Appendixes



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Pay for Performance: Evaluating Performance Appraisal and Merit Pay Appendixes

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Pay for Performance: Evaluating Performance Appraisal and Merit Pay This page in the original is blank.

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Pay for Performance: Evaluating Performance Appraisal and Merit Pay A Survey Descriptions A brief description of each survey used in the committee's review of private-sector performance appraisal, merit pay, and variable pay plan practices is presented below. Each description includes a complete survey reference. The surveys are nearly all proprietary; they are not based on scientific sampling methods and report no sampling frame, error rates, or confidence intervals. The American Compensation Association 1987 Report on the 1987 Survey of Salary Management Practices. Scottsdale, Ariz.: The American Compensation Association. No. of Organizations: 1,395 Type of Organizations: 33% manufacturing; 40% services; 27% utilities/other Size (employees): 31% < 1,000; 69% = 1,000 Respondents: Top personnel officers Response rate: 24% Bretz, R., and Milkovich, G. 1989 Performance appraisal in large organizations: practice and research applications. Working Paper #89-17. Center for Advanced Human Resource Studies Cornell University, Ithaca, New York. No. of Organizations: 63 Type of Organizations: Manufacturing Size (employees): Mean: Exempt = 20,816; Nonexempt = 31,407 Respondents: Top personnel and compensation executives Response rate: 70%

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Pay for Performance: Evaluating Performance Appraisal and Merit Pay The Bureau of National Affairs 1974 Management performance appraisal programs. Personnel Policies Forum Survey No. 104. Washington, D.C.: The Bureau of National Affairs. No. of Organizations: 139 Type of Organizations: 50% manufacturing; 25% nonmanufacturing; 25% nonprofit/government Size (employees): 40% < 1,000; 60% = 1,000 Respondents: Top personnel officers Response rate: 60% The Bureau of National Affairs 1981 Wage and salary administration. Personnel Policies Forum Survey No. 131. Washington, D.C.: The Bureau of National Affairs. No. of Organizations: 183 Type of Organizations: 49% manufacturing; 31% nonmanufacturing; 20% nonprofit/government Size (employees): 46% < 1,000; 54% = 1,000 Respondents: Top personnel officers Response rate: 60% The Bureau of National Affairs 1984 Productivity Improvement Programs. Personnel Policies Forum Survey No. 138. Washington, D.C.: The Bureau of National Affairs. No. of Organizations: 195 Type of Organizations: 45% manufacturing; 27% nonmanufacturing; 28% nonprofit/government Size (employees): 53% < 1,000; 47% = 1,000 Respondents: Top personnel officers Response rate: 65% (The Personnel Policies Forum surveys vary somewhat in their geographic coverage, but typically try to cover major geographic regions; in the latest survey we used, the responding 31 percent of the responding organizations were headquartered in the South, 27 percent in the North Central states, 23 percent in the West, and 19 percent in the Northeast.) The Conference Board 1976 Compensating employees: lessons of the 1970s. Conference Board Report No. 707. New York: The Conference Board. No. of Organizations: 493 Type of Organizations: 54% manufacturing; 46% services/retail & wholesale

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Pay for Performance: Evaluating Performance Appraisal and Merit Pay Size (employees): 23% < 1,000; 77% > 1,000 Respondents: Top compensation executives Response rate: Not reported The Conference Board 1977 Appraising managerial performance: current practices and future directions. Conference Board Report No. 723. New York: The Conference Board. No. of Organizations: 293 Type of Organizations: 41% manufacturing; 59% services/retail & wholesale Size (employees): 29% < 1,000; 71% > 1,000 Respondents: Top personnel executives Response rate: Not reported The Conference Board 1984 Pay and performance: the interaction of compensation and performance appraisal. Conference Research Bulletin No. 155. New York: The Conference Board. No. of Organizations: 557 Type of Organizations: 54% manufacturing; 46% services Size (employees): Median: 9,600 manufacturing; 2,130 services Respondents: Top compensation executives Response rate: Not reported The Conference Board 1990 Variable pay: new performance rewards. Conference Board Research Bulletin No. 246. New York: The Conference Board. No. of Organizations: 435 Type of Organizations: 43% manufacturing; 57% services/retail & wholesale Size (sales): Only companies with sales of > $100 million Respondents: Top compensation executives Response rate: 16% HayGroup, Inc. 1989 Compensation and benefits strategies for 1990 and beyond. The Hay Report. Philadelphia: HayGroup, Inc. No. of Organizations: 1,098 Type of Organizations: 78.1% industrial; 21.9% financial Size (employees): Not reported Respondents: Top compensation managers Response rate: Not reported (This report is a compilation of several HayGroup surveys; we used the results from The Hay Compensation Report, 1989.)

