Archive for May, 2009

Performance Management – connecting rewards to results

Monday, May 11th, 2009

How did the link between performance and reward become so etiolated? ‘interesting times’ indeed when bankrupt organisations pay out pre bankruptcy bonuses and benefits, and company officers walk away apparently without sanction.  The breaking of the link raises many questions.  Did the City ‘pay to go away’ culture lead directly to the loss of management competencies? Did a super abundance (overstated?) of profits allow the development of a culture of avoidance and collusion?  Did failure to understand the true nature of the products and services being sold, lead to the confusion of a market bubble with management performance?   

To most (and surely especially to more junior staff) the breaking of the link between performance and reward makes a mockery of much vaunted systems of recruitment, appraisal, and development.  Those of us with grey hair understand that systems need people to co-operate to make them work.  For this to happen not only must they be credible (measure the right thing), the individuals concerned must be confident in their ability to use them.  At The Performance Practice we know that the practical side of performance management is actually really difficult – particularly in high intellect and entrepreneurial organisations.  Big hitters (and wannabes) do not usually take lightly to being realistically appraised: those professional skill sets you hired tend to be applied enthusiastically to the more immediately motivating question of pay rises: whilst the conversation is about performance it’s impact on the relationship between manager and managed is potentially damaging and technically orientated managers may not even be willing to try.  Responses to this challenge are not necessarily logical but emotional.  Ironically it often feels much easier to introduce a standard system and tick the boxes, rather than address the real issues – particularly when the organisation also has to meet a regulatory or legal requirement.

 

? Does your performance management system reward performance?

Next Steps : 

  •          Audit your existing system
  •          Practical and realistic performance management skills training
  •          Employee Value Proposition

Talk to us, in confidence and without obligation at  performance@theperformancepractice.co.uk

 

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