Performance and Reward Management: Business Objectives and Strategies

This report delves into the critical aspects of performance and reward management, exploring its fundamental purpose: to enhance employee development and align individual goals with organizational objectives, thereby boosting overall business success. It examines the core components of effective performance management systems, including performance planning, communication, data gathering, appraisals, and training, emphasizing their role in organizations like ESS Support Services. The report highlights the significance of employee motivation, recognizing that motivated employees tend to be better performers. It explores the purpose of rewards in performance management, including employee retention and motivation, and analyzes the components of a total reward system, such as compensation, professional development, benefits, recognition, and work-life balance. Furthermore, the report discusses factors in managing performance, including goal setting, management involvement, communication, learning, and feedback. It also covers data requirements for performance and reward management processes and outlines the frequency, purpose, and process of performance reviews, emphasizing the importance of continuous evaluation and improvement.

Running head: PERFORMANCE AND REWARD MANAGEMENT
PERFORMANCE AND REWARD MANAGEMENT
Name of the student
Name of the university
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Purpose of Performance Management and its Relationship to Business
Objectives and the Organisation’s Success
The main objective of performance management is to enhance the personal
development and skills of the employees, at the same time keeping a track of the overall
workforce performance. This ensures the profit margins of the organisation goes high. The
relationship of business objective and performance management is that through performance
management, the organisation are explores the full potential of their workforce in favour of
the individual and the organisation at the same time (Riasat, Aslam and Nisar 2016). ESS
Support Services gives huge importance to their employee performance management so that
they can ensure the maximum outcome from their employees. Aligning the individual
objectives with that of the organisation can work in both way. The role of the authority and
the leaders are important to balance this two aspects. Most of the organisations face the
challenge in management their performances as they do not consider the objectives of the
company.
Key components of performance management systems
The basic components or parts of the performance management system are –
 Performance planning and setting performance goals for the employees
 Performance communication
 Developing responsibilities
 Gathering information, data and documentation
 Performance appraisals
 Performance Evaluation
 Training commitment

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All these components ate the integral part of the performance management system of
ESS Support Services. The organisation designs it reward system according to the
performance of the employees with the help of these components (Ismail and Abd Razak
2017). Planning for the right performance plans and integrating it with the goals of the
company is important. Again, the performance management need to be documented so that
the evaluation process can be done in effective way. The performance depends on the
responsibilities that the workers take for their job roles. Understanding of the possibilities
also casts impact on the performance. Within the performance management planning, the
organisation need to take care of communicating the job responsibilities as well. The
evaluation of the performance and designing the reward system according is another crucial
part of the performance management (Ibrar and Khan 2015). The evaluation also gives the
idea of the kind of training the employees will need to improve their skills and develop their
career opportunities. Within the organisation, the performance management enables the
employees to develop their individual as well as organisational improvements.
Performance management processes and staff motivation
Workplace motivation is said to be one of the most important part of employee
performance. The context of motivation is usually different for individual. The motivating
factors are not the same for each and every employee. This is the reason that, even being the
part of the same organisational culture, individual respond differently to stimulations (Shields
et al. 2015). In most of the cases it is seen that the motivated employee is the better
performer. This is why ESS Support Services gives social reference to the motivational
factors that influence the individual mind-set differently. This organisation believes that
employers need to know the aspects of the personality related to the motivation and plan the
performance management planning where each and every one can get the scope to improve.

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Performance and motivations of an employees are actually interdepended to each
other. For example, an employee in the ESS Support Services or any other organisation might
find the reward system attractive. They would go beyond their set target to achieve extra
incentives or gaining a higher position. This performance management system would keep
them ongoing to perform better in every aspects. On the other hand, the motivated employee
is the performer and they can get the most benefits from company’s performance support
systems.
Purpose of reward in performance management system
Employee turnover and lack of motivation can affect the organisation in every
aspects. This could result in reduced productions and profit margins. The organisations that
have strong reward system usually enjoy the high performance of the employees. The basic
purpose of the reward system is to appreciate the work one is doing and reduce the employee
turnover rate (Riasat, Aslam and Nisar 2016). The reward system can influence employee
motivation and retention as well. It is seen that, the organisation that have good reward
system actually is successful in retaining their employees. Other than the existing employees
and well-structured reward system also attracts the attention of the new talents.
Other than the retaining, motivating the employees is another objective of the reward
system. Companies have their reward system planned in a way that employees can get fair
pay for their work. Other than the wages there are appraisals, incentives and other intrinsic
and extrinsic rewards keep the motivational factors of the employee high. ESS Support
Services make sure that they link their rewards system with the performance of the
employees. The company uses both team and individual reward system in their operations.
The team reward system are used for the interrelated projects, while the extra ordinary
performer of a team is rewarded for their exceptional performance.

