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HRMT 415: Compensation and Benefits- Unit 3 - Individual Project

A strategic purpose for a well-blended compensation program, one that includes various types of direct compensation, is gaining employee commitment and productivity. One of the most effective tactics for this strategy is designing a process for linking individual achievement to organizational goals.

Prepare a report to senior leaders addressing the following:

  • Explain the concept of tying performance to organizational goals.

  • Describe the different types of individual and group-level performance measurements.

  • What are the advantages and disadvantages of individual versus group-level performance recognition?

  • Discuss the options an organization has to link individual or group monetary rewards to organizational success.

  • Develop recommendations for how to implement, monitor, and evaluate such a program.

HRMT 415: Compensation and Benefits - Performance and Compensation: Compensation program


When the performance of organization is tied to the goals, the employees know the kind of contribution they have on the firm. The measurement method is determined and all other stakeholders in the firm who are part of the performance measurement give their views on performance. Behavior, processes, and graphic rating scales are used in evaluating group and individual performance. The individual performance incentives can improve the motivation of employees and also retain high performing employees. The group performance incentives are beneficial because they can contribute to growth of the firm, motivation of the whole team and improvement of the organizational culture.

Explain the concept of tying performance to organizational goals.

The concepts of tying performance to organizational goals happens when the overall company performance is achieved through the careful implementation of organizational goals and also through setting goals an involving many people in the company in goal setting. When the performance is tied to the organizational goals, every employee in the firm can see the kind of contributions they have in the firm and towards the achievement of key goals. In this situation, the specific organizational goal is mentioned and how it is tied to the organizational goals, the specific team members responsibility that can lead to the achievement of these goals are mentioned (The Fedcap Group, 2020). All other stakeholders apart from the team members who may contribute towards the achievement of the goals are mentioned. The frequency, the framework and the method of measurement is often stated so that the organization can know the specific ways it will use to measure the performance of the employee, team members and the whole firm for a specific duration or period.

Describe the different types of individual and group-level performance measurements.

Individual Performance Measurements

The performance of an employee can be evaluated through: Graphic rating scales: The graphic rating scale may be applied to determine the performance of the employee depending on whether the employee understands certain elements of the job. Sequential numbers such as 1 to 5, 5 to 10, etc. (The Hartford Business Owners’ Playbook, 2021). Are used in the performance measurement. Some words that can be applied to determine whether the employee fully understands some important elements of his job include: always, occasionally etc. The graphic rating scales are the right performance measurement scales specifically used in the determination of the performance of employees in certain performance areas. For instance, they are used in the determination of how well an employee understands the job at hand or how fast the worker carries out some duties.

360 feedback measurement: This is a more comprehensive, measure of performance of the employees. In this method, apart from looking at data coming in from the employees alone, the measuring activity also includes opinions from supervisors, co-workers, bosses and looks at the attitudes of the employees (The Hatford Business Owners’ Playbook, 2021).

Group Level Performance Measures

The group dynamics, the behavioral aspects and the processes that the group is involved in can be used in the performance measurement: The behavioral aspects of the group performance could be based on the following issues: Whether the group is involved in successfully organizing company meetings, whether people in the group respect the opinions of other people and finally if the group always comes to a consensus during some of the discussions and meetings (United States Office of Personnel Management, 2019).

What are the advantages and disadvantages of individual versus group-level performance recognition?

Advantages of individual performance recognition

The individual performance recognition can be the right way that the company can use to retain the high performing employees. It is easy to relate the money paid to the employees with the performance that they put in place (HR Daily Advisor, 2013). It is suitable in an organization that values an individualistic kind of structure. When the individual compensation method is correctly applied, it can effectively lead to success in the organization specifically because the company has successfully combined methods that ensure that there is equitable sharing of organization resources.

Disadvantages of the individual recognition of employee performance

Sometimes the method can lead to mistrust if there are some workers who think that the whole process is not fair and it will not lead to success of the company. Some members can say that the process is unfair. The company may take a longer time to establish performance measures that are satisfactory to the employees (HR Daily Advisor, 2013).

The advantages of group based incentive or performance recognition schemes

These methods can improve the organizational culture if they are applied correctly. They are easy to set up because the groups in the organizations are rewarded as one. It can have a huge contribution on the performance of the company (HR Daily Advisor, 2013).

Disadvantages of the group based incentive schemes

Those employees that are highly performing may dispute the methods used and they may prefer the individual based performance or incentive schemes (HR Daily Advisor, 2013). This method is not stable.

Discuss the options an organization has to link individual or group monetary rewards to organizational success.

Pay for performance

The options that an organization has in linking the rewards to performance whether it is group based or individual performance is through the use of the ‘’ pay for performance.’’ In the pay for performance scheme, there is the base pay which is indicated on the contract and in the job description of the employees (Shiyamala, 2012). In addition to this, the company will also include the variable pay. The higher the performance of the employees, the more likely they are to get a higher pay. This structure will lead to increased motivation because the company workers will know that when they post outstanding results, they will adequately be compensated by the organization.

Total Rewards Program

The other option that a company is a total rewards program. In this program, the company will encompass all the elements which are used to get the employees to perform better and incorporate them in the rewards scheme (Chron Contributor, 2011).

Develop recommendations for how to implement, monitor, and evaluate such a program

The organization must ensure that the total rewards program leads to the achievement of the following: increasing the retention of the workers in the firm, getting the workers to be highly motivated and maintaining a high level of enthusiasm of the employees throughout all the work process. The company must also evaluate its financial performance so that it does not become broke because it is compensating the employees too much. The other strategy is ensuring that the firm managers develops a better and a personalized relationship between the employees and the rest of firm leadership. In the pay for performance, the company should monitor its effectiveness by looking at the level of commitment, dedication, motivation and also ensuring that the whole system is fair not only to one group of employees but to all of them.


Chron Contributor. (2011). The Advantages of Having a Total Reward in Organizations.

HR Daily Advisor. (2013, September 26). Advantages and Disadvantages—Team Goals vs. Individual Incentives? HR Daily Advisor.

Shiyamala, S. (2012, October 19). Performance Management - Linking Reward To Performance. MBA Skool-Study.Learn.Share.

The Fedcap Group. (2020, February 11). Tying Performance Management to Company Goals. The Fedcap Group.

The Hatford Business Owners’ Playbook. (2021). Human Resources & Measuring Employee Performance | The Hartford.

United States Office of Personnel Management. (2019). Facts About Measuring Team Performance. U.S. Office of Personnel Management.

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