In addition, managers should be measured in part on their ability to implement this new system. The employees will need to be educated about the new system. Managers will need to implement the means of measuring performance so that employees can understand how they are being measured in addition to why. The third step will be to address the issue with the union. With a designed system in hand, the company needs to make the new system a priority in negotiations with the union. This may require the company to break the union, as union resistance to the current gravy train of blanket raises may be high. If the union agrees to the plan, it must be implemented into the collective bargaining agreement.

The fourth step will be a review of the system. It cannot reasonably be expected that a new system will be totally flawless. A team consisting of management, the union and employees should be gathered to review the system each year for several years until the flaws in the system are entirely eliminated.

4. Most of the non-monetary changes will help to motivate better performance. Workers are often motivated simply by measurement. This is a form of intrinsic motivation whereby workers seek to meet targets and to improve upon their past performance. Intrinsic motivation has been found to improve when task-specific target goals are introduced (Haradkiewicz & Elliot, 1998). That the targets are set to performance appraisals is incidental to this motivation, since the intrinsic rewards...

The current process is subjective and devoid of transparency. The employees therefore have little faith in the system. The new system will be transparent and objective. Employees are likely to be more productive in an environment where there is trust between workers and management.
A third non-monetary change that is likely to help motivate better performance is the writing of job descriptions. At present, employees may not know the expectations that the company has for them. By defining clearly the parameters and measures of the job, the company is allowing the employees to pursue only those tasks that are necessary for the job. This alone will increase worker productivity, eliminate overlap in roles and allow employees to be deployed more effectively throughout the organization.

Works Cited:

Haradkiewicz, J. & Elliot, a. (1998). The joint effects of target and purpose goals on intrinsic motivation: A mediational analysis. Personality and Social Psychology Bulletin. Vol. 24 (7) 675-689.

Allan, P. (1994). Designing and implementing an effective performance appraisal system. Review of Business. Retrieved May 23, 2010 from http://www.allbusiness.com/human-resources/workforce-management/479508-1.html