Bmw: Motivation and Reward Systems

1118 WordsMar 12, 20065 Pages
5.0 EFFECT OF REVIEW OF THE PAYMENT SYSTEM ON THE MANAGEMENT OF THE APPRAISAL SYSTEM PERFORMANCE APPRAISAL SYSTEM According to Dailey (2003:4/3), an organisation 's performance appraisal system is defined as a process which generates valid information about employee work effectiveness for the purpose of making informed HRM decisions. Organisations must evaluate employee performance for a number of reasons: · Employees need to understand the behavioural requirements of the job · Employees ' work is evaluated for its contributions to company goals · Employees need to know where they stand within the organization in terms of their performance · Employees ' motivation to do a good job is increased by the performance appraisal…show more content…
Goals should be specific, measurable, achievable, resource-based and time-specific (SMART). When goals lack these properties, they have less motivational impact because employees lose interest in them. · The fourth element indicates that employee commitment and acceptance of goals creates the behavioural intentions to strive for the pre-established goals. Intention is directly related to both properties. Employee intentions are deepened by the clear specification of the relationship between rewards and the goals in question · The fifth element in the model specifies the employee and organizational outcomes resulting from the process. Properly managed goal-setting systems having adequate and timely formal and informal feedback generate task performance that is valued by the organization and its employees. Employees receive valued personal rewards (recognition, pay rises, bonuses, promotions, status etc), which create job satisfaction, and increased work motivation, which in turn deepens the commitment to goal setting. Table 1.0 Aspects of the goal-setting process Environmental issues Goal Setting process Goal attributes Employee intentions Outcomes Specify results expectedExplain rewards which are available
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