Human Resource Management- Money 1. In order to meet or exceed preset business goals or performance criteria, these merit raises are offered by the employers. An increase in pay based on the performance of the employer is known as a merit raise. These are usually decided at the time of hiring an employee or during individual performance reviews. A merit raise is usually different from a bonus. It is on the employee’s pay that a merit raise is applied. It is a percentage increase on either the salary or the hourly rate.
On the other hand, bonus is a lump sum amount, which is awarded by the employer at the end of a fiscal or calendar year. The amount of merit raises would be somewhat around $13500. This is calculated by taking out an average of the change in the salary range. 2. Performance criteria can be expressed as a scoring rubric or a scoring guide. It may be general, specific, analytical or holistic [Per12]. There are performance criteria’s set based on the goals, which are to be met. First can be some of the most fundamental goals such as public health, national as well as individual security, economic development, happiness and general well-being [Per05].
Maximum public health can be achieved by the maximization of surface and ground water quality. This can simply be done by minimizing the wastewater discharges into surface water bodies and groundwater aquifers. Hence, this is achievable if the wastewater productions are minimized, or if the removal rates at wastewater treatment facilities are maximized. Merit raise is based on a percentage of a salary, or the wage, which is daily, weekly or fortnightly.
Some other approach is adopted can be giving of bonus. But bonus is not any assigned percentage, but it is an amount which is paid at a particular time of the year. Each criteria hold its unique position. It is important to take everything side by side. This includes health, security content, economic development and the general well being too. This is because each one is dependent on the other. Overall performance ratings may be calculated in several ways. It ranges from poor to exceptional.
Alternatively, from unacceptable to exception in the case of Prescription United Sales (PUS). Performance review is done half yearly, quarterly or yearly. The overall performance rating is calculated depending upon the works that has been assigned. For instance, if an employee has been assigned with three projects to complete. So by assessing how many projects have been completed in the due time. It is the efficiency, which help in calculating the overall performance of an individual. For instance, considering Abe Linkun. He is 45 of age and has been working in PUS since 15 years.
He is earning a good amount of salary because of his experience and overall performance. On the other hand Betty Graybell is graded average because of her low experience as compared to Abe Linkun. She has been serving for PUS since 8 years and her performance is just average. There should be a percentage attached to each OPR. For instance, if the OPR of 20 depicts excellent performance, so a merit raise of 100 percent should be awarded. Similarly, in case of above average performance, it should be 75 percent, 50 percent for average and furthermore.
For instance, 97.5 percent in case of Betty Graybell and 96.75 percent in case of Doug Flighty. 3. Once the performance appraisal is reviewed, I would prefer discussing the raise in terms of the percentage increase of the employee’s base salary. This is because grants and bonuses are also always given on the base salary. Although the base salary always does not justify an employee’s input, but it is a fair way of giving an employee a benefit. Works Cited Per12:, (Performance criteria), Per05:, (Performance criteria, 2005),