Parameters For Performance Incentive

Dear All,
Ours is a Mineral extracting company. Recently we have appointed a Manager for Quality Control and offered him Performance Incentive. Now we have to give him a letter fixing the parameters to enable the employee in preferring the Performance Incentive. my request is pls. share the parameters to be fixed for the above position and the letter thereof.
Thanks in advance.
Ramesh

Dear Ramesh,

Without being privy or even aware of the precise nature of your business, it is really difficult to provide that inputs that you seek. Because, after all, no one other than you knows the apt parameters relevant to your industry, and worthy of being included on a QC Manager's Performance Mgt Agreement.

However, I can help you with a general overview, or colloquially, a 'rule of thumb'.

1. Do not include more than 4 parameters at any one time.

2. Each parameter must be capable of being objectively visible, be tangible, measurable, and, once completed, be capable of being 'ticked off the list'

3. Of the 4 parameters, it is prudent to break them as follows:

a. A 12-month goal;

b. A 6-month goal; and

c. A 3-month goal

4. Ieally, 3a - 3c above should be organisational parameters directly connected with the candidate's day-to-day core functioning

5. The 4th parameter, should be directly linked to the candidate himself/herself. That is, it must relate to the person improving an aspect of themselves - whether technical skills, behavioural skills, or acquiring a new skill etc... and ideally, should be over a period of 3 - 6months

6. And, if you conduct quarterly performance assessments, then you would establish a new 3C parameter each quarter, a new 3B parameter each half-year, and a new 3A parameter each year.

I hope I've helped you in your thought process. Good luck!