Performance Management Essay

Discuss expectations. Ensure that your staff know exactly what is expected of them when performing their duties including, where appropriate, the priority in which tasks are required to be completed. This should be done with their input and should include mutually agreed goals. Regular meetings with staff to discuss core activities will help all involved understand what is required to be done. These should be documented in an annual workplan.

Performance management system makes a clear link between the performance and compensation, and allows the employees to understand the areas which need to be improved and directs them to appropriate training opportunities to enable improvement in performance to take place. Joseph Martocchio says, “Work with line managers to design the performance appraisal plan which best fits the specific duties and responsibilities of particular roles” (Martocchio, 2011). Compensation and reward decisions are likely to be arbitrary in the absence of a good performance management system. In short, performance management is a key component of talent management in organizations. It allows assessing the current talent and making predictions

-Create an environment where team members can identify and solve problems on their own, delegating real power and responsibility - Demonstrate and articulate the values of the organization -Look for ways to use staff's interests and strengths in directly supporting people - Share decision making

3. To involve and empower people this is done through timely and consistent guidance of HR, team working, periodic meetings, support, and

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

Ability to build long lasting relationships with staff and management based on trust, a high degree of integrity, service excellence and transparency.

Establishing a culture that allows the organization to build and achieve its strategic objectives is important. A defined organizational culture provides the ground work for development and strategic planning. This established culture will aid in the planning process. The success of an organization relies on its leadership. A good leader must possess the characteristics to lead the company toward achieving desired strategic goals. A good leader must provide an environment where people want to work, succeed, and stay, however every employee will not remain with the organization. When this occurs top executives must evaluate where the organization stand to obtain a clear insight of its strengths, weaknesses, and opportunities for improvement. The organization established peer groups to develop strategies to retain employees. This will provide a realistic view on how to create a plan around the knowledge gained. Employees who use their strengths and talents are less likely to leave the organization at the first sign of trouble. Employees perform best giving the opportunity to utilize their talents to complete daily tasks. Baptist Memorial

The reasons provided for failure in performance management versus performance appraisal discipline gap, accountability, measurement scarcity or overload, lack of balance and failure to assess impact. “There are two primary purposes of performance appraisal: evaluative and developmental. The evaluative purpose is intended to inform people of their performance standing. The collected performance data are frequently used to reward high performance and to punish poor performance.” (Smither, 2009) The developmental purpose is intended to identify problems in employees performing the assigned task. The collected performance data are used to provide necessary skill training or professional development. “The purpose of performance appraisal must be clearly communicated both to raters and rates, because their reactions to the appraisal process are significantly different depending on the intended purpose. Failure to inform about the purpose or misleading information about the purpose may result in inaccurate and biased appraisal reports.” (Cascio, 1998)

An employee’s skills start prior to ever being employed, therefore Landslide Limousines will have all applicants submit skills testing. This testing will measure their ability to problem solve, their customer service orientation, and what their personal goal are during their time of employment. Once an applicant is hired they will complete orientation training which will give them the tools to be successful. After training employees will be monitored on a regular basis. Every customer will be asked to fill out a customer service survey with open-ended

Recognizing and rewarding high-performance is a key recommendation for any approach when managing any merit pay program (HRIS 2012). Merit pay is a compensation system where base pay increases and is determined by an individual’s performance. Using a merit pay plan is a good way for an organization to reward high performance is one benefit when using merit pay programs. The first step in implementing or improving a merit pay program is to have a solid performance management program, and this is another way a merit pay program is beneficial. Merit pay is a way to be successful and effectively implement merit pay with a uplift in salaries, and this is a third way using a merit pay program is beneficial to an organization. There are some drawbacks when using merit pay programs, such as paying some employees more than others. If you pay high-performing workers more than low- performing employees, the high- performers may stay, causing the low- performers to complain or leave the organization. A second drawback in using merit pay program is that employees become less motivated if not paid to their satisfaction. For example, if employees feel they should be making more money for their performance, this causes them to have low self esteem, and want to find employment at other organization. The last drawback associated with

Although research generally confirms that pay-for-performance plans can influence greater outcomes, it is unclear how effective different pay plans are relative to each other (Park, 2012). Like most things in business, compensation is something that requires evaluation, study, assessment, strategy, modeling and integration.  Achieving a pay for performance culture does not happen without paying attention to the behaviors, activities, rewards and motivations that have to be linked and reinforced through a well engineered and successfully executed process.  Actually if that process does not tie rewards to shareholder financial objectives, employ the proper mix of compensation elements, result in meaningful dollars, embrace performance that employees can impact and are effectively communicated and reinforced, then the results it produces will likely fall short (Vision Link Advisory Group, 2013).

In addition, be sure to provide inspirational vision and strong values, meaningful and challenging work, offer career opportunities, create an environment that enables people to do their best work, offer tangible rewards in both monetary and non-monetary ways and ensure work/life balance and support its importance.

The report investigates the significance of pay for performance program. A review of existing literature on the subject matter will be done in view of providing an explanation on the subject. The focus will be on theoretical frameworks that explore the issue of labor force performance in relation to pay and incentives. The hypothesis guiding this investigation is that 1) better pay improves performance, 2) better pay reduces the rate of turnover, 3) that a good incentive and reward system improves worker’s motivation and loyalty to the company , and 4) pay could take any form or be substituted for leisure, less work hours or rewards. The findings will be used to analyze various companies in Singapore, while at the same time showcasing the value of the concepts discussed and possible problems that could arise. The final section will conclude with recommendations to improve labor supply through good pay.

According to Hyde (2004), performance management is a group of guidelines utilized in refining productivity, handling workplace behavior, training and development of staff, and providing positive feedback on a regular basis. A good employee performance management system entails components that help employers concurrently accomplish goals and sustain employee satisfaction. Performance management allows a business to identify strategic goals, and measure/manage performance against those goals. It contains a set of incorporated management and systematic methods that deal with financial and operational activities.

Provides the capacity the firm requires to consistently & predictably manage it’s daily work routines.