Managing & Rewarding Performance Presentation: HR5005 UEL, Term 2

This presentation delves into the critical aspects of managing and rewarding performance within organizations. It highlights the beneficial effects of an efficient reward system on employee performance, motivation, and organizational productivity. Key elements of performance management, such as setting performance goals, instilling ownership, and implementing pay-for-performance strategies, are discussed. The presentation also emphasizes the importance of reviewing employee performance to align individual work with business goals, identify underperformance, and define career pathways. Real-world examples, like Xerox and Wal-Mart, illustrate the application of reward systems. The presentation concludes that effective performance management programs enhance organizational performance, improve employee retention, and contribute to skill development. This resource, contributed by a student, is available on Desklib, a platform offering AI-powered study tools and a wealth of academic materials.

ASSESSMENT 1: PRESENTATION
Managing and rewarding performance

INTRODUCTION
• An efficient management of reward
system can bring a beneficial effect
upon the performance in several
ways (Pratheepkanth 2011)
• High employee performance
• Employee motivation towards the
work
• Increase in organizational
productivity
• Brand value improvement

MAJOR ELEMENTS IN
PERFORMANCE MANAGEMENT
• Today businesses are showing a greater level of involvement and commitment towards
reinforcement of reward practices that are aligned with other HR practices and goals of the
business for attracting, retaining and motivating employees
• Effective performance management performance goals and objectives
• Instilling a sense of ownership among the employees (Cuevas‐Rodríguez 2012)
• Efficient reward practices helps in attracting result driven professionals who thrives and
succeeds in performance based on environment

PAY FOR PERFORMANCE
STRATEGY
Category Performance management Basis for rewards
Corporate leaders Shareholders returns and EVA Employee stock ownership and
Profit sharing
Business head leaders Profitability of the unit Results sharing
Functional leaders Degree of Contribution towards the
corporate goals
Usually the milestone awards
General Employees Particular KPA achieved measured
based on periods
Profit/gain and bonuses

REWARD AS MOTIVATION
• Rewards always act as the vital source of motivation for employees but it happens only if it
is governed under the appropriate conditions
• Linking reward with the performance
• Execution of team rewards for several independent jobs just like the company Xerox
• The business has to ensure that rewards are relevant; for example Wal-Mart adds rewards
bonuses to some top executives that are based on organization’s performance while the frontline
staff tend to earn bonus based on sale figures (Liu et al. 2011)
• Organisations must have to ensure that rewards are significantly values by employees

SIGNIFICANT REASONS TO REVIEW
EMPLOYEE PERFORMANCE
• Employees are most likely to understand how their work is aligned with overall business
goals and what part they can play in achieving those goals. Employees can be more
productive and enthusiastic when they know how they contribute to businesses
• Underperformance and its reasons can be identified early and it can be discussed and
resolved before bigger issues
• Employees’ career pathway can be defined more easily
• Effective succession planning opportunities can be defined more easily

CONCLUSION
• Effective performance management programs can significantly affect organizational
performance
• Employees’ retention becomes an easier method for the organization through performance
management approach
• Employees’ skill development programs can be processed and enhanced through effective
performance management approach
• Contributing to employees’ skill development is more of contributing human skills
development of the community

REFERENCES
• Pratheepkanth, P., 2011. Reward system and its impact on employee motivation in
commercial bank of sri lanka plc, in jaffna district. Global Journal of management and
business research, 11(4).
• Cuevas‐Rodríguez, G., Gomez‐Mejia, L.R. and Wiseman, R.M., 2012. Has agency theory
run its course?: Making the theory more flexible to inform the management of reward
systems. Corporate Governance: An International Review, 20(6), pp.526-546.
• Cuevas‐Rodríguez, G., Gomez‐Mejia, L.R. and Wiseman, R.M., 2012
• Liu, C.H., Hui, P., Branch, J.W., Bisdikian, C. and Yang, B., 2011, June. Efficient network
management for context-aware participatory sensing. In 2011 8th Annual IEEE
Communications Society Conference on Sensor, Mesh and Ad Hoc Communications and
Networks (pp. 116-124). IEEE.