Explain the concept of tying performance to organizational goals.

A strategic purpose for a well-blended compensation program, one that includes various types of direct compensation, is gaining employee commitment and productivity. One of the most effective tactics for this strategy is designing a process for linking individual achievement to organizational goals.

Prepare a report to senior leaders addressing the following:

  • Explain the concept of tying performance to organizational goals.
  • Describe the different types of individual and group-level performance measurements.
  • What are the advantages and disadvantages of individual versus group-level performance recognition?
  • Discuss the options an organization has to link individual or group monetary rewards to organizational success.
  • Develop recommendations for how to implement, monitor, and evaluate such a program.
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