Performance contracts come with quality assurance. It ensures maximum effort into your job to produce the desired results. Failure may end up in retrenchment and success results in promotions and permanence in your job. There is therefore the aspect of reward and punishment where performance contracts are involved.
Performance in the job takes centre stage and at times the welfare of the worker is ignored. The employer often sees the job well done and percieves the worker as a machine. The worker may be sick yet due to the performance contract, he is forced to work. Machines need regular maintenance and service. Humans like machines need service too. Human resource unlike machines work with many factors. Renumeration, mood and enjoying the job are some of them.
Performance contracts however, ensures there is no lazing on the job. Humans are cunning individuals and will do anything to earn much while putting in very little working hours. Officers used to leave their coats on chairs to show they are on the job, yet they have gone to their own leisure. Performance contracts may bind together the employer and employee. One gives the service while the other receives it.
Working smart with or without a performance contract is needed at all times. Never seek a push-over to perform. Bloggers and writers need no prompting (except for news writing). Maybe those new in the field. Working smart makes you set your own targets. You pat yourself on the back when you succeed. Failing means that you sit down and ask yourself where you went wrong. Avoid all the drawbacks and focus your mind to success. Goals should be measurable, for a certain period and achievable.It is only then that one will know where they are coming from, where they currently are and where they are heading to. Performing contracts do try to do the same, but by coercing and forcing.
Most of us work or have worked where performance contracts are signed. The question here is whether they work, do they work in your company? Do they get the desired final product? Are all the stakeholders happy with it? How is it done? There was a company which attempted it and in a couple of months, abandoned it due to massive resignations.
My belief is that it is a lazy way in which CEOs want much done with minimal supervision thus saving much money for the company.