Financial Impacts of Unions and Collective Bargaining

 The merit reward program legislated by the state can help the agency to differentiate between higher performing and low performing employees and thus reward the high performing employees. Such a program helps in differentiating the entire organizational performance from that of individual staff members. Hence, the program can provide use the reward in the promotion of values such as positive relationships between staffs, teamwork and effective delivery of services. Such a program remains the best for the organization retaining the outstanding employees, and when corporation among various managers on how to develop the manner of merit distribution, an effective system could be achieved. For the program to be better structured there should have been a one-time basis of performance so that to reward the employees who could have participated in a short-time projects (Kearney &Mareschal, 2014).

There are various issues raised in the implementation of this merit reward system.  It is not easy to accurately differentiate the individual employees who are most deserving of this merit pay.  Those contributions and accomplishments which are most desirable are most of the times never measurable. Hence a judgment of the manager will remain constant in determination of merit pay. In addition, it can prove to be very difficult for a manger to communicate to all employees the value of their contribution individual and the merits used in payment (Kearney &Mareschal, 2014).  

The merit pay plan will involve a determination of the degree of merit for each employee and then a score of 1 to 5 will be assigned for every category. Then an average of subsequent scores will be done so that the overall level of achievement is determined.

Reference

Kearney, R., Mareschal, P. (2014).Labor Relations in the Public Sector, Public Administration and Public Policy. CRC Press.