Performance and Reward Management Assignment for CIPD Certification

This assignment response addresses key aspects of performance and reward management within a human resources context, specifically tailored for a CIPD certification. The student explores the purposes of performance management and its alignment with business objectives, identifies crucial components of performance management systems, and analyzes the relationship between motivation and performance, referencing Maslow's hierarchy of needs and other motivational theories. The assignment further delves into reward systems, differentiating between financial and non-financial rewards and outlining components of a total reward system. Factors influencing the management of both good and poor performance are examined, along with the use of performance data, including financial and customer satisfaction metrics. Finally, the document details the frequency, purpose, and process of performance reviews within an organizational setting. The response is comprehensive, providing a detailed overview of performance and reward management principles.

Running head: HUMAN RESOURCE (CIPD)
HUMAN RESOURCE (CIPD)
Name of the Student:
Name of the University:
Author Note:

1Human Resource (CIPD)Answer to question 8:Answer to question 8:
Table of Contents
Answer to question 1:......................................................................................................................2
Answer to question 2:......................................................................................................................3
Answer to question 3:......................................................................................................................4
Answer to question 4:......................................................................................................................5
Answer to question 5:......................................................................................................................6
Answer to question 6:......................................................................................................................7
Answer to question 7:......................................................................................................................8
Answer to question 8:......................................................................................................................9

2Human Resource (CIPD)Answer to question 8:Answer to question 8:
Answer to question 1:
As per a famous researcher, performance management is nothing but a way to improve
individual’s point of view towards organizational framework and meaningful objectives.
Performance management’s concept is huge and much complicated. The purpose of performance
objective remains same whereas it is in constant evolving stage. In simple words it means how
an employee should perform in any organization. However, this concept has changed, now the
organizations are more concerned about what every employees want and try to fulfill their
demand to retain them as there is less relevant employees available in market and it is important
to engage them with company’s content and productivity. Two main purposes of performance
management are following:
1. To provide ongoing ad meaningful feedback – this is the example which shows that
how the concept of performance management has evolved. In old days this process was
used by the organizations to gather the feedback annually regarding the bonus and pay
decision. In some cases this information were not even relevant for the company and they
continued to operate the way they wanted to operate (Dobre 2013). However, now-a-days
these feedbacks from customers are very important to decode whether the company will
sustain in market or not.
2. To encourage collaboration, teamwork and communication – the human resource
managers are always in need of improving the teamwork and community sense in the
employees. Many companies utilizes this as mixture of social activities and then access to
required technologies. Tools for real-time communication and team-building are used for
this purpose.

3Human Resource (CIPD)Answer to question 8:Answer to question 8:

4Human Resource (CIPD)Answer to question 8:Answer to question 8:
Answer to question 2:
Three components of performance management system are following:
1. Manager reviews – here the employees are given the right to evaluate the performance
of their mangers about how they are managing the operation, lead the team effectively or
are they properly able to fulfil the needs of the employees or not. The feedback form the
employees are given too much priority (Farooqui and Nagendra 2014). This evaluation
also to coincide with the objective and organizational goal. This helps the managers to
know if there is any lack in their management.
2. 360 degree performance reviews – this feedback review is the most important employee
performance review in any organization because here the employees are provided with
feedback by their peer or managers based upon their willingness to work and their
performance. This helps the employees to know about their strengths and work more on
their weakness. The managers and employers mainly looks into the skills and
competitiveness in the employee while they give review.
3. Engagement surveys – this helps the organization you know what the main demand of
their employees is. The main purpose of this survey is to whether the employees are
engaged with the organization or not. There is no specific way to judge the reviews but
basic factors can be recognition, career advancement, training & development, benefits &
pay, work environment, leadership and etc. this provides the employees to put their
thoughts in front of the organization without any fear which will help the organization to
grow and improve.

