Discussion Question Revised

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PFP stands for Pay for Performance. It is a program of compensation for employees who are not represented. Dee’s basket works in the manner whereby all employees receive the same payment even when their performance is better than that of their peers. Dee’s basket is not useful since it offers the same amount even for those who perform highly. Placing various job classes at equal pay structure can make employees to be discouraged as well as rise turnover. PFP aims in rewarding high payment to those who perform higher. The best type of PEP system that can favor various jobs is by using piece rate pay.
A piece rate pay is when an employee receives payment of money in a fixed amount for a provided portion of work. Providing payment for workers by using pay rate system encourages workers in managing time to raise the output. It can as well warrant minimal supervision since the workers are already incentivized in working harder. Therefore, piece-rate pay incentive provides payment for employees on the accomplishment of each of the basket they collect. Given that there are various kinds of baskets in companies, they can include a different rating. There should be higher incentives for the baskets that are more expensive. Piece-rate pay system provides efficiency of the product, time as well as cost accountability.
Leniency error is a common rating error seen among managers that rate their employees in performance appraisal.

Leniency error can either be positive leniency error, or negative leniency. Therefore, to reduce the leniency error, feedback should be provided and also recorded continuously to help lower leniency error effect. When continuous feedback is used, it can assist the employees to rectify their mistakes hence fine-tuning their work as soon as possible. Good performers’ employees can benefit when continuous feedback is used because convenient appreciation inspires them to do their job much better.