Xcel Energy Pays For Employees Who Excel-Case Stud

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Running head: EMPLOYEES WHO EXCEL Xcel Energy Pays for Employees Who Excel Dorothy "Micki" Gould Kaplan University MT203: Human Resource Management Professor Denise Rodgers December 01, 2011 Xcel Energy Pays for Employees Who Excel Introduction “Employers with well-developed performance management systems often connect compensation to performance appraisal ratings to determine the amount of salary increases and bonuses for employees who meet or exceed the company's performance expectations.” (Mayhew, 2011) When looking for a job, along with knowing what the salary requirements are, job seekers often also want to know what kind if any type of bonus is available. “Recognition can help you reduce turnover and provide options for everyone to actively attract and recruit new employees because they are rewarded for doing so.” (Saunderson, 2006) Review/Analysis of the Case The reasons to agree with management’s conclusion that merit pay can support Xcel’s strategy better that paying for suggestions is that even though the employees loved the idea of the immediate bonus by submitting over 6,000 suggestions they did not know if the rewards were worth the money. (Noe, Hollenbeck, Gerhart, & Wright, 2009, pp. 361-362) The Merit pay system helps more employees who are hard workers get bonuses. Coming up with a great idea is hard work, but for those people who for one reason or another who cannot come up with ideas but are great workers, they are not being rewarded. “By putting a bonus system in place, you can create an environment that encourages maximum employee performance and rewards those employees who achieve or exceed company expectations.” (Hose) On the other hand, “As long as bosses don't give honest feedback to their employees, performance review and bonus goals will remain nebulous, obvious, easy, and employees will nail them.” (Brenner, 2011)

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