CHRP-PRM: Supporting Good Practice in Performance & Reward Mgt

This report provides an overview of performance and reward management practices, focusing on the relationship between performance management and business objectives, elements of an effective performance management system, and motivational theories. It discusses factors to consider when managing employee performance, the purpose of rewards, data requirements for performance reviews, and the components of a 'total rewards' system. The report also examines the frequency, purpose, and process of performance reviews and includes a reflection on a skills assessment, analyzing the outcomes, performance effectiveness, and key learning points for improvement. The case study of Net-A-Porter is used to illustrate these concepts, emphasizing the importance of aligning organizational goals with employee motivation and reward systems for achieving business success. Desklib offers a variety of resources, including past papers and solved assignments, to support students in their studies.

Supporting Good Practice
in Performance and
Reward Management

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Part 1 (AC 1.1, 1.2, 1.3, 2.1, 2.2, 3.1, 3.2).......................................................................................4
The purpose of performance management and its relationship to business objective.................4
Effective performance management system elements and motivational theories develop
effective performance management.............................................................................................5
Goal setting theory for motivation...............................................................................................6
Factors that need to be considered when managing employee performance...............................6
The purpose of rewards within a performance management system...........................................7
Data required by individuals when reviewing and involved in performance and reward
management processes/systems...................................................................................................7
The components and benefits of as effective 'total rewards' system............................................8
Part 2 (AC 4.1).................................................................................................................................8
The frequency, purpose and process of a performance review....................................................8
Frequency of performance review...............................................................................................9
Purpose of performance review...................................................................................................9
Process of performance review..................................................................................................10
Part 3 (AC 4.2)...............................................................................................................................10
Skills Assessment – Undertaking a performance review...........................................................10
Part 4 Reflection (AC 4.3).............................................................................................................11
Outcome of the review...............................................................................................................11
Performance and effectiveness in achieving this outcome and key learning points for
improvement on a future occasion.............................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Performance management is process where organization ensures their activities and their
outputs and it provides information about which essential mainly requires for effective
development of company success. It is systematic approach and strategy for improvement in
business object and employee work behaviour and performance (Aguinis and Burgi-Tian, 2021).
Net-A-Porter industry is all about fashion and leisure retail company. The company has their
own website for product selling and also their mangers employees mainly focusses on the
improvement in individual performance for effective result. According to recent market trends its
important company develop their website because its best option to services in the innovative
market. This report will clearly provide information about that how company manage employee
performance and fulfil their business objective and also it gives information about how company
applies theories for effective outcomes and many more.
MAIN BODY
Part 1 (AC 1.1, 1.2, 1.3, 2.1, 2.2, 3.1, 3.2)
The purpose of performance management and its relationship to business objective
Performance measurement is most important aspect for every organization because it
useful for analyse multiple factor which affects the business object. Company manager always
believes in maintain effective productivity and increase sales so management of these aspects
requires knowledge that how individual performance for the particular task and employee has
potential for aim achievement or not (Al-Swidi, Gelaidan and Saleh, 2021). Net-A-Porter
purpose of performance management is management of risk and develop efficiency in operation
activities are as follows,
Encourage Teamwork, Collaboration and Communication
Almost every company owner, manager believes in teamwork management because it
can be directly influence business productivity. On the basis of performance management tool
company's manger analyse that which factor influences the team work and how to prepares
structure for effective communication between tow individual (Chan, 2021). Net-A-Porter
industry owner analyse that team work is the best option for their specific target achievement and
effective performance management.
Identify the area of development

Business management analyse that which things are more beneficial for effective
company expansion. Net-A-Porter company analyse that they require more unique product and
different verity of cloths to survives in the competitive market. So identification of this purpose
can effectively influence the business objective with the employee efficiency expansion.
Effective performance management system elements and motivational theories develop effective
performance management
Expansion of effective performance management highly influences by the individual
work performance and also its affects from the external forces (Gharouni Jafari and Noorzai,
2021). Development of impressive performance management are as follows,
 Firstly its important that company focuses on goal setting and what they want for
business success. Because planning and expectation setting clearly gives idea about
which thing essential for continuity in business process.
 Completion of goal setting, next is monitoring, development, and improvement which
means manager, owner, leader has to focuses on the distribution of work and
improvement in individual work performance.
 Next one is periodic rating which useful for the analysis of company's individual
performance and task completion. If employee perform well for the organization, and
they fulfil task within in given time its important that business owner gives them rewards
and incentive for more powerful performance management.
Maslow hierarchy of needs
On the basis of Maslow motivation theory they clearly explained that management
training, motivation, satisfaction, employee health are essentials for performance management.
Every individual when they do job they highly consider and its essential that their basic needs
can fulfil like food, shelter, sleep, cloths.
Second one is safety need when employee perform for organization, their owner and
management provides them to safety work culture and gives them health insurance, family
insurance, Completion of this motivation its Important that company consider and manage good
relationship, develop friendly environment, because it will improve attraction towards with the
organization.

