PERFORMANCE MANAGEMENT
Performance management integral to total reward approach
Organisations now treat performance management as a key part of a total reward approach in which pay is only one element, according to a large-scale research project published by the Chartered Institute of Personnel and Development.
Writing in the latest edition of People Management, Michael Armstrong and Angela Baron, the authors of the CIPD study, observe that the focus is on non-financial rewards such as recognition, constructive feedback, personal development and career opportunities. These have a much more important role than pay in encouraging engagement and productive discretionary behaviour, say Armstrong, who is managing partner of e-reward, and Baron of the CIPD.
Performance management is no longer viewed as an HR add-on. Instead, participants in the study tended to see performance management as an "integral part of the process involved in running their organisation and achieving its strategic corporate and HR management aims," say Armstrong and Baron. "Many interviewees considered performance management to be crucial in ensuring a clear line of sight between individual action on the one hand and corporate objectives on the other."
Key research findings
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Title: "Get into line", by Angela Baron and Michael Armstrong, People Management, 14 October 2004.
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Posted 18 October 2004