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27 The practice of performance managemen... > Line managers and performance manage... - Pg. 342

342 Part 5 Performance and reward Line managers and performance management Line managers are crucial to the success of perform- ance management. But there are problems. The e-reward 2005 survey of performance management established that the top four issues concerning respondents about their performance management processes were: 1 Line managers do not have the skills required ­ 88 per cent. 2 Line managers do not discriminate sufficiently when assessing performance ­ 84 per cent. 3 Line managers are not committed to performance management ­ 75 per cent. 4 Line managers are reluctant to conduct performance management reviews ­ 74 per cent. When asked how they coped with these problems, Performance management as a rewarding process Performance management, if carried out properly, can reward people by recognition through feed- back, the provision of opportunities to achieve, the scope to develop skills, and guidance on career paths. All these are non-financial rewards that can encourage job and organizational engagement and make a longer-lasting and more powerful impact than financial rewards such as performance-related pay. Performance management is, of course, also associated with pay by generating the information required to decide on pay increases or bonuses re- lated to performance, competence or contribution. In some organizations this is its main purpose, but performance management is, or should be, much more about developing people and rewarding them in the broadest sense.