Essentials of People Practice: Evaluating Performance & Reward Systems

This report delves into the essentials of people practice, focusing on performance management and reward systems. It highlights the purpose of performance management within organizations, emphasizing the creation of a productive work environment and effective leadership. Key factors and components affecting performance management systems are discussed, including co-worker relationships, environmental influences, and personal expectations. Various types of appraisal methods, such as grading, trait-based appraisals, and 360 reviews, are examined for their use in performance management. The report outlines the critical components required for an effective total reward system, distinguishing between financial and non-financial incentives to foster employee engagement. The relationship between reward and performance is explored, underscoring the role of motivation and the application of theories like Herzberg's two-factor theory. The importance of fair treatment of employees is highlighted, citing benefits such as increased respect, trust, and productivity. The report concludes by emphasizing the role of performance management in monitoring and evaluating employee work, while acknowledging the impact of organizational culture and incentives on the system's effectiveness. References to relevant academic sources are provided to support the analysis.

Essentials of People
Practice

Table of content
INTRODUCTION
AC 4.1: The Purpose of performance management
AC 4.2: Factors and components affecting performance management systems
AC 4.3: Types of appraisal and uses in performance management
AC 5.1 Key components that are required to achieve an effective total reward
system
AC 5.2: Relationship between reward and performance
AC 5.3: Reasons for fair treatment with employees
REFERENCES

Introduction
Performance management and reward
is process that includes
communication that is there in
between supervisor and employee
which helps in attaining strategic goals
and objectives of entities.

AC 4.1: The purpose of performance
management
 Within Technow, performance management
serves purpose of creating a work
environment wherein people perform to the
best of their capabilities along with produce
the highest-quality work most efficiently and
effectively.
 One of the important purpose for
performance management is to ensure
effective leadership and coaching aspect in
organisation.

AC 4.2 Factors and components affecting
performance management systems
 Co-workers and environment
 Expectations of management
Personal problems

AC 4.3 Types of appraisal and their use
in performance management
 Grading
 Trait-based appraisals
 360 reviews

AC 5.1 Key components that are required
to achieve an effective total reward system.
 Effective reward system in the company
ensures that employees re able to form a
meaningful bond with the establishment. In
order to achieve effective total reward system
at Technow, key components are as mentioned:
 Financial components
 Non financial components

AC 5.2 Relationship between reward
and performance
Rewards are important in the lives of an employee. They
play an important role in motivating employees and this
motivation directly results in the greater performance of
employees. Motivation is important in employee life as if
they have motivation it can lead to completion of any task in
an effective way. The company can use Herzberg two factor
theory for motivating its employees.
The performance of the employees is directly related to the
rewards provided by the company as it motivates employees
to perform higher performance. The example of rewards are
health insurances and appraisal for higher performance.

AC 5.3 Reasons for fair treatment with
employees
 Mentioned below are some reasons to treat
employees in fair manner at workplace:
 Respect and value
 More trust
 Higher productivity
 Increases motivation

Conclusion
 The presentation concludes that performance management helps managers
monitor and evaluate employees' work. Factors that affect performance
management system in the company are organizational cculture, co-workers and
environment, expectations of management bonus and incentives.

References
 Robert, M., Giuliani, P. and Gurau, C., 2022. Implementing industry 4.0 real-time performance management
systems: the case of Schneider Electric. Production Planning & Control, 33(2-3), pp.244-260.
 Kubiak, E., 2020. Increasing perceived work meaningfulness by implementing psychological need-
satisfying performance management practices. Human Resource Management Review, p.100792.
 Liu, H.L., Shi, H.B., Shen, H. and Xie, G., 2019. The performance management of a Li-ion battery by using
tree-like mini-channel heat sinks: experimental and numerical optimization. Energy, 189, p.116150.
 Mahmoudimehr, J. and Sebghati, P., 2019. A novel multi-objective Dynamic Programming optimization
method: Performance management of a solar thermal power plant as a case study. Energy, 168, pp.796-814.
 Pollitt, C., 2018. Performance management 40 years on: a review. Some key decisions and
consequences. Public Money & Management, 38(3), pp.167-174.

Thankyou