Supporting Good Practice in Performance and Reward Management free essay sample

Explain at least 2 purposes of performance management and its relationship to business objectives A purpose of performance management is motivating staff. By investing in and training employees, giving them opportunities for promotion, this allows employees to grow professionally and personally and gives them career advancement. This then improves their contribution to the business and therefore helps the business to achieve its objectives. Another purpose of performance management is to monitor performance – good and bad. Performance needs to be managed and addressed in a positive way, so that the employee is aware of what is expected of them at all times. Good performance needs to be rewarded so that the employee feels that their efforts have been recognised – this can be done by offering training, job rotation/job enlargement and a career plan for promotion. The commitment and increased skill set from the employee will then contribute to the company achieving its business objectives, and possibly increasing business for the company due to extra expertise from employees learning new skills through training and development. We will write a custom essay sample on Supporting Good Practice in Performance and Reward Management or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 2. Identify 3 components of performance management systems Three components of performance management systems are Career Development, Rewards, Performance Planning and Objective setting. Career Development: The company ensures the development of individual employees by offering further training, coaching, job rotation and job enlargement. Looking at future job opportunities for the employee and ensuing that a plan is put into place so that the employee can move in these opportunities. Rewards: Rewards can be financial and non-financial – non-financial rewards include public recognition for a job well done – employee of the month schemes are an example of this where an employee is congratulated on their efforts in front of their team/the company. Financial rewards can be salary increases and bonus payments related to reaching targets set. Performance Planning and Objective Setting: This allows the company to give clear direction of what is expected of the employee, so they know what their goals and objectives are as an individual and how the employee contribution helps the company to reach its business objectives. 3. Explain the relationship between motivation and performance management, referring to at least 2 motivational theories There is a direct relationship between motivation and performance management employees need to be motivated to achieve their aims and objectives and to perform well in their position. They need to be motivated by various different factors in order to feel fulfilled and motivated and therefore will perform well in their job. Maslow’s theory on motivation is that each of us is motivated by needs and there is a hierarchy of needs and each need has to be fulfilled in turn before a person is motivated. The first needs are basic survival air/food/drink/shelter/warmth/sex/sleep etc – these are achieved by paying an employee a good salary for their position, benefits and offering acceptable working conditions. Next are safety needs – shelter, security, stability, an organised world – these needs can be met by job security, a clear organisational structure and giving the employee a clear understanding of what their job role is. Next come Social needs – a sense of belonging, contact, friendship, love and affection – these needs can be met by the employee being part of a team at work, good communication within the company and possibly offering social clubs/organising social gatherings/outings for employees. Next Maslow explains that we have esteem needs – status, recognition, strength, confidence, respect from others – these needs can be met by job status, promotion prospects and positive feedback from management and team members. Next and lastly is the need for self-actualisation – to develop ones full potential, self-fulfilment – these needs can be met by being given new challenges and the opportunity to develop new skills and also being given control over their own work. According to Maslow all of these needs to be met in order for a person to be motivated. Frederick Herzberg’s motivation theory was that people have hygiene needs because they are unhappy without them – security/status/personal life/salary/work conditions/supervision etc , but once they have achieved these hygiene needs – the satisfaction wears off and they become dissatisfied once more. Herzberg research identified that â€Å"true† motivators were different i. e: achievement, recognition, work itself, responsibility and advancement. Therefore all basic factors need to be in place at all times, and then different motivators needed to be applied, possibly at different times, in order for them to feel motivated. These would depend on the employees personal goals and aims and what motivates them individually. 4. Identify 2 purposes of reward within performance management system Purpose 1 Reward within performance management can be monetary and non-monetary. Reward is important within performance management as the employee needs to be re-assured that their performance and contribution are valued. They need to be reassured that their efforts contribute to the overall aims and objectives of the whole company. Reward helps to maintain employee motivation. Purpose 2 Another purpose for reward within performance management is the recruitment and retention of talent. Offering reward in exchange for expertise, encourages new employees to the business – employees that have had to find skills, which will have a positive impact on the business. Reward is also important so that the business can retain talent within the business and grow and develop these employees to benefit the business. . Describe at least 3 components of a total reward system, 1 of which should be non financial Component 1 Individual growth is a component of a total reward system. Investing in your employees is important, developing and training them, offering them career enhancement. Component 2 Financial package – this is an important component of a total reward system – the basic pay, plus fri nge benefits – car allowance, private health care, performance related bonuses – all of these make up a financial package that makes an important component of the total reward system. Component 3 A positive workplace is a component of a total reward system – good leadership is important – employees need to know what is expected of them and what their aims and objectives are – they need support within their role, be confident that there is trust and commitment from their employer. A safe and pleasant environment to work in is also important, so that they feel that their employer cares for their welfare. 6. Explain the factors that should be considered when managing good and poor performance There are several factors that should be considered when managing good and poor performance : Checking communication systems: The company needs to ensure that all employees are aware of what is expected of them, that their aims and objectives have been communicated to them, and that they understand and agree with how these aims and objectives can be achieved – also ensuring that employees have access to this information and they know where to find the information if they are unsure. Counselling/Support: The company needs to consider the counselling and support services that are in place – is there a sufficient counselling and support service available for the employees to use if they need it? Having support from team members is important, as well as support and guidance from Management. Also offering access to support and counselling for non-work related issues that can have a direct impact on employees performance at work. Rewards and Incentives: When managing good performance, a reward and incentive scheme needs to be considered to show employees that their performance is recognised and appreciated and this then encourages employees to achieve and exceed their personal aims and objectives. Rewards and incentives also makes employees feel valued and encourages employee loyalty. Training and Development: A relevant and forward thinking training and development plan needs to be considered when managing good and poor performance – when bad performance is being managed, it may be recognised that the employee does not have the right skills and experience to perform their role, they can then be given training and development to ensure that they can fulfil their job role and meet their aims and objectives. 7. Describe at least 2 items of data, including 1 external to the organisation The company disciplinary procedure can be consulted in order to decide what steps need to be taken in order to manage the bad performance of an employee. This will give guidance on what steps need to be taken to ensure the desired outcome. As the company does not have a Performance Management procedure, they can refer to ACAS to gain guidance on this and any other information they need relating to Reward and Performance Management. ACAS provides free guidance on the most up to date information on employment best practices so if the company needed guidance, they could consult ACAS and be assured that they were getting the correct and required information. 8. Explain the frequency, purpose and process of performance review. Most companies will do an annual performance review with employees. The purpose of a performance review is to give the employee feedback on their strengths and weaknesses and progress in their role. It gives the opportunity for the Line Manager to congratulate the employee of any successes and to also discuss any performance concerns and find the reasons behind underperformance. A performance review also gives the opportunity for the employee to discuss any training needs they feel they have and give feedback on how they feel about the support and guidance they have received from their Manager/the company. A performance improves and encourages better communication within a company and helps to improve performance of the employee. The process of a performance review would be as follows: * Advise Employee of the date and time of their performance review – giving sufficient notice for the employee to prepare for the review * During the review, the Line Manager will discuss strengths and weaknesses of the employee, and talk about achievements and difficulties faced in the past year. Talk about objectives that were set the previous year and if and how these were achieved or not. The employee should be encouraged to discuss any difficulties they faced and discuss suggestions for improvements. Discuss any training and development needs and then set objectives for the next year. All of these discussions need to be recorded on the Performance Review Form and signed by both the Line Manager and Employee. A training and development plan needs to be agreed as well as targets and objectives for the upcoming year so that the employee knows what is expected of them in the future.