Performance Management and Employee Incentive Programs

In preparation for this short paper, watch Drive: The Surprising Truth About What Motivates Us() (10:48) , as well as the article “Why Incentive Plans Cannot Work” from the Harvard Business Review coursepack.

1. Employee incentive plans are widely used in organizations to align employee behavior toward the corporate strategy. Some experts argue that employee incentive programs are not effective and may even be detrimental in some instances. Argue your point of view regarding the effectiveness of employee incentives and provide evidence to support your position.

2. Evaluate the effectiveness of an employer or another business’ performance management system. How well does it meet the needs of the employees and of the organization?

3. From a HR perspective, discuss your recommendations for improving performance management systems and employee incentive programs to satisfy both employees and employers. Make sure that your recommendations take corporate strategy into consideration.