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The Compensation Handbook, Sixth Edition: A State-of-the-Art Guide to Compensation Strategy and Design, 6th Edition by Dorothy Berger, Lance Berger

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32

A Framework for Designing a Performance-Management Process

CHARLES H. FAY

Rutgers, the State University of New Jersey

Although performance management has replaced performance appraisal in the professional literature, many companies and managers still do not seem to get it. A common theme heard from employees is that the first time they saw an appraisal instrument was when they received their annual appraisal feedback; a common theme heard from managers is that they are far too busy with “real” work to spend time on performance management and that employees know what they need to do anyhow. Both managers and their direct reports resent the system because it hurts the relationship between them, it has no real value, and there are no meaningful ...

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