Supporting Good Practice in Performance and Reward Management

2321 Words Jun 12th, 2012 10 Pages
Supporting Good Practice in Performance and Reward Management

1. Explain at least 2 purposes of performance management and its relationship to business objectives.

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.
The purpose of Performance management is to develop the ability of individuals to meet and often exceed expectations to achieve their full potential in the individuals given field of expertise, therefore benefiting themselves and the organisation. Performance management provides an origin for self-development and it helps ensure that the support and direction
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This consists of things such as achievement of higher market share and profit maximisation consequently due to an individual’s performance. Processes that are used to motivate employees will affect employee’s willingness to remain with an organisation. Performance management is vital within most organisations and is seen as a crucial ingredient in motivating employees and can be explained by various motivational theories.

The Goal Theory- The goal-setting theory, introduced by Edwin Locke, stated that an intention to aim towards a goal is a major cause of improving work motivation. Essentially, goals identify employees what is required by them and how much effort should be expanded. Therefore, the greater the difficulty of achieving the goal, the higher the level of performance expected.
Managers and employees can set the goals (together or manager alone), but no matter who sets the goal, employees performance improves when they get feedback on their progress. As well as the feedback, there are four other factors that influence the goals-performance relationship:

* The employee must be committed to the goal. * The employee must believe that he is capable of performing the task. * Tasks involved in achieving the goal should be simple, familiar, and independent.

If the goal setting theory is followed, managers are required to work with their employees in devising goal objectives with the aim of providing targets for motivation. Additionally,
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