5Human Resource (CIPD)Answer to question 8:Answer to question 8:
Answer to question 3:
There is a positive and significant relationship between motivation and performance
management because if the employees and the managers are motivated enough then there will be
good performance. Two of the discussed literature reviews regarding motivational theories are
following:
1. Individual needs – this is one of an important element in Maslow theory. As per Wright
in 2001, if the employees’ motivation arrives from unsatisfied needs then it is the duty of
managers understand which factors and needs are mostly referred by each of the
employees. Hence, needs of hierarchy by Abraham Maslow is very important for every
organization to follow (Ganta 2014). The key categories of this model are safety,
physical, affection, self-realization and esteem needs to be thoroughly discussed by the
management.
2. Personal preferences – as per Peters & Zelewski in 2007, it is important to meet the
demand of the employees otherwise it may demotivate them. This concept is important
because employees are more motivated to complete the provided task for their own
benefit of getting recognition or any bonus. There are many personal preferences that
works more for the employees while they are on job. Therefore, it is very important for
managers to work on different preferences of employees and find an average solution to
meet them. There are many theories to motivate the demotivated employees like paying
them more when they do their work efficiently, festival bonus, medical facilities, paid
holidays and many more. Good reward is the common solution for motivating employees.

6Human Resource (CIPD)Answer to question 8:Answer to question 8:
Answer to question 4:
Reward system in performance management is the main motivational factor for the
employees which encourages them to work more and be productive in their job. There are any
options which can act as reward options for employees and two of them are discussed below:
1. Financial reward – here the reward options are bonus, incentives, advance payments and
many more. It is noted that almost for every employee this is the main motivational factor
for them which helps them to work more with efficiency. Employees join and retain in
any organization for monetary purpose and if they feel that they are not paid enough for
their efficiency then they leave the job. One of the basic reason for retaining is nay
organization could be the salary package and the amount of money they earn compared to
the opportunity cost (Jerome 2013).
2. Non-financial reward – for some employees this reward can be the important one. Non-
financial rewards like recognitions, awards, certificates and etc. These rewards can be
secondary but it plays a very important role in motivation and retention of the workers
because if the employees are getting paid well but they are not treated well by their
employers then the employees does not get motivation to work there with the them. Just
like the financial rewards, non-financial rewards are also given equal importance by the
employers so that they can encourage their employees and set a benchmark for other
employees as well as the efficiency of work.

7Human Resource (CIPD)Answer to question 8:Answer to question 8:
Answer to question 5:
There are many elements which acts as reward system and three of them are discussed below:
1. Compensation & benefits – benefits refers to employer options and mandatory
programs like worker’s compensation, social security, paid vacation facility and pension
programs. Compensation on the other hand means various types of earnings from
company. Compensation basically means the basic salary received by the employees but
it can also include bonus, profit sharing, advance payment and etc. Any monetary facility
provided by the company is recognized as compensation by the company to the
employees for motivational purpose as well (Kim 2014).
2. Recognition and professional development – recognitions are thee individual
acknowledgement by employers in their work like employee of the month and etc. This is
considered as the formal recognition program and these kind of programs often involves
prizes, incentives and many other things. Professional development however means
learning for advancement by employees. This kind of mentoring and tuition
reimbursement is provided by the company to their employees so that they remain
updated and they can easily operate the advanced technologies.
3. Balance in work-life – this term refers to maintain an equilibrium in personal-life and
work-life. Employers should never pressurize their employees even after their shift time
to do extra job and disturb this work-life balance. If the employees feel that there is
misbalance in their work-life then they get highly motivated and there is a high chance
that they can leave the company and search for other organization to work on.

