Supporting Good Practice in Performane Management

2019 Words Dec 19th, 2012 9 Pages
1.) 2 purposes of performance management and its relationship to business objectives
Performance Management is a process that ensures that the aims and objectives are met effectively and efficiently in a long term. Armstrong and Baron define Performance Management as “a strategy which relates to every activity of the organisation set in the context of its human resource policies, culture, style and communication systems.” It is a process by which organisations align their resources systems and employees to their objectives and strategy. Two of the purposes of Performance Management are: * It enhances the individual and organisational performance. Armstrong and Baron suggest that Performance Management “contributes to the effective
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* The Cognitive theories demonstrate that employees expect to be rewarded fairly depending on the effort they put into achieving a task. One of these theories is Adam’s equity theory that suggests that employees are motivated by a desire to be treated fairly and equitably. The more fairly the employees are rewarded, the more likely they are to be motivated to perform well.

* The Content theories demonstrate why individuals have different needs in different point in time and it explains the factors that motivate the individuals. A Maslow, an American psychologist has developed the “Hierarchy of Needs” theory to explain why individuals’ needs are changing. The “Hierarchy of Needs” is represented as a pyramid identifying 5 levels of the humans’ needs from the physiological needs at the bottom (hunger, thirst…) to the self actualization (morality, creativity, self development…). This theory suggests that once individuals have fulfilled the needs at the bottom, they become motivated to fulfill higher level needs.

4.) 2 purposes of Reward within a Performance Management system
Reward is a vital part of Performance Management. Two of the purposes of Rewards are: * It enables the organisation to attract and retain the individuals. Most of the time organisations use a total reward approach: attractive basic or contingent pay, attractive benefits such as holiday, healthcare, shares… and non-financial rewards such
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