Performance Management & Reward System

Topics: Motivation, Maslow's hierarchy of needs, Theory X and theory Y Pages: 17 (3956 words) Published: December 9, 2010
Performance Management

“How I get my people to do what I want them to do, in the way I want them to do it!”

Performance management (PM): Organisations that take performance management seriously, manage a range of different but inter-related topics:

Business plans
Values (how people should and should not behave)
Culture in which improving performance is valued and developed •Monitoring of performance – at individual, unit and Team levels •Feedback of that monitoring to staff
Clear goals
A set of competencies
Appraisal discussions
Personal development (training, coaching, reading, sittings etc) •Management development
Good job design
Team working (interaction and mutual responsibility)
Extrinsic reward and recognition (basic pay, performance pay, awards, saying ‘well done’) •Intrinsic rewards (the satisfaction from doing a worthwhile job reasonably well) •Effective remedies for under performers.

Performance management levels:

Data collection for PM:

Data is collected at four levels:
Inputs: Staff time, budget, data, consumables, energy, and equipment •Processes: Support, sales, teaching, research, paperwork, IT, purchasing etc. •Outputs: Customers served, bills paid, items sold, students helped, degrees awarded, research written up •Outcomes: Profit in a commercial enterprise or service delivery in a service organisation (usually assessed through customer satisfaction).

Rules for monitoring performance:

(a) Objective:
Introduce monitoring as one part of a bigger drive to improve customer experience.
(b) Positive:
Seek information to improve the customer experience and not to blame people.

(c) Involvement:
Involve responsible people to work on the monitoring, as a part of their drive to improve the customer experience. •If you choose items to monitor and impose those, staff will probably be de-motivated and performance will drop. •Treat your staff as professional, responsible and motivated

(d) Outcomes:
Measure outcomes in preference to outputs. (Governments are obsessed with outputs - numbers of patients treated, lengths of waiting lists, numbers of students receiving degrees, numbers of children who can read and write etc).

(e) Tough:
Challenge those who like the fuzziness of not knowing how they are doing.

(f) Choosy:
Pick only the most important factors to monitor as too many measures will be Counterproductive.

(g) Numbers:
Measure performance numerically, by getting the customer to grade them on a scale 0 to 5.

(h) Benchmark:
Use the results as your baseline or benchmark, from where you can improve.

(i) Communicate:
Make sure the targets are known, understood and accepted.
(j) Reliable
Use reliable sources of data.


High performance working (HPW):
The four elements of HPW are:

1)Employee autonomy and involvement in decision making
Develop flexibility of skills
Team working to give variety and responsibility.

2)Support for employee performance
Appropriate selection and recruitment processes (finding staff at all levels who will support a high performance culture) •Comprehensive induction programmes
Sophisticated and wide training
Integrated and wide ranging performance management
Emphasis upon work-life balance.

3)Rewards for performance
Offer a career not just a job
Harmonised terms and conditions
Pay that is competitive with other employers
Rewards linked to individual and team performance

Plenty of effective communication
Quality improvement teams
Lean systems (this can be expanded upon at the workshop) •Spending on training.

Details will vary from organisation to organisation.

Why HPW:

Because if you are not driving up performance:
Staff motivation will be lost
Quality, quantity and...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Performance and Reward Management Essay
  • Essay about Performance Management systems
  • Performance and Reward Managemen1 Essay
  • Performance Management Systems Essay
  • Performance Management Systems Essay
  • Management Control Systems: Rewards Systems Essay
  • Essay about Supporting Good Practice in Performance and Reward Management
  • Reward Management Essay

Become a StudyMode Member

Sign Up - It's Free