The Dash for Cash: Performance Related Pay - an Australian Union Perspective

Performance appraisal and its frequent link to performance related pay is a controversial practice in the management of employee performance. This paper examines performance appraisal from the perspective of four Australian unions covering diverse occupations and industry sectors. Only one union supports the notion of performance related pay. The others find performance appraisal difficult to embrace. Negative experiences and consequent problems lead them to argue that the process is complicated and usually puts workers at a disadvantage. It appears that any change in union attitude depends on their role in the performance appraisal and performance related pay process. Moreover, the imperfect power balance between management and employees means that union participation must be on a genuine basis.