QUESTION 1 1.1 When discussing performance management, many people immediately think of the annual performance review process. But the performance appraisal is only one (1) component of what is considered to be performance management. Discuss the performance management process that you will apply in the public sector. Use relevant examples from the case study to substantiate your answer. 1.2 Managers struggle to balance positive feedback with the need for improvement. Employees are not sure how to take the feedback and begin to worry about their jobs. All this stress and struggle will subside if management approach the task in the right way. In light of this statement, discuss the recommendations to be considered by managers in the public sector in order to provide effective performance feedback to employees. 1.3 Contemporary organisations have begun to modernise parts of their performance management approach to drive behaviours that are critical in today’s work environment. Using examples from the case study and relevant theory, examine the purposes of performance management in a business environment.

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QUESTION 1 1.1 When discussing performance management, many people immediately think of the annual performance review process. But the performance appraisal is only one (1) component of what is considered to be performance management. Discuss the performance management process that you will apply in the public sector. Use relevant examples from the case study to substantiate your answer. 1.2 Managers struggle to balance positive feedback with the need for improvement. Employees are not sure how to take the feedback and begin to worry about their jobs. All this stress and struggle will subside if management approach the task in the right way. In light of this statement, discuss the recommendations to be considered by managers in the public sector in order to provide effective performance feedback to employees. 1.3 Contemporary organisations have begun to modernise parts of their performance management approach to drive behaviours that are critical in today’s work environment. Using examples from the case study and relevant theory, examine the purposes of performance management in a business environment.
SECTION A
[40 Marks)
Read the case study below and answer ALL the questions that follow.
Performance & Performance Management in the Public Sector
"Performance is often understood to be a combination of ability. knowledge, skills, experierce, and motivation. Failure to
perform can be attributed to absence of one of the following: doing the job compatently (ability), the necessary information
to do the job accurately (knowledge), and motivation as the positive interest in performing the job well and even going
beyond the expectations' (Kwelanga Training, People Management ard Leadership, 2009). Performance is at the heart of
labour process, and 'it is understood to be an act of executing or carrying out' (Concise Oxford English Dictionary, 11th edn.,
2004) duties. It can only be fair that it ontributes to service delivery.
Performarce Manaçement and Development Systems in the Public Service
The Business Times once shared an important lesson in one of their articles on the first 100 days of a manager that
success of a manager is measured by how well each incividual on the team performs. In terms of the public service
regulation, 2001, as amenced, all employses in the public services have to be evaluated. The understanding is that annual
individual performance appraisals should be linked to and be informed by evaluation of unit and organisational performarce
(SMS, Remuneration and Concitions of Service, 2003). Performance measurement has cost implication; wherein certain
levels of achievemert qualify for incentives such as bonuses. The criteria upon which the performance of SMS members is
assassed are based on two components and use the 80:20 weighting, respectively. They are (i) key result areas (KRAS)
cover the main areas of work, focus on actions and activities that should assist units and ultimately the department in
performing effectively, and are weighted 80% and (ii) core managemert criteria (CMC) making up 20% are intended to help
build a common sense of good management practice in the public service. Both should be reflected in the performance
agreement (PA) (SMS Handbook, Performance Managemert and Development).
In the light of enronism (from the Enron stage of capitalism), the public is unlikely to accept the efficiency bonuses paid to
public sector executives and managers as has been the case with ESKOM after the discovery that the performance of the
electricity utility has not been efficient. The credibility and legitimacy of the public servants can be doubted (T. B. Luthuli,
Compliance to Performance: A Leadership Challenge in the South African Public Service, Department of Public
Administration, 2009. p. 462). This reminds me of my frienc who exclaimed, "Gracious in defeat, wow, that's a first! That is
yet to be seen in the public sector' When Maria Ramos, CEO of ABSA bank, concedec her failure and chose not to take a
bonus for 2012 financial year, I woke up to that reality. Performance bonuses shauld reward positive results that impact on
the needs of the citizens.
Enabling Environment for PMDS
The effective implementation of the PMDS requires the creation of an enabling and supportive environment to ensure that
senior managers and their supervisors can comply with the requirements of the system. This includes the provision of
appropriate information on the system itself and familiarising officials with the processes of implementation. It is also
important to put in place appropriate processes for document management so that all the required records are properly filed
and can be accessed when required in order to create a credible audit trail of the implementation of the process (Report on
Senior Management Service Compliance with Performance Agreements in the Eastern Cape Provincial Administration,
2007). DPSA's ather plans include ensuring full compiance by senior management with regard to performance agreements
(PSM, July 2013, p. 43).
