HUMAN RESOURCE MANAGEMENT PRACTICE - Fichier PDF

742 ❚ Rewarding peopleawards made by respondents to the CIPD 2003 performance management survey(Armstrong and Baron, 2004) was 3.3 per cent. Individual awards may be based onratings, an overall assessment that does not depend on ratings, or ranking, asdiscussed below.Individual pay reviews based on ratingsManagers propose increases on the basis of their performance management ratingswithin a given pay review budget and in accordance with pay review guidelines.Forty-two per cent of the respondents to the CIPD 2003/4 performance managementsurvey used ratings to inform contingent pay decisions. Approaches to rating werediscussed in Chapter 33.There may be a direct link between the rating and the pay increase, for example:Rating% IncreaseA 6B 4C 3D 2E 0Alternatively, a pay matrix may be used which relates pay increases to both the ratingand position in the pay range. Many people argue that linking performance managementtoo explicitly to pay prejudices the essential developmental nature of performancemanagement. However, realistically it is accepted that decisions onperformance-related or contribution-related increases have to be based on some formof assessment. One solution is to ‘decouple’ performance management and the payreview by holding them several months apart, and 45 per cent of the respondents tothe CIPD 2003/4 survey (Armstrong and Baron, 2004) separated performancemanagement reviews from pay reviews (43 per cent of the respondents to thee-reward 2004 survey separated the review). There is still a read-across but it is not soimmediate. Some try to do without formulaic approaches (ratings and pay matrices)altogether, although it is impossible to dissociate contingent pay completely fromsome form of assessment.Doing without ratingsTwenty-seven per cent of the respondents to the 2004 e-reward survey of contingentpay did without ratings. The percentage of respondents to the 2003/4 CIPD performancemanagement survey who did not use ratings was 52 per cent (this figure is too