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The New Pay System Requires Encouraging and Performance-oriented leaders: Experiences of performance related pay in three Finnish State Government Organizations

Author

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  • Kirsi LÄHDESMÄKI

Abstract

Performance related pay (PRP) intends to make the civil service perform better. It can foster individual motivation by recognizing efforts and achievements and rewarding them. PRP can help improve performance when it is applied properly in the right managerial context. In this article the PRP is viewed as a management tool. The leader is expected to facilitate change and adaptation for result-orientated culture, and to discuss about work performance and results. The leader should also create an improved employeemanager dialogue and a climate that supports organizational and individual learning. As a coach the supervisor helps subordinates constantly reaching better results.

Suggested Citation

  • Kirsi LÄHDESMÄKI, 2008. "The New Pay System Requires Encouraging and Performance-oriented leaders: Experiences of performance related pay in three Finnish State Government Organizations," Sosyoekonomi Journal, Sosyoekonomi Society, issue 2008-2.
    • Handle: RePEc:sos:sosjrn:080201
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    Keywords

    Performance Related Pay System; Leadership and Management Roles.;

    JEL classification:

    • M59 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Other

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