Performance and Reward Management

2667 Words May 24th, 2012 11 Pages
1.0 INTRODUCTION

1.1 Performance and Reward Management Defined
In most literature, performance and reward management are defined separate of each other. The writer has combined the two to give the definition of what is performance and reward management using the definitions by Michael Armstrong.
Performance and Reward Management are the strategies, policies and integrated processes that deliver sustained success to organizations by improving the performance of people and developing the capabilities of individual contribution and teams and recognizing these contributions and teams by both financial and non-financial rewards.
The main objectives of performance and reward management are:
1. To minimize expenditure on wages and salary over
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3. When managers and team members ask what they need to be able to do bigger and better things, they move to strategic development.
2.0 FACTORS INFLUENCING PERFORMANCE AND REWARD MANAGEMENT
Factors influencing performance and reward management would be those that were outlined earlier such as the external environment and the internal environment. Dave Ulrich (1998) has written that what happens inside an organization must be linked to what happens outside. As mentioned before, some of the external factors include globalisation, competitive pressures, pay levels legal developments and trends in the marketplace.

3.0 STRATEGIC NATURE OF PERFORMANCE AND REWARD MANAGEMENT
Reward strategy clarifies what the organization wants to do in the longer term to develop and implement reward policies, practices and processes that will further the achievement of its business goals. Of course these strategies must be driven by the corporate strategy of the organization.
3.1 Purpose of the Corporate Strategy
A corporate strategy is the set of management decisions – designed by executives, the board, senior management team or whoever are the final decision makers in the organization. It is the overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals.
The corporate strategy drives all other strategies including the Human Resource strategy, Marketing Strategy,
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