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Pay for performance. Implementing a financial incentive for excellent work.

L White1

  • 1Barnes Hospital, St Louis.

AORN Journal
|February 1, 1989
PubMed
Summary
This summary is machine-generated.

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Pay for performance (PFP) systems offer advantages outweighing disadvantages for staff and supervisors. This performance management approach emphasizes individual achievement against self-selected goals, fostering improved performance.

Area of Science:

  • Management Science
  • Organizational Behavior

Background:

  • Pay for performance (PFP) systems are widely implemented.
  • Challenges exist in PFP systems regarding objective setting and performance evaluation.
  • Addressing these challenges is crucial for effective implementation.

Purpose of the Study:

  • To evaluate the perceived advantages and disadvantages of a pay for performance system.
  • To explore strategies for addressing common issues within the PFP system.
  • To enhance the effectiveness of performance management through PFP.

Main Methods:

  • Qualitative analysis based on personal experience with a PFP system.
  • Review and modification of the rating system by supervisors.
  • Communication strategies to encourage objective setting and address ranking concerns.

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Main Results:

  • Staff and supervisors perceive the advantages of PFP to outweigh disadvantages.
  • Supervisors adapted the system to focus on improved performance over points.
  • Strategies were developed to encourage challenging objectives and manage ranking perceptions.

Conclusions:

  • Pay for performance provides a structured format for supervisor performance reviews.
  • PFP enables employee performance evaluation based on self-selected objectives and individual achievement.
  • The system shifts focus from peer comparison to individual standards.