Tweet

Linking Pay to Performance: Cascading Goals

Guest post by: Clay Scroggin

Article Overview: Cascading goals tie an individual’s pay to his or her control over the primary objective. An HRMS can help track goals.

Linking Pay to Performance: Cascading Goals

Ask any competitive sports coach to identify the primary team goal before any given season and he or she would certainly respond with something along the lines of, to win championships. The individual tasks of all members of the organization, both big and small, revolve and the realization of this one, all-important goal. Most businesses operate according to the same basic principle; yet championships instead manifest in the form of augmenting profit margins. Now, in the ever-exasperating world of budget management, it is sometimes difficult to link pay to performance, for how can one determine a specific individual's impact on the overall budget, and therefore his or her proportional cut of the pie?

Think of cascading goals like a pyramid: at the top is the single, dominating objective, supported by decreasing layers of goals, that although increasingly-vary as one approaches the bottom, are all connected to the original objective. The top is narrow and controlled by few, while the bottom layers are comprised of the rest of the bunch. Although the direction of the various enterprises is limited to a select group, without the support and aid of its bottom levels, any pyramid is destined to collapse. For this reason, as in sports, the whole success of a business is the sum of each and every one of its parts. This system is more than worth its weight in gold for alleviating some of the stress of budget management.

Cascading goals tie an individual's pay to his or her control over the primary objective. For example, top executives of a company, whose jobs include activities like spearheading marketing campaigns or making big financial decisions, make the most money. In working towards the company's ultimate goal of garnering greater profits, these individuals make the big decisions and are therefore allotted the greatest percentage of the budget. Along the same lines, managers who might control hiring in a specific region are given a less, yet proportional sum and other employees under them a still less, but still comparable amount. For the new employee, working hard hours throughout the long days, the cascading goals; system should not be seen as an obstacle, but rather as a window of opportunity. Sustained outstanding work etiquette gives way to promotions, which assign the employee with more and more responsibility; and added compensation as his or her professional goals inevitably draw greater connections to those in the top tier of the pyramid.

There is an added morale benefit to paying for performance. When an employee feels like the work he or she is doing is menial, there is just less excitement in the job. The motivation and desire to take pride in one's work really are not there. However, employees who believe that their work is crucial to the advancement of the business as a whole will almost invariably work to the best of their abilities. The ability to peer up the steep slope towards the pinnacle of the pyramid gives them perpetual incentive for the future. While HRMS solutions are not designed specifically to perform the full cascading goal process, however they can be used to track basic HR performance and therefore ultimately affect the HR payroll systems combination of events.

Related Articles
  All I Ever Needed To Know About Life I Learned From SEO (Search Engine Optimization)
  Why Cross-linking Your Website is a Great Idea
  Home Business Expert: How To Link To Other Websites
  Organizational Readiness To Performance Management
  Coaching the Sales Person
  Internal Linking in your website
  The art and science of SEO : Part 1
  How To Cascade Messages via Managers To Employees
  How to Identify Which Sites You Should be Targeting for Your Next Link Building Campaign
  ••••••> Top SEO Tips: Internal Link Popularity for SEO
  Using a scorecard
  Link Your Way To a Higher Search Engine Ranking
  SEO Page Rank - It’s not about Who YOU Know… ...It’s About Who Knows YOU
  Link Quality vs Link Quantity
  Adaptive Organizations Beat Their Competition
  THREE FACTORS MAKE PERFORMANCE MANAGEMENT A SUCCESS
  Managing Employees Performance
  How Does Google Search Engine Works?
  Establish your Goals and Reach them
  Transferring an Existing Domain Name

Article Tags: HRMS, Pay for performance, Payroll
Referred by: http://www.PEOcompare.com



Related Forum Posts
Re: Set goals that motivate you! - Sounds simple enough when you take it at face value, but what are goals? Are these short term or long term Goals, Are theses goal realistic, achievable? How to make them motivating Goals, What is motivation? Is motivation the same for all of us Hmm so many questions, so few answers. must a an article in this somewhere Btw (by the way) GT, nice Blog
Re: Bad SEO techniques? - [quote="jacksonp":8b8rg2nw][quote="terriz":8b8rg2nw] re: Cross Linking, how do you define that? I thought linking to other pages on your website (that are related) was a good thing...maybe that's not what you meant.[/quote:8b8rg2nw] So my friend,Cross Linking is simply means the process of linking between two sites,Whether or not they are owned by the same person, cross linking is the process on which the Internet is built.It allows users to reference sites with content similar to that which they are already viewing, and may be of further interest to them.[/quote:8b8rg2nw] Thanks for clarifying!
Re: Bad SEO techniques? - [quote="jacksonp":1y3g8bot]that is quite true.We all should avoid these kind of techniques.I am here sharing few more points which we should take in mind..As an experienced person of SEO I want to share here some facts which should be avoided by us.I hope that these will help some of the newcomers a lot.. Choosing a title that has no relation to the content on the page Using extremely lengthy titles that are unhelpful to users Using a single title tag across all of your site’s pages or a large group of pages Stuffing unneeded keywords in your title tags Writing description meta tag that has no relation to the content on the page Multiple domains Multiple identical sites Cross Linking[/quote:1y3g8bot] re: Cross Linking, how do you define that? I thought linking to other pages on your website (that are related) was a good thing...maybe that's not what you meant.
Re: Search Engine Friendly Coding - According to my experience, You should avoid flash and java script while making a website for online business promotion. These type of coding also increases website loading time so avoid it. You can also use external CSS "Cascading Style sheet" for placing images on website it will reduce website loading time.
Re: Alexa Ranking Goals - Thanks GT! This is still the right post for Alexa Goals but everything else can go to Kevin's Mastermind post! Cheers!


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

If I Were Starting A Network Marketing Company...

What is Discretionary Cash Flow

Work Place Counselling

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.