Performance Management Systems

2641 Words Dec 5th, 2010 11 Pages
Performance Management Systems

It is believed that in any organization, the success of the Performance Management System depends on the ways in which the performance has been linked with the various values and the missions and the vision, and in the strategic objective of the entire organization. As the manager and Team leader of my department I have been given the responsibility of designing a non monetary award system within my organization, and with a certain limited control over it, must keep in mind the several most important key processes that would be utilized for designing and implementing an effective and an efficient performance management system. It is important to keep in mind that there are three important levels of
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According to Jack Zigon (1995), rewards can be defined as “something that increases the frequency of an employee action” and this in other words means that an employee must be judged by his very performance within the company in order to offer him the rewards. (Prudden, 2004) Non-monetary awards can be therefore extremely motivating, especially when it is based upon the performance of the employee, and according to Keller (1999), such rewards would only help to build up and bolster the self-confidence and also the self-satisfaction levels of the employee who is being rewarded. It has been demonstrated that a motivated employee would not attempt to look outside for another job and employee turnover would be kept at a minimum. One research report on the factor of employee retention that was conducted by the American Society for Training and Development (ASTD), has stated that consistent employee recognition was one of the major factors that contributed to employee retention, by which the top performing employees of the organization would be retained within the organization. In order to achieve all the desired goals of the company, the rewards system must be coordinated and thereafter closely aligned with the various organizational strategies, according to Allen and Helms (2002). One example of this factor is that
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