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From the Compensation Planning screen, a manager can view compensation plan and budget details, and check and adjust the direct report's rating with overall team ratings distribution. Figure 11 shows an example of the Compensation Planning screen, with the Performance view tab exposed.
The owner of the selected compensation plan appears, along with a hierarchical list showing the total number of direct and indirect reports for the manager. For example, as Figure 11 shows, compensation plan owner Jason Rubin has 14 reports, one of whom is Howard Hunt, a manager with two reports. The selected compensation plan identifies the next manager in the approval process for the submitted compensation plan, in this case, Ed Holden.
For each manager reporting to Rubin, the record shows the total number of employees reporting to that manager, as well as the number of employees in each ratings range (Actual). The Guideline value is expressed as the number of employees that must be in the ratings range to be in compliance.
Each rating range is calculated by adding and subtracting a tolerance value from the expected number of employees in the range. The rating ranges, guidelines and tolerances are configurable using Siebel Tools. Tolerances are usually unique for each range.
For example, an organization has determined that 50 percent of its employees should be in the 3.0-3.9 range, with a tolerance of 2%. If a manager has a total of 53 employees, 26.5 employees should be in the 3.0-3.9 range. If the tolerance value for the range is 1.5, subtracting that number from 26.5 sets the low end of the range at 25. Adding 1.5 to 26.5 establishes the high end of the range at 28. Consequently, between 25 and 28 of the manager's direct reports should be rated in the 3.0-3.9 range.
The Gap value is the difference between the guideline and the actual number of employees actually in the rating category. The gap is displayed numerically (plus or minus), and the Fit Status is expressed as a color-coded indicator that flags ratings that are over or under the guideline for the ratings category. For example, as Figure 11 shows, Jason Rubin has rated three reports so that they appear in the 2.0-2.9 ratings category, and the guideline specifies 0-2 employees. The ratings category is flagged as being out of guideline, and a +1 appears, indicating the category contains an extra employee. To maintain the integrity of the ratings curve, Rubin must adjust the rating for one employee so that the employee's score falls into a ratings category that can accommodate another employee.
These tasks are a step in Process of Setting Up and Managing Ratings Distributions.
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