We are planning to propose measuring parameters for bonus (variable pay) especially for managers, who manages people, practice and service delivery. We plan to look at competencies and roles & responsibilities of these levels and pick up the parameters that are measurable. Does this make meaningful? This is for private IT company.
Looking for similar industry trends and best practices from this forum.

From India, Bangalore
Dinesh Divekar

Business Mentor, Consultant and Trainer
Dear Thiru,

Performance bonus should be based on the performance rendered by the manager. For this, you need to have accurate measures of performance. Further their quantification is also important. Have you done all this?

Organisation pay to the employees for the outcome and not for the possession of certain competencies. What if the manager possesses certain competencies but is unable to give results?

It appears that your query could be because you might not have well-designed Performance Management System (PMS) wherein the you need to create very customised measures of performance. This is much easier said than done. It requires immense expertise.

I have been giving replies to the posts on PMS time and again. Click the following link to refer one exhaustive reply:

For further queries, feel free to contact me.


Dinesh Divekar

From India, Bangalore
Thanks for the response Mr.Dinesh Divekar.
We have certain key measurable areas based on what they have been told to do (assigned) as a manager. I agree that having a mere competency when it does not give intended outcome can not be considered for this. We have 360 degree appraisal system already. Thanks for the links.

From India, Bangalore
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