Performance and Reward Management

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

When looking at performance management it can be defined as (1) ‘a process which contributes to effective management of individuals and teams in order to achieve high levels of organisational performance. As such it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure it is achieved.’ We can see from this definition that managing performance is crucial to the overall performance of the organisation and meeting its goals and objectives. This process must then be strategic but also link other aspects of the organisation such as individuals and teams. As defined above, performance management is ultimately about achieving high levels of

Performance management is a holistic procedure collectively brings various types of elements that constitute towards the flourishing exercise of people management including, above all, learning and development.

Performance management relates to an organization’s ability to implement a system to evaluate and advance employee performance. Achieving peak performance requires consistency, clear objectives, and constructive employee evaluation. According to Mithas, Ramasubbu, & Sambamurthy (2011), an organization must design the performance management system based on extensive research about the organization’s mission, and then properly communicate the purpose of the system to employees, stakeholders, and decision makers. After the performing the research, the information should be used to establish the appropriate performance management specialized for the organization. In addition, an effective performance management system should align

Performance management is a tool that managers use to ensure that their companies remain at the top of their competitive edge. The Chartered Institute for Personnel Development (CIPD, 2008), defines performance management as a method by which individuals and teams are managed in a way that achieves high performance at an organisational level. The individuals within the organisation share an understanding of the achievement goals of the organisation. In order to achieve this, a general strategy is created, with each individual within the organisation understanding his or her role and requirements within such a strategy

The dominant purpose of this article seems to be to convince the reader that a proper performance related reward system will motivate employee towards excellent work performance and achieving organization objectives provided there is sufficient resources in place with necessary training provided. This article discussed in details on the “performance related reward system” as a tool used by management to promote excellent work performance among employees towards achieving organization objectives and goals. The authors have elaborated various types of performance related rewards system and its relationship to work performance. The advantages and disadvantages in implementing the “performance related reward system” are also highlighted in this

Performance management is the process through which managers ensure that employee’s activities and outputs contribute to the organization’s goal (Gerhart, Hollenbeck, Noe, & Wright, 2009). Effective performance management can tell top performers that they are they are valued and encourage communication between managers and their employees (Gerhart, et, el). This process also establish consist standards for evaluating employees and help the organization identify its strongest and weakest employees. The performance process have six steps to show how an organization accomplish its goals. Steps one and two involve knowing what and how the company ‘s strategy to reach its goals. The third step consist of the organization training its employees and engageing in on-going feedback between the employees and managers. The fourth step involes the manager and employee on knowing if the goals are reached are they getting the results that are set out for. Finally, the last goal will be for the manager to identify what the employee can do to capitalize on performance strengths and address weaknesses. The effective performance management techniques for the CEO and average workers are that one task are bigger that the other. The CEO have to make sure all the managers are meeting the performance measure where average workers have to only be concerned about their individual job duty. These are some of the

2.1 What are 2 purposes of reward within a performance management system and give an example of this within your own organisation, or one which you are familiar with?

Reward is a vital part of Performance Management. Two of the purposes of Rewards are:

The literature review brings up some interesting common themes and issues that run through the existing literature, research and definitions of performance management. These common themes will focus on features of performance management and its application in an organisation.

Performance rewards come in a variety of opportunities. Typically, performance rewards would indicate a monetary reward such as a promotion, increase of pay, or the receipt of a bonus for a project completion. However, positive feedback or a simple thank you from an upper level management inspires the employee to produce results. Rewarding an employee with additional training or asking him or her to work with a specific team or conference encourages personal enhancement. Asking an employee to attend a conference, workshop, or business trip shows the employer believe in the employee. Any of these options gives the employee personal satisfaction and well as a big boost of confidence.

One of the most important resources of any organization is its employees, the human resource. This makes it very important that these resources are properly managed; so that they thrive and grow along with the organization. People stream defines performance management as “A process for establishing a shared workforce understanding about what is to be achieved at an organizational level. It is about aligning the organizational objectives with the employees’ agreed skills, competency requirements, development plans and the delivery of results. The emphasis is on improvement, learning and development in order to achieve the overall business strategy and to create a high performance work force”. The performance

“Performance management in words involves establishing cause and effect relationships between behaviors and effectiveness. In simple terms, a job involves a series of behaviors and activities which are usually prescribed and described in some form of job description.” (Schneier, Beatty, 2002)

There are several different methods for rewarding performance as well but rewarding performance methods fall into several different categories. There are intrinsic rewards, extrinsic rewards, financial rewards, non-financial rewards, performance-based rewards, membership-based rewards, and many other rewards.

Being rewarded and recognised for their work or contribution is what keeps an employee motivated to work towards achieving the organisational as well as personal goals. When the employees is motivated by rewards, they will have job satisfaction consequently increasing the productivity of the organisation. It necessitates the need of managers to pay more attention in understanding their employees and come up with suitable types of reward systems for the organisation so that the employees are intrinsically and extrinsically motivated all the time. The hypotheses that I put forward here is to support this statement that effective reward management is critical to