A pay for performance plan negates the need to manage an employee's performance.The manager need only focus on the distribution of rewards in order to generate appropriate employee behaviors.

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A pay for performance plan is designed to incentivize employees to perform well by rewarding their achievements. However, it does not remove the need for performance management. While rewarding employees for good performance can motivate them to continue doing well, it is still important for managers to actively manage and monitor employee performance in order to provide feedback, identify areas that need improvement, and ensure that all employees are meeting organizational goals and standards.

A Pay for Performance Plan Negates the Need to Manage