After reviewing the simulation, choose one of these three strategies as a possible proposal for the CEO. Explain and justify your choice by including responses to the Learning Questions in your proposal.
1. Employees will receive absolutely no raises, and performance management is eliminated throughout the economic crises. Therefore, employee wages will remain the same regardless of position held; no performance reviews are given; and there will be no adjustments of missions, goals, and duties during this period.
2. Performance, as well as revenue, is reviewed every 6 months. This way it allows JVA Corp. to cut or increase pay every 6 months and review its bottom line. Employees can also benefit by having the opportunity to earn pay raises potentially twice a year, rather than the typical annual reviews.
3. Review and make any necessary changes to the guidelines for performance management within JVA Corp. First review the mission and goals for JVA Corp. Then review the requirement of each employee. A review of compensation packages is also necessary, so evaluate commission packages, expenses covered, perks, and necessity of onsite amenities that are currently covered.
Based on the costs that have been calculated, a net savings should be evident to allow for major or minor cost savings for JVA Corp. In the midst of calculating ways to save expenses for JVA Corp., don’t forget that your duty as an HR director is to also ensure the well-being of employees. It’s important to also represent the workers while looking out for the interest of the company.
Your paper should address the appraisal process, performance management systems, ways to make performance management systems more effective, various classifications of rewards, the goal of the compensation administration, and compensation programs.