment in people
  • Development and training
  • Performance management
  • Career enhancement
  • Compelling Future
  • Vision and values
  • Company growth and success
  • Company image and reputation
  • Stakeholdership
  • Win-win over time
  • Total Pay
  • Base pay
  • Variable pay, including stock
  • Benefits or indirect pay
  • Recognition and celebration
  • Positive Workplace
  • People focus
  • Leadership
  • Colleagues
  • Work itself
  • Involvement
  • Trust and commitment
  • Open communications
traditional compensation system
Traditional Compensation System
  • Payment based on tasks
  • Assumes stability of employment
  • Rewards individual contributions
  • Primarily wages, salaries, benefits, some bonuses
  • Rigid, resistant to change
equity issues
Equity Issues
  • Individual equity
    • Compare my outcome/input ratio with some other’s outcome/input ratio
  • Internal equity
    • Relative worth of job within org
    • Job evaluations
  • External equity
    • Market forces
    • Supply/demand
    • Conduct salary surveys
traditional compensation paying jobs a
Traditional Compensation: Paying Jobs (A)
  • Job analysis
    • Job descriptions
      • Job related information only
    • Job specifications
      • Person related information only
      • KSAs, education, experience, certifications
    • Job evaluation
      • Identifies the relative worth of the job to the organization
      • Not performance appraisal
traditional compensation paying jobs b
Traditional Compensation: Paying Jobs (B)
  • Paying jobs
    • Job evaluation for pay range (hourly, weekly, monthly, yearly)
    • Individual salary determination
      • Seniority
      • Cost of living adjustments
      • Merit/performance
      • Bonuses (all types)
      • Some group plans
      • Secrecy/managerial discretion
    • Relatively static model
traditional compensation paying jobs c
Traditional Compensation: Paying Jobs (C)
  • Job evaluation
    • Assumes “pay jobs,” not “pay people”
    • Systematic method of comparing jobs
    • Creates pay range for job, not person
    • Tie to job description
    • Legal, practical support
    • May break job into components, or job factors
      • Skill, effort, responsibility, working conditions (from EPA (1963)/FLSA (1938)
  • External salary surveys
    • Identify market rates
    • Supply and demand for skills
job evaluation systems
Job Evaluation Systems

Type of Comparison

Part of Job

job evaluation systems1
Compares which part of job

Whole job



Specific job factors

Factor comparison

Point factor

Type of comparison made

Job vs. Job


Factor comparison

Job vs. Standards


Point factor

Job Evaluation Systems
what is job analysis
What is Job Analysis
  • Job analysis is a set of procedures which collect information describing the…
    • Job Behaviors
    • Job Activities
    • Personal Characteristics
    • Knowledge, Skills and Abilities (KSAs)

…needed to perform a job.

uses of job analysis
Uses of Job Analysis
  • Applicant Recruitment
  • Applicant Selection
  • Creating Job Descriptions
  • Compensation Decisions
  • Performance Appraisals
  • Training
legal reasons for job analysis
Legal Reasons For Job Analysis
  • Uniform Guidelines state that companies should have a job analysis of the position completed to show the appropriateness of the employment decision
  • In adverse impact and disparate treatment cases, courts immediately look to job analyses for evidence of decision validity
two types of job analysis
Two Types of Job Analysis
  • Interviews – either individual or group
    • Advantages:
      • Questions can be adapted to fit answers
      • Ensures deep understanding of the position
    • Disadvantages
      • Personal biases, Time consuming, One person in group can dominate discussion
two types of job analysis1
Two Types of Job Analysis
  • Questionnaires
    • Advantages:
      • Useful when there are a large number of participants
      • Less time consuming than interviews
    • Disadvantages:
      • Costly to develop, can have problems with response rate
common job analysis techniques
Task/KSA Analysis

Used for:

Creating job descriptions


Performance Appraisal


Some compensation decisions

Position Analysis Questionnaire (PAQ)

Used for:

Comparisons across jobs

Some compensation decisions

Common Job Analysis Techniques
task ksa analysis
Task/KSA Analysis
  • A method of collecting information about a position by talking with experts (e.g., incumbents, managers, etc.)
    • Information is job-specific – cannot be generalized to other positions
    • Typically consists of interviews and several surveys
task ksa advantages and disadvantages

Gives an in depth understanding of a specific job

Can be easily used for employment decisions, performance management, and training