Performarce Management
Performance management in the public service is legislated. Public Service Act, 1994 (Proclamation No. 103 of 1994),
requires cepartments to manage performance in a consultative, supportive, and non-discriminatory manner in order to
enhance organisational efficiency and effectiveness and accountability for the use of resources and achievement of results.
The act requires also that employees strive to achieve the objectives of their institutions cost-effectively in the public's
interest.
Performance management is essential, and if it is not measured, it cannot be improved. Level progression of employee
should rightfully be evaluated on a regular basis to allow for improvement or progression to higher levels within the
parameters of the job in question (subject always, of course, to the outoome of the evaluation). This system has presented
problems and fairness of an employer's conduct in doing a level progression' (Christianson et al., 2002, p. 287).
Performarce Agreements
Performance agreements are a must for every employee, for they assist with the definition of key performance areas
(KPAS), responsibilities as well as priorities, development, and recognition for excellent performance. They should be
identified jointly by supervisor and employee. With the standard rating for key performance areas and generic performance
assessment elements, excellence in performance is defined as achievemert of results that far exceed the requirements im
all areas through an excellent level of diligence, commitment, dedication, and innovation (PMDS and Public Service
Regulation, 2001, as amended). It seems the problem of compliance is not only limitec to that of the country's labour laws,
and policies but extended to even corporate governance basics wherein signing of performance agreements has remained
lower than expected (Towards a Fifteen Year Review, 2008).
Performance management is an area which many managers find hard to deal with simply because it is not taker as
seriously as it should be, noting its misuse and the reluctance to address under-performance. Many are, however, not
impressed by it and do not like it for it is very wall known as managers weapon to get at those urder their direction. As the
performance of the employees should be reviewed on a quarterly basis, most quarterly reports are said to be fictitious with
last one being the determining quarter, always marked by high levels of tersions at the workplace with people angry with
one another, no speaking to each other due to difficulties in reaching consensus on the allocation of scores or difficulties in
giving feedback on the outcome of assessments. If there were honest and open ciscussions as is required by the PMDS,
there would not be such unnecessary difficulties and tensions. 'Note that if the supervisor has been doing a good job
supervising, then nathing should be surprising to the employee curing the appraisal. Any performance issues should heve
been conveyed when they occurred, so nothing should be a surprise in the review meeting' explains McNamara (See the
topic "Employee Performance Appraisals/Reviews" in the Free Management Library at http:// managementhelp.org). Finding
out about one's poor performance for the first time at an appraisal session does ro longer come as a shock to many. While
addressing poor performance may be cifficult anc uneasy, it still remains the best to do it promptly.
PMDS is nothing more than a tool to manage employees performar ce that, while it aims at rewarding excellerce, also
develops them to be excellent. Thus, poor performance should be identified and addressed in good time to put employees
in better shape for appraisals ard not to be used as means to retaliate, thus, prejudicing and penalising subordinates.