8Human Resource (CIPD)Answer to question 8:Answer to question 8:
Answer to question 6:
Few factors which is considered while managing good as well as poor performance and
they are discussed following:
 Where the employees – this is a basic factor of noting down that how many times the
employees are on work and how many and how long do they take break. Employees’
nature if shifting from desk to desk can help them to increase their productivity as well as
their collaboration. This is because employees can get to interact with other employees
from different department which will help them to increase their knowledge regarding
any job inside the organization (Lăzăroiu 2015).
 Complimentary tea or coffee – when the employees are provided with complimentary
tea or coffee then will get to motivate themselves as well as take a short break over the
pantry rather than going out in search of coffee or tea. This will ensure that more time s
saved for the employees and productivity is maximum during the office hours.
 Different weekend activities – various kinds of fun activities in every weekend will help
to boost the employee’s performance because they would get to refresh their mind and
when any individual or nay team wins then that recognition also acts as one of element
for employee motivation.
 Daily commute to office – if any employee have to spent most of their time in travelling
then it can affect the employee retention and they can switch their job. Employers must
provide office car to the employees which will pick them up from their home and then
drop in office. This will save time for employees and increase their productivity as well.

9Human Resource (CIPD)Answer to question 8:Answer to question 8:
Answer to question 7:
There are many performance data which are useful for the organization to use while they
are setting out their policies and making strategies. These data can also be used to measure the
market position. Following are two types of performance data used by many organizations:
1. Financial and operational budgets – budgets are very helpful in deciding the
management for financial resource inside the organization. Managers can strategize their
plans related to budget so that they can control their spending and step forward with a
proper planning. It is important for every organization to develop a relevant annual
budgeting process which will help them to appropriately locate every resource and get a
strategic plan. Budgeting process can be complex but still it is one of the essential need
for every organization to strategically sustain their position in market (Naharuddin and
Sadegi 2013).
2. Customer satisfaction – this is one of the important data which is needed y every
organization at every stage of their survival. Without the customer satisfaction n
company can function properly or survive in this competitive market. Customers are
rational and they provide genuine information regarding their satisfaction from any
specific product or service which can be utilized for further development of the product
and also calculate their current position in market because customers are the main king in
every business and hence their satisfaction matters the most to every organization.

10Human Resource (CIPD)Answer to question 8:Answer to question 8:
Answer to question 8:
Frequency of performance review – employees are considered to be the most critical
asset for every organization and hence their performance needs to be reviewed frequently.
However, a proper frequency must be followed otherwise it can disturb the employers as well as
employees. Performance can be reviewed monthly or after every two weeks depending upon the
quality of work served by the employees. Many organization used to do annual performance
review and many others like to do weekly performance reviews. Regular check-ins and time of
exact productivity will help the employers to analyze their exact performance review of every
employees.
Purpose of performance review – be it a annual performance review or weekly
performance review, the main purpose of every performance review always remains same and
that is promoting communication and facilitating better professional relationship. This will help
to motivate the employees more to work better because depending upon this review the
employers will provide rewards to them. This will ensure that the productivity of the
organization is maintained and employee’s retention also increases on a frequent basis (Shahzadi
et al. 2014).
Process of performance review – different organization adopt different types of
structure for performance review. However, a basic rule is followed like giving rating over their
productivity, how long they spend in their job, whether they come in office on time or not and
etc. It is important to carefully structure the process of performance review because on the basis
of it the employees will be provided reward and some recognitions as well.

11Human Resource (CIPD)Answer to question 8:Answer to question 8:
References:
Dobre, O.I., 2013. Employee motivation and organizational performance. Review of applied
socio-economic research, 5(1).
Farooqui, M.S. and Nagendra, A., 2014. The impact of person organization fit on job satisfaction
and performance of the employees. Procedia economics and Finance, 11(2014), pp.122-129.
Ganta, V.C., 2014. Motivation in the workplace to improve the employee performance.
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Graves, L.M., Sarkis, J. and Zhu, Q., 2013. How transformational leadership and employee
motivation combine to predict employee proenvironmental behaviors in China. Journal of
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Jerome, N., 2013. Application of the Maslow’s hierarchy of need theory; impacts and
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Kuranchie-Mensah, E.B. and Amponsah-Tawiah, K., 2016. Employee motivation and work
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