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Pay for Performance: Evaluating Performance Appraisal and Merit Pay Hewitt Associates 1989 Compensation Trends and Practices Survey, 1989. Lincolnshire, Ill: Hewitt Associates. No. of Organizations: 705 Type of Organizations: 33% manufacturing; 67% services Size (employees): 33% < 1,000; 67% = 1,000 Respondents: Compensation managers Response rate: Not reported Committee on Performance Appraisal for Merit Pay, National Research Council 1990 The committee solicited additional information on performance appraisal from 28 Conference Board member firms. The respondents represented all major industrial sectors and are generally considered leading firms in human resource management. A draft summary of the responses of these firms is available through the committee's staff files. O'Dell, C. 1987 People, Performance, and Pay: A Full Report on the American Productivity Center/American Compensation Association National Survey of Non-Traditional Reward and Human Resource Practices. Houston: American Productivity Center. No. of Organizations: 1,598 (some multiple units of firm) Type of Organizations: 46% goods; 46% services; 8% government Size (employees): Not reported Respondents: 83% personnel; 17% other managers Response rate: 36% TPF & C/Towers Perrin 1990 Achieving Results Through Sharing: Group Incentive Program Survey Report. New York: TPF & C/Towers Perrin. No. of Organizations: 144 companies (177 variable plans) Type of Organizations: 77% manufacturing; 23% services and retail/wholesale Size (employees): Median = 2,600; Range = 26 to 300,000 (sales): Median = $500 million Respondents: Variable plan designers Response rate: Not reported U.S. General Accounting Office 1981 Productivity Improvement Programs: Can They Contribute to Productivity Improvement? AMFD-81-22. Washington, D.C.: U.S. Government Printing Office.

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Pay for Performance: Evaluating Performance Appraisal and Merit Pay No. of Organizations: 54 Type of Organizations: 93% manufacturing; 7% services and retail/wholesale Size (employees): Range from 100 to 100,000 Respondents: Reported only as "officials" of firms Response rate: 56% Wallace, M. 1990 Rewards and Renewal: America's Search for Competitive Advantage Through Alternative Pay Strategies. Scottsdale, Ariz.: The American Compensation Association. No. of Organizations: 46 Type of Organizations: 83% manufacturing; 17% services/utilities Size (employees): Mean = 19,362; Range = 55 to 90,000 Respondents: Wallace conducted case studies; interviewed key executives, managers, and employees Response rate: Not applicable The Wyatt Company 1989 Results of the 1989 Wyatt survey: getting your hands around performance management. Pp. 4-18 in The Wyatt Communicator Fourth Quarter, 1989. No. of Organizations: 3,052 Type of Organizations: 30% manufacturing; 40% services; 5% utilities/transportation/oil; 6% retail/wholesale; 19% government/nonprofit/other Size (employees): 65% < 1,000; 35% = 1,000 (25% > 10,000) Respondents: 93% senior and middle personnel managers Response rate: Not reported This survey has a broad geographic representation with 24 percent in the Northeast, 20 percent in the Southeast; 21 percent in the Great Lakes; and 15 percent in the Pacific states (north and south). The Wyatt Company 1989 The 1989 Survey of Locality Pay Practices in Large U.S. Corporations. Philadelphia: The Wyatt Company. No. of Organizations: 80 Type Organizations: 44% manufacturing; 19% services; 37% utilities/other Size (employees): 67% = 50,000; 33% > 50,000 Respondents: Top compensation managers Response rate: Not reported

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Pay for Performance: Evaluating Performance Appraisal and Merit Pay The Wyatt Company 1987 The 1987 Wyatt Performance Management Survey. Chicago: The Wyatt Company. No. of Organizations: 805 Type Organizations: 35% manufacturing; 40% services; 25% other Size (employees): 20% = 1,000; 33% 1,000-5,000; 20% > 5,000 Respondents: Personnel managers Response rate: Not reported