Situation: The OL organization is a medium to large-sized service organization in New England. The OL organization’s performance appraisal system, which was designed by the HR Department several years ago, requires that all employees be evaluated by their supervisor on an annual basis except for new employees, who are appraised after the first 90 days (the probationary period). The performance appraisal form, which is used for all employees, is shown below. Supervisors are required to complete this form covering each of their employees at the appropriate time. They should discuss the evaluation with the employee, ask each employee to sign the form at the end of the interview, and return the completed form to the HR department.
The organization has several different wage structures, including one for executives, one for managers, and one for all the other workers. The job evaluation is the point factor technique in which all jobs receive a point value based on an assessment of compensable factors. Jobs are then assigned to a grade level, and each grade has an entry or minimum rate and a maximum salary payable for the jobs in that grade. The amounts between the entry rate and maximum comprise the salary range for the grade. Adjustments to the ranges are made periodically as area market rates change.
Salaries are directly related to the work they do and how well they do it. The salary is based on the point evaluation and the survey results. The company is generally considered to be competitive when surveyed in their market. Usually employees begin at the bottom of each pay grade. Employees are considered for a merit increase after six months of service and then they annual receive a merit increase at the end of each year. Cost-of-living increases are also granted periodically by the organization to all employees.
You are Sandy, the Human Resource Manager, and have received the following memos and emails over the last several days while you were out of the office. Please respond to each of them. Before you respond to the email or memo, state the importance of each as either critical, medium, or of low importance.