Performarce ard Feedback
Transcribed Image Text:SECTION A [40 Marks) Read the case study below and answer ALL the questions that follow. Performance & Performance Management in the Public Sector "Performance is often understood to be a combination of ability. knowledge, skills, experierce, and motivation. Failure to perform can be attributed to absence of one of the following: doing the job compatently (ability), the necessary information to do the job accurately (knowledge), and motivation as the positive interest in performing the job well and even going beyond the expectations' (Kwelanga Training, People Management ard Leadership, 2009). Performance is at the heart of labour process, and 'it is understood to be an act of executing or carrying out' (Concise Oxford English Dictionary, 11th edn., 2004) duties. It can only be fair that it ontributes to service delivery. Performarce Manaçement and Development Systems in the Public Service The Business Times once shared an important lesson in one of their articles on the first 100 days of a manager that success of a manager is measured by how well each incividual on the team performs. In terms of the public service regulation, 2001, as amenced, all employses in the public services have to be evaluated. The understanding is that annual individual performance appraisals should be linked to and be informed by evaluation of unit and organisational performarce (SMS, Remuneration and Concitions of Service, 2003). Performance measurement has cost implication; wherein certain levels of achievemert qualify for incentives such as bonuses. The criteria upon which the performance of SMS members is assassed are based on two components and use the 80:20 weighting, respectively. They are (i) key result areas (KRAS) cover the main areas of work, focus on actions and activities that should assist units and ultimately the department in performing effectively, and are weighted 80% and (ii) core managemert criteria (CMC) making up 20% are intended to help build a common sense of good management practice in the public service. Both should be reflected in the performance agreement (PA) (SMS Handbook, Performance Managemert and Development). In the light of enronism (from the Enron stage of capitalism), the public is unlikely to accept the efficiency bonuses paid to public sector executives and managers as has been the case with ESKOM after the discovery that the performance of the electricity utility has not been efficient. The credibility and legitimacy of the public servants can be doubted (T. B. Luthuli, Compliance to Performance: A Leadership Challenge in the South African Public Service, Department of Public Administration, 2009. p. 462). This reminds me of my frienc who exclaimed, "Gracious in defeat, wow, that's a first! That is yet to be seen in the public sector' When Maria Ramos, CEO of ABSA bank, concedec her failure and chose not to take a bonus for 2012 financial year, I woke up to that reality. Performance bonuses shauld reward positive results that impact on the needs of the citizens. Enabling Environment for PMDS The effective implementation of the PMDS requires the creation of an enabling and supportive environment to ensure that senior managers and their supervisors can comply with the requirements of the system. This includes the provision of appropriate information on the system itself and familiarising officials with the processes of implementation. It is also important to put in place appropriate processes for document management so that all the required records are properly filed and can be accessed when required in order to create a credible audit trail of the implementation of the process (Report on Senior Management Service Compliance with Performance Agreements in the Eastern Cape Provincial Administration, 2007). DPSA's ather plans include ensuring full compiance by senior management with regard to performance agreements (PSM, July 2013, p. 43). Performarce Management Performance management in the public service is legislated. Public Service Act, 1994 (Proclamation No. 103 of 1994), requires cepartments to manage performance in a consultative, supportive, and non-discriminatory manner in order to enhance organisational efficiency and effectiveness and accountability for the use of resources and achievement of results. The act requires also that employees strive to achieve the objectives of their institutions cost-effectively in the public's interest. Performance management is essential, and if it is not measured, it cannot be improved. Level progression of employee should rightfully be evaluated on a regular basis to allow for improvement or progression to higher levels within the parameters of the job in question (subject always, of course, to the outoome of the evaluation). This system has presented problems and fairness of an employer's conduct in doing a level progression' (Christianson et al., 2002, p. 287). Performarce Agreements Performance agreements are a must for every employee, for they assist with the definition of key performance areas (KPAS), responsibilities as well as priorities, development, and recognition for excellent performance. They should be identified jointly by supervisor and employee. With the standard rating for key performance areas and generic performance assessment elements, excellence in performance is defined as achievemert of results that far exceed the requirements im all areas through an excellent level of diligence, commitment, dedication, and innovation (PMDS and Public Service Regulation, 2001, as amended). It seems the problem of compliance is not only limitec to that of the country's labour laws, and policies but extended to even corporate governance basics wherein signing of performance agreements has remained lower than expected (Towards a Fifteen Year Review, 2008). Performance management is an area which many managers find hard to deal with simply because it is not taker as seriously as it should be, noting its misuse and the reluctance to address under-performance. Many are, however, not impressed by it and do not like it for it is very wall known as managers weapon to get at those urder their direction. As the performance of the employees should be reviewed on a quarterly basis, most quarterly reports are said to be fictitious with last one being the determining quarter, always marked by high levels of tersions at the workplace with people angry with one another, no speaking to each other due to difficulties in reaching consensus on the allocation of scores or difficulties in giving feedback on the outcome of assessments. If there were honest and open ciscussions as is required by the PMDS, there would not be such unnecessary difficulties and tensions. 'Note that if the supervisor has been doing a good job supervising, then nathing should be surprising to the employee curing the appraisal. Any performance issues should heve been conveyed when they occurred, so nothing should be a surprise in the review meeting' explains McNamara (See the topic "Employee Performance Appraisals/Reviews" in the Free Management Library at http:// managementhelp.org). Finding out about one's poor performance for the first time at an appraisal session does ro longer come as a shock to many. While addressing poor performance may be cifficult anc uneasy, it still remains the best to do it promptly. PMDS is nothing more than a tool to manage employees performar ce that, while it aims at rewarding excellerce, also develops them to be excellent. Thus, poor performance should be identified and addressed in good time to put employees in better shape for appraisals ard not to be used as means to retaliate, thus, prejudicing and penalising subordinates. Performarce ard Feedback
should rightfully be evaluated on a regular basis to allow for improvement or progression to higher levels within the
parameters of the job in question (subject always, of course, to the outcome of the evaluation). This system has presented
problems and fairness of an employer's conduct in doirg a level progression' (Christianson et al., 2002, p. 287).
