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Enabling performance with variable pay systems

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Variable pay systems

Having an efficient strategy is one of the key factors that defines organizational success. It should facilitate the fulfillment of strategic objectives, by ensuring that plans are implemented within the required timeline and are meeting their goals. A variable pay system should be implemented in order to ensure that employees are paid adequately based on their capabilities and to provide its staff with a clear message regarding what the company deems important.

Pitfalls in performance appraisals

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Performance appraisal is a process applied by organisations in order to evaluate and review performance at team or individual level. This type of review is generally scheduled to be performed once a year within the organisation and it is usually carried out by the employee’s direct managers. Its purpose is to identify employee training and development needs, and ultimately improve individual performance.

Individual responsibility at the work place means performance for the organization

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Personal-responsability-at-the-workplace

 Individual responsibility comes together with an organizational culture  that is based on values such as reliability, transparency and autonomy. These values imply open mindedness and open communication with employees, trusting them that they will successfully manage and finalize their projects without the need for constant monitoring and control from the management’s side.

Training, coaching, mentoring – which is better?

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All three concepts are nowadays generally known and used within organizations. In this context the question that arises most often refers to which one of them is the most effective. A relevant aspect to take into consideration is that there currently is no best choice between these processes. Each one can be the most suitable choice for an employee, depending on the organizational strategy, departmental goals and individual targets.

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