Performance Management System: Rewards, Implementation, and Analysis

This report provides a comprehensive analysis of performance management systems, emphasizing the crucial role of integrating reward systems to overcome implementation challenges and enhance employee motivation. It critically examines Aguinis' (2012) perspective on performance management, highlighting the importance of aligning individual, departmental, and organizational performance. The report also explores the responsibilities of leaders in integrating reward systems, recommending strategies for improving technological and communication skills, and incorporating transparent communication and monetary rewards. A test case organization, Dodo Exclusive Shoes, is used to illustrate the benefits of implementing a formal performance management system, focusing on training and development to address employee skill gaps and improve overall organizational performance. This document is contributed by a student and is available on Desklib, a platform offering a wide range of study tools and resources for students.

Running head: PERFORMANCE MANAGEMENT SYSTEM
Performance Management System
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Part A: Collaboration: Rewards and performance management.....................................................2
1. How do the organizations connect different types of performance management?......................2
2. Critical analysis whether rewards as an ethical issue in performance management system.......2
3. How integrating reward systems (including compensation, benefits and other rewards) with
performance management could help in overcoming implementation challenges..........................3
4. How leaders are responsible for integrating reward system with performance management.....3
5. Recommend the ways in which the implementation of performance management systems
could be enhanced by integrating rewards management.................................................................4
Part B: Improving performance management..................................................................................4
6. Critical analysis of Performance management published by Aguinis’ (2012)............................4
6.1 Overview of the concept of performance management according to Aguinis..........................5
6.2 Role of human resource management in improving effective performance management
system..............................................................................................................................................6
6.3 Recommendations on changes for better enhancement on performance management.............7
6.4 Formulate a ‘test case’ organization that does not have any kind of formal performance
management system.........................................................................................................................8
6.5 Benefit of the organization in implementing performance management system......................9
6.6 Critical evaluation about the ideas and concept from the entire reading that supports the
research..........................................................................................................................................10
Reference List:...............................................................................................................................11

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Part A: Collaboration: Rewards and performance management
Performance management system is the process organized by the department of
commerce in order to involve the employees for improving organizational productivity. Rewards
and recognition is one of the most significant parts of performance management system based on
which employees can be motivated towards reaching mission and vision of organization.
1. How do the organizations connect different types of performance management?
Rewards and performance management is of different kinds that organizations follow for
improving performance level of employees. Performance management focuses on several areas
that include technological performance, project evaluation, sales evaluation, managerial
performance. In order to enhance technological skill sales competency organizations initiate
different training and development session (Chowdhar et al. 2014). On the other hand, in order to
increase the performance level of employees, organizations render different rewards and
recognition policies such as social awards, monetary benefits, appreciations and so many.
Automatically employees tend to show their interest in providing their best endeavor towards
services.
2. Critical analysis whether rewards as an ethical issue in performance management system
Numerous eminent scholars have provided their own opinion regarding the importance of
rewards and recognition system in performance management. In order to motivate employees
towards services business experts have to providing them several compensations and benefits.
Rewards and recognition is a part of strategy for encouraging employees towards performing
well (Cardy and Leonard 2014). It is a form of appreciation based on which organizational

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managers receive a satisfactory performance from the employees. As a result, both the business
managers and the employees get equal benefits and facilities.
3. How integrating reward systems (including compensation, benefits and other rewards)
with performance management could help in overcoming implementation challenges
In numerous business scenarios, it is observed that integrating reward system has helped
to overview innumerous organizational issues happened at workplace. With the extreme burden
of work pressure employees lose their motivation in giving best performances. As a result,
customers are getting deprived of receiving proper services. In this kind of situation managers
decided to render integrating reward system based on which the effort of employees can be
appreciated (Bednall, Sanders and Runhaar 2014). After getting monetary benefit or any non-
monetary benefit the employees would love to accept challenging situations rose at the
workplace. As a result, managers can easily overview the crisis after getting satisfactory
performances from employees.
4. How leaders are responsible for integrating reward system with performance
management
Leaders are only responsible to control the performance level of team members.
Performance management is highly important for leaders to enhance professional skills and
competency level of employees (Fathabadi 2014). The primary responsibility that leaders have to
play in integrating reward system includes:
 Nominating the name of employees in according to best performances
 Selecting nomination categories

