Economics Report on Human Resources Assignment
- 20th Oct, 2022
- 17:38 PM
1. We've covered two types of retirement plans in general. Which kind of strategy promotes workers to leave the workforce at the average retirement age of 65? What aspects of that plan motivate employees to take retirement at or near the normal age? What aspects of the alternative plan discourage employees from retiring at or near the traditional retirement age?
Ans: If comes to retirement a large number of employees don't have enough retirement savings to cover their living expenses after leaving working in companies.
Suppose workers stay in your company after retirement age and they also stay on your insurance costs your company money. so definitely company cost increase because after retirement age insurance cost increase and as compared with younger individuals usually cost a bit more. Because costs your company thousands in medical benefits alone.
Now we discussed how encouraging employees to retire on schedule there are many plans but we discussed there are 2 types of plans.
- encouraging an employee to contribute funds with an employer and maintain career life cycle
- employer contributions on funds
we discussed first encouraging an employee to contribute funds with an employer and maintain a career life cycle because it's important you don't want all your older workers to retire at once, and you always want your company and younger employees greatly benefit from older employees' experience and knowledge. So you want to consider what the best plan would be for your company. And it's important to encourage an employee contribution to own retirement fund and contribution by the employer.
And it encourages your older employees and that would enable older employees to occupy positions whey they transfer knowledge to younger employees and still retire in time to enjoy their golden years.
But in an alternative plan of retirement if we only force retirement or do not encourage funds then have not enough money to cover their expenses after they leave the company. this situation comes when a lack of good planning and funding.
2. Take into account one non-retirement perk your present employer (or a previous company you worked for) provides to its staff. Describe this benefit's nature and operation. Explain why the company probably offers the perk using the economic theories we've covered, as opposed to just paying employees more money and leaving them without the advantage.
Ans: There are many benefit employer offer to their employees. like health insurance, housing, vacation, daycare sick leave, loan and domestic help (servants), and other specialized benefits. but we discussed one of the benefits.
Housing - Housing benefit increases productivity through improved employee morale. and it's a most important role in remote work locations because it makes it easy for an employee to work according to remote work without thinking about how to manage that's things and unable to give his work as much concentration. to better productivity and work with concentration, it's important to work without any stress and the employer manages all relocation things and provides housing benefits.
The firm likely offers that benefit instead of simply paying people higher wages and not providing that benefit there are many reasons one of the reasons is government policies. and all company ensuring productivity suppose employee who is not able to retire when they wish may experience financial stress, a lack of engagement and lower productivity. An employee didn't save enough money to retire this money worries an unstable employee unable to give his work as much concentration. So it's important to give benefits to an employee instead of simply paying people higher wages and not providing that benefit.
3. We’ve discussed relative performance evaluation and pay in the context of different types of employment, but we could consider applying the same theory to the evaluation of academic performance in an education program. For instance, I could establish that students near
the average final grade in our course receive a B with students scoring several points above the average receiving an A and those scoring several points below the average receiving a C. What are the pros and cons of employing a relative performance evaluation in the context of this class instead of an absolute standard such as a 10-point grading scale (i.e. 90-100 = A, 80-90 = B, etc.)? Be sure to apply and discuss several of the economic concepts we have covered.
Ans: Relative performance assessment is the assessment of the performance of an agent relative to peer performance. The philosophy of the agency suggests that basing an agent's compensation contract on RPE would protect him from specific shocks unrelated to his work. Thus, the inclusion of RPE eliminates undue risk from the contract and provides a more comprehensive method for the performance appraisal of the agent. It is usually used in executive compensation or in decisions that regrade employee performance because of its risk-sharing advantages.
Job Evaluation is a method used to rate workers in an organization based on the delegated tasks and obligations. The method of evaluating research it results in a worker being transferred to a grade of pay. The amount of pay is correlated with the pay spectrum specified by minimum and maximum rates of pay.
Absolute grading contributes to a marking system where the performance levels are pre-set by the teachers. Absolute grading is inefficient — meaning all students in a class fail and a teacher normally can't make any changes to grades if anyone gets below 59 per cent. Absolute grading is based on fixed percentage measures, which may be restrictive for students who all earn a low grade, for example In the USA an absolute ranking scheme assigns points A to points 90-100, points B to points 80-89, points C to points 70-79, points D to points 60-69 and points F to points 59
Advantages and Disadvantages of using a relative performance evaluation
A performance appraisal system is a valuable management tool that helps obtain input, evaluate and estimate whether the output is successful, and discuss what needs to be done to make it so. Managers administer assessments to help workers and employers alike.
- The individual output of each employee affects how the whole team, or even the company, is doing.
- This clarifies the role and position of the employee in the organization. Some employees want to know where they stand with respect to their job results and want to see what else they can do for the business.
- The most significant advantage for the employee is self-development. Performance assessment lets you provide valuable responses and identify areas for improvement. An employee should speak to the manager about and even build a growth plan so he should improve his skills.
- This motivates workers if a successful, merit-based pay program helps them. Top performers are getting decent compensation packages and rewards packages. Likewise, they penalize all workers who are lagging behind.
- Appraiser Viewpoint
- Inadequate Proof
- Despite Appraisal
- Many Qualities remain. Leniency or Rental Strictness
- Average problem with ratings
- Man's responsibility Impacts, and
- Error on similarity.