Talent and Performance Development
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Talent and Performance Development
Making sense of performance and talent development systems to create & sustain high performance in organizations. For the BEST of the BEST curated news in performance, change, agile learning, innovation, motivation, social media and careers, SUBSCRIBE to Reveln.com/Tools/
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Scooped by Deb Nystrom, REVELN
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Pay-for-Performance, A trade-off for Trust & Commitment

Pay-for-Performance, A trade-off for Trust & Commitment | Talent and Performance Development | Scoop.it
Paying your employees more for hitting specific targets may backfire, according to HBS professor Michael Beer .


..."I think there is an implicit negotiation going on between what management wants and expects, and what employees want and expect," observed Beer in his talk to HBS faculty. This implicit negotiation is "embedded" in the context of pay-for-performance, but often goes undiscussed and unacknowledged, he suggested. Misunderstandings about goals are the result. Pay-for-performance may also have a natural life cycle that managers are unaware of, he said.


Financial rewards in a fast-changing business environment could undermine a company's ability to build trust and commitment unless management and employees have an honest discussion of their mutual expectations, they added. This is "very difficult to do."


Related posts by Deb:

A History of Performance Appraisals: Letting Go to Power New Culture


Choices for High Performance Teams, Groups and Psuedo-Teams: Achievement Is How You Say It!

Deb Nystrom, REVELN's insight:

In my experience, pay continues as a satisfier, never a motivator. This HBR working knowledge article classic illustrates the nuances as well as the nusances of attempting to reconcile the hierarchy barriers of expectations in pay-for-performance.  Compensate fairly, motivate systemically & holistically. ~  Deb

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Rescooped by Deb Nystrom, REVELN from Innovation & Institutions, Will it Blend?
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Pay For Performance: Innovation Killer?

Pay For Performance:  Innovation Killer? | Talent and Performance Development | Scoop.it
Talent Management magazine, The Business of Talent Management


Pay for performance is effective for employees in operational roles, such as a painter painting houses or a salesman hitting quotas. But when it comes to employees responsible for finding creative solutions to problems, the model is ineffective, said Gustavo Manso, co-author of a 2012 study published in the July issue of Management Science.


...a straight pay-for-performance model does not have a tolerance for early failure, a component essential to innovation, said Manso, an associate professor of finance at the University of California at Berkeley.


Innovation is a “trial and error process,” Manso said. “You have to try things that you don’t know if they’re going to work.”


Deb Nystrom, REVELN's insight:

I scooped this originally to "Innovations & Institutions:  Will it Blend?" and am sharing it here due to the Pay and Performance theme. ~  Deb

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Deb Nystrom, REVELN's curator insight, July 25, 2013 1:08 PM

There are also cultural components to tolerance for failure.  


Also, performance and pay are linked in many, though not all performance systems.  It is how they are linked, (soft link, dotted line, one factor among others, or direct links / primary factor) that sends a message that affects extrinsic and instrinsic  (Alfie Kohn, cited), and churn (stay or go) in organizations. ~  D

Scooped by Deb Nystrom, REVELN
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2013 Performance Appraisal Report Card, #Infographic

2013 Performance Appraisal Report Card, #Infographic | Talent and Performance Development | Scoop.it

A "Performance Evaluation Report Card" inforgraphic showing the overall ratings participants gave their organizations, as well as the 3 worst mistakes evaluators make when conducting performance appraisals.


Infographic: 2013 employee performance appraisal practices - Human resources News on Performance Appraisal


Deb Nystrom, REVELN's insight:

It's good to see some light at the end of the tunnel regarding pay practices linked to appraisal.  However, we've got a long way to go to move beyond old-school appraisal practices, based on the way the these survey questions were constructed and answered..  ~  D

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Scooped by Deb Nystrom, REVELN
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Kohn, Herzberg and Pay: Challenging Behaviorist Dogma

Kohn, Herzberg and Pay:  Challenging Behaviorist Dogma | Talent and Performance Development | Scoop.it

Alfie Kohn's contribution to performance management, Pay-for-Performance and performance based organizations is well said in this short paragraph featuring the classic work of Frederick Herzberg, author of, The Motivation to Work.


Excerpt:


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The jazziest, most expensive and elaborate comp system ever devised can never do anything other than ...take you only to the baseline, the zero point.
 

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Frederick Herzberg's career was devoted to proving the following revolutionary principle: just because paying people inadequately can be demotivating doesn't imply that paying people better (or more skillfully) will be motivating.


The jazziest, most expensive and elaborate comp system ever devised can never do anything other than prevent some problems.


It can take you only to the baseline, the zero point. And if you become preoccupied with the topic, it can distract you from attending to what can move an organization forward -- projects such as meeting people's needs for autonomy, relatedness, and competence

From:  articles by alfie kohn


Photo:  by 401(K) 2013 Flickr


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Deb Nystrom, REVELN's insight:

I have been convinced about Kohn's approach through my experience of seeing what makes the difference in large, complex organizations.  

Setting the "stars" or "community" question aside, based on hire-fire values, what really creates motivation is never, ever, ever going to be first about the pay for most people in the long view.  


Unless you happen to not mind, or prefer turnover and churn in the ranks, this point of view is worth a serious look in research as well as performance and talent development decision making.  ~  D

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