Performance Management Systems

Topics: Performance management, Reward system, Management Pages: 7 (2625 words) Published: November 19, 2010
Performance Management Systems

It is believed that in any organization, the success of the Performance Management System depends on the ways in which the performance has been linked with the various values and the missions and the vision, and in the strategic objective of the entire organization. As the manager and Team leader of my department I have been given the responsibility of designing a non monetary award system within my organization, and with a certain limited control over it, must keep in mind the several most important key processes that would be utilized for designing and implementing an effective and an efficient performance management system. It is important to keep in mind that there are three important levels of goals within any organization, and these are: organizational, team level, and at an individual level. All measures that are taken for the development of the designing of the non-monetary reward system must therefore be based at the three levels outlined, upon which the different measures to be taken can be determined. Furthermore, at each level, there exist goals that have different dimensions, and the creation and the development of an integrated set of measures would mean that there must also be a perfect alignment of the several different goals, which may be either team goals, or individual goals, or organizational goals. When at the organizational level, there can be several differential goals, which depend on what exactly the organization values the most. The first dimension in this goal is the ‘people dimension’, which means that the employees of an organization become the most important part of the organization. This type of organization would also give the most amount of importance to the customer, and all the customer’s varied preferences would be taken into account. The third goal within an organization would be the ‘share holder value’, where the shareholder dimension would be taken into account. This dimension within a company would be constantly striving to improve conditions, and also to improve the profits of the company, as well as increase share prices and concentrate on the growth of the company. When taken at the teamwork level of the framework of the organization, there may be in existence the phenomenon of differentiated goals for the various departments within the company, like for example, the marketing, the product development, the purchase and for the marketing departments. When taken at the individual level, whatever measures are adopted for the improvement of the organization would more often than not be based on the various key result areas, and on competencies and on values. (ECS, HR and CM: Performance Management) Monetary rewards have been proven to be quite effective in many organizations. But due to the recent global economic crisis, other type of rewards such as non monetary, have been proven to be equally effective. These rewards or awards, are comprised of both formal as well as informal acknowledgement, an assignment of better and more enjoyable job duties, an increase in the several opportunities for better training, and also an increase in that particular employee’s decision making role within the organization. It must be remembered that non-monetary awards and rewards are extremely meaningful as far as employees are concerned, and therefore, very motivating for them. Non-monetary rewards are also known as ‘soft awards’ and extensive research has shown that this is one of the most effective means to incent employees and reach the various goals that have been decided upon by the management of the organization. The five practical methods of non-monetary rewards based on the performance of the employee are for the management to personally congratulate the employee who has performed well and has satisfied the management. (Prudden, 2004) In order to formulate an effective non-monetary rewards, and also based on the...

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