Mymie B.

Maandig MBA-1
Mrs. Vivien Lawansa

Pay for Performance Enhances Employee Management at Scripps Health

1. Discuss how this case illustrates how compensation can be used as a

method for improving employee satisfaction and motivation.
This case illustrates how compensation can be used as a method for
improving employee satisfaction and motivation because Scripps Health used
compensation to do just that. Scripps Health reorganized their compensation
polices of their organization. Part of this process involved periodic reviews of job
content and the use of annual appraisals to enhance communication. They also
used assessments of experience and education to properly adjust compensation
amounts. Nevertheless, the organization strives to offer competitive
compensation that rests at the 65th percentile of the relevant labor markets,
which positions the firm squarely in the middle between the top and bottom levels
of competitive compensation levels.

2. Identify some of the ways that performance based pay systems should be
developed based on the experiences at Scripps Health.

Based on the experiences at Scripps Health performance based pay systems

should be developed by ratings given annually by performance appraisal sessions. If
employees do well on their performance reviews, they can earn as much of 5% of their
salaries as merit-based compensation at Scripps.