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when it comes to salespeople who work on a commission basis. Many retail workers tend to be
younger and less experienced workers who are used to being paid on an hourly basis. Employers
can use a hiring strategy whereby they hire part-time workers more than full-time workers. This
creates scheduling flexibility and allows retail managers to limit the number of hours worked.
Salary Advantages
The advantage for employers who choose a salary model as the basis for their pay plan is that
they too will always know what they will be paying their employees in a given period of time.
Another advantage to this type of pay plan is that the employer can generally require the
employee to work more hours than they would under an hourly plan without necessarily having
to pay them extra. This provides an employer the opportunity to get the most bang for his buck
out of each employee. In the retail industry, managers are typically paid a salary because they
work longer hours and are often on-call to serve the needs of the business. This is especially true
in larger nationwide retail establishments that put a high demand on the time and availability of
their managers.
Disadvantages
Disadvantages exist to both types of pay plans as well. Getting the most bang for your buck out
of your employees on a salary plan may result in less production from employees who have to
work longer hours than their counterparts. Employers may have to use salary plus incentives as a
way to motivate employees who work on a salary basis. They may also need to offer a salary that
is higher than what they would pay an hourly employee for the same job. Additionally, the
employer may also have to limit the amount of hours they work employees so that the employees
don't revolt and quit. Hourly employees may also need to be compensated at a higher level for
retention purposes. The promise of occasional overtime may help as well. Compared to the
amount they could make on a salary, retail employees paid on an hourly basis may seek work
elsewhere if not compensated above minimum levels for their field of work, especially in areas
where there is tight competition for hourly retail employees.
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1. Essay Method
3. Rating Scale
Rating scales consists of several numerical scales
representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are
derived. Advantages Adaptability, easy to use, low cost,
every type of job can be evaluated, large number of
employees covered, no formal training required.
Disadvantages Raters biases
4. Checklist method
5.Ranking Method
The ranking system requires the rater to rank his
subordinates on overall performance. This consists in
simply putting a man in a rank order. Under this method,
the ranking of an employee in a work group is done
against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job
performance against another member of the competitive
group.
Advantages of Ranking Method
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
employee.
Limitations of Ranking Method
The whole man is compared with another
whole man in this method. In practice, it is very difficult
to compare individuals possessing various individual
traits.
This method speaks only of the position where an