Decoupling appraisal from pay increases LO19690y

Jack Zigon (jack@zigonperf.com)
Fri, 30 Oct 1998 16:26:25 -0500

Replying to LO19663 --

On 10/28/98 9:44 PM, learning-org-digest at
learning-org-digest-approval@world.std.com said:

>The place I work is new to learning organizations. They hired an outside
>consultant who
>delivered a performance review plan straight from the 1950's, with one way
>evaluations, ranking employees from competent to incompetent, etc. This
>system was designed with only the HR person's input and bombed miserably
>when introduced to project managers.

I'm not surprised. First design a performance management system to help
managers and employees get their work done, then later use it for
performance appraisal. You can't do the former without input from line
management and employees.

>The president of this company has the mental model that performance
>reviews must be tied to salary increases. In fact, that's the reason for
>them, right? I hope you can see where I'm coming from. What I need help
>with is:
>
>* What's wrong with coupling performance reviews to pay increases?

Many times when a company says a) "We pay for performance" and b)
"performance reviews will now be decoupled from pay increase discussions"
employees get confused. Since they assume that pay and performance are
tied together then even if the performance review discussion and the pay
increase discussion happen months apart, they are one-and-the-same to the
employee. I don't see a problem coupling performance reviews and pay
increases.

>* If they're de-coupled, how does an organization give pay increases?

Many organizations give pay increases not tied to performance. For
example, cost of living increases, increases because of an increase in
responsibilities (promotion), increases due to an increase in the market
value of a certain position (computer programmers in a tight labor
market).

>* What are the reasons for formally scheduled performance appraisals?

Agree on expectations
Plan development to meet expectations
Give feedback on performance
Coach to improve performance
Give non-financial rewards for good performance
Review progress on development plans

>* Are there any best practices you're aware of that are contemporary
>models of learning organizations using successful performance appraisal
>systems.

Check out my articles on how to measure employee and team performance as
well as the examples of verifiable performance measures at
http://www.zigonperf.com/performance.htm

Good luck!

-- Jack

Jack Zigon Email: jack@zigonperf.com
President URL: http://www.zigonperf.com
Zigon Performance Group Voice: 610-891-9599
PO Box 520 Fax: 610-891-9055
Wallingford, PA 19086-0520 USA Orders: 800-244-2892

> Performance measurement for teams and hard-to-measure work

-- 

Jack Zigon <jack@zigonperf.com>

Learning-org -- Hosted by Rick Karash <rkarash@karash.com> Public Dialog on Learning Organizations -- <http://www.learning-org.com>