Introduction Performance management is a process created by a company to assist them in meeting their goals and objectives by maximizing the capabilities of its employees

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Introduction

Performance management is a process created by a company to assist them in meeting their goals and objectives by maximizing the capabilities of its employees. It is a primary component of an organization when it comes to the way it intends to manage its employees. Some companies tend to support their performance management systems by setting a reward system that motivates workers towards meeting certain objectives. As a result, both performance management and reward systems help a company to facilitate employee’s growth and development that in the end helps the company to meet its goals and targets.

Question 1

Performance management is accepted as a holistic process that collectively ensures that a number of elements that make it possible to effectively manage individuals in an organization are working properly. Moreover, it helps to promote development and learning in an organization. The main purpose of performance management in an organization is to assist in the development of the capacity of employees to realise and exceed the expectations required to help them unlock their potential in their areas of expertise (Chen and Jing-Wen Huang 101). In doing so, it helps to benefit both an individual and the organization. Second, it also offers an origin for self-development by ensuring that the direction and the support required to audit the capabilities of employees is in place. Such issues are instrumental in assisting the organization to plan for its staff succession and recruitment.

Question 2

Performance management is made up of different components. They include rewards, career development, performance planning and testing.

Career development: Through the component of career development, the company has the responsibility of ensuring that its employees develop and learn through coaching, training, job enlargement or job rotation (Inkinen 230). In this case, the company should explore any future opportunities in a particular career path and set up a plan that will ensure that an employee can realise and experience these opportunities.

Rewards: Rewards are either non-financial or financial incentives that a company offers to motivate or boost the morale of its employees (Chen and Jing-Wen Huang 101).

Performance Planning and Objective testing: Performance Planning and Objective setting permits an organization to offer a precise and clear guidance of the company expectations. It ensures that the employees comprehend their roles, goal objectives and the way their contributions can ensure that the company’s performance improves.

Question 3

It is imperative to note that, there is a direct connection between performance management and employee motivation. Employees require morale boosting and motivation to ensure that they can achieve their goals and aims, hence performing exemplarily in their positions. There are different factors that can boost the morale of employees.

Maslow’s theory on Motivation

Maslow’s theory on motivation postulates that each individual is motivated by demands and needs (Inkinen 230). There is a hierarchy of needs that requires to be catered for in turn before fully boosting the morale of individuals.

How organization can use theory to motivate employees

One of the needs is basic survival that occurs in the form of warmth, sex, sleep, food and air. They are realised by allocating a satisfying salary to an employee for their position, and providing proper working conditions along with other benefits. Second, safety needs such as security, shelter, and stability can also boost employee morale. A precise organizational structure and ensuring employees comprehend their roles and responsibilities in the organization are paramount to meeting this need (Chen and Jing-Wen Huang 101). Third, there are social needs, which give individuals a sense of belonging, affection, love and friendship. A company can ensure that these needs are met by setting up a good communication network, teamwork and provision of social clubs or outings for employees. Fourth, there are esteem needs such as recognition, status, respect, confidence and strengths (Ferner, and Phil, 241). As such, promotions, job status, and positive feedback could be crucial in motivating workers. The final need according to Maslow’s theory is self-actualization which focuses on the realisation of individuals full potential and a feeling of self-fulfillment.

Frederick Herzberg’s Motivational Theory

Another theory that can be employed in explaining motivation is Frederick Herzberg’s motivational theory. It states that individuals possess hygiene needs and they cannot function effectively without them. However, this theory warns that as soon as they realise these needs, they again lose their morale once again (Chen and Jing-Wen Huang 101).

How organization can use theory to motivate employees

Apparently, this theory can help organizations to realize that true motivators are different, such that, work itself, achievement, recognition, advancement and responsibility come in different variations to people. For this reason, all fundamental factors need to be in place always to allow different motivators to be established at varying moments (Inkinen 230). In other words, the level of motivation will depend on the personal goals of employees and the issues or factors that boost their morale.

Question 4

A reward system for performance management can occur in two forms, either through monetary or non-monetary benefits.

Purposes of the reward system:

It plays an instrumental role in performance management since most workers of an organization require reassurance that their hard work and dedication will be valued. In other words, they need proof that there effort and performance plays a vital role to meeting their personal objectives and those of the organization. Notably, it is crucial in maintaining the motivation and morale of an employee (Chen and Jing-Wen Huang 103).

The second purpose of a reward system is to help in the retention and recruitment of talent in the company. Provision of incentives and rewards in exchange of great talent encourages new employees especially those that possess unique talent (White 12). It is also instrumental in helping an organization hold onto their best employees, develop and grow with them hence benefiting the organization in the long run.

Question 5

One of the components of the reward system is the Basic pay and Contingent pay- Financial Reward. It focuses on fringe benefits along with the basic pay. Other benefits that are associated with this package include share options, bonuses, commissions company share plan and performance related bonuses. It forms a vital element of the reward system since it is one of the direct motivators of most employees (Inkinen 230). The second component is the Non-Pay (Fringe Benefits). Any organization that invests in their workers in terms of their development, coaching, training and offering them career enhancement opportunities boosts their morale. Another component of the reward system is the wider non-financial rewards which revolves around corporate culture, employee recognition practices, job security and the work environment. Proper management and leadership is crucial (Ferner and Phil 241). Employees need to comprehend what is needed and expected of them. In this case, they need to have support to meet their obligations and comprehend that they have confidence and support from the company management. For this reason, a pleasant and safe environment to work in is crucial so that they feel that the organization values them and puts their needs before anything

Question 6

When managing good and poor performance in any organization, it is imperative to note that there are a number of factors that need to be considered. First, is counselling/support. The organization needs to take into account any support or counselling services that are already existing and confirm whether they are enough to cater for the needs of its employees. Having guidance and support from both the management and team members is vital (Perkins, Geoffrey, and Sarah 23). Providing access to counselling for issues that may not be related to work could also have a positive implication on the performance of employees.

Second, is checking communication issues at work. The company has the responsibility of ensuring that every employee in the organization understands what the company expects them to do and that their objectives and aims have been outlined clearly. Moreover, the company must also confirm that the employees agree with the manner in which their roles need to be achieved. Furthermore, the company also has an obligation of ensuring that all the workers of the organization can access information with ease (Chen and Jing-Wen Huang 104).

Third, is offering rewards and incentives. They are necessary to act as a sign that the organization recognizes and values the efforts of its employees. In doing so, the employees leverage their performances hence bringing positive returns to the company. These factors also encourage employee loyalty since they feel valued.

Question 7

One of the items of data that can be instrumental in performance management is ACAS. ACAS offers free guidance and control on the current information regarding some of the relevant practices of employees especially whenever an organization requires guidance. By consulting ACAS, the company can be sure that it is accessing the best and reliable information that can help it meet its objectives and goals (Perkins et al. 23). The second source of data is the company’s disciplinary procedure. It can be consulted to help the company establish the process and steps that need to be considered to help in managing the poor performance of an employee so as to realise the desired objective.

Question 8

In most organizations, performance review is conducted together with employees. It assists in giving feedback to employees on some of the areas they performed exemplarily and those that they need to improve and develop in their roles. Moreover, it also offers a chance for the line manager to motivate and congratulate those workers that are performing well and discuss with them any areas of concern to identify and pinpoint any factors behind their results. It also offers the company a chance to ask the employees any training and coaching needs they may require. Also, employees can relay their feedback and opinion on the guidance and support the company has accorded them.

The first step of performance review is to notify the staff of the time and date when their assessment will be done since it will help them make preparations for this activity. Second, in the course of the review, it is important for the manager to explore and point out some of the strengths and weaknesses of the employees. Third, Immediately after this stage, it is advisable to explore some of the objectives that were set for both the company and the employee and the way they were achieved or botched (Perkins et al. 23). Fourth, it is crucial to discuss any development or training needs based on the results of the employee. All the discussions will therefore be required to be signed and filled on the performance review form. Training and development plan along with the objectives for the following year will need also to be discussed and agreed upon. In doing so, this will ensure that the employees comprehend what is required of them.

Conclusion

Performance management is an important element in business operations since it helps the company in identifying areas of weakness and the way the company can improve on its current situation. Because of an increase in competition, there is a growing demand for performance management. It helps the company to maintain effectiveness and efficiency and function within the company objectives and goals. Therefore, different components such as training and development criteria, and reward system can help to gauge the performance of employees as well as improve their morale and motivation. A motivated employee brings positive returns to the organization.