Fourth one is esteem where employee wants respect, some freedom, so they feel like they
have some power and feels goods, so people become more motivated, and they highly focus on
the business object completion.
Last one is self actualization, individual motivation the best practice is that they analyse
what they achieve and management provides them incentives, so they can improve their lifestyle.
It is major essential that every company consider this process for effective performance
management.
Goal setting theory for motivation
As per the Edwin Locke they prepared this theory for specific and clear goal setting so
individual can effectively perform for their given task when company set plan for business
objective its essential that business owner set measurable aims, and avoid misunderstanding
(Jumady and Lilla, 2021). Goal should be realistic is very important for business success,
owner, manager, leader consider that they develop effective monitoring, positive leadership and
training program, so that individual does their task within in given time. Higher challenging
goals expand demotivation thus, its important that company develop their plan and manage their
performance management with the specific, clear, measurable, realistic goal setting for business
objective.
Factors that need to be considered when managing employee performance
Net-A-Porter company's set their goal that they want to achieve great success in the
fashion industry, so they develop framework like, they hire fashion experts, models,
photographer and editing experts for website, marketing, sales, production, operation and
multiple experts and gives them information about what they want. Almost every manager
knows about how to manage employee performance for effective utilization of multiple factors
which can be useful for business performance management are as follows,
Mark goal-setting agile, local, and meaningful
Make sure that when company's manager set goals for business success, firstly goal
should be specific, understandable, for specific purpose so employees can understand and
perform for it (Laplume and et.al., 2021). So specification of aims every individual focuses on
their given task so it will directly influence the business productivity and improves employee
performance management.
Coach and develop employee

Essential that company consider development of individual and provides them training
and class for effective employee development (Samathi, Likhitthammarot and Suphattanakul,
2021). Almost every organization applies this method for expansion of effective performance
management for improvement in their business task and goal achievement.
The purpose of rewards within a performance management system
Reward is the best option for individual motivation and greater efficiency expansion of
employee. Every individual effectively perform for achievement of incentives, increase salary,
bonus, prices and many more, so it is one of the most effective methods and beneficial
improvement technique in performance management development for business object
completion are as follows,
Aligning the goals of the organization and employees
Rewards scheme should improve and support business aims but strategic reward system
is major essential because every individual want increments, prices, bonus when they do their
task, so its compulsory company prepares strategic plan for rewards system because it also
affects the other employee performance (Santos and Martins, 2021). Company has to know about
which specific time, where and how much rewards provides them to employee.
Motive employee
Motivation of individual is important aspect for effective performance management in the
organization. Business manager wants that every employee work hard for their given task, and
they do their work with flexible manner. Rewards scheme and motivation is suitable option for
reduce complexity and improve the quality of employee work behaviour.
Data required by individuals when reviewing and involved in performance and reward
management processes/systems
Individual performance clearly shows that how they do their given task for business
object completion. Its essential that company analyse the employee performance for effective
performance management. Net-A-Porter organization has different department and their manager
and employee, so analyses of internal and external data, company's manager can research and
analyse the business profit.
Specific turnover of particular task

It can be easily analysed with the weakly sales, monthly sales and it also essential that
business owner saw the sales for expansion of individual employee performance. On the basis of
research company sales manager and owner can easily consider that which candidate more
capable for improvement in sales and give them rewards as well.
Application of rating method
Identification of individual work performance require rating methods in internal data
collection when employee perform their task its essential that leader can analyse about that how
they perform, if they do not have specific training and motivation then it develops complexity
and influence the business workforce (Wartini and et.al., 2021). So company develop rating
system it provides specific information that which things highly influence the individual work
culture.
The components and benefits of as effective 'total rewards' system
Improvement in performance management requires employee motivation and their
effective work culture. Reward system is most powerful method for individual effective quality
of work expansion and component for total reward system are as follows,
Compensation
Compensation is most common and traditional technique for improvement in individual
performance. Salary, hourly wages, bonuses, commission includes in the compensation plan.
Work within in organization with one or two year its essential that business owner consider it.
Effective compensation plan highly influence the individual performance, and every employee
more focuses on completion of specific task.
Pay increases
Individual company has their own rule and policies but management of effective
performance requires that fix percentage for employee performance improvement and
development of motivation. Specific increment can influence the individual work culture and
motivate the employee for stay in the company.
Professional development and recognition
Almost every organization develop this allowance practices, because its important when
individual gives higher profit and productivity, company has to focuses on given this allowance
for effective business success. Professional development useful for improvement in the quality of

