Question 1
By instituting pay-for-performance plans within organizations, it is possible to measure their effectiveness. One of the major ways would revolve around assessing the evaluation forms, which might be differentiated by groups of employees when needed. In these instances, the evaluation forms need to portray the rating options available for every goal and category clearly together with the overall ratings. Furthermore, the forms need to define the distinct things constituting the rating or performance levels clearly, such as what constitutes outstanding performance for a specific goal. It should also define the tasks that an employee should undertake to be deemed outstanding clearly. Furthermore, measuring the effectiveness of the pay-for-performance plays should evaluate the handbook for managers or the administrative manual. This needs to serve as something, which the managers can reference to make sure that the evaluations they undertake progress efficiently (HR Daily Advisor, 2013) . The guidebooks also offer the rules for the continuing effectiveness and administration.
Moreover, measuring the effectiveness of the pay-for-performance plans need focusing on the initial as well as continuing training. The effectiveness of these programs need consistent and continuous HR training at primary points, such as the initial time the organization introduced the plan, the changing of the plan, and the time that the employees attain promotion to managerial positions. Here, the HR also needs to ensure to monitor the effectiveness of the managers in utilizing the programs while at the same time having refresher-training programs to remind the managers concerning the process. Effective pay-for-performance programs also portray efficient communication channels. Communications needs to take place both from the senior executives, to managers, and from the supervisors to the staff (HR Daily Advisor, 2013) . Communications need to be both verbal and written with the management playing a critical role during the process, while serving as an interpreter, liaison, and problem-solver.
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The effectiveness of a pay-for-performance plan also prevails when it portrays continuing coaching as well as feedback. It is not possible to base pay-for-performance programs solely based on yearly performance evaluations. Ongoing conversations should prevail to keep supporting the program in line with ensuring that the employees keep developing during the entire year. The effectiveness in this case also needs to revolve around ongoing coaching and feedback. With ongoing coaching as well as feedback between the managers and the workforce during the performance period, it becomes possible to ensure that the workers remain on track. These sessions also make sure that managers encourage appropriate behaviors by offering positive feedback in line with providing coaching, which addresses areas that might require improvement (HR Daily Advisor, 2013) . The ultimate goal is to boost performance during the year while at the same time minimizing chances of surprises during review meetings.
Question 2
From the employees’ perspective, utilizing pay-for-performance plans presents certain disadvantage. For instance, it might result to deteriorating quality. These plans might lead the workforce to lay considerable emphasis on quantity rather than quality, which would result to quality deterioration. For example, salespersons devoted to generating as much increased sales as possible to allow them to realize bonuses might fail to focus on details, including proper filling of paper work or ensuring that a product exists in stock prior to placing the order. In this sense, the consumers would end up receiving incorrect items or lead to increased wait times for delivery unlike the salesperson promised (Joseph, 2019) . This would lead the employees to be discredited for poor quality of work.
An additional drawback attributed to pay-for-performance plans relates to the insufficient motivation generated in the workplace. In the event that the workforces receive significantly low incentives amount, they lack the motivation needed to allow them to reach the anticipated levels of productivity. The workforces might end up even resenting the employers for failing to provide meaningful programs, which would have major impact toward their living standards (Joseph, 2019) . In this sense, they would be motivated to perform only minimum levels of work, which would be adequate to retaining employment while regarding extra effort as time wastage.
Question 3
From the perspective of the employer, the pay-for-performance plan has certain disadvantages. For instance, it presents hindrances when measuring performance. Unless the standards of performance are entirely objective, including when awarding sales people bonuses for attaining predetermined levels of sales, challenges might emerge in determining whether the performance requires the incentive availed. This imposes pressures on supervisors when undertaking performance appraisals to make sure that they assess the performance of every employee accurately (Petersen, 2019) . For most supervisors, they are known to have a tendency of offering inflated appraisals to make sure that the workforces realize their incentives.
The pay-for-performance program also disadvantageous in that it leads to reduced teamwork among the employees. For the employees embarking on ways of reaching their goals, they sometimes show less willingness in working as teams. They show hesitance in offering assistance who colleagues experience challenges in their tasks since they perceive the act as a means of wasting valuable time. They would rather utilize the time improving their individual productivity (Petersen, 2019) . In certain cases, conflict between the workforces emerges due to lack of collaboration or the idea of one employee limiting another from realizing set objectives.
References
HR Daily Advisor. (2013). 5 components of an effective pay-for-performance program. Retrieved from https://hrdailyadvisor.blr.com/2013/07/24/5-components-of-an-effective-pay-for-performance-program/
Joseph, C. (2019). The disadvantages of pay for performance. Retrieved from https://bizfluent.com/info-8652434-disadvantages-pay-performance.html
Petersen, L. (2019). Advantages & disadvantages of pay-for-performance policies. Retrieved from https://smallbusiness.chron.com/advantages-disadvantages-payforperformance-policies-44264.html