First communicate some things to the employees:
- Specify all the major elements of task performance (Time/quality ect.)
- Identify how and when we measure these dimension of performance.
- Be clear about values (e.g. code of conduct)
--> can take many forms, the right mix depends on the organization (its culture, industry, history, etc.)
- formal (or informal) recognition.
- Base pay, performance bonuses, benefits.
Linking that to your Goals?
- Method 1: Goals with bonuses for success
---> Giving a substantial bonus if goals are reached, no bonus if not.
- Strong incentive to attain goals
- Very specific about what is required to get bonus
- Considerable temptation to take short cuts
- possible disapointments
- Method 2: providing multiple goal levels with specific bonuses attached
---> Avoids the “all or none” effect
- Less temptation for cheating
- less motivation to try for the highest goal level