II. System of performance awards or bonuses

A step by step approach is being taken towards introducing performance awards or bonuses, as mandated by the General Assembly, to recognize outstanding performance and specific achievements, to improve morale and productivity and to enhance overall organizational performance.

74. Paragraph 79. The Secretariat has been requested to prepare a report on a system of performance awards and bonuses in the context of the performance appraisal system, for the fifty third session of the General Assembly.

Accordingly, he considers that the following principles should serve as the basis for developing a system of performance awards or bonuses

(a) A system of performance awards or bonuses can be implemented only in an environment where the management culture of the Organization optimizes performance at all levels individual, team and organizational

A performance recognition system that rewards excellent performance, both of individuals and teams, will be launched.

It also reports on the step by step approach being taken by the Secretary General, in consultation with staff, towards the introduction of a system of performance awards and bonuses.

(c) To institutionalize the principles of performance management throughout the Organization in order to improve overall organizational performance, reward excellent performance and address underperformance

45. While adopting a phased approach to the introduction of awards or bonuses, the Secretary General would wish to underscore that any programme of performance recognition must be aimed at improving morale and productivity and enhancing overall organizational performance.

To strengthen the performance based reward system, a broad banding initiative will continue to be piloted in 2006 2007.

25. Pursuant to that request, the Secretary General submitted a report on a system of performance awards or bonuses to the General Assembly at its fifty second session (A 52 439).

10. If it was planned to introduce a system of performance awards and bonuses (A 52 439) the performance appraisal system was the only mechanism by which performance could be properly evaluated.

The system has the basic objective of creating a fair, equitable, transparent and measurable system of performance management in support of a results based culture that recognizes and rewards excellent performance while adequately addressing underperformance.

The ICSC secretariat agreed that the present salary structure appeared to inhibit career development and provided little incentive towards better performance.

For their part, students will be encouraged to excel by the granting of prizes.

For starters, the use of bonuses based on one year results should be discouraged. Furthermore, bonuses should not be paid immediately, but rather placed in a company account for several years and adjusted downward if the company subsequently learns that the reason for awarding a bonus no longer holds up.

(f) The development of a performance awards or bonuses system should not be a substitute for fair and adequate compensation that ensures competitive conditions of service, nor should it be a replacement for promotion and career development opportunities

The pilot study on broadbanding reward for contribution would help to strengthen performance based human resources management.

This involves inter alia giving management much more operational autonomy, introducing performance incentive schemes to boost enterprise profitability and encouraging arrangements that permit the contracting out of certain operational and management activities to private companies.

Certainly the use of differential tariffs, performance requirements and incentives will still be necessary to establish domestic capacities.

(f) What potential rewards or sanctions result from exceptional, satisfactory or sub standard performance of delegated functions?

28. The Board also analysed the movements in the pay steps at the various Professional levels since 1956, as indicated in tables 2 and 3, in order to assess their impact on performance incentive.

The ICSC secretariat agreed that the present salary structure appeared to inhibit career development and provided little incentive for better performance

ICSC was also requested by the Assembly to provide general comments on the concept of performance awards and bonuses to the Assembly at its fifty second session.

By replacing the current incentive for the Professional and higher categories with a lump sum, the intent would be to make better use of it, make it cost neutral and clearly identifiable.

Regarding performance evaluation, the Chairman of UNDP UNFPA UNOPS Staff Council stated that this essentially came down to being a judgement call. A reliable performance appraisal system as well as certain parameters and rewards had to be in place.

And the offered them, for performance, three levels of rewards small reward, medium reward, large reward.

In that context, the proposals concerning the introduction of a system of incentives and rewards and strengthening of the links between the performance appraisal system, staff development and career support mechanisms (paras. 25 (g) and (h)) were particularly important.

When fixing the minimum wage only the following components have been excluded bonuses for a period of employment (anniversary bonuses), pension bonuses, rewards from an establishment reward fund, bonuses from profit, payments from balance surplus in cooperatives and remuneration for overtime.

There were not enough incentives to ensure adequate levels of official assistance.

44. In the context of the Secretary General s efforts to introduce a performance based culture, a significant step has been taken with the introduction of a new performance appraisal system, which ultimately must provide the basis for any system of recognition and rewards.

5. The Secretary General is committed to creating an organizational culture that is responsive and results oriented, that rewards creativity and innovation and promotes continuous learning, high performance and managerial excellence.

Incentives include improved educational facilities and provision of appropriate agricultural tools.

While Secretariat wide implementation of PAS was proceeding steadily, it was considered that it was not yet sufficiently well established throughout the Organization to support a Secretariat wide performance awards programme.

Accountability and incentives

(ii) Creation of fiscal and credit incentives for microenterprises and for small and medium sized firms

Bonus

REWARD...

You need to have incentives.

34. At a later stage, consideration might be given to other forms of awards, possibly travel, sabbaticals or study leave, as well as cash awards or bonuses.

Rules and incentives sticks and carrots.

2. Decides to consider the report of the Secretary General on a system of performance awards or bonusesA 52 439. under agenda item 153, entitled quot Human resources management quot

Them chains and a bonus of a couple of years...

Moreover, non cash awards have often proven to be more effective than financial incentives.

Three The secret to high performance isn't rewards and punishments, but that unseen intrinsic drive the drive to do things for their own sake.