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The myth of pay for performance

Performance is hard to measure precisely and objectively. Does it make sense to link pay to an amorphous concept?

KEEPING TRACK: The reality is that performance management processes are unable to separate skill from luck. Good performance measurement must neither reward free riders nor penalise individuals unfairly for factors they don't control.

IT'S that time of the year again. Employees being appraised and managers making recommendations about bonuses and salary increases. Pay for performance, which is a much repeated slogan, is a staggeringly banal statement. To say one pays for performance is like stating that the rain is wet.