Business Rules and Practices


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  • What You Should Know: The pay pool process phases link closely with the activities that occur with each phase of the performance management process. In the Plan phase, as employees are working with their supervisors to write their job objectives, the pay pools need to be defined and setup, timelines should be created, and relevant information should be communicated. The purpose of the Prepare phase, is to do just that – prepare for the end of cycle reconciliation process. The main task in this phase is to hold a mock pay pool. The mock pay pool is the best method for developing a shared understanding of performance levels. During the mock, the organization may find problems with its pay pool processes that it can then fix. The Pay phase is the actual pay pool reconciliation process, and includes some preparation, execution, and communication aspects.
  • Business Rules and Practices

    1. 1. Developing and Implementing Effective NSPS Business Rules and Practices
    2. 2. Welcome <ul><li>Today We Will : </li></ul><ul><ul><li>Discuss and gain experience in identifying and developing effective business rules and practices to support the performance management and pay pool processes </li></ul></ul><ul><ul><li>Learn from one another about what works and why </li></ul></ul>
    3. 3. Agenda <ul><li>Introductions </li></ul><ul><li>Topic Overview </li></ul><ul><li>Activities and Discussion </li></ul><ul><li>Wrap-up </li></ul>
    4. 4. Your Co-Facilitators <ul><li>Mark Houghton, Mission Area Director </li></ul><ul><li>Joint Warfare Analysis Center </li></ul><ul><li>Dahlgren, Virginia </li></ul><ul><li>Norm Kushiyama, Director </li></ul><ul><li>Civilian Personnel Advisory Center </li></ul><ul><li>Fort Monmouth, New Jersey </li></ul>
    5. 5. Introductions <ul><li>What is your name? </li></ul><ul><li>Where are you from? </li></ul><ul><li>What Spiral? </li></ul><ul><li>What is your experience with the pay pool process and business rules development? </li></ul>
    6. 6. Pay Pool Process <ul><li>Plan Phase </li></ul><ul><li>Select pay pool members </li></ul><ul><li>Establish timelines </li></ul><ul><li>Develop business rules </li></ul><ul><li>Determine pay pool funding </li></ul><ul><li>Publish relevant information </li></ul><ul><li>Prepare Phase </li></ul><ul><li>Conduct mock pay pool meetings </li></ul><ul><li>Build a shared understanding of the performance levels </li></ul><ul><li>Revise the process </li></ul><ul><li>Pay Phase </li></ul><ul><li>Conduct pay pool panel meetings </li></ul><ul><li>Reconcile ratings and payout decisions </li></ul><ul><li>Communicate </li></ul><ul><li>decisions to </li></ul><ul><li>employees </li></ul>PAY POOL PROCESS
    7. 7. Setting the Context <ul><li>Business rules guide the performance management and pay pool process </li></ul><ul><li>Typically they focus on </li></ul><ul><ul><li>Logistics and meeting management </li></ul></ul><ul><ul><li>Rating and compensation decisions </li></ul></ul><ul><li>The rules change over time depending on a variety of factors such as </li></ul><ul><ul><li>Familiarity with the process </li></ul></ul><ul><ul><li>Structure </li></ul></ul><ul><ul><li>Organizational norms and requirements </li></ul></ul>Fairness  Equity  Transparency  Accountability
    8. 8. Business Rule Context Internal and external “drivers” <ul><li>Business environment </li></ul><ul><li>Organizational culture </li></ul><ul><li>Mission/goals </li></ul><ul><li>Activities/ongoing events </li></ul><ul><li>Pay pool and performance </li></ul><ul><li>management requirements </li></ul>Business Rule Business Rule Business Rule Business Rule
    9. 9. Regulatory Basis <ul><li>DoD 1400.25-M, Subchapter 1940.11 </li></ul><ul><li>Requires employees be informed of:* </li></ul><ul><ul><li>PRA, pay pool mgr and pay pool panel roles, responsibilities and membership </li></ul></ul><ul><ul><li>Pay pool composition </li></ul></ul><ul><ul><li>General pay pool policies </li></ul></ul><ul><ul><li>Factors that may be considered in making specific share assignments and allocations between base salary and bonus </li></ul></ul><ul><ul><li>*To extent information does not compromise procedural neutrality or confidentiality of participants </li></ul></ul>
    10. 10. Exercise 1 – Business Rules <ul><li>Why have business rules? </li></ul><ul><li>Who should develop? </li></ul><ul><li>When is the best time? </li></ul><ul><li>What activities and processes should be covered? </li></ul><ul><li>Who needs to know what your rules are? By when? </li></ul>
    11. 11. Exercise 2 – Scenarios <ul><li>Differences in opinion about how shares should be distributed </li></ul><ul><ul><li>Mathematical formula </li></ul></ul><ul><ul><li>Contribution of Contributing Factors </li></ul></ul><ul><li>Pay pool comprised of diverse age ranges so a set split between base salary increase and bonus is not viewed by many as fair </li></ul><ul><li>Employees believe that pay pool panels should review all performance plans – not all pay pool panel members concur </li></ul><ul><li>Create your own… </li></ul>
    12. 12. Discussion and Wrap-up <ul><li>Lessons learned </li></ul><ul><ul><li>“If I knew then what I know now . . .” </li></ul></ul><ul><ul><li>Rules refinement: What changes are you making and why? </li></ul></ul><ul><li>Additional takeaways / comments </li></ul>
    13. 13. Resources <ul><li>Introduction to Pay Pool Management </li></ul><ul><ul><li>Instructor-led course </li></ul></ul><ul><li>Pay Pool Management for Rating Officials and Employees </li></ul><ul><ul><li>Instructor-led course </li></ul></ul><ul><li>Performance, Pay Pools and You </li></ul><ul><ul><li>Web-based course </li></ul></ul><ul><li>Compensation Management under NSPS </li></ul><ul><li>Component guidance </li></ul><ul><li>Readiness Tool </li></ul>