Supporting Good Practice in Performance & Reward Management

977 Words Sep 20th, 2014 4 Pages
Supporting Good Practice in Performance & Reward Management; 3PRM
Summative Assessment: CIPD Reference Number F060L

Performance Management is a process aimed at improving performance in an effective and efficient manner. It involves following principles that ensure individuals or teams they manage: know and understand what is expected of them have the skills and ability to deliver on these expectations are supported by the organisation in developing the capacity to meet these expectations are given feedback on their performance
Have the opportunity to discuss and contribute to individual and team aims and objectives.
Performance Management should be:
Strategic – it is about broad issues and long-term goals.
Integrated – it should
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The closer we come to satisfying one need, the more we want to satisfy the next need in the hierarchy. If we are unable to satisfy one of the needs, we become focused wholly on meeting that need, and the desire to meet other needs is reduced”.
The model provides a useful framework for considering how motivated individuals are and why, however it’s important to remember that not all people are driven by the same needs. Managers must understand the needs being pursued by each employee, recognise the level at which the employee is performing, and use those needs as levers of motivation.

Employee motivation and performance management depends on a good system that offers both financial and non-financial rewards (non-monetary rewards). The purposes of rewards within a performance management system helps: organisations become more competitive. retains employees and costs. reduces the organisation’ s turnover. allows relationships to develop between employees and the organisation. reinforces the image of the organisation among stakeholders or future employees.
It’s essential that managers understand their employees’ perceptions of the importance and fairness of the reward system and then clearly communicate what needs to be done to receive the reward.

The concept of total reward