1. Traditional Bases for Pay
Chapter #4

2. Seniority and Longevity Pay
Length of service
Human capital
Seniority and Longevity Pay

3. Merit Pay #81 Rewards differences in performance What does it take to
make merit pay
systems be effective?
Meaningful increases
Clear Performance standards
Performance appraisals
Merit Pay #81

4. Historical Overview #77

5. What do you think? Effectiveness of Seniority Pay Systems
12% US workforce (declining)
There is no research that demonstrates the effectiveness of seniority pay systems
Does it reduce turnover?
What do you think?

6. Design of longevity pay systems
Federal Employees General Schedule
Rewards ees who have reached pay grade limits. (GS)
Look #80
What are advantages to
Seniority based pay?
But what about incentives?
Motivation?
Competition?
Design of longevity pay systems

7. Performance Appraisals
Types of Appraisal Plans
Trait System Look #84
Advantages
Easy to quantify
Disadvantages
Subjectivity
Performance Appraisals

8. Comparison Systems

9. Comparison Systems Behavioral Systems Forced Distribution
Paired comparisons
Behavioral Systems
Critical incident techniques
Behaviorally anchored rating scales (BARS)
Behavioral observations scale (BOS)
Management By Objective (MBO)

10. Four Activities to Promote Nondiscriminatory Appraisal Practices
1. Job Analysis
2. Structure Rating instrument
3. Train supervisors adequately
4. Formal appeals mechanism
Four Activities to Promote Nondiscriminatory Appraisal Practices

11. 360 Degree Performance Appraisals
(Class Demonstration)

12. Rating Errors in the Performance Process
Bias errors
First impression effect
Halo effect
Similar to me effect
Contrast errors
Central tendency errors
Leniency errors
Strict errors
Rating Errors in the Performance Process

13. Using Yahoo: go to federal government’s General Schedule by clicking on the advance search link. Type in “general schedule”
Using Yahoo: Type IOMA Institute of Management and Administration Do you think this site may be helpful to you? How?
Class Exercise