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Strategic Purpose: Explain the concept of tying performance to organizational goals

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A strategic purpose for a well-blended compensation program, one that includes various types of direct compensation, is gaining employee commitment and productivity. One of the most effective tactics for this strategy is designing a process for linking individual achievement to organizational goals.

Prepare a report to senior leaders addressing the following:

- Explain the concept of tying performance to organizational goals.
- Describe the different types of individual and group-level performance measurements.
- What are the advantages and disadvantages of individual versus group-level performance recognition?
- Discuss the options an organization has to link individual or group monetary rewards to organizational success.
- Develop recommendations for how to implement, monitor, and evaluate such a program.

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Please find guidelines and ideas for Individual and Group Performance & Organizational Success down below.



Individual and Group Performance & Organizational Success

In an organizational success, the performance of employees plays significant role as they lead to attain organizational goals effectively. To attain organizational goals, individual as well as group-level performance contributes effectively (Jackson & Mathis, 2007). Due to this, most of business organizations optimize compensation programs to increase performance of individual employees, so that organizational goals can be achieved effectively. This paper will discuss about the performance measurement programs and options to link them with organizational performance.

Tying Performance to Organizational Goals
The concept of tying performance determines that performance of individual as well as group is directly related with organizational goals as individual goals are associated with organizational goals in direct or indirect manner (Lipman & Hall, 2008). It is because with the assistance of individual efforts and performance, organizational goals can be attained effectively that leads to organization success.

Individual and Group-Level Performance Measurement
To measure individual and group-level performance, subsequent types of performance measurement are used to identify the performance of individual and group-level.

Balanced Scorecard (BSC): BSC is used to measure an ...