life and individual fulfil their wants with effective manner, so its improves the mental stability
and motivation as well.
Part 2 (AC 4.1)
The frequency, purpose and process of a performance review
Line manager is essentials, they develop structure and line for employee. They prepare
strategic framework for specify the individual job and take reviews for the knowledge of
employee work behaviour within in specific time (Wilder and Cymbal, 2021). Net-A-Porter
company's manager specify that they apply performance review method for the development of
impressive employee work behaviour and provides them training and motivation on the basis of
requirement. Manger evaluate employee contribution, how much efficiently they perform for
particular task and how business affects from the individual work behaviour.
Frequency of performance review
On the basis of traditional concept manager identify and conduct employee performance
on 6 to 12 months. But on the basis of recent trend mostly companies conduct performance
evaluation within 3 to 6 moths. This will useful for focuses on the which specific motivation
tanning require for employee and manager ensure feedback is perfect and exact time.
Company' line manager analyse frequency when they want speedily recover in employee
performance on the basis of fast decision process they develop weekly analyse as well because it
defines which essential changes requires for employee performance management.
Purpose of performance review
Purpose of employee performance major purpose is analyses the work behaviour
influence the business objects. Almost every company prepares this performance require
methods for the analysis of multiple things are as follows,
Employee work performance
Manager mainly prepares performance review on the basis of the employee work
performance, because it provides knowledge of specific employee work efficiency. If any
individual not performing well then gives them training and motivation this is the main purpose
of performance reviews.
Identification of strength and weaknesses
Identification of individual strength and weakness clearly explain that which work
effectively done by this specific employee. Manager identifies that which employee effectively

work for business goal achievement and which employee not works for long term and manager
identify that training can useful for the particular employee or not.
Set goals for future performance
Analysis of individual work behaviour manager identify and develop some changes in
their business goal process because its major essential if multiple work not do the same task then
its important company set some different process for the effective business object and influence
the employee performance.
Process of performance review
Planning is first step of performance review, identify the employee working power and
distribute them work (Performance review. 2020). Second step is monitoring the employee
performance and provide them training and specific knowledge for effective task performance,
completion of this step manager, leader tasks review from employee that they feel comfortable
within the given task or not. Fourth one is development of improvement in individual
performance that which changes can increase the business objective success and the last one is
measurement of employee performance which gives idea about how company influence from the
prepares strategy and which things essential for company's goal achievement.
Part 3 (AC 4.2)
Skills Assessment – Undertaking a performance review
Analysis of individual performance requires this specific form, this will clearly show the
employee activity on the basis of 12 month review. As a warehouse manager in Net-A-Porter
organization I recognize that multiple aspects influence the employee performance. And
management so its essential that company develop employee review form for the analysis of the
multiple aspect and identification of specific problems.
Employee Performance Review
Ratings
1=
Poor
2= Fair 3= Satisfactory 4= Good 5= Excellent
Job knowledge
Consumer behaviour /
services

Work Quality
Attendance/ Punctuality
Productivity
Inventory management
Communication/
listening skills
People management
Dependability
Overall rating 10
out of
6
Part 4 Reflection (AC 4.3)
Outcome of the review
Identification of employee performance review with the utilization of feed back form
gives proper and effective idea that I individual potential directly affects the management of
warehouse manager in Net-A-Porter industry. I recognize that time management is major
essential key for the effective operation expansion. Company manager has to focuses on the
overall business individual because it directly influences the warehouse manager and their
employee performance. Recover and improvement in cloths production process is major essential
because it influences the supply process (Szatmari and et.al., 2021). Completion of 12 month
review clearly explain that product department of the company is highly influences the process
of supplement of goods and services.
Performance and effectiveness in achieving this outcome and key learning points for
improvement on a future occasion
Identification and analysis of sales clearly understand organization that they improve
their overall performance, but the major essential work which is done by the warehouse manager
that they supply goods and services specific time with effective response. I totally understand
that as a warehouse manager I have to take responsibility for customer satisfaction because I am

the most responsible for raw material supplies in production process. I analyse that operation
department highly influence and gives pressure on warehouse worker and employee.
Lack of communication between operation manager highly influence the warehouse
manager performance, and they give higher pressure for raw material availability in product
houser. Because warehouse manager is responsible for organization the safe raw material goods,
and storage the product. Some time weather is highly influences the company goals. Effective
performance management require the efficiency in individual performance, warehouse manager
salary highly generates conflicts, employee leaves from their specific task, Effective
performance management require multiple aspect so the company prepare strategy for the
warehouse manager (Iyanda Ismail and et.al., 2021).