Performarce Agreements
Performance agreements are a must for every employee, for they assist with the definition of key performance areas
(KPAS), responsibilities as well as priorities, development, and recognition for excellent performance. They should be
identified jointly by supervisor and employee. With the standard rating for key performance areas and generic performance
assessment elements, excellence in performance is defined as echievemert of results that far exceed the requirements in
all areas through an excellent level of diligence, commitment, dedication, ard innovation (PMDS and Public Service
Regulation, 2001, as amended). It seems the problem of compliance is not only limitec to that of the country's labour laws,
and policies but extended to even corporate governance basics wherein signing of performance agreements has remained
lower than expected (Towards a Fifteen Year Review, 2008).
Performance management is an area which many managers find hard to deal with simply because it is not taker as
seriously as it should be, noting its misuse and the reluctance to address under-performance. Many are, however, not
impressed by it and do not like it, for it is very well known as managers' weapon to get at those under their direction. As the
performance of the employees should be reviewed on a quarterly basis, most quarterly reports are said to be fictitious with
last one being the determining quarter, always marked by high levels of tersions at the workplace with pecple angry with
one another, no speaking to each other due to difficulties in reaching consensus on the allocation of scores or difficulties in
giving feedback on the outcome of assessments. If there were honest and open discussions as is required by the PMDS,
there would not be such unnecessary difficulties and tensions. 'Note that if the supervisor has been doing a good job
supervising, then nothing should be surprising to the employee curing the appraisal. Any performance issues should have
been conveyed when they occurred, so nothing should be a surprise in the review meeting' explains McNamara (See the
topic "Employee Performance Appraisals/Reviews" in the Free Management Library at http:// managementhelp.org). Finding
out about one's poor performance for the first time at an appraisal session does ro longer come as a shock to many. While
addressing poor performance may be cifficult and uneasy, it still remains the best to do it promptly.
PMDS is nothing more than a tool to manage employees performance that, while it aims at rewarding excellerce, also
develops them to be excellent. Thus, poor performance should be identified and addressed in good time to put employees
in batter shape for appraisals ard not to be used as means to retaliate, thus, prejudicing and penalising subordinates.
Performarce ard Feedback
Difficulties with feedback can be a general problem or arise, particularly when dealing with performance. Performance
reviews are important feecback sessions that take place at regular intervals during the course of the year while they should
provide an opportunity for members to receive feedback on how they are performirg and time for structured reflection by the
member using the process of self-assessment (SMS Handbook, 2003, p. 20). While it is indeed common that the first time
mary people hear about their poor performance is usually at an appraisal, and it can come as a shock (time-management-
basics.com). Managers' biggest challenge, wherein appreciation and recognition of subordinates by their maragers, is also
found disturbingly less than normal expectations (Towards a Fifteen Year Review, 2008). This is because they lack the
human quality to genuinely and honestly comment or speak well about those under them as reported in the Gullup report.
This attitude leaves many wondering if such managers understand what such ar attitude truly means and how it speaks of
them.
Unless the primary course is well understood and the system properly implemented and strictly monitored with
consequences, it wil remain disrespected and not compliec with but continued to be misused. It seems organisations lack
the necessary monitoring and evaluation systems that ensure people are effectively utilised. PMDS's objectives should be
well understood and shoud not be confused consciously or unconsciously as solely for rewarding good performarce but to
man age poor performance and identify and adcress development employees' needs through planned training. It is result
oriented and should ensure openness, fairness, and objectivity to benefit organisations and should thus be linked to broad
and consistent plans for staff development and aignec with the organisational strategic goals.
