Supporting Good Practice in Performance and Reward Management

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Supporting Good Practice in Performance and Reward Management 3PRM
Activity 1
Performance management
Performance Management is both a strategic (about broad issues and long-term goals) and an integrated (linking various aspects of the business, people management, individuals and teams) approach to delivering successful results in organisations by improving the performance and developing the capabilities of teams and individuals. Two main purposes of performance management are;

* To help the employees in identifying the knowledge and skills required for performing the job efficiently as this would drive their focus towards performing the right task in the right way, which in turn helps work towards the business objectives as their tasks are generated and focussed around the organisations goals. * Promoting a two way system of communication between the supervisors and the employees for clarifying expectations about the roles and accountabilities, communicating the functional and organisational goals, providing a regular and a transparent feedback for improving employee performance and continuous coaching and development. The most important stage and component of any performance management process which forms the basis of performance is Appraisals. Appraisal systems are a formal method of monitoring and reviewing individuals’ performance. This is important as they enable the individuals to gain a clear picture of how they are doing and to identify areas where they may need additional support or training. They also ensure that the work of the individual is focussed towards the overall objectives of the organisation and whether they are on track to meet their objectives they have been set. There are three main components of performance management;

* Planning – This is done in form of appraisals. Performance planning is jointly done by the appraisee and also the appraiser in the beginning of a performance session. During this period, both the manager and staff decide upon the targets and the key performance areas which can be performed over the next year. * Monitoring – Regular monitoring of performance is one of the key component to performance management it is usually done in the form of informal appraisals and these should also occur though regular contact and one to ones. It gives an opportunity to monitor the achievements of objectives for staff, keeps a check on how the individual is getting on in relation to the tasks, identifies any problems which can prevent the individual from achieving their work objectives. * Review/evaluating – Managers should be giving feedback on a regular and continuing basis. This is the stage in which the employee acquires awareness from the appraiser about the areas of improvements and also information on whether the employee is contributing the expected levels of performance or not. The employee receives open feedback and along with this the training and development needs of the individual is also identified. The appraiser adopts all the possible steps to ensure that the employee meets the expected outcomes for an organisation through guidance, mentoring and representing the employee in training programmes which develop the competencies and improve the overall productivity. This stage also is an opportunity for strengths to be identified and how these can be utilised to support the business objectives further. Motivation and performance management

The relationship between motivation and performance management is a close one, they work along 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. Although this may not always be the case. Here is a list of some of the things that motivate individuals; * Money

* Reward schemes
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