How to Pay for organizational performance

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Paying for organizational performance

You as a manager may or may not be in an organization that has a organization wide pay for performance system. More and more organizations do have one of some type or another. They range all the way from profit sharing plans through various kinds of stock plans. A common element of these plans is that individuals are rewarded in some manner or form based on the performance of the organization. If you're in an organization that doesn't have one, you may want to think about encouraging people to look at it, consider it, but it could be a long haul to getting them to move toward one because it is a big transition.

If you're in an organization that has one, that is it has some type of pay out system that's contingent upon the performance of the organization, there's some important things to think about. First of all, I think they are positive. I think they create a more oneness culture climate. Secondly, they're probably not going to be a big driver of motivation and performance to do a job well, particularly if they don't fit.


Source: https://www.linkedin.com/learning/human-resources-pay-strategy/paying-for-organizational-performance