The New Pay System Requires Encouraging and Performance-oriented leaders: Experiences of performance related pay in three Finnish State Government Organizations

Year 2008, Volume: 8 Issue: 8, - , 01.12.2008

Kirsi Lähdesmäkı

Abstract

Performance related pay (PRP) intends to make the civil service perform better. It can foster individual motivation by recognizing efforts and achievements and rewarding them. PRP can help improve performance when it is applied properly in the right managerial context. In this article the PRP is viewed as a management tool. The leader is expected to facilitate change and adaptation for result-orientated culture, and to discuss about work performance and results. The leader should also create an improved employee-manager dialogue and a climate that supports organizational and individual learning. As a coach the supervisor helps subordinates constantly reaching better results.

Keywords

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