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Ethical Performance Appraisal Issues - Research Paper Example

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The compensation plan that has been developed by MGOA ensures that the surgeons that were previously paid using flat salaries are compensated based on their productivity and profitability in the organization. Moreover, the surgeons were concentrating mostly on research; but also…
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Ethical Performance Appraisal Issues
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Download file to see previous pages The compensation plan also cut down on the amount of money that was given to doctors who had tenure. This is because the amount of money they were getting was more that they were bringing in and or that reason, in order to benefit from the finances they had to work more to gain more.
Various strengths have been associated with the pay for performance plan. They include positive performance because the surgeons pay correlate directly with the number of patients or surgeries they perform in a given quarter. Secondly, the compensation plan provides equality on the surgeons in the sense that regardless of the tenure on has served they all have to get paid according to their performance; hence, reducing the protection given to low performers in the organization (Beaulieu & Zimmerman, 2005a). Thirdly, there is employee motivation because the surgeons will not be relying on the base pay that they have been accustomed to in that, knowing that they will get more when they work makes it increase their motivation and productivity for the organization.
Even though the compensation plan has various strengths, it has shown some weaknesses. They include lack of backing from surgeons who have had tenure of service. Because they are accustomed to a little work, yet more pay and for that reason, adjusting would be AA problem. Secondly, the surgeons working on the research will abandon their work because the money meaning that they might lose grants from National Institute of Health motivates them. To deal with these challenges, it is important to come up with a plan that will ensure that the employees with tenure do not feel left out. Additionally, they should be provided with a work plan that allows them to bring the hospital money to stop in order to ensure that even though they are taking money from the hospital at least they are bringing some back. In relation to ...Download file to see next pagesRead More
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