Performance-Based Pay
and Performance Management
Learning Objectives
Module 1: What is Merit “Pay for Performance” Pay?
o Define and explain merit pay
o Identify the strategic implications and outcomes of merit pay
o Understand the requirements necessary for a successful plan
o Identify the key components of merit pay
Module 2: Determining Your Reward Strategy
o Understand the necessity for developing a firm and credible foundation for merit pay
including a sustained commitment of resources necessary for successful project
accomplishment
o Understand the types of reward considerations that can factor into a Merit Pay Plan
o Consider how plan design can influence economic and political factors
o Review your organization’s overall readiness for merit plan development and
implementation and determine areas of strength and possible weakness for strategic
planning purposes
Module 3: The Role of Performance Management
o Understand performance management an its critical linkage to merit pay
o Understand the characteristics of a sound performance appraisal system and some key
issues and design considerations
o Review best performance management practices in the context of merit plan design
Module 4: Designing a Merit Pay Plan
o Identify and discuss the key steps necessary to getting started on a merit pay plan
o Understand the determinants of establishing a merit budget and salary range
adjustment and their relationship and influence on merit pay policy
o Identify the factors that would affect an individual pay decision
o Identify the key steps, concepts and design elements that go into the development of a
sound merit pay plan
o Understand the development and use of merit increase guideline charts (matrixes) and
how they would be used
o Determine how to cost (vs. what is budgeted) a merit pay plan
o Complete a salary planning task for a small organization
Module 5: Managing a Merit Pay Plan
o Learn the critical elements of merit pay administration and their role in making and
keeping merit pay plans successful
o Gain a more thorough understanding of the resource requirements and commitment
necessary for effective merit pay management
Performance-Based Pay
and Performance Management
Learning Objectives
Module 6: Evaluating a Merit Pay Plan
o Understand the importance of evaluation and assessment in the development and
ongoing management of a merit pay plan
o Understand what factors are important to gain information on for initial program
design. Then plan startup and ongoing plan management
o Utilize typical advantages and disadvantages associated with merit pay as a checklist for
measuring performance against expectations