POsted the following on HRGyan on Performance linked component in HR Manager's Pay

Any compensation initiative should tie in to the strategic
objectives and directions of the firm and the group that the change
is to be implemented in. This is because the connotations of
compensation and pay communicated a lot of unsaid assumptions to the
employees.

Therefore it would be a worthwhile exercise on the organizations
path to get the following answers for further directions:

1. What is the overall strategic direction for HR?
2. Hence what are the areas of emphasis that HR needs to concentrate
on?
3. Can clear measurable factors be evolved for these areas?
4. If yes, is there a transparent system to track and monitor the
achievement of these factors?
5. If so, it would be a good decision to link these milestones to
the variable salary portion.