A strategic purpose for a well-blended compensation program, one that includes various types of direct compensation, is gaining employee commitment and productivity. One of the most effective tactics for this strategy is designing a process for linking individual achievement to organizational goals.
Prepare a report to senior leaders addressing the following:
1. Explain the concept of tying performance to organizational goals.
2. Describe the different types of individual and group-level performance measurements.
3. What are the advantages and disadvantages of individual versus group-level performance recognition?
4. Discuss the options an organization has to link individual or group monetary rewards to organizational success.
5. Develop recommendations for how to implement, monitor, and evaluate such a program.