Resept Performance

The concept of Merit Pay and Performance Rating

Merit a word derives from the English language that has services, benefits and achievements. Thus Merit Pay is a payment rewards (reward) associated with the service or work performance (performance) or a benefit that employees have been given to the organization. The simple concept of merit pay is a payment system that link the reward (reward) with the achievement of (performacne) employees. Implications of the concept of merit pay that someone with a strong performance, it will obtain a higher reward as well as vice versa. That is, the higher the performance of the employees will be the higher the increase in return. Merit pay plan is a procedure for a salary that is based compensation system that is performance based salary or wages of individuals beyond the period measured tertentu.Untuk based perstasi payment or performance of the system is part of the regular payment of workers should be regularly evaluated their performance (performance appraisal ).

Rating employee performance is an absolute requirement that management must be done so that merit pay can be applied properly, the general assumption in the business that merit pay is a payment to compensate karywan that has high performance and the provision of incentives for the continuation of good performance. To find out the performance of employees is high or low need of a good assessment of the management. For if the assessment system is not good, then also the application of merit pay will not be effective. So one of the key bekerjanya merit pay system will depend on how well the system performance evaluation (performance appraisal) in the organization (Brookes, 1993).
This is presented by Wilkerson (1995) that most of the assessment for this performance can not be accepted because it has a weakness, namely:

1. Staff workers, managers tied to many systems, processes and people. However, the assessment focused only on individual performance, this is the assessment that is not the individual not as a system in an organization.
2. Rating the performance of the system in the organization is consistent, and can be predicted. But in reality the system and the process is a subject that can be changed because management must consciously make changes in accordance with the abilities and the demands of business.
3. Demanding requirements of performance assessment process that objective, consistent and fair can be trusted, but the other will be the assessment of performance can be viewed as employees of the memdadak and based favoritisme. Schüler and Jackson (1999) recommends that before implementing performance-based reward systems will need to make an assessment of the depth of these questions.

There are ten questions that must be answered before implementing performance-based rewards system, namely: (1) What is the payment by employees of votes. (2) What is the target to be achieved by performance-based rewards system. (3) What is the value for the organization's system of payment performance. (4) Can performance be measured accurately. (5) How often is performance measured, and in the evaluation. (6) Level I unit (individual, group, or organization) that will be used to distribute the reward. (7) How akan charge associated with the performance (eg through increased services, bonuses, commissions or incentives) (8) Does the organization have adequate financial resources to make that payment based on the performance meaningful. (9) Phase-stage what will be adopted to ensure that employees and management have a commitment to that system (10) The stages of what will be to monitor and control system.
So that performance assessment can be carried out with both methods required to meet the requirements below, namely:
(1) What is measured is really the achievement and not other factors, such as involving personal. (2) Using tolokukur clear and have a guarantee that the measurements are objective.
(3) to understand, and be fully understood by all members of organizations involved.
(4) is carried out consistently, and fully supported by top leaders of the organization (Ruky, 1996).(*).(by Ohm). sumber : Eka Nuraini, merit pay : meningkatkan atau menghalangi kinerja

(*) -Posted in HRD on May 12, 2009 by shelmi.