The Struggle to Measure Pay for Performance

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However, performance reviews can be a good time to emphasize expected behavior changes and establish consequences, should changes not occur. A manager’s goal during a performance review should be to make sure they have a complete understanding about the employees’ performance, their achievements, failures or pitfalls, their next year’s goals and their plan to achieve their new objectives.

Provide sample dialog explaining the merit increase decision to Tyra, Phyllis, and Collette. Many companies take different approaches to ranking performance management. Business leaders, Human Resources, managers and employees all have their own expectations and this can lead to no one’s needs are being met. Instead merit increases based on a forced performance ranking programs can frustrate employees and waste managers’ time and budgets. For performance management to be successful, business leaders need to be clear about the objectives behind it so that employees are well aware of what exactly is being used to evaluate their performance.

My goal is to give the larger salary increases to the better performers like Tyra, who has exceeded expectations. I believe that employees like Phyllis also deserve a fair salary increase because they strive to meet expectations however may need improvement by providing additional training. As for performers like Collette who did not meet the requirements of the jobs and are not outstanding performer, they may not be eligible for a salary increase.

References:

Quast, L. (2012, September 17). Information for the World's Business Leaders - Forbes.com.

How To Make Performance Reviews Relevant - Forbes. Retrieved April 03, 2015, from http://www.forbes.com/sites/lisaquast/2013/01/21/how-to-make-performance-reviews-relevant/2/

Scullen, S. (n.d.). Business Profiles and Company Information | Retrieved April 6, 2015, http://www.zoominfo.com/s/#!search/profile/company?companyId=75794656&targetid=profile