Supporting Good Practice in Performance & Reward Management
This assignment explains good practice in performance and reward management.
There are many purposes of performance management. Some of these are: * It helps to motivate employees
* It helps to set clear goals and targets
* It helps employees perform at a higher standard
Performance management relates to business objectives as business targets and objectives can be linked into targets set for employees. If these targets are continually being set and employees are high performers this will in turn mean the business meets its targets.
Performance management has many components, such as:
* Regular review meetings – meetings held, weekly/monthly/bi-monthly to review the performance and work that an employee is carrying out. These are usually held by managers and the relevant employee on a one to one basis. * Setting objectives – looking at what an employee needs to do/achieve over a set timescale such as selling a certain amount of items or completing a project. * Career development – looking at ways of helping an employee develop their career, such as secondments to different teams or roles or extra training etc. * Performance appraisals – looking back at the previous 6 months and then looking ahead for 6 months and setting targets and objectives for employees. * Performance related pay – when an employee hits a target or they have performed well over the year they can be rewarded by receiving a payment. * 360° feedback – feedback from co-workers, managers and customers that is fed-back anonymously, collated and then given to the employee it relates to. It helps the person feeding back the information collected to give constructive feedback that is relevant.
Performance management relies on employees being motivated to be high performers. If staff feel motivated to achieve the goals set, their performance is being managed affectively. There are some motivational theories that help to explain the link between motivation and performance management. Herzberg believes that there are two main factors – motivators and maintenance. Without maintenance factors such as security, salary, work conditions, relationship with supervisor and status, employees won’t be motivated. These maintenance factors need to be addressed before employees can be motivated. Herzberg believes that motivating factors are things such as recognition, responsibility, personal growth, the work itself and achievement.
Another motivational theory is Maslow’s Hierarchy of needs. This hierarchy shows that employees need to fulfil certain categories in turn to realise their full potential. Employees need basics such as air, food, drink, shelter, warmth and sleep first. When these needs are met, employees then need to feel safe, have stability, security, law and order. When these needs are fulfilled, employees then need to feel as though they belong and feel loved. This then moves on to self-esteem needs. When all these needs are met, self-actualisation will be achieved. The top of Maslow’s Hierarchy is transcendence. The hierarchy starts again at the next level of an employee’s career. This diagram shows Maslow’s Hierarchy of needs in picture form making it easy to see how each level follows on to the next. This diagram shows Maslow’s Hierarchy of needs in picture form making it easy to see how each level follows on to the next.
Reward is a big part of the performance system. The purpose of this is to help motivate employees, deliver results for the organisation, provide incentives and ensures that the company has a good profit margin as objectives are being met. Pay can influence resourcing, performance, recruitment and retention, motivation, satisfaction, workplace productivity and help the company become and employer of choice....
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