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Motivating and Compensating Employees

Magic Graffix is a successful company with more than 100 employees. However, launching a game production led to issues with human resources. In particular, the company's employees complain that they do not have clear job duties, motivation, a friendly work atmosphere, and freedom to creative work. It reduced the productivity and profitability of Magic Graffix. Therefore, the company's HR specialists need to review their approaches to selecting people and further methods for evaluating employees' performance. The purpose of this paper is to evaluate the most appropriate methods for achieving these tasks.

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Magic Graffix company needs to select the appropriate interviewing technique. It will help to avoid unnecessary expenses on hiring people who do not fit their work positions. Specialists designed a list of recommendations for conducting effective interviews. First, interview questions should be based on a job analysis. Second, it is appropriate to ask all the candidates the same general questions. Third, HR specialists should apply detailed rating scales and make detailed notes about the behavior of candidates. Besides, it is helpful to conduct interviews with several interviewers. Also, HR specialists should use both statistical evaluations of each category of candidates and an overall assessment of their suitability. Finally, interviewers should avoid discussing candidates with interviews (Cascio, 2005). Another requirement is creating a system. Apart from the suggestions made earlier, this includes preparing different kinds of questions, observing non-verbal signs made by a candidate, designing a form that would contain a list of necessary competencies, etc. Such a systematic manner of conducting an interview would help to assess candidates objectively and choose people who possess all the necessary skills and motivation (Cascio, 2005).

Apart from conducting interviews, HR specialists usually apply selection tests. Unfortunately, Magic Graffix does not provide information on what selection tests it uses. However, I believe that it really needs them. Such tests should help to assess the professional skills of the candidates. For instance, it can be some practical assignment. I think that personality or leadership tests are not appropriate for the company because most of its employees work on developing the software and equipment. Therefore, their main requirement is the ability to create unique and competitive products.

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However, even appropriate interviewing techniques and selection tests are not effective without correct performance appraisals. There are different types of them. The first type is 360-degree feedback. It presupposes a systematic gathering of performance data from different sources such as peers, customers, supervisors, etc. As a result, HR specialists can objectively observe the performance of an employee and evaluate different aspects such as customer satisfaction, teambuilding skills, and interpersonal skills. On the other hand, this type of performance appraisal may threaten employees and make them afraid of making their own decisions. Also, some raters may provide false information (Nickels, McHugh & McHugh, 2010). The second type of performance appraisal is assessment centers. They are central locations where employees meet and perform work-related exercises. Trained observers evaluate their results. The tasks include in-basket exercises, computer simulations, role-playing, etc. Such a variety of exercises allows observers to assess employees' communication, decision-making, presentational, personal, organizational, and planning skills, as well as the ability to work in a team. However, there are also some disadvantages of this method such as expenses on employees traveling to assessment centers. Besides, ratings of observers may be influenced by their personal attitudes to people they evaluate (Cascio, 2005). The third type of performance appraisal is the psychological appraisal. This method helps to evaluate employees' potential to perform work in the future. It consists of many steps such as detailed interviews, psychological tests, feedback of supervisors, and results of other evaluations. Overall, this method is effective in estimating the personal skills of employees. Despite all the advantages, psychological appraisals have such disadvantages as high costs and time-consuming executions. Also, the quality of such appraisals may be negatively affected by the skills of psychologists who perform these tests (Nickels, McHugh & McHugh, 2010).

The most appropriate tool for Magic Graffix is 360-degree feedback because it helps to conduct an objective evaluation of employees' work-related skills, which is essentially important for the company.

Apart from performance appraisals, Magic Graffix also needs to use other corrective measures. First, it is necessary to conduct a survey that would help to analyze the employee's feedback concerning working conditions in the company and recommendations for their improvement. Second, the company should investigate the human resources field in the industry. In particular, HR specialists could analyze average salaries and benefits, an approximate number of people who leave jobs, etc. Third, the simulation demonstrates that the company should also review and clarify the job duties of its employees. Also, the company should improve the bonus system for those who demonstrate better results. Moreover, HR specialists should clearly explain to employees how they can receive their bonuses. Besides, Magic Graffix should adopt more team-building activities because many employees are not satisfied with the psychological climate in the company. Finally, it is necessary to conduct exit interviews.

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To sum up, the profitability of Magic Graffi is now in danger due to the low productivity of its employees. Therefore, the HR department has to review its policy. First, it should improve its interview techniques and selection tests. In particular, HRs should check candidates' motivation, professional skills, and ability to work under stress more precisely. Second, performance appraisals should be modified. I would recommend using 360-degree feedback because it covers a significant amount of aspects. Besides, I would advise providing more bonuses to the best employees. Finally, clear distribution of duties between workers is also necessary.

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