Incentives can be too Powerful --- Compensation Management Case Analysis

This case analysis is based on American University for the Compensation Management, Human Resource Management. The following answers are for Incentives can be too Powerful.

          
         Incentive plans are tools used by business owners to encourage, recognize and reward exceptional performance in their employees. Incentive plans typically surpass standard salary and benefit agreements and usually are given in the form of cash bonuses, extra paid vacation days or gift items of non-monetary value. There are numerous advantages associated with encouraging business staffers through the use of incentives. Incentives are motivator, increased earnings, loyalty, reduced turnover and collaborative efforts.

          Incentives does not work in positive way only, as given in case of Atlanta Public Schools how the management and employees have misused the compensation plans. They have used in unethical way to increase the admission number by publishing the result in favor of the students making them academically brilliant though they have manipulated the answer sheets of the students to secure higher marks. The examination methodology has been the problem for the same since every students are marked with the grade for the same questions. The classification of students and their intellectual is only measured through the questions they are being asked in the examination besides pointing out their strength field where they can pursue their career.

          Without demotivating the current policy of compensation for the staffs, there should be different concept of examination to be held to make it fairer. There should be a central examination board which controls and monitors the academic performance of the schools. The board should be responsible to set examination questions and assign the answer sheets to different teachers who are not involved in the particular institution. On doing so the privacy of the student and their school should be maintained so that the manipulation and financial transactions will not occur among the checker and the schools. Only the board should know the final evaluation of the students and publish the result of same. This will surely increase competency of the students and will be encouraged to work hard and the similar case will occur with the teachers. Teachers will have to work hard to deliver their knowledge to the students. The examination center should be held in different location rather than their own school. A final year report submission and external examiner's to evaluate those performance of the students will improve the understanding of the students and will help them to research on things which will benefit them in their professional life.

          Let us take examination system in Nepal conducted by Tribhuvan University (TU). The colleges affiliated to TU are not known to the question set since the set are asked to be prepared by numerous professors so that the privacy of the question is maintained. The evaluation is purely based on the performance of the students. This is one of the main reason students from abroad like Nepal are outperforming the students in US.

          In conclusion, it is essential to not apply too much pressure when designing a pay-for performance plan. Realistic grading of every student should be maintained using different testing methods. Providing tougher challenges to the teachers to improve the quality education they deliver to the student. Examination privacy and central board to handle these examination and grading student will not demotivate the teachers and will not hamper their compensation plan. This will also improve the quality of students and more qualified personals will be out in market which will be a milestone to drive the country economy.