Effective Performance Management and Reward System Strategies

This report provides an overview of performance management and reward systems, emphasizing their crucial role in transforming human capital into strategic business advantages. It identifies key factors impacting performance management, such as workplace policies, individual performance, and KPIs, and discusses considerations for managing team and individual performance, including competency levels and resource availability. The report also explores various appraisal methods, including 360-degree appraisals and self-assessments, and outlines the key components of an effective total reward system, encompassing financial and non-financial elements. Furthermore, it examines the relationship between performance and rewards, linking it to employee motivation and highlighting the importance of fair pay practices for attracting and retaining top talent. The conclusion underscores the significance of performance management in encouraging effective employee performance and sustaining organizational competitiveness.

Understanding of performance
management and reward

 INTRODUCTION 3
 Factors, information and component that impact performance management
system 3
 Factors need to be consider to manage performance of team and individual
4
 Key type of appraisal used in performance management 4
 Key component required to attain effective total reward system 4
 Relationship between performance and rewards, and link it with motivation
5
 Reason for treating employees fairly in relation to pay 5
 CONCLUSION 6
Table of Contents

The performance management and
rewards is key that offer base to an
organisation or firm to turn and
transform their human capital as
strategic business benefits. It also
offer a tool to company to not only
retain skilled workforce but also keep
them motivated and encouraged to
perform with their best abilities.
INTRODUCTION

Purpose
 Provide meaningful and ongoing feedback
 Encourage teamwork
 Reward employee performance
Factors, information and component
that impact performance management
system

 Workplace polices- The workplace polices provide an accurate framework
within which company manage the employee's performance more
appropriately.
 Individual performance- It play an active part in the formulation of
performance engagement and with their line manager and other participate in
the 360 degree assessment schemes.
 KPIs- Measuring performance in term of the quality, time, delivery reliability,
financial, cost, safety, social performance and employees satisfaction has
positive impact on overall organizational performance management.
Component impact the performance
management

 Level of competency and skill
 Clarity of organisational goals
 Availability of resources
Factors need to be consider to manage
performance of team and individual

 360- degree appraisal
 Self assessment
 Annual appraisal
Key type of appraisal used in
performance management

 Financial
 Pension and benefits
 Base and variable pay
 Non financial
 Work life balance
 Career development
Key component required to attain
effective total reward system

 When the performance in linked with the reward system, then it reduce
company's labour cost, increase in the real wages and also motivate the
performance. Efficient reward practices help the company to attract result
driven employees who can thrive in performance based environment.
Thus, it is a crucial motivation that contribute towards an enhancement of
employees productivity of implemented properly. They provide methods to
observe cost escalation on the account of pay increase timely. Thus, it
assist in sustaining the organisational competitiveness.
Relationship between performance
and rewards, and link it with
motivation

 Increase efficiency
 Attract top talent
 Competitive workforce
Reason for treating employees fairly in
relation to pay

 From the above report it is concluded that, performance management is
very essential in organisation as it encourage employees to performance
more effectively. When managing team's or individuals performance
management, then company should consider some criteria or factors. A
company use different appraisal method including 360 degree, self
assessment and so on. An effective rewards system can be achieved by
different financial and non financial key component.
CONCLUSION

 Aungsuroch, Y., Gunawan, J. and Fisher, M.L., 2022. Rewards and
Benefits. In Redesigning the Nursing and Human Resource Partnership
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 Ghura, A.S. and Erkut, B., 2022. Corporate entrepreneurship programmes
as mechanisms to accelerate product innovations. Entrepreneurship
Research Journal.
 Jeha, H., Knio, M. and Bellos, G., 2022. The Impact of Compensation
Practices on Employees' Engagement and Motivation in Times of COVID-
19. COVID-19: Tackling Global Pandemics through Scientific and Social
Tools, pp.131-149.
REFERENCES