Explain Two Purpose Of Performance And Reward Management

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Supporting Good Practice in Performance and Reward Management Activity One 1. Explain at least two purposes of performance management and its relationship to business objectives. One purpose of performance management is to improve and maintain a high level of performance from all employees across an organisation to ensure that the organisation itself performs at its best. If all employees are correctly managed and encouraged to work to their full potential at all times then this will result in not only individuals meeting targets but also in the business meeting its objectives. Another purpose of performance management is to communicate to employees the level which you expect them to be performing at by setting objectives and targets…show more content…
Describe at least three components of a total reward system, one of which should be non-financial. A total reward system is important when managing performance. Once upon a time it may have been thought that reward was as simple as paying someone a wage or salary for the services rendered so to speak but as times have moved on it is now recognised that there are many other factors when considering reward in the workplace. This is what makes the total reward system. One component of a total reward system and usually the first that comes to mind is pay, whether that is a salary or a guaranteed cash wage. The salary or wage can be used to entice a good standard of employee if it is the right, fair amount for the job. If you are offering a particularly low salary for a job then you will probably not be attracting the suitable person to fill the position and may find it hard to find good employees who will stay at your company longer. It is financially beneficial to offer the appropriate wage in the first…show more content…
It is too easy to assume that they are just not capable of performing any better. Usually it would mean that they are demotivated so you then need to look at why they might be feeling demotivated and what you can do to help to rectify this. The appraisal process should be used to get the employees point of view and discuss what each party could do to re motivate them and get an improved performance from them. These could include more training, improved working conditions or possibly solving employee disputes etc. You obviously cannot just give in to all demands an employee might make however and you have to discuss options in depth and try and find suitable outcomes to benefit both parties. It also needs to be considered that not everyone responds the same to motivational methods. All the things I have talked about so far are taking what may be considered a softer approach but this won’t work with everybody. Some employees respond to a harder line of performance management and aren’t interested in things such as on-going training

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