1. Linking Rewards to Strategy
By R. Henry Migliore

2. Tying Appraisals to Rewards
How we usually reward people
What is wrong with present approach
Poor targets
Emphasis on the form
Too complicated
Lack of training
Understand basics
Potential if done correctly

3. Strategic Planning Process
Define Strategic Plan
Show where the reward fits
Planning must have product and process
Planning must be done right for evaluation, performance appraisal, and rewards to work

4. Strategic Planning Process
Performance appraisal and rewards usually come last
Organization structure impact on success and performance measurement

5. Strategic Long-Range Planning Process

6. Theory Behind Reward Systems
Higher level needs/intrinsic
Pay for performance/extrinsic
Must have both
Emphasis on individual and team
Regular reviews
Athletic Team
Business Team

7. Reward Opportunities

8. Performance Appraisal Form

9. Reward Opportunities Athletic team Business Unit Baseball Football
win 20 games
Go to World Series
Football
rush 1000 yards
Go to Super Bowl
Business Unit
Sales
Meet marketing objectives and ROI best in last 5 years
Manufacturing
Increase production 15% and ROI best in last 5 years

10. Reward as a team player
Golden handcuffs
Bonus paid over longer term
Share equally?
Boss Evaluation

11. Benefits of Reward Systems
The organization will determine where it is going
It will be able to identify opportunities and risk
All organization members will be forced into a consensus as the direction for the organization is identified
As managers have the opportunity to have input into the planning process, they will experience a surge of excitement

12. Benefits of Reward Systems
Communication in all directions will be instantly improved
Non-productive persons will fall by the wayside
Increases should be expected in all measurable areas – profitability, productivity, and so on
Within a year, a personal training and development plan will evolve for all persons in the organization

13. Rules for Compensation
Salary administration should be centered around accountability, not activity
Write job objectives instead of job descriptions
People who are committed to your organization are worth more than people who are not committed to it
People who feel they are underpaid will behave like unpaid employees

14. Rules for Compensation
People who aren’t meeting all of their regular, ongoing, and recurring responsibilities should not be given merit increases
Bonuses should be paid only for beating an indicator
Fair pay does not motivate, but unfair pay demotivates
The higher the person is in the organization, the more you pay for strategies and creative thinking

15. Opportunities For Any Organization
Strategic Planning emphasis for Consulting Division
Information systems supports planning system
Provides performance appraisal/reward service
Information system supports performance appraisal
Strengthens SERVICE to clients
Cost leadership, focus differentiation

16. Discussion