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 Deciding the category of compensation that would be provided to the employees in the day
of reward ceremony
 Motivating other employees as well for leaving a contribution to team
The role of leaders in managing employee performance is undeniable. At the same time,
employees themselves play the most important role in being self-motivated by maintaining
effective communication with each other, by creating good work environment at the workplace,
by exchanging thoughts and views with each other. These activities can enhance employee
performance and motivation as well. Torrington, et al. (2014) opined that an organization and its
leaders can create an environment for employees to be motivated. At the end, employees would
have to perform well towards services. Therefore, they are key responsible for being motivated
in rendering business target.
5. Recommend the ways in which the implementation of performance management systems
could be enhanced by integrating rewards management
It is undeniable that rewards and recognition is one of the most significant ways of
performance management for an organization (Zhao et al. 2015). Apart from rewards and
recognition, recommendations can be provided based on which performance management system
can be enhanced and customers can be more effective satisfied. The recommendations are as
follows:
 Improving technological skills and competency of the employees for maintaining database
systematically
 Improving communication skills of the employees for convincing customers effectively

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 Enhancing the time management skills and decision making skills of the employees for
handling any kind of sudden changing to overcome organizational crisis
Part B: Improving performance management
6. Critical analysis of Performance management published by Aguinis’ (2012)
This very specific book of performance management has provided an in-depth
understanding on how an effective performance can enhance the competency level of an
individual performer, be it a senior or junior employee. People from various geographical
backgrounds and attitudes are associated with a business organization. They may have to face
immense challenges in getting accustomed with the work culture. In this kind of situation,
performance management can help every individual in meeting organizational goals and
objectives (Zavadsky and Hiadlovsky 2014). In this very specific article the author has depicted
that performance management is not only applicable for employees. It is beneficial from human
resource management to operation management. On the other hand, the author has also stated
that performance appraisal plays the most important roles in motivating employees towards
services. Most of the recognizable companies of South Africa like Bidvest, Buhle Waste, AEEL
have already occupied a predominate place in the business industry (Deelman et al. 2015). It has
been observed from past few years that these brands are unable to expand their business in the
international market due to the lack of expected performance level from employees’ end.
Therefore, it is high time to render performance management system within business process
based on which organizations would overcome challenges coming from the customers.

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6.1 Overview of the concept of performance management according to Aguinis
According to Aguinis’ (2012) performance management system is an initiative
implemented by organizational experts in order to improve professional competency of
employees. Effective performance can render immense business success based on which
organization can enhance their profitability. The author in this very specific article has stated that
rewards and recognition is one of the most important ways of encouraging employees towards
business services. An efficient business expert can perform well only when the person get
appreciation of endeavor. The concept of performance management believes that organizational
manager should take an effective initiative in performing well with the help of training and
development session.
The author in this very specific article has highlighted that performance management
focuses on several areas that include technological performance, project evaluation, sales
evaluation, managerial performance (Missaoui et al. 2014). In order to enhance technological
skill sales competency organizations initiate different training and development session. In order
to motivate employees towards services business experts have to providing them several
compensations and benefits. The author emphatically believes that rewards and recognition is a
part of strategy for encouraging employees towards performing well. It is a form of appreciation
based on which organizational managers receive a satisfactory performance from the employees.
With the extreme burden of work pressure employees lose their motivation in giving best
performances (Behery et al. 2014). As a result, customers are getting deprived of receiving
proper services. However, in order to expand business beyond going the regional boundary
organization needs to focus on performance management system.

