Part I: Short Answer Questions:
Problem 1: Explain the differences between individual versus group performance and the measures that apply to each.
Problem 2: Discuss and identify the different subjective and objective factors that might apply.
Problem 3: Explain the financial and other measurements that can be used to evaluate performance.
Problem 4: Explain the different influences that might affect the outcome of performance measurement. How are taxes categorized in this evaluation?
Problem 5: How can we use raters to measure overall performance and how do we establish the ratings typically?
Problem 6: Explain the different short term and long term incentives that might be used to determine performance outcomes. How do tax rules impact each of these terms?
Problem 7: Explain the different design considerations that should be evaluated when establishing measures and standards.
Problem 8: How do we establish measures up front and what determines whether we use the same measures or different measures based on the incentives? What are some of the main areas where taxes play a part in this evaluation?
Part II: Professional Development Questions
Problem 1: Pick a type of compensation we discussed in lesson one for use in establishing some performance measures. This can be something from the text or your own company. Define the compensation item to be measured.
Problem 2: Once you have defined the compensation item to be used here as part of question #1, define the performance measures that you would use to measure its application both in the short term and long term.
Problem 3: Please discuss in each of the following categories how you would apply stronger performance measurement design considerations for:
a. How the rates of compensation are identified and established.
b. Different factors of compensation to be measured.
c. How you would measure the outcomes of performance against the level of pay.
d. How you would test the desired performance outcomes against expectations and how would the compensation adjustment process work.
e. How you would ensure that the agreed to performance measures are agreed to and that the individuals who will be reviewing performance against them understand how to assess them fully.
f. How you would communicate performance measurements as part of the short term and long term incentive measurement and award process.
g. The overall analysis process of how you would review the results and make needed adjustments for what is measured and how the measurement was performed.
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