To ensure this, PMDS requires supervisors to do the following:
Be involved in all the levels of reporting and assessment of their junior colleagues.
Be well prepared when presenting ar employee's assessment to the performance assessment committee.
Ensure that appropriate recognition should be given to good performances and that corrective and supportive action
is taken regarding underperformers.
Inform subardinates ir writing regarding the outcome and findings of the performance assessment committee,
including fully documented reasons in cases where scores have been acjusted.
Managers are found not helpful, distancing themselves despite having worked with very closely rather than playing their
role, reminding, add ing, and beautifying what they already know; they will instead behave as though they know nothing.
PMDS, being cevelopmental, simply means, where performance is found to be poor, corrective steps have to be taken to
improve, particularly for future assessments (Employee Performance Management and Development System, 2007).
Therefore, when a manager has people under him stagnant, having not qualified for notch progression and even merit
award over long periods-for example three years and above and not to mention five, ten, and more years-it becomes
clear that someone is not doing his job. Worse, when such managers cualify themselves for merits year in and out, it makes
one to question the understanding of the system or organisational ethics.
The process of informing subordinates of the outcome of the assessment process is statutory, and where information is
withheld or not transferred to subordirates, subordinates may lodge a grievance. The information contributes to developing
a meaningful and relevant personal development plan for employees in order to identify areas that need improving or
capacity buiding. Hence, it is expected that employees should ultimately develop.
A newly employed who qualifies alone amongst many old employees and in his first year for a merit award can only mean
two things: he is truly exceptional, and the impact of his outcomes can be felt or he is just a favourite. It, therefore, becomes
ridiculous for such managers to qualify for merit awards either year in and out, worse still, in isolation from their
subordinates. This requires caution since it can send a bad message that suggests that subordinates are, after all, not a
valuable source of intelligence and, as such, are not worth the trouble. However, beware, people can act what they are
purported to be. One is, therefore, tempted to state in response to the identified challenge by the govemment, which is the
absence of a strong performance culture, that, it seems, many employees have ability and knowledge and only lack
motivation to perform at their best
Managers have responsibilities and should be held accountable for iraccurate, inordinate, and incomplete appraisals of
their units' performance. Performance appraisal should not be a battle between the power of appreciation and the power of
criticising and undermining. Patterrs and trends with regard to how Performance Appraisals/Reviews are conducted
particularly with the issues of race and qualifications for notch and performance bonus (PMDS) remains a research
chalenge to the employer.
Transcribed Image Text:should rightfully be evaluated on a regular basis to allow for improvement or progression to higher levels within the parameters of the job in question (subject always, of course, to the outcome of the evaluation). This system has presented problems and fairness of an employer's conduct in doirg a level progression' (Christianson et al., 2002, p. 287). Performarce Agreements Performance agreements are a must for every employee, for they assist with the definition of key performance areas (KPAS), responsibilities as well as priorities, development, and recognition for excellent performance. They should be identified jointly by supervisor and employee. With the standard rating for key performance areas and generic performance assessment elements, excellence in performance is defined as echievemert of results that far exceed the requirements in all areas through an excellent level of diligence, commitment, dedication, ard innovation (PMDS and Public Service Regulation, 2001, as amended). It seems the problem of compliance is not only limitec to that of the country's labour laws, and policies but extended to even corporate governance basics wherein signing of performance agreements has remained lower than expected (Towards a Fifteen Year Review, 2008). Performance management is an area which many managers find hard to deal with simply because it is not taker as seriously as it should be, noting its misuse and the reluctance to address under-performance. Many are, however, not impressed by it and do not like it, for it is very well known as managers' weapon to get at those under their direction. As the performance of the employees should be reviewed on a quarterly basis, most quarterly reports are said to be fictitious with last one being the determining quarter, always marked by high levels of tersions at the workplace with pecple angry with one another, no speaking to each other due to difficulties in reaching consensus on the allocation of scores or difficulties in giving feedback on the outcome of assessments. If there were honest and open discussions as is required by the PMDS, there would not be such unnecessary difficulties and tensions. 