16 Sept 2013

Designing your goals - Article for the day 16 Sept

While working in Incentive Compensation design (How to measure people's performance and pay them for it) we always faced the dilemma of relative pay or open ended pay. In relative pay people needed to be ranked and paid according to their ranking. Open ended pay was based on how you performed against your baseline performance. Most companies I know force rank people into a "Bell Curve" for grading so that they can control how much profit goes out in bonuses. But as this article describes, if you want amazing performance from your people with lower anxiety; make it about challenging themselves, rather than comparing them against others.

The way we design our working and learning environments can change people's motivation for achieving important tasks.

http://news.stanford.edu/news/2012/may/shape-achievement-goals-051012.html



P.S. The logic behind these posts can be found in this post

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