Hello everyone.
I think as an HR practitioner, everyone experiences this in their career at least once.
In an exactly similar case with my Company, we not only managed to reduce the salary, but eventually we also asked the manager to leave in a dignified manner. This was possible, because performance parameters were already established prior to his appointment. In case of a Sales manager it is not difficult to at least spell out the top line expected? The decision to hire him at such a high salary was very important to us and myself and our MD had made it very very clear to him that Company had invested in him so much that he could either make or break our Company.
During subsequent appraisals, he first tried to make excuses. But we involved professional consultants for this activity and within the first six months, he knew for sure that he was lagging. He then asked for three month's notice at lesser scale, which we did. We also negotiated with him to complete certain tasks which he did and we parted amicably. This was possible because the whole thing was handled in a sensitive yet fair & open manner.
In general, to continue association further, performance appraisal has to be accepted by both parties. Where stakes are high, performance parameters should be specified. More the salary, more specific the goals.
Also, if performance linked pay cannot be designed, at least a co-relation should be established between the concerned parties, so that you can build on it later.
At least informal performance appraisal and feedback should exist between Management and core top managers.
Hope this helps some of you.
I think as an HR practitioner, everyone experiences this in their career at least once.
In an exactly similar case with my Company, we not only managed to reduce the salary, but eventually we also asked the manager to leave in a dignified manner. This was possible, because performance parameters were already established prior to his appointment. In case of a Sales manager it is not difficult to at least spell out the top line expected? The decision to hire him at such a high salary was very important to us and myself and our MD had made it very very clear to him that Company had invested in him so much that he could either make or break our Company.
During subsequent appraisals, he first tried to make excuses. But we involved professional consultants for this activity and within the first six months, he knew for sure that he was lagging. He then asked for three month's notice at lesser scale, which we did. We also negotiated with him to complete certain tasks which he did and we parted amicably. This was possible because the whole thing was handled in a sensitive yet fair & open manner.
In general, to continue association further, performance appraisal has to be accepted by both parties. Where stakes are high, performance parameters should be specified. More the salary, more specific the goals.
Also, if performance linked pay cannot be designed, at least a co-relation should be established between the concerned parties, so that you can build on it later.
At least informal performance appraisal and feedback should exist between Management and core top managers.
Hope this helps some of you.