Very time consuming

Problems of expert biases

Cannot apply information to other jobs

Task/KSA Advantages and Disadvantages
task ksa methods
Task/KSA Methods
  • Step 1: Collect information on the position being analyzed.
    • Interviews, observation, participation, previous job analyses, Dictionary of Occupational Titles, or O*Net (a website maintained by the Dept. of Labor)
  • Step 2: Create a preliminary list of the tasks and KSAs needed in that position.
  • Step 3: Accuracy and completeness check.
    • Send list to subject matter experts (SME) to check for accuracy or any missing job components
  • Step 4: Criticality survey.
    • Construct a survey to give to SMEs where they rate the importance of each task and KSAs
    • Also good to ask how often tasks are done and when employees should have important KSAs.
  • Step 5: Statistical analysis
    • Drop tasks/KSAs with low means or high standard deviations.
  • Step 6: Linkage survey
    • Create survey asking SMEs to link tasks with the KSAs needed to complete them.
    • What to do with unlinked KSAs? Drop them
  • Step 7: Final task and KSA list
task ksa analysis for selection recruitment
Task/KSA Analysis for…Selection/Recruitment
  • Allows companies to determine the most important hiring qualifications
  • Helps companies create accurate job descriptions for future and current employees.
  • Helps make selection processes legally defensible.
example task statements for a police officer
Example Task Statements for a Police Officer
  • Talks with community members
  • Drives patrol vehicles
  • Restrains suspects
  • Explains laws to citizens
  • Writes daily reports
  • Completes parking tickets and other forms
example ksa list for police officer
Example KSA list for Police Officer
  • Communication – Be able to effectively inform others either written or orally.
  • Physically fit – Must be in good health and be able to perform rigorous activity if needed.
  • Safe driving – Able to safely operate patrol vehicles on residential streets and highways at normal and high speeds
task ksa analysis for training
Task/KSA analysis for… Training
  • Identifies KSAs necessary for a position, which helps with training design
  • Can help to decide what skills are most important to help create training strategy
  • Can identify which skills can be trained and which need to be present at hiring
task ksa analysis for performance appraisal
Task/KSA Analysis for…Performance Appraisal
  • Identifies job relevant behaviors to include on performance management tools.
  • Helps to ensure that rating systems for performance management, pay decisions, and employment decisions are valid.
position analysis questionnaire paq
Position Analysis Questionnaire (PAQ)
  • The PAQ is a generic, off-the-shelf survey
    • Consists of 195 items
    • Worker-oriented – items describe general worker characteristics
  • PAQ is filled out by trained observers who are experts on the position
paq example items
Importance to this job

0) Does Not Apply

Very Minor





Rate how important each of the below is to the position

Long-handled tools (e.g., hoes, rakes, shovels, picks, axes, brooms or mops)

Applicators (e.g., brushes, rags, or paint rollers which are hand-held and used in applying solutions or materials)

PAQ – Example Items
paq advantages disadvantages

Allows for comparison across jobs

No development cost

Smaller samples can be used

Less time consuming than Task/KSA analysis


Costly to administer?

Does not tell you detailed information about specific jobs

Doesn’t do well at distinguishing between jobs

Requires a college reading level

PAQ – Advantages/Disadvantages
job analysis for compensation decisions
Job Analysis for…Compensation Decisions
  • Task/KSA analysis establishes valid job components to base performance appraisals and pay changes on.
  • PAQ allows for comparisons of jobs with other generally similar jobs
    • Benchmarking
tips for job analysis
Tips for Job Analysis
  • Job analyses should be updated regularly or when the responsibilities of the position change
  • For increased legal defensibility, document the job analysis process
in class activity
Task/KSA analysis

Position: Police Officer

SMEs: You


Split into groups of 3-5 people

In your group, take 10- 15 minutes to create two lists -

The tasks associated with being a police officer

The KSAs needed to be a police officer

In Class Activity
performance management defined
Performance Management Defined

This is an ongoing communication process, undertaken in partnership, between an employee and his or her immediate supervisor that involves establishing clear expectations and understanding about the jobs to be done. It is a system.

performance appraisal and employee productivity
Performance Appraisal and Employee Productivity
  • Capital
  • Technology
  • Human Resources
  • Staffing
  • Training
  • Motivation
  • Appraisal
cra 1964
CRA, 1964
  • Title VII
  • EEOC
behaviorally anchored rating scales behavioral expectation scales
Behaviorally Anchored Rating Scales/Behavioral Expectation Scales
  • Behavioral anchors
    • Each # has a discrete meaning
  • Critical incidents
  • Expectations only
  • One scale per dimension/ criterion
    • Many behaviors on each scale
  • Requires internal consistency between behaviors
  • Allows for feedback
bars behaviorally anchored rating scales
BARS (Behaviorally Anchored Rating Scales)
  • Self-Management 1 2 3 4 5
  • Communication 1 2 3 4 5
  • Attitude 1 2 3 4 5
  • ? 1 2 3 4 5





behavioral expectation scale employee example work habits
Behavioral Expectation Scale (Employee example: Work Habits)
  • Could be expected to come to work 5 days/week

6 …

5 Could be expected to inform supervisor in event of an absenteeism or late arrival

4 …

3 Could be expected to miss 2-3 days of work per month

2 …

1 Could be expected to come to work on what appears to be a random schedule

bos behavioral observation scales
BOS (Behavioral Observation Scales)
  • Numerical anchors
    • “Almost never,” “almost always”
  • Critical incidents
  • Observations
  • Many scales per dimension/ criterion
    • One scale per behavior
  • Allows for feedback
  • Allows for comparisons between employees
behavioral observation scales manager example overcoming resistance to change
Behavioral Observation Scales (Manager example: Overcoming Resistance to Change)

Almost 1 2 3 4 5 Almost

Never Always

  • Describes the details of the change to

subordinates. ___ ___ ___ ___ ___ ___ ___

  • Explains why the change is necessary. ___ ___ ___ ___ ___ ___ ___
  • Discusses how the change will affect

the employee. ___ ___ ___ ___ ___ ___ ___

  • Listens to the employee’s concerns. ___ ___ ___ ___ ___ ___ ___
  • Asks the employee for help in making

the change work. ___ ___ ___ ___ ___ ___ ___

  • If necessary, specifies the date for a

follow-up meeting to respond to the

employee’s concerns. ___ ___ ___ ___ ___ ___ ___

Total = _____

Below Adequate 6-10

Adequate 11-15

Full 16-20

Excellent 21-25

Superior 26-30