Different kinds of Rewards and Performance management
Collaboration: Rewards and performance management
Performance management system is the process organized by the department of commerce in order to involve the employees for improving organizational productivity. Rewards and recognition is one of the most significant parts of performance management system based on which employees can be motivated towards reaching mission and vision of organization.
Rewards and performance management is of different kinds that organizations follow for improving performance level of employees. Performance management focuses on several areas that include technological performance, project evaluation, sales evaluation, managerial performance. In order to enhance technological skill sales competency organizations initiate different training and development session (Chowdhar et al. 2014). On the other hand, in order to increase the performance level of employees, organizations render different rewards and recognition policies such as social awards, monetary benefits, appreciations and so many. Automatically employees tend to show their interest in providing their best endeavor towards services.
Numerous eminent scholars have provided their own opinion regarding the importance of rewards and recognition system in performance management. In order to motivate employees towards services business experts have to providing them several compensations and benefits. Rewards and recognition is a part of strategy for encouraging employees towards performing well (Cardy and Leonard 2014). It is a form of appreciation based on which organizational managers receive a satisfactory performance from the employees. As a result, both the business managers and the employees get equal benefits and facilities.
In numerous business scenarios, it is observed that integrating reward system has helped to overview innumerous organizational issues happened at workplace. With the extreme burden of work pressure employees lose their motivation in giving best performances. As a result, customers are getting deprived of receiving proper services. In this kind of situation managers decided to render integrating reward system based on which the effort of employees can be appreciated (Bednall, Sanders and Runhaar 2014). After getting monetary benefit or any non-monetary benefit the employees would love to accept challenging situations rose at the workplace. As a result, managers can easily overview the crisis after getting satisfactory performances from employees.
Leaders are only responsible to control the performance level of team members. Performance management is highly important for leaders to enhance professional skills and competency level of employees (Fathabadi 2014). The primary responsibility that leaders have to play in integrating reward system includes:
Nominating the name of employees in according to best performances