Supporting Good Practice in Performance and Reward Management

1657 Words7 Pages
Performance management is a continuous system which enables line managers to assess their employees’ performance. Performance Management is directly looking at how people work, how they are managed and developed and ultimately to maximise their contribution to the organisation. As (M Martin et al, 2010, pg 157) stated; ‘A process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such it is established shared understanding about what to be achieved and on approach to leading and developing people.’ Performance Management is to drive improvement in business goals and objectives. Performance Management can be seen to motivate and retain high…show more content…
To be able to keep theory Y individuals motivated, reward systems needs to be implemented to achieve business aims and an environment or culture needs to be adapted where employees can express their creative side. Theory X is explained as individuals who dislike work and avoid any ambition within their life and prefer to be managed and led. Again, to keep individuals that follow the Theory X example motivated, regular performance management reviews need to be assessed, as theory x employees like a sense of people controlling and punishing them. 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? Organisations place rewards policies within the organisation for many reasons. Reward systems through performance management allow organisations to improve staff retention by keeping them motivated. In addition, reward packages encourage high performers to excel within their expertise. This overall gives the organisation a positive image as the staff turnover will be low and give the sense that the company looks after their employees. Within The Priory Group, there isn’t a
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