Managing Employee Performance through Individual Performance-Related Pay

Reward Management

Reward management
“Employee performance can be managed through individual
performance-related pay”
It can be analyzed that the performance of the employees plays an important role in the
workplace. If the performance of the employees is not good then it can negatively affect the
overall operations of the company. It is the responsibility of the top management to boost the
overall performance of the employees in the workplace. Performance related pay is considered as
the method that helps in managing the pay by connecting salary progression to the overall
assessment of the individual performance. In the business, is evaluated that performance pay is
related to the financial reward system for the workers where there are rewarded by analyzing
their performance on a monthly or annual basis. Performance related pay is considered in the
workplace by the people and team where they can easily manage their work in the given time
frame. It can be stated that without proper rewards it is not possible for the employees to give
their best towards the activities of the company (Reiche et al., 2016).
So, in this paper, the discussion will be made on the overall performance of the employees which
can be managed through performance-related pay. It can also be stated that the employee works
for earning more rewards in terms of finance.
If the performance of the employees is taken into consideration than it is stated that there are
various issues which take place. One of the issues is related to the incentives offered in the
workplace. When in the workplace, effective incentives are not given then it can create
dissatisfaction among the employees and it can also impact the overall activities of the company.
It is necessary for the top management to offer proper incentives so that employees can feel
motivated and happy. If they are motivated and satisfied with the incentives offered then they
will work with dedication and honesty towards the organizational activities. The issue related to
incentives should be minimized by maintaining proper incentive policy which can motivate the
employees to give their best towards the overall operations in the workplace.
In the workplace, there are many teams who focus on managing the overall activities of the
company. But it can be analyzed that individual performance plays a great role. If there is no
individual performance then team members will also be not able to give their best or can show
their efficiency towards the overall activities of the company. It is necessary for the top
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Reward management
management to give reward according to the individual performance so that satisfaction level can
be enhanced of the employees in the workplace. Satisfaction level is important for the employees
in terms of pay which is given by the top management. If proper pay is given to the employees
then it can help to bring efficiency in the overall working structure in the workplace.
Performance related pay is considered as the financial reward to the workers whose work focuses
on achieving set targets. If the targets are not met then the impact can be seen on the overall pay
related to the performance of the employees. Performance related pay is considered where the
performance of the employees cannot be appropriately measured in terms of overall sales
attained. It can be examined that performance relayed schemes can vary from business to
business and also there are some common features which are related to it (Madhani, 2015).
One of the features is related to performance appraisal. It is analyzed that the performance of the
individual is reviewed on a regular basis which can also be known as performance appraisal. It
can be stated that in this the employee's performance is analyzed and according to this increment
is given to the employees. It can be evaluated that there is an increase in the salary which take
place and this is done by considering the performance of the employees in the workplace. It is
necessary for the employees to focus on maintaining efficiency towards the work so that it can be
possible to achieve success in the competitive market (DeNisi and Smith, 2014).
There are also various challenges which are related to pay for performance system. The
challenges which can be seen relates to the pay which is dependent only on the performance
indicators. In this, it can be analyzed that employees neglect the other factors of their job and
only focus on some indicators which can also impact the overall growth of the company. So, it is
necessary for the employees to focus on all the factors by giving their best towards the activities
so that it can be easy for the management to attain profits and growth in the competitive market.
It can be examined that the other challenge is related to negative results on the spirit of
cooperation. It simply states that the workers do not cooperate with the other workers by
restricting the important data (Lepper and Greene, 2015).
The feeling of competition also take place with can affect the overall environment of the
workplace. It can be stated that there are many employees in the workplace who think that the
data should be not shared with the other employees as it can give benefit to them and can also
improve their performance. Also, in some cases, conflicts take place in the workplace which is
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