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An exploration of the components of an effective total reward system
Definition of the Total reward system
Total reward system is the blend of non-monetary and monetary rewards that are put
together to create an effective performance management system. The reward system is the
integral part of the performance management. This reward system is used to attract, retain
and motivate the new and the old employees in an organisation.
Components of total Reward system
There are five main components of the reward system that basically formats all the
intrinsic and extrinsic rewards. These five elements are Compensation, professional
development, benefits, and work recognition, work-life balance (Hoole and Hotz 2016).
These five components are the base of any company’s reward system.
Link with Performance management
Compensation is the main component of any work place reward system. Wages are
the part of compensation and is the basic requirement of the reward system. A company that
offers handsome wage will always attract the talents. According to Kalangulla (2015), the
scope of the professional development will increase the work performance of the employees.
Again, the companies have to offer some benefits and profit plans for their employees so that
they can have their future and present secure. Work-recognition and the work-life balance are
the part of the reward system where the role of authority is evident. All the component of the
reward system are beneficially connected with the performance of the employees. An
effective rewards system gives the keep the employees satisfied and motivated. Therefore, the
ESS Support Services gives importance to the performance management through reward
system improvement.

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Factors in managing performance
Goal Setting
Goals or target are important to drive the work force towards a defined direction. The
team or the individual that are the performer in an organisation usually have a higher target or
goal. This goal is the driver of their performance. Hence, it is important to have a goal and
understanding if the goal by the employees is also necessary (Mohrman and Lawler 2017).
This is the only way that the employees can be engaged in their work.
Involvement of Management
Managers are the leaders who manage and lead a team to their destination. They set
the performance expectation and provide necessary support and feedback to the team. The
communication between the higher and lower levels are also maintained by the managers
(Al-shaibah and Habtoor 2015). Hence, in a successful performance management system,
managers need to take an active part by all means.
Ongoing Communications
ESS Support system has the organisational culture that is interactive and
communicative. There is conversation in the organisation about the organisational goals,
learning opportunities and the management system. The ingoing conversation in these
subjects keeps the trend going and performance is improved.
Developmental Learning
In the high performance sectors, the employees have to show their skills and
knowledge to get a job done in minimum time and effort. So after the goal is set, the
employees are trained so that they can provide their service with full potential (Jain and

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Moreno 2015). The learning system and development are the essential part of performance
management in today’s context.
Feedback and Training/Coaching
It is important for the company to let employees know how they are performing in
their job role. The feedback of the managers or the team leaders are important for the
employees to understand what part of their job they need to change. Again, the trainings from
the managers can get them the idea how the self-evaluation is done. The employees who have
the idea of self-evaluation would perform extensively in the organisation operations.
Data required for performance and reward management process
The kind of data that the performance system manger needs can have several types.
The first kind if data that the manager might require is the demographic information and
some of the psychographic information as well. As opined by Kanwal and Syed (2017), this
is necessary for understanding one’s preferences and work culture. Next, the manager would
need the performance tracks. This means, the official record of the performance of the
employees. The feedback of the employees, leaders and the consumers is another important
data for the performance management. These are the main three kind of data that the
organisations need to take care of while designing their performance management. Only the
amalgamation of these three types of data can give the managers the idea of what they have
to evaluate through these huge data sets.
Frequency, purpose and process of performance reviews
Review and feedback collection is the part of evaluating the performance
management in an organisation. The frequency of performance management means, that
number of times performances are evaluated overall (De Gieter and Hofmans 2015). In an
organisation like ESS Support Services uses their performance management measures in six

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months. The reason for it is that within the six months, the performance and the problems of
the employees can be evaluated easily. Though there are two evaluation or review process in
a year, one annual report is made in order to decide the kind of resources or support the
employees might need in future.
The primary purpose of reviewing is examining the performance of an individual or a
team so that they can be awarded for it. The review of the performance system is necessary to
make sure that the objective of the company is served accordingly. ESS Support Services
often applies new methods in their reward system. They decide with the data at the end of the
review process. The process of reviewing might include the employee review, performance
index and employee satisfaction in the organisational background (Caza, McCarter and
Northcraft 2015). Reviewing and remodelling the performance management model increases
the reliability and credibility of the performance management and reward system.

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References
Al-shaibah, M. and Habtoor, N., 2015. Reward system and job satisfaction: A conceptual
review. Global Advanced Research Journal of Management and Business Studies, 4(4),
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Caza, A., McCarter, M.W. and Northcraft, G.B., 2015. Performance benefits of reward
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De Gieter, S. and Hofmans, J., 2015. How reward satisfaction affects employees’ turnover
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Hoole, C. and Hotz, G., 2016. The impact of a total reward system of work engagement. SA
Journal of Industrial Psychology, 42(1), pp.1-14.
Ibrar, M. and Khan, O., 2015. The impact of reward on employee performance (a case study
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Ismail, A. and Abd Razak, M.R., 2017. Performance-based reward administration as an
antecedent of job satisfaction: A case study of Malaysia’s fire and rescue agencies.
Geografia-Malaysian Journal of Society and Space, 12(7).
Jain, A.K. and Moreno, A., 2015. Organizational learning, knowledge management practices
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Kalangulla, G., 2015. The Impact of Reward System on Employee Performance: A Case
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Kanwal, K. and Syed, M., 2017. Impact of reward system on employee performance in
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