A2.2 The Merck Case Study (Due Jan. 13)
1.What are the problems with Merck’s Old Plan?
It was based on the scale system of measurements that often was unreliable. The
assessment is based on rating 13 categories and supervisor decisions were made with
the absence of employee input. Salary determinations made based on the Hay point
system with little merit or separating the ability and experience deciphering top
performing employees.
2.Does this plan align with their business strategy and current market
performance?
The old plan was not completely aligned because it did not encourage and reward its
employees and supervisors were lax in charting useful information based on knowledge
and experience, dependability and satisfaction. Instead, employees were graded
straight forward and on an even scale resulting in a lot of employee dis-satisfaction that
went unheard.
3.If you were a member of the Employee Relations Review Committee what
suggestions for identifying and rewarding performance would you make?
After developing a plan of action and establishing guidelines for training, recruiting,
retention, and communication to address rewards with a set of accountability
mechanisms. Utilizing the power and seeing the potential of the company’s employee
talent. Communicating employee recommendations designed to increase and motivate
performance. Setting compensation and merit guidelines in tuned with performance
results making employees aware of the reward processes.
4.What are the repercussions if Merck does nothing?
They run the risk of retaining talented employees, as they will feel that their careers are
being stymied. The impact of performance will go un noticed by employee as the being
feeling that it doesn’t matter and the result will be the same whether they perform or not.
5.Why do managers prefer to assign uniform ratings to employees regardless of
performance?
They do not have to justify differences and cast eyes on the non-performers. Top
management will recognize only that they provided and presented a performance
appraisal, without singling out or separating top performer with minimal promotional
rewards.
6.What has your experience with performance appraisals been (as an employee, a
manager, or both)?Does your organization have a best practice you would like to
share?
When looking at personal involvement as an employee I preferred the double
accountability process where I was allowed input and an opportunity to discuss and
sight difference in the overall assessment. I do not feel direct supervisors are always
privy to or on-top of what all an employee brings to the table or their attitude regarding
how they set out to get the assigned job done or what the job entails.
On the manager side I believe that you want to remove unfairness and doubt that you
are giving the earned credit due the employee respectfully make them aware of needed
improvement and as well as opportunities available to them without bias.
Salary and compensation should be evaluated and discussed along with the method
used to determine be it by percentage or companywide caps.