The Role of Rewards in Performance Management

[Course title]

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Answer 1
In organisational discourse, rewarding employees in remuneration systems guarantees
organisational success as it fundamentally concerns performance management along with
motivating employees to achieve good performance matrix. The chief aim behind
performance management is to reward employees for their work performed in accordance
with organisational values. The expectancy theory of Victor Vroom is one of the most
popular theories of motivation that suggests the ideas about employee’s relationship between
effort provided to complete a job, performances achieved and rewards they receive for efforts
and performance. In simpler words, employees working in teams may get motivated to
perform better than the others if they receive good performance rewards (Lunenburg, 2011).
Rise of teamwork has created a shift in how organisations comprehend and manage goal
setting. Team goals which are specific and difficult have positive effects on team
performances. Goal theory was developed by Latham and Locke that highlighted four
mechanisms connecting performance management outcomes with rewarding while working
in teams. These included, giving attention to priorities, stimulating efforts, challenging people
to increase performance level and to utilise utmost skills. This theory emphasises highly on
performance management and thus used by many organisation’s while formulating
remuneration system in accordance with rewards achieved after performing aptly (Salah,
2016).
By rewarding higher capabilities, organisations successfully retain individuals along
with providing relationship between performance and outcomes. Additionally, non-monetary
or monetary rewards provided by organisations having small teams or groups motivates and
influences individuals working to achieve strategic goals by improved performances. Reward