Performance Management and Remuneration

Syllabus

Thematic definition of lectures: 1. Work performance management Performance management as a management concept integrating performance appraisal, reward and employee development. Alignment of individual and corporate goals, agreement on future employee performance. Defining strategic performance goals, objectives and priorities, planning policies and procedures. Using reward to drive performance. Evaluating the effectiveness of performance management. 2. Motivation and stimulation of employees as a basis for the development of the remuneration system Employee motivation, its nature and importance for motivating people to work. Motives and their classification. Sources of motivation and its internal dynamics. Frustration and conflict of motives, motivation and stress. Motivational profile of employees. Possibilities of studying work motivation. The relationship between motivation and employee performance. Intrinsic and extrinsic motivation to work. The role of the manager in motivating and stimulating employees. 3. Remuneration system and the process of its development Development of remuneration in Slovak companies. Current determinants of remuneration. Total remuneration model, its meaning and advantages. Approaches to total remuneration. Objectives and priorities of employee remuneration. Requirements for reward systems. Fairness in pay - distributive and procedural fairness and factors influencing perceptions of fairness. The development and content of remuneration strategy and policy. Factors influencing remuneration at enterprise level. Trends in employee remuneration, New Pay. 4. Company payroll system The role of wages in the remuneration system. Economic determinants of monetary remuneration and economic functions of wages. The category of wages in economic theory. Wage theories at macro, meso and micro levels. Evolution of views on the function and method of wage determination (pre-classical period, classical and neoclassical schools, Keynesian theory, collective bargaining model). Internal and external wage determinants. Structure of the individual employee's wage - fixed and variable wage components. 5. Evaluation of work Job evaluation as a tool to ensure internal consistency of the payroll system. Pay equity. Gender pay gap, gender pay gap and its causes. The value of work. Reasons for the implementation of job evaluation, traditional and current evaluation methods and their use in the design of the wage system. Choice of job evaluation criteria, factorial design. Branded job evaluation systems, HAY method. Methodological procedure of job evaluation. Arguments for and against the use of job evaluation. 6. Remuneration surveys Remuneration surveys as a tool to ensure external competitiveness of remuneration. Drivers of wage increases. Objective and conditions of survey relevance. Key occupations and their selection. Survey methods and data sources. Market wage level curve. Global and local wage surveys in Slovakia. Paywell survey, its history, content, methodology and methods of remuneration analysis. Reference point. 7. Company tariff system The structure of an employee's individual wage and its tariff component. The enterprise tariff system and its instruments. Tariff scales, methodology of creating tariff scales, types of tariff scales. Criteria for tariff scale differentiation (tariff scale ranges, overlap and reference point). Traditional and broadband tariff scales and conditions for their use. Determination of staff salaries. The function of company qualification catalogues. The system of tariff supplements and wage advantages. 8. Wage forms Forms of wages and their incentive function in the remuneration of the enterprise's employees. Types of wage forms, prerequisites and limitations of their inclusion in the wage system of the enterprise. Wage forms for achieved and expected work results. Time wages. Task wages, their forms and prerequisites for their introduction into remuneration systems. Supplementary forms of wages (bonuses, bonuses, bonuses, personal evaluations). Trends in the use of individual basic and supplementary forms of pay. 9. Performance-related remuneration Performance pay as a key concept in the modern approach to remuneration. Changes in the perception and definition of employee performance, finalisation and individualisation of performance. Reasons for introducing performance components into the structure of individual employee pay. Individual, group and enterprise-wide performance-related remuneration and their objectives. Forms of performance-related remuneration. Cultural aspects of performance pay. Employee participation and its use in employee remuneration. Success factors in the implementation of performance pay and its limits. 10. Remuneration of selected groups of employees Specifics of remuneration of selected groups of employees. Definition of the category of so-called non-tariff partners, its rationale and importance. Agency theory and its application in remuneration. Differences in ownership, managerial and employee motivation. Compensation of managers, components of total manager's remuneration and its structure. Specialists, Remuneration of sales staff and remuneration in project teams. International remuneration strategy, expatriate remuneration. 