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Employers Need to Focus on Improving Performance Management

This issue of the CBR carries an important article summarizing research by Edward Lawler and two colleagues on the policies and practices that contribute to effective performance management systems. I consider Ed to be the foremost authority on the management of pay and performance. He was publishing books on these subjects while I was still in graduate school—and that was years ago. The article is important for two reasons. First, it focuses on what has been for decades the most controversial HR practice, and second, the research leads to recommendations that promise to improve performance systems. Their conclusions are consistent with my experience as a consultant. To highlight two key findings from the research: