Finding the Right Purpose for Performance Management
Cornerstone On Demand
AUGUST 15, 2016
Performance management originated because organizations needed a fair way to determine compensation; by measuring employee's performance, they had clear standards for who received what bonus or salary increase. Today, however, the old structure of compensation through merit budgets is all but obsolete: While pay is still determined by performance, it's not the sole driver for compensation—creating a lack of purpose for traditional "performance management" programs.
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