Performance Measurements LO17364

Thomas A. Norfleet (
Mon, 09 Mar 1998 22:24:39 -0600

I have recently been given the project to "re-engineer" our HR process by
putting compensation, staffing, training, evaluation, and job rotation
into a salaried administration role. The emphasis/challenge by the
officers are to move this model into a performance focus.

One strategy that we are looking at in the compensation and performance is
to look at how the salary is formated. Base salary is on competitive and
job analysis. Variable salary is one that I see a tremendous amount of
potential in terms of getting everyone to focus in on the goals of the

For example, at our facility we are going for Plant Status in TPM,
recertification in ISO9002, and ISO14000 (PLANT), we measure Direct
Runners, Budget, Quality, Process (Departmental) and # of suggestions,
attendance, and overtime. Right now the supervisor gets nothing for his
or her efforts for helping the organization meet these targets or for
efforts towards improving oneself to better prepare for such challenges.
Yes, we do have an annual appraisal process but it is very passive in
regards to improving organizational performance.

Variable salary would come in to play in supporting the goals and
objectives of the organization while improving oneself in getting the
required knowledge to be a more valued employee. You meet the
organization targets in terms of initiatives, great $1500. You help your
section reach its targets in safety, quality, and production, super $2000.
You pick up an associates degree or a certificate in quality control

Does anyone have examples of other companies that have done a similar
approach. I have heard Saturn has one in which the whole organization has
a learning goal of 96 contact hours tied to their bonus plan and if one
person, and this has happened, does not complete the required training no
one gets the bonus. OUCH! Thank you and apologies for the cross


"Thomas A. Norfleet" <>

Learning-org -- Hosted by Rick Karash <> Public Dialog on Learning Organizations -- <>