'Note that if the supervisor has been doing a good job supervising, then nothing should be surprising to the employee curing the appraisal. Any performance issues should have been conveyed when they occurred, so nothing should be a surprise in the review meeting' explains McNamara (See the topic "Employee Performance Appraisals/Reviews" in the Free Management Library at http:// managementhelp.org). Finding out about one's poor performance for the first time at an appraisal session does ro longer come as a shock to many. While addressing poor performance may be cifficult and uneasy, it still remains the best to do it promptly. PMDS is nothing more than a tool to manage employees performance that, while it aims at rewarding excellerce, also develops them to be excellent. Thus, poor performance should be identified and addressed in good time to put employees in batter shape for appraisals ard not to be used as means to retaliate, thus, prejudicing and penalising subordinates. Performarce ard Feedback Difficulties with feedback can be a general problem or arise, particularly when dealing with performance. Performance reviews are important feecback sessions that take place at regular intervals during the course of the year while they should provide an opportunity for members to receive feedback on how they are performirg and time for structured reflection by the member using the process of self-assessment (SMS Handbook, 2003, p. 20). While it is indeed common that the first time mary people hear about their poor performance is usually at an appraisal, and it can come as a shock (time-management- basics.com). Managers' biggest challenge, wherein appreciation and recognition of subordinates by their maragers, is also found disturbingly less than normal expectations (Towards a Fifteen Year Review, 2008). This is because they lack the human quality to genuinely and honestly comment or speak well about those under them as reported in the Gullup report. This attitude leaves many wondering if such managers understand what such ar attitude truly means and how it speaks of them. Unless the primary course is well understood and the system properly implemented and strictly monitored with consequences, it wil remain disrespected and not compliec with but continued to be misused. It seems organisations lack the necessary monitoring and evaluation systems that ensure people are effectively utilised. PMDS's objectives should be well understood and shoud not be confused consciously or unconsciously as solely for rewarding good performarce but to man age poor performance and identify and adcress development employees' needs through planned training. It is result oriented and should ensure openness, fairness, and objectivity to benefit organisations and should thus be linked to broad and consistent plans for staff development and aignec with the organisational strategic goals. To ensure this, PMDS requires supervisors to do the following: Be involved in all the levels of reporting and assessment of their junior colleagues. Be well prepared when presenting ar employee's assessment to the performance assessment committee. Ensure that appropriate recognition should be given to good performances and that corrective and supportive action is taken regarding underperformers. Inform subardinates ir writing regarding the outcome and findings of the performance assessment committee, including fully documented reasons in cases where scores have been acjusted. Managers are found not helpful, distancing themselves despite having worked with very closely rather than playing their role, reminding, add ing, and beautifying what they already know; they will instead behave as though they know nothing. PMDS, being cevelopmental, simply means, where performance is found to be poor, corrective steps have to be taken to improve, particularly for future assessments (Employee Performance Management and Development System, 2007). Therefore, when a manager has people under him stagnant, having not qualified for notch progression and even merit award over long periods-for example three years and above and not to mention five, ten, and more years-it becomes clear that someone is not doing his job. Worse, when such managers cualify themselves for merits year in and out, it makes one to question the understanding of the system or organisational ethics. The process of informing subordinates of the outcome of the assessment process is statutory, and where information is withheld or not transferred to subordirates, subordinates may lodge a grievance. The information contributes to developing a meaningful and relevant personal development plan for employees in order to identify areas that need improving or capacity buiding. Hence, it is expected that employees should ultimately develop. A newly employed who qualifies alone amongst many old employees and in his first year for a merit award can only mean two things: he is truly exceptional, and the impact of his outcomes can be felt or he is just a favourite. It, therefore, becomes ridiculous for such managers to qualify for merit awards either year in and out, worse still, in isolation from their subordinates. This requires caution since it can send a bad message that suggests that subordinates are, after all, not a valuable source of intelligence and, as such, are not worth the trouble. However, beware, people can act what they are purported to be. One is, therefore, tempted to state in response to the identified challenge by the govemment, which is the absence of a strong performance culture, that, it seems, many employees have ability and knowledge and only lack motivation to perform at their best Managers have responsibilities and should be held accountable for iraccurate, inordinate, and incomplete appraisals of their units' performance. Performance appraisal should not be a battle between the power of appreciation and the power of criticising and undermining. Patterrs and trends with regard to how Performance Appraisals/Reviews are conducted particularly with the issues of race and qualifications for notch and performance bonus (PMDS) remains a research chalenge to the employer.
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