To ensure that employees are paid for their performance, CEO should establish comprehensive Performance Management System (PMS).
First step of PMS is CEO should fix his performance target and his own remuneration should be linked to his performance. The yardstick of performance linked pay cannot be only applied to employees by employer as well.
Employer or employee, the designed system so robust so as to create performance meter to each employee. This is much easier said than done. To do this, costs and ratios associated with each department needs to be identified and these should be identified to each HOD.
Lastly, CEO should find out whether he/she is rewarding people at the expense of the organisation. Many times CEOs fail on this count.
Earlier, I had given comprehensive reply on PMS, go through the following link to refer it:
In the above link, you will find several other links. Go through all the links patiently. It will improve your awareness of the subject.
Sample KPI and KRA Manual: - If you wish to know the structure of format of the KPI and KRA Manual, then you may click the following link. The Excel Workbook has multiple sheets. Each sheet has KRAs for various functions. Though these are not related to your industry, overall these will give you idea the format, structure and design of the manual.
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For further doubts, you may call me on my mobile number.
22nd April 2017 From India, Bangalore