11. Benefits and their role in the remuneration system Employee benefits and services (benefits) and their place in the company's remuneration system. Reasons for the use of benefits. Objectives, categories and types of benefits. European and Anglo-American approaches to the provision of benefits and the differences between them. Benefit effects and their limits. Flexible employee benefit schemes and the effects of introducing them into a company's remuneration system. Financing of benefits, creation and use of social fund. Current situation and trends in the provision of benefits. 12. Remuneration legislation Legislative regulation of remuneration in the Slovak Republic and the EU. Definition of the terms wage and salary in the Slovak legislation. Employee's wage protection. Institute of minimum wage entitlements. Average wage. Remuneration in the public and state sphere. Legal regulation of minimum wages in individual EU countries. Labour relations and their influence on the formation of the remuneration system. Remuneration arrangements in collective and employment contracts. 13. Management of the remuneration system Management of the remuneration system and evaluation of its effectiveness. Pay budgets, comparative analysis. Responsibility for remuneration, role of specialists and line managers. Implementation of individual and general adjustments to the remuneration system. Communication with employees. Comprehensive evaluation of the effectiveness of the remuneration system and remuneration controlling. The impact of the business life cycle and corporate culture on the reward system. Thematic definition of exercises: 1. Employee remuneration as a function of human resource management. Organisational provision of teaching the subject, conditions for its completion. Basic information on the content of the course. Information on seminar work. 2. The role and nature of performance management systems in current conditions. Examples from different sectors and enterprises. Defining appropriate performance standards, providing necessary feedback on performance, improving performance. 3. Motivational types of employees. Identification of the motivational type according to Jiří Plaminek's theory of organizational vitality. Discussion of differentiated approaches to employee motivation. Working with unmotivated employees. Characteristics of problem employees and approach to them. 4. Difference between monetary and non-monetary remuneration, conditions of their implementation. Case study - distribution of monetary rewards, working with intangible rewards. Valuation and its use as part of the reward system. Role plays and simulation of management situations. 5. Working with reward surveys. Commercial surveys, their methodology and working with their results in the design of reward systems. Analysis of the PayWell survey. Compiling your own remuneration survey. 6. Summative and analytical methods of work evaluation. Determining the value of work for selected job positions. Application of individual job evaluation methods (ranking method, rank order method, catalogue method and scoring method). Establishment of a factoring scheme. Marking methods of job evaluation. The HAY method and its use in the development of the enterprise's tariff system. 7. Conversion of labour value into wage tariff using summative and analytical methods of labour evaluation. Application of arithmetic and geometric series methods. Solution of the wage equation. Creation of tariff scales and qualification catalogues. Calculation of examples. Discussion of the advantages and disadvantages of different types of tariff scales. 8. Basic wage forms. Calculation of wages for employees remunerated by the time and piece rate system. Proportional, progressive and degressive piece rates. Individual and collective piecework pay. Distribution of collective wages. Pensionable wages. 9. Supplementary wage forms. Use of bonus systems, bonuses, rewards in rewarding individual employee performance. Systems of participation in the results of the enterprise as part of remuneration systems. Non-monetary and monetary participation. Systems of participation in the results of the enterprise. Equity participation and conditions of its application. 10. Employee benefits, their function and place in the remuneration system. Current trends in the provision of benefits. Current situation in the practice of enterprises in Slovakia and abroad, results of surveys. Financing of benefits. Employee satisfaction surveys, methods of their implementation and use of results. 11. Analysis of the remuneration system of the selected enterprise. Evaluation of the structure of the remuneration system and its individual instruments. Evaluation of the effectiveness of remuneration. Presentation of students' final projects. 12. Analysis of the remuneration system of the selected enterprise. Evaluation of the structure of the remuneration system and its individual instruments. Evaluation of the effectiveness of remuneration. Presentation of students' final projects. 13. Analysis of the remuneration system of the selected enterprise. Evaluation of the structure of the remuneration system and its individual instruments. Evaluation of the effectiveness of remuneration. Presentation of students' final projects.