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Performance Management

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As per my research an alternate way to help lower the JVA Corporation costs and still keep the employees happy would be to cut some of the compensation packages and the way the employee’s performance is reviewed. The use of a performance appraisal every 6 months would allow the company to raise or lower employees salaries based on the performance of their duties and responsibilities. This appraisal would also allow supervisors and employees to communicate every 6 months regarding the job duties, any concerns, and any suggestions that might help to make the company more productive. In order for these appraisals to be effective the supervisor must be firm and fair in the appraisal and the employee must take the appraisal or criticism as they were meant and work with the supervisor to move the company forward. It is also necessary to review the pay structure that is now in place. The employees should be paid in regards to their job responsibilities. All of these should be based fairly from the CEO’s down to the hourly workers. Employers should allocate pay fairly across the board. “If employees consider their pay rates unfair, they may seek employment elsewhere, put forth little effort in their jobs, or file lawsuits.”(Gasbarre, 2012) A CEO should not receive 200 times the amount of pay that the lowest paid employee receives. Many of the extras that the higher up management receives could be trimmed and still give them the compensations that they should receive as per their job title The reviewal of compensation packages is also necessary. Employees who travel for the company and have expense accounts must be reviewed as to the proper use of these funds. The use of these travel expenses should be watched carefully; it may be that not all of the travel out of state or out of country is really necessary and it may be done by video conference instead. The employees could also stay in hotels that are a little less expensive and maybe fewer employees are needed than budgeted for. This would save some money on the travel expenses like hotels, transportation, and meals. The use of company cars is an issue that should be reviewed as well. Due to the price of gas, a limit should be set into place regarding the amount of gas charged to the company card. There should be a log as well as receipts kept so that they can be reviewed monthly. It is very easy to just decide to pick up groceries on the way home or to stop by a friend’s house and not think about the fact that you are using your company’s gas for personal business. It may not seem like much but every little bit saved helps the bottom line... The use of the gym facilities should be offered to all employees and their families. By offering the use of the gym facilities to all employees, I believe that this would lower the medical expenses as well as raise the morale of employees which would lead to better production and attendance. The new policies regarding these changes should remain in effect permanently, providing that they are achieving the goals they were created for. These changes should be made all across the company, both in the United States and internationally. In regards to the international employees, the pay structure should follow the same guidelines but also take in to consideration that the cost of living and other expenses may be more or less. The employees and the company will both benefit from the changes. By removing the need to close international plants, the longevity of the company is lengthened. This will help with job stability and lower the need for the company to lay off employees or suffer from money issues which will benefit not only the company and employees but also the community in which they are located. In conclusion, there are many different things that could be done to help lower the company’s spending and still offer the employees fair pay and compensation packages. By lowering the revenue spent by the company from 8% to 5% the company will not need to close the international factories. As per the reasons listed above, this option seems to offer both the company and the employees the best solution.

Work Cited

Gasbarre, A. D. (2012). Compensation Administration. Retrieved from http://www.referenceforbusiness.com/encyclopedia/Clo-Con/Compensation- Administration.html

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