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Byline: Chiratas Nivatpumin
Jul. 1--The concept seems straightforward enough -- reward the top performers, penalise the worst.
But while most top executives agree that pay-for-performance is a crucial element in personnel management, implementation remains far from easy.
Legal regulations, cultural norms and organisational inertia are just some of the reasons why many companies remain tied into fixed bonus structures, flat pay rises and antiquated evaluation systems.
Banthoon Lamsam, the outspoken president of Thai Farmers Bank, said earlier this week that Thai companies remained far behind in implementing principles of "consequence management" in their organisations.
Where regular pruning of the worst employees is routine at top multinational firms, Thai companies remain reluctant to impose layoffs or job cuts, leading to lost productivity and ...
Source: HighBeam Research, Merit-Based Work Culture Poses New Challenge for Thai Bank.