The pay increases eventually granted on the basis of the outcome of performance appraisals can either be consolidated into base pay in the form of pay progression or awarded by means of non-consolidated lump sums, that is to say bonuses (CIPD, 2012).
Mismatch between PRP designing and execution
Despite in theory
the PRP approach should represent the most effective means to reward people
within organizations, it is usually considered the cause of dire troubles and
difficulties when implemented in practice. It is indeed by reason of all the problems
it is supposed to cause that PRP has attracted fierce controversy ever since it
was originally developed and introduced within organizations.
are nearly constantly involved in the implementation of change so that in many
circumstances the attainment of individual objectives can be affected by it.
What can be considered as an organization’s priority and main aim today might
not be considered important tomorrow or even later today. Differently from what
suggested by Torrington et al (2008), nonetheless, this should not have a
considerable impact on the appraisal of individuals’ performance. This for two
different reasons: the fact that organizational objectives, and hence
individuals’ objectives, change does not entail that individuals performance may
not be properly assessed and evaluated; secondly, albeit organizational change may
lead to amend individuals objectives, this not necessarily prevent organizations
to attain theirs, at least in part. Once organizational objectives have been
subject to adjustments, these may be in turn changed to individuals. This process
might reveal not to be so straightforward; notwithstanding, change should not
represent a particular barrier to the successful implementation of PRP schemes.
Change is becoming increasingly frequent within organizational settings so that
managers need to learn to get along with it and be ready to face the side
effects this is likely to have.
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