Higher performance while balancing affordability of system

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In the last few chapters we focused on how to improve pay-for-performance by improving performance measurement, as well as by improving design of our reward systems. Thinking about these issues, address one of the following topics: ---Measures of performance are always affected by outside factors (contamination) and/or only measure part of the employee’s performance (deficient). All too often we end up choosing a measure of performance that is not going to measure what we really want or need to measure, but measure something else that is convenient. Discuss a concrete example of a performance measure and how it might be contaminated or deficient. ---As discussed in Kerr’s “Folly” article, various systems reward behaviors that we didn’t really want. Think about an example of a performance measure or reward system that led to the wrong behaviors being rewarded. Don’t just use one of Kerr’s examples—but you can critique Kerr’s examples as well. ---Review the merit pay grids in the “Ch 11_merit pay” slides. What is right and/or wrong with those merit pay grids, in terms of motivating employees to higher performance while balancing affordability of the system?

Reference no: EM132132585

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