What is procedural justice? What strategies should an organization take to ensure that their performance management system is fair?
Procedural justice refers to the transparency in the process of issues discussion and decision making on different levels of a company. Thus, procedural justice can be illustrated by the company when employees participate in the process of decision making and this process is consistent and fair, so everyone can understand where this or that decision comes from. Procedural justice is beneficial for any company since employees are eager to work harder and contribute to the development of their companies when they see how decisions are made.
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Of course, employees also praise that their opinions are taken into account, so personnel becomes more active. To ensure that a company’s performance management system is fair the company should implement certain strategies. First of all, it is essential that all employees could be involved in all issues discussions. So, it is necessary to create some database. Every employee should submit the results of his/her work. It is important that employees could also submit their comments and suggestions about some issues.
Of course, it can be helpful if employees could send their evaluation of management work. Thus, when learning such data it will be clear what the contribution of each employee was. Besides, company management should also make all employees aware of various decisions, especially when it deals with the performance management system. Thus, employees will be sure that every decision is fair, or if it is not, it will be possible to interfere and make management explain why this or that decision was made. This transparency will be beneficial for both, employees and management.
Discuss the benefits and drawbacks of incentivizing discretionary behaviors at work. In other words, discuss how rewarding people with money for things they used to do without being directly compensated can be both good and bad
First of all, it is necessary to point out that any monetary reward influences positively on personnel performance. As far as incentivizing discretionary behaviors is concerned there can be both positive and negative outcomes. On one hand, employees will be able to see what kind of work they do is paid and how. Thus, people will pay more attention to those areas which are mostly paid. So, the most important tasks will be fulfilled more carefully.
The company can increase the quality of employees’ performance in a certain field which can be beneficial. Apart from this when a company starts paying for some particular task which was completed by an employee; it can be regarded as a kind of reward and recognition. Employees will see that their work is appreciated and some will feel that their incentives (for instance, when the work does not directly presupposes the fulfillment of certain tasks but an employee completed them) are taken into account and appreciated. In this case, employees are encouraged to suggest new incentives and work harder.
On the other hand, incentivizing discretionary behaviors can lead to such negative outcomes as poor performance and employees’ dissent. Thus, some employees can ask for a kind of compensation for the time they were doing the task which was not paid previously.
Apart from this, some employees can pay less attention to other tasks that are not transparently paid for or paid less. So, the main concern of employees will be completing the tasks they are particularly paid for. Besides, employees may ask for extra payment for other tasks, and if they do not get their extra payments, they can stop fulfilling those tasks or complete them badly. Of course, in this case, the employees’ performance will worsen.
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Thus, when incentivizing discretionary behaviors a company’s management should consider all possible outcomes and implement the changes taking into account those considerations. Ideally, employees should regard such changes as a kind of reward, recognition, and motivation. So, every employee’s performance (each task) should be considered and the scope of the tasks fulfilled should be taken into account, so the salary will consist of payments for every task completed by an employee.
Discuss your pay package—or a pay package in a previous job. You needn’t give specifics in terms of salary, etc., but you should identify the methods of compensation the organization provided. Please discuss how your compensation is effective or ineffective and what the organization could do to increase your motivation, job satisfaction, etc
When I was hired I was offered a certain sum of money and a promise of an annual reward (80% of a salary) at the end of a year (annually). I was provided with a list of my duties with a sentence where I acknowledged that some other tasks can be added to the list.
Of course, in some period, the list was enlarged considerably, with no salary growth. It is necessary to add, that I got the reward at the end of the year. However, the abundance of tasks I fulfilled led to the necessity to ask salary increase (I was also regarded the opportunity to quit) since I was fulfilling many tasks but was paid quite low wages (in comparison with other companies). Eventually, I got the extra payments but I cannot say I could be completely satisfied since there was no confidence that such a situation can repeat.
To my mind, I could be more satisfied if I knew exactly what I was paid for, so incentivizing discretionary behaviors in the company I worked for could be beneficial. Thus, it could be better if I could see what tasks are of profound importance (how much I am paid for them) and try to complete them in the best possible way. In case if I was asked to fulfill some more tasks I could see whether I was able to fulfill all of them and maintain the high quality.
If I saw that the task would take me too much time I could justify why I could not complete new tasks. Thus, the company should have considered all points carefully and we could come to some reasonable solution. I would like to have part n such processes since I believe that the performer can analyze the situation and provide the necessary data for the best solution.
As far as rewarding is concerned, I think, transparency of my salary could be quite enough. Of course, I could be also motivated by a kind of promotion. It should not necessarily lead to salary growth; instead, a shift to some other or more specific area could be very effective. In this case, I could occupy another post and I could be helpful in that new area since I would have a fresh eye. I would be eager to work out some new ways and suggest numerous solutions.
It is necessary to add, that being an employee I would also like to play some more active role in decision making since I had many interesting ideas that were never taken into account. If I felt my contribution can be real, I would be encouraged to do more than was expected from me. Thus, without any additional costs, the company could get a highly motivated employee who is eager to start something new and self-develop.