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6.2 Role of human resource management in improving effective performance management
system
As per this very specific article, human resource manager can improve performance
management system at the workplace by focusing on some of the most effective areas. The areas
are as follows:
 Identifying the under performers
The human resource managers have to measure the performance level of those employees
especially who are unable to meet expected production (Melnyk 2014). In this kind of situation,
the human resource managers’ responsibility is to enlist the name of those employees for
providing them effective training session to render career progress.
 Providing effective training and development session to those employees
While providing training session the human resource managers have to first identify three
major categories for which training is needed. The training category includes communication
skill, technological skill and professional skills. Employees having issue with communication
skill can be provided training for 6 months for improving way of interaction. Automatically,
customers would be convinced and get effective services (Putra, Ariantara and Pamungkas
2016). Employees who have problem in technological skill can be provided training for one year.
This very specific training session helps the employees in overcoming sudden technological
barriers at the workplace.
 Maintaining employee performance data by rendering technological devices

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It is observed that human resource managers like to put manual effort in measuring
performances rather than depending on advanced technology. However, in order to improve
performance management system human resource manager can use advancement of technology
by implementing database management system, big data and business intelligence (Mir and
Pinnington 2014). Automatically, the human resource manager would be able to maintain
chronological data record within employee performances. Automatically the entire flow of
business would be dealt very systematically.
6.3 Recommendations on changes for better enhancement on performance management
6.3.1 Incorporating transparent communication
Active two-way communication plays an important role in maintaining good reputation
with the working personnel (Arasu et al. 2016). Thus, the organization needs to develop a
transparent communication with the employees so that they can effectively share their concerns
and get suggestion for improving their performance.
6.3.2 Implementing monetary rewards
In an organization, if employees are only rewarded with non-financial benefits and social
recognition, they can be motivated for a shorter time but in order to motivate the employee for
longer time, financial benefits needs to be implemented (Anderson et al. 2014). These benefits
can be providing higher designation, vacation trips or gift coupons.
6.3.3 Evaluate performance weekly or monthly
Review employee performance half-yearly and annually results in extra effort on the
leaders and HR to find the previous data and then prepare their report. However, this problem

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can be overcome if the performance review can be made weekly or monthly (Sutheewasinnon et
al. 2016). The report can be shared with the employee so that they can also check their progress
and can take necessary step for enhance their rank according to the published report. The
employee can also easily compare the published data with the tracker that they are maintaining
for themselves to ensure that no discrepancy has been made. The sharing of report also
demonstrates transparent communication.
6.4 Formulate a ‘test case’ organization that does not have any kind of formal performance
management system
While formulating a test case it is observed that Dodo Exclusive Shoes is one of the most
recognizable South African retailers occupying a predominant place in fashion industry. While
evaluating its case study it observed that performance management system in this organization is
very poor. The primary issues that this brand is currently facing in right business scenario
includes lack of proper reward and recognition policy, lack of maintaining data on behalf of the
organizational manager (Sun and Van Ryzin 2014). As a result, the brand is facing major
challenges in maintaining business image and reputation. However, in order to overcome those
weaknesses it can be highlighted that Dodo Exclusive Shoes need to render attractive
compensation and benefit strategies within business services for managing employee
performances.
6.5 Benefit of the organization in implementing performance management system
The prime benefit for an organization to implement performance management system is
to maintain consistency among the employees. The employee knows that their performance is
evaluated by their managers or team leaders and all the employees will then perform with

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effectiveness. Another benefit that the organization can attain by implementing performance
management system is highly motivated employees. The managers needs not only recognize the
outperformer among all of the working personnel but they also need to offer the challenging
roles based on their performance (Mir and Pinnington 2014). It can also be said that highly
motivated people intends to retain in the organization for longer time. The manager can also
evaluate the performance of the employee regularly based on which they can identify, who need
more assistance and this enhancement in employee’s competency allow the employees to
develop themselves. This process will also help the employee to have less fear of get fired and
this will also reduce the cost the company needs to invest for recruiting new employees.
6.6 Critical evaluation about the ideas and concept from the entire reading that supports
the research
According to the case study, it has found that the performance management system is
good in the company but the company only focuses on the social recognition and not on the
monetary benefits. However, it is evident that employees need career growth and development
and hence need to get financial benefit in terms of promotions. Thus, absence of career growth
leads to employee attrition which on the other hand diminished the productivity of the company.
It is also noticed that the considered company also do not focus on communication training and
leadership training (Fathabadi 2014). This training session play an important role in developing
the interpersonal relations with the other members of the organization especially the management
people. The leadership training also allows the outperformers to accomplish extraordinary work
and guide others. In such cases, the performance management system helps an organization to
identify their upcoming leaders and allow the organization to reduce their investment cost
involve for hiring and recruiting managers and leaders.

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