Performance Management Systems

Pay and Rewards – pay and rewards attract, motivate and retain staff. The employment contract which lists rewards, whether it be pay, bonus or benefits, can remove animosity amongst employees and employers. However, recent research reveals that employees are no longer motivated by a financial reward alone, but

The key components to developing effective Reward Strategy is to ensure that there are clearly defined goals to meet business objectives, that the reward programme meets the needs of both the organisation and its employees, and to ensure that this is then supported by effective HR policies. In order to ensure these criteria are met there are a number of factors which influence how reward strategy is developed which include both internal factors within the organisation itself, as well as external factors outside the organisation.

Performance management depends on good systems that offer both financial and non-financial rewards. Reward within a performance management system ensures that:

Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.

The phrase “employee reward system” is used to underline the programs that a company sets up in an effort to reward the desirable habits of the employees, thereby motivating them on group and/ or individual levels. More often than not, they are considered separately from the salaries and remunerations but may essentially be monetary in nature or otherwise bear a certain cost to the business entity (Marquis & Huston, 2009). As much as these were previously seen as the domain of large corporations or business entities, small businesses have essentially taken the cue and began employing them as a technique for luring or retaining its top employees in the extremely competitive job market, as well as enhance the performance of the employees. This is especially considering that the reward systems have a bearing on the job satisfaction of the employees in the business entity. As earlier noted, while employee recognition programs are usually blended with reward programs, they come with a distinctive or separate purpose altogether (Marquis & Huston, 2009).

As stated by Peter F. Drucker, “Management is about human beings. Its task is to make people capable of joint performance, to make their strengths effective and their weaknesses irrelevant.” Performance management is essential to achieving an organization 's mission statement and business goals, and also in attracting, retaining, and motivating qualified employees. There are many benefits and reasons why an organization should execute a performance management system. Performance appraisals establish the basis for qualifying, recognizing, and rewarding employee contributions. In this paper, I will discuss what performance management is, the problems with the current performance management system at my organization, how other organizations have succeeded in their performance management system and how I would advise management at my current organization to improve our performance management system.

Reward and recognition programs must connect the needs and expectations of the workforce with the company’s overall goals and strategies. A program that reinforces important company values and goals will encourage employees to act in line with such goals and emphasize the importance of achieving these goals. Alternatively, rewards which do not connect with organizational goals may convey a misleading message and encourage employees to act in a manner that does not facilitate the

Throughout every organization, there is a system set up for effective performance management. It is known that there is a continuous process associated with performance management. In order have success in the process; managers must have extensive knowledge of the mission and goals of the organization. Once the mission and goal is set in place, there should be a cascading effect that trickles down to each employee within the organization. This paper summarizes an article titled “Performance Management Done Right: It’s Not the Form, It’s the Process” (Murray, n.d.) The published article breaks down what performance management actually entails and introduces a variety of ways to implement the tool that helps build

A company’s total rewards package should be strategically focused to align with company culture and values. HR professionals should work with organizations to create a holistic and integrated total rewards program. As business objectives and priorities evolve HR professionals should work to make sure the company rewards program stays relevant and attractive. Creating and successfully executing the company total rewards package requires HR staff who are knowledgeable of market rates and trends. There are many ways to measure the perceived success of a company’s rewards program; I believe attrition rates and performance management are key metric to use to decipher total program value.

Rewards are set by a company’s reward system to compensate an employee’s performance and are mostly monetary incentives, separate from the salary. Recognition on the other hand, is a priceless value expressed by words, praise, or actions to make someone feel appreciated and valued for their work.NEEDS CITING HEREE****** Recognition supports organizational values, goals and priorities through positive reinforcement of desired behaviours and performance. Employee recognition programs are often combined with reward programs to provide both a psychological and a financial benefit for the

The newly introduced Reward Management system does not have the proper balance between the Financial and Non - Financial Rewards, individual and group rewards. Financial rewards and group incentives are one way businesses can show their appreciation to employees for hard work and dedication, but this should be just one piece of the compensation system. Non-financial rewards and individual incentives can carry just as much weight by empowering employees, as well as giving them a sense of accomplishment and of belonging.

Nevertheless, we think that without improvements in coordination at a macro level, this award-based motivation strategy might well become obsolete. Therefore, there are structural – not only contingent – changes to be made, capable of increase not only the employees’ average performance but also the company’s performance as a

Performance management can be defined as a systematic process by which the overall performance of an organization can be improved by enhancing the performance of individuals within a team framework. It is a means for promoting superior performance by communicating expectations, specifying roles within a required competence framework and establishing achievable standards.

Being rewarded and recognised for their work or contribution is what keeps an employee motivated to work towards achieving the organisational as well as personal goals. When the employees is motivated by rewards, they will have job satisfaction consequently increasing the productivity of the organisation. It necessitates the need of managers to pay more attention in understanding their employees and come up with suitable types of reward systems for the organisation so that the employees are intrinsically and extrinsically motivated all the time. The hypotheses that I put forward here is to support this statement that effective reward management is critical to

A critical examination of the job description of the job/job category that the performance management system applies to (assessment of the prerequisites) (300 words)