Pay (or reward?) for Performance LO21233

Philip Pogson (ppogson@uts.edu.au)
Fri, 09 Apr 1999 02:23:13 +1000

Replying to LO21218

Winfried cited Robert Bacal writing:

>That said, when you pay people equally for different productivity, that
>has side-effects. When you pay people based on some criteria to
>distinguish those more deserving from less, that has side-effects.
>
>It's that simple.

Robert,

Like Winfried, I too am intrigued as to why you believe the issue of "pay
for performance" is so simple. I find myself asking why you appear not to
explore the assumptions underlying this statement: to subject your
assumptions to rigorous critique.

Questions I have include:

- Is "pay for performance" the same in your mind as "reward for
performance" because to me pay and reward cannot be reduced to one and
the same?

- Where does "recognition for performance" come in? Who gets recognised
and for what?

- If level of pay is so strongly and necessarily correlated to level of
performance, why does national and international research consistently
show that pay is generally 3rd of 4th on the list of the important
outcomes human beings want from work. Why, for example, do talented,
committed people choose to work for not-for-profits for (relatively) low
pay and conditions? Is it perhaps because the reward, if not the pay, is
instrinsic? That people can contribute to a higher cause, make a
difference, live out their values and their love for others?

- Is there a universal, non-controversial way of defining "high" and
"low" performance, suitable for all circumstances and all industries or
is defining performance, in your opinion, situation specific? If the
latter, like Winfied, I believe one must then put a lot of time and effort
into developing a shared vision of what "performance" is in each context.
Then, of course, one finds oneself dealing with each individual's mental
model and tacit/explicit assumptions of what "perforance" is.

- Finally, what place does time have in measuring performance? Why might
it be that the investment industry has developed "golden handcuffs" and
deferred bonuses if not to highlight the trade offs between long term and
short term performance?

Today's high performing star can tomorrow bankrupt an industry, or even a
country...witness the Asian Tigers.

Philip

Philip Pogson
Leadership Development Strategy Consultant
Staff Development Branch
University of Technology Sydney NSW 2007
+61 2 9514 2934
mobile: 0412 459156

"People don't buy corporate values; they roll their own."

Thomas Stewart

-- 

Philip Pogson <ppogson@uts.edu.au>

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