Posted: February 15th, 2016

SCENARIO: You are the Director of Compensation and Benefits for Lansing-Smith Corporation, a 6-month old sales and service organization that currently has a workforce of

SCENARIO: You are the Director of Compensation and Benefits for Lansing-Smith Corporation, a 6-month old sales and service organization that currently has a workforce of 150 employees. You recently joined the organization when the Vice President of Operations decided to move the Compensation and Benefits function out of the Accounting Department, into a separate function. From your own observations you have identified several areas in need of review, redesign or development, including projects such as an audit of current pay plans to ensure they are aligned with federal regulations, an analysis of various pay plans to assess which plans will provide maximum benefit for Lansing-Smith, extensive job analyses to ensure a solid understanding of each position, job evaluations to determine the worth of the positions, consideration of various incentive plan designs to identify a plan that effectively drives individual and group performance to achieve production goals and research, development, communication and management training for a company-wide performance appraisal process.
You are dedicated to developing compensation and benefit practices that are motivating and empowering for employees. You are confident that with well-developed programs and practices, employees will be motivated to perform at higher levels, thereby driving overall company performance.

As the company approaches its first year in operation, you are planning to roll out a company-wide performance appraisal program. The CEO is relying on you to develop a program that will drive company performance.
Using the internet and the other resources, locate information on performance appraisal programs. Then develop a detailed plan to present to your CEO. This plan should include:

Discussion of the various programs you have considered,
Which program you have selected and why.
How will the new program be communicated to employees?
What type of training will need to be provided for managers?
What additional issues/challenges need to be considered with the implementation of this program?