Organizational Culture and Performance: A Study on Pay for Performance Compensation Plan and Performance Evaluation System

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the Student:
Name of the University:
Author Note:

1HUMAN RESOURCE MANAGEMENT
Executive Summary:
The report aims at providing an insight into how organizational culture emphasizes performance
instead of tenure. The report commences with an introduction of the organizational cultures that
primarily focus on employee performance. The report also discusses about the pay for
performance compensation plan and performance evaluation plan. The report also puts forward
recommendations on the choice of a suitable performance evaluation system and a compensation
plan that addresses most issues. The report also puts forward discussions on why the
compensation plan seems credible.

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Table of Contents
Introduction:....................................................................................................................................3
Statement of the Problem:...............................................................................................................3
Literature Review:...........................................................................................................................3
Organizational cultures that emphasize performance rather than tenure.....................................3
Pay for performance compensation plans....................................................................................5
Performance evaluation systems..................................................................................................7
Recommendations on the Choice of Performance Evaluation System...........................................8
Compensation Plan Addressing All Issues....................................................................................10
An Analysis of the Credibility of the Plan.....................................................................................10
Conclusion:....................................................................................................................................11
References:....................................................................................................................................12
Appendix:......................................................................................................................................13

3HUMAN RESOURCE MANAGEMENT
Introduction:
The report aims at providing at insight into the impact of organizational culture on the
performance of the employees. The report will help in discovering that there exists a relationship
between the organizational culture and performance. It will also help in understanding that a
strong employee responsive culture can lead to efficiency in performance. The constant growth
in the nature of global business acted as the primary catalyst in studying organizational culture
that over time has affected the success and the behavior of the teams, individuals and
organizations. Organizational culture has received increased attention due to the key role it has in
the determination of the employee level and their performance (Alvesson, 2016). The reports
will also analyze the importance of pay for performance compensation plans and performance
evaluation system.
Statement of the Problem:
In the twenty first century, corporate culture has received wider acceptance with each of
its aspects affecting the various systems and subsystem of an organization. Globalization,
increased competition, alliances and creation of workforce department has led to greater
requirement of organizational culture. This made it an important aspect for the development of
the company. Culture however represents a common bond that helps in generating the sense of
belongingness amongst actors within an organization (Awadh & Alyahya, 2013). The research
would try to discover how the organizational culture puts forward a shared system that forms the
basis of communication and mutual understanding thereby contributing to organizational
performance.