Back to category: Business

Limited version - please login or register to view the entire paper.

Merck & Company (A) 9-491-005

RECOMMENDATIONS:
Use a balanced scorecard approach to performance appraisal and salary compensation. Train managers in Management Rating Review process, which allows managers to rate people with enough discrimination to distinguish performance levels. Implement mentor program to encourage and motivate high performers and weed out poor performers. Implement a bonus program for high performers. Implement a 360-degree review process to allow other employees to rate their peers.
SUPPORTING REASONING:
In 1978, the Performance Appraisal and Salary Administration Program shows a slight increase in Return on Assets one year. After 1979, Merck’s Return on Assets levels off and plunges from 1980 to present day. Return on Assets is the number of pennies of net income generated by each dollar of assets. Since a company’s primary asset is its labor force, efficiency of the labor force has been falling off since 1980. Comments collected by the review committee outline a number of co...

Posted by: Novelett Roberts

Limited version - please login or register to view the entire paper.