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Linking essential business processes to improve organization and employee performance

Performance management is not performance appraisal, or a “program,” but a way of doing business. In the same way organizations continuously evaluate the products and services they provide, performance management is a mindset that involves continually monitoring the work of employees.  Organizations provide the opportunities for development, while employees are responsible for contributing at the highest level.  Performance management is the process that measures, motivates and rewards, and also provides the documentation in the event that employees do not live up to their end of the bargain.  If your performance management process consists of a form and a sit-down meeting once a year, you aren’t doing performance management.

Performance management is a concept, not a tool, and theories abound on the proper way to accomplish it.  While Merces can design performance appraisal processes, forms and tools, we are more concerned with the way in which these programs are linked to compensation.  Most organizations fail to appreciate that maintaining the competitiveness of pay cannot be accomplished through traditional merit pay or performance appraisals alone.  Merces has developed, in conjunction with compensation structures, creative and unique ways of assessing and appropriately rewarding not just an individual’s “performance” but his or her “value” in the job.

In addition to the basic day-to-day management of performance, Merces helps organizations develop programs that reward or motivate specific types of performance.  Through effective base compensation plans, the appropriate use of incentives, and well written and thought-out job descriptions, organizations can provide employees with the motivation to develop themselves, and stretch beyond the typical performance requirements.

As part of the job documentation and pay structure development processes, Merces provides its clients with the most effective performance management tool possible – the job description.  When employees are rated on the actual elements of the job, rather than on abstract concepts that organizations attempt to apply to all jobs, performance management is focused and targeted on what really matters.

A Merces-designed job description can easily be turned into a performance appraisal form, and the appropriate pay for each employee can be clearly determined by the results of the process.  Merces has found that organizations using this approach have much less controversy on individual pay actions, and are able to get away from the “general increase” approach that results in pay inequities and wasting precious resources.

In addition to our performance management tools, Merces works with project partners who can train your managers in effective performance management and the performance appraisal process.

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