Performance measurement and pay for performance

H.F.J.M. Tuijl, van, P.A.M. Kleingeld, J.A. Algera, M.L. Rutten

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Abstract

This chapter, which takes a (re)design perspective, focuses on the management of employees’ contributions to organisational goal attainment. The control loop for the self-regulation of task performance is used as a frame of reference. Several subsets of design requirements are described and related to the basic elements of a control loop, i.e. performance indicators, goals, feedback, and effector. Given that organisations use a number of control systems to further organisational performance, a special subset of design requirements emphasises the need of consistency between organisational control systems, such as the company’s appraisal and reward system. To illustrate our approach, two case studies are presented. The first case study evaluates, in a qualitative way, a variable reward system linked to a ProMES performance management system. The second case study demonstrates quantitatively the relevance of several design requirements for the experienced procedural and distributive justice of and the satisfaction with a collective bonus system.
Original languageEnglish
Title of host publicationPsychological management of individual performance
EditorsS. Sonnentag
Place of PublicationNew York
PublisherWiley
Pages349-370
Number of pages516
ISBN (Print)0-471-87726-3
Publication statusPublished - 2002

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