Monitoring Performance Management System Order Instructions: Please reply on this paper: Employee’s commitment and dedication to a business can be for many reasons.
It is theorized that setting clearly defined goals and monitoring them through performance management systems reinforces the organizations commitment to the employee (Chiang, F. & Birtch, T. 2012). Rewards for performance should be linked directly to goal setting, employee development, competency measures and team performance (Mujtaba, B. G. & Shauaib, S. 2010 p113) helping the employees who perform the tasks feel more empowered to do the job.
When we discuss performance management and rewards, I believe there should be an intrinsic link between performance increases and a reward. It should be very much structured in a way which enhances and reinforces that the performance the employee is achieving is what the organization needs (Mujtaba, B. G. & Shauaib, S. 2010, p120). By setting an achievable goal, giving them support so they achieve it and then rewarding them will show commitment from both sides.
In one of this week’s readings, Paul Williams from Smith and Nephew discusses that rewards “should be regarded as an outcome and not a driver” (Mujtaba, B. G. & Shauaib, S. 2010, p112) my father worked for S&N for 10 years. Having now spoken to him briefly about his time there and Hr processes he said they had decoupled the pay reviews and performance reviews so they were done at different times. Typically they were completed 12 weeks after a PR meeting although the PR was still formerly discussed. He also said it was more of a celebration at management level if a pay rise was rewarded. By being taken to the head office, meeting the MD, shaking his hand, confirming your pay rise and having a discussion about what his targets were for the following year. It was very personal and has said it was one of his most remembered times. It confirms just as Aguinis states that pay reviews are not always about money (Aguinis, H. 2012, p274) and the total reward and personal touches should be thought about.
Rewards can be delivered in different ways, financial and non-financial can be just as important as each other. Money does not always motivate people and so there have to be other methods to reward them effectively (Armstrong, A. & Baron, 2004, p106). In my own organization performance is rewarded in a different way, currently, that is annually and in line with performance reviews. Up until two years ago we only used financial rewards as a way to encourage people. However, we now use non-financial methods as ways to differentiate commitment to the organization. Free days off (Birthdays) early finishing times throughout the year and many other things that are unique to an individual and their performance. I would agree though that there is a huge strain on smaller businesses who would have to try and coordinate this at a separate time (Armstrong, A. & Baron, 2004, p112).
In my own organization we have had ethical issues in the past with the bonus performance system, which has meant strong controls have had to be put into place with technology to back it up (Aguinis, H. 2012, p269). But I do question the validity of the continual bonus scheme as a way to maintain performance, it’s almost taken for granted now as part of the package and think there could be alternative methods in our quest for performance.
There has to be a level of difference for everyone in an organization (Aguinis, H. 2012, p273) but as financial gain is relatively easy for an organization to offer we really should look for more rewarding opportunities for the employees. I feel that other incentives work much better at keeping a commitment, such as sharing of stocks, private health care, pensions or flexible working patterns but to name a few. By showing the organizational commitment to the employee in return they could be committed to performing to a high ethical standard which supports a total reward system and the company mission.
Monitoring Performance Management System References
Armstrong, A. & Baron, A (2004) Managing performance: performance management in action, 2nd ed. London: CIPD. Chapter 7, ‘Performance management and rewards’, pp.103-114
Mujtaba, B. G. & Shauaib, S. (2010) ‘An equitable total rewards approach to pay for performance management’, Journal of Management Policy and Practice, 11 (4), pp.111-121.
Aguinis, H. (2012) Performance management, 3rd ed. Upper Saddle River, NJ: Pearson Prentice Hall. Chapter 10, ‘Reward systems and legal issues’
Chiang, F, & Birch, T 2012, ‘The Performance Implications of Financial and Non-Financial Rewards: An Asian Nordic Comparison’, Journal Of Management Studies, 49, 3, pp. 538-570, Business Source Complete, EBSCOhost, viewed 6 December 2015.
Monitoring Performance Management System Sample Answer
Performance management system
A key aspect of performance management entails managing staff members and managers, given that their performance would have a significant effect on the company’s performance altogether. In this posting, the student is exactly right by pointing out that employee rewards for performance should actually be linked directly to goal setting, employee development, competency measures as well as team performance and helps workers to feel empowered. The student states that rewards could be delivered in different ways, which is very true. A reward system basically comprises all the psychological, non-financial, and financial payments that a company offers to its staff members in exchange for the work they carry out (Aguinis, 2012). Not every employee is motivated by money and therefore it is important to also have non-monetary reward methods such as flexible working patterns.
Linking performance to the distribution of incentives, bonuses and salary contributes effectively to talent management and helps to motivate people. Researchers have reported that when executed well, pay for performance could actually motivate employees to do their work tasks well (Chiang & Birtch, 2012). In addition, the student is also correct by stating that an organization should set attainable goals for its employees and give support and encouragement to the employees to achieve the goal and then reward them after they have achieved the goals as this would demonstrate commitment from both sides. On the whole, the main objectives of having a reward scheme are as follows: to conform to legal regulations; to motivate staff members, and to be ethical. Other objectives are to support the corporate goals by aligning the goals of the company with the goals of the staff members; to align the risk preferences of employees and managers with the risk preferences of the organization; and to ensure that the company can recruit and retain an adequate number of staffs with the appropriate skills (Mujtaba & Shauaib, 2010).
Monitoring Performance Management System References
Aguinis, H. (2012) Performance management, 3rd ed. Upper Saddle River, NJ: Pearson Prentice Hall. Chapter 10, ‘Reward systems and legal issues’
Chiang, F, & Birch
, T. (2012). ‘The Performance Implications of Financial and Non-Financial Rewards: An Asian Nordic Comparison’, Journal Of Management Studies, 49, 3, pp. 538-570, Business Source Complete, EBSCOhost, viewed 8 December 2015.
Mujtaba, B. G. & Shauaib, S. (2010). An equitable total rewards approach to pay for performance management. Journal of Management Policy and Practice, 11 (4), pp.111-121.
