Sixty-seven percent of high-performance organizations consistently apply performance management principles and practices among executives, according to a new report by the Institute for Corporate Productivity.
The study, which surveyed 1,427 participants on their organizations' performance management appraisals, common practices and technology solutions, finds that almost three times as many high-performance organizations as lower performers apply performance management processes to board members, as well.
In light of the study's results, i4cp maintains that performance management and accountability should happen on all organizational levels. Just as other employees are scrutinized, leadership's performance should be monitored, and it is important that employees know this is happening.
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When including executive members in performance management, it can even improve perceptions of executive pay. Although there have been examples that suggest executive compensation can cause some employees to resent the differences between executive and worker pay, the transparency in executive performance expectations as well as the impact it has on shareholders can help ease the tension among those employees.
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