Supporting Good Practice in Performance and Reward Management

2374 Words Jun 30th, 2012 10 Pages
Performance management is the process of creating a work environment in which people are enabled to perform to the best of their abilities. Performance management begins when a job is defined and it ends when an employee leaves the organisation.
Performance management in organisations is used to achieve the following: • Drive Results • Build Capabilities

Drive Results
The performance management process drives the achievement and improvement of key business results through individual, group, and enterprise goal alignment. It is important to define goals and expectations which are clearly focused on key priorities, and well connected to the drivers of results.
Formal and informal processes are used for identifying and
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Managers should also recognise that workers are not all motivated in the same way and do not all move up the hierarchy at the same pace. They may therefore have to offer a slightly different set of incentives from worker to worker in order to ensure performance.

Performance management depends on good systems that offer both financial and non-financial rewards. Reward within a performance management system ensures that:
Each person receives appropriate financial and nonfinancial recognition to account for the personal contribution they are making and the overall value of their position to the organisation by 1. Creating and maintaining an organisational structure and culture that facilitates both employee and organisational performance. 2. Recognising and rewarding individual and team performance, financially and otherwise, in relation to the overall contribution made. 3. Implementing compensation systems that fairly treat and recognize all employees, regardless of their level within the organisation.
Performers are motivated: Motivation influences performance to a large extent. The receipt of either a financial or non-financial reward will encourage the staff in achieving a great deal for the organisation. A demotivated employee on the other hand will be slow, prone to error and not likely to achieve.

Total Rewards
Total rewards is the monetary and non-monetary return provided to
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