The Performance Interview

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The Performance Interview
In most cases, employees are expected to go beyond the call of duty for the primary objective of achieving organizational goals. Employees are human resources and form the most fundamental resource in any organization. Therefore, ultimate productivity is also expected. However, different companies use different strategies and philosophies while determining compensation rates. Compensable factors in an employment relationship include the level of skill and knowledge, effort, roles and responsibilities, and working and prevailing market conditions. Some of the determining factors include legal requirements, the role played by an employee and the market conditions of various professionals such as competition and availability.
Organizational compensation philosophies are meant to standardize compensations for employees and outlines the incidences where compensation variations might occur, such as pay structures, and salary allocation. This essay serves as a performance interview evaluation and analysis report of how, according to research findings, different companies adopt different philosophies of performance review, as well as the resultant methods these companies use to determine compensation rates for their employees. Evaluation of information obtained from all the four organizations (two profit-making and two non-profit making) showed that the companies reward compensations on both personal and group basis. First, the organizations offer individual performance rewards such as overtime pay for work done past the required time, commissions, and financial rewards for outstanding performers over specific periods of time, that is, on the quarterly basis.

Compensations for exceptional job performance included bonuses, commission, profit-sharing as well as gain sharing. On the other hand, group performance compensations were offered based on various factors such as job descriptions and paid structures. The ranking was done in all organizations with the notion that high-profile employees such as managers and directors deserved more pay as their roles duties and responsibilities were relatively more advanced. The ranking was done in these organizations to ensure standardized performance compensations for employees in similar ranks and job groups. Group performance compensations according to ranking also included medical housing transport and entertainment incentives that were categorically awarded on the basis of job group.
Underperformance in these organizations, as in other existing organizations, was inexcusable. Underperformance is consequential, thus underperforming employees risked suspensions, firing, or even financial wraths. Performance expectations were set by the company’s management level according to the organization’s goals, and any performance below that would be termed underperformance, thus consequential. However, few or no employees underperformed. The high performance of employees in these organizations was highly attributed to the financial benefits. On the other hand, the company expectations kept all employees on their toes with the fear of suffering the adverse consequences of the same.
From the research, it can be concluded that organizations use compensation as a measure of retaining qualified highly skilled nd experienced employees in their organizations, appreciation, instilling motivation and creating enthusiasm organizations. Compensation does not only constitute of basic pay but is inclusive of all financial benefits offered to employees on the basis of their performance throughout the employment period. Compensation, therefore, is directly influenced by performance level and great and outstanding performance of employees would improve their compensation rates. Compensation for performance helps express an employee’s performance in monetary terms, thus employees can focus on being more productive and recording excellent performances to qualify for such benefits. Standardizing performance compensations is important to organizations as it can serve as an approach to ensure effective achievement of their goals, efficient budgeting, and offers a reliable platform from where profits can be predicted and achieved efficiently. Additionally, the fear of the adverse consequences of underperformance motivates employees to work harder to even achieve the financial rewards instead. More importantly, the research focuses on the significance of performance evaluation in compensation and the need to use this approach toward achievement of both individual and organizational goals.