Recently I was having a conversation about the issues
associated with putting in place a performance management process that is
meaningful for both the company and employees. During the discussion the issue of how to allocate bonuses
based on the results of the performance review reared it’s ugly head. That led
to a discussion on ‘forced’ distribution. The culture of the firm I was
speaking with has always rewarded the top performers through the output of the
performance reviews. I suggested that this sacred cow needed to be examined
more closely.
Many organizations struggle with this concept: Do you
link bonus and pay to the performance review or do you disjoin the two?
