Supporting Good Practice in Performance and Reward Management

The performance management system helps the company in identifying the employees who are not able to perform as per the expectations. Warnings can be given to these employees for improving their performance. Even after that they are not able to improve their performance; these employees can be terminated on the basis of performance. The organization keeps documentation about the performance of an employee. The company documents the performance in HR 's file. Employees in Organization are motivated and they value the structure of the company, its development and plan for growth. A motivated employee performs using full potential, which is good for both the organization and employee.

Clearly defined goals as they relate to the organization can motivate employees through goal setting. Goals challenge to employees to make them want to explore new technology, ideas, and gain insight from a diverse workplace. Additionally, giving employees more responsibility will make them believe they have contributed with a sense of higher importance. Without motivation in the workplace, a business will suffer from the lack of efficiency from employees. Perhaps the most significant of increased employee motivation is that of increased productivity (staff@incentives.com, 2010). Therefore, it is important that employers give their employees an opportunity to work hard for their reward to obtain a high level of performance, which is an essential to the success of any business.

When looking at performance management it can be defined as (1) ‘a process which contributes to effective management of individuals and teams in order to achieve high levels of organisational performance. As such it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure it is achieved.’ We can see from this definition that managing performance is crucial to the overall performance of the organisation and meeting its goals and objectives. This process must then be strategic but also link other aspects of the organisation such as individuals and teams. As defined above, performance management is ultimately about achieving high levels of

Today, organizations need to have a clear understanding of where their organization is and where it needs to be in the future to secure longevity and financial success (Moore, Ellsworth, & Kaufman, 2011). Organizations need to have a performance management system in place to stay competitive. Therefore, having a well-developed performance management process in place allows the employer and employee to communicate goals, share information, and establish career growth. Performance management needs to contribute to the success of the organization while providing a positive impact on the employees. Therefore, the mission, goals and performance management should coincide with one another.

The relationship between motivation and performance management is important as they work simultaneously with each other. Motivation is the key to an individual's degree of willingness to exert and maintain their efforts towards the organisational goals. Motivation levels are likely to have an effect on performance. If an individual has high motivation, it is likely to increase their performance. However this may not always be the case. Motivation is about the factors, which links into how organisation uses performance management to get better results from their staff by strategically encouraging the performance within its business. If employees are highly motivated they will perform better, and will co-operate collectively to improve the standards which would lead to a sense of achievement creating greater motivation.

Performance management is about creating a culture that encourages the continuous improvement of business processes and of individuals’ skills, behaviour and contribution. It is a repetitive process that is continually reviewed and is both strategic and integrated. It is about broad issues and long-term goals and integrated by linking various aspects of the business, people management, individuals and teams to delivering successful results in organisations. It does this by improving performance and developing the capabilities of teams and individuals.

Whilst a lot of employees are motivated develop and perform better, there are some employees who are not. These employees tend to do just enough to keep anyone from noticing them. This is the area where performance management falls down and it is up to the manager to find ways to motivate

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:

The performance management process is a key component of an organisation overall approach to the management of its people. As part of the performance management system, performance management aims to achieve the following:

Using the concepts of performance management and organizational goals, develop an argument regarding the relationship between the two (2) concepts. Be sure to include discussion regarding the impact of one to another and the challenges presented.

It is widely known that goal setting is a vital part of achieving success and improving overall performance. Our modern understanding of goal setting came from Dr Edwin Locke’s research in the late 1960’s. In his 1968 article, “Toward a Theory of Task Motivation and Incentives”, he showed that employees are motivated and their performance improves when they are set clear, achievable goals, and receive appropriate feedback. He found specific, challenging goals lead to the highest performance, as long as the goals are not too challenging.

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.

Goal-setting theory suggests that employees can be motivated by goals that are specific and challenging but achievable. In addition, the theory suggests that goals should be set jointly with the employee, be measurable, and have a target date for accomplishment and that employees should receive feedback and rewards.

This essay is going to explain why performance management is necessary within an organisation. Then go on to critically assess the difficulties to implement performance management in an organisation and how it affects individuals in the organisation.

The definition of the term ‘performance management’ varies in different literatures. As Hutchinson(2013) summed up, combined with Den Harton’s theory(2004), it is a continuous process which links individual and team objectives with organizational goals by measure and improve employee’s skill and performance. According to Armstrong (2012), human resource management aims at making sure the organization has the most talented, skilled and engaged people in order to attain its goals. In this context, performance management is one staple practice helping managers identifying and retaining most competent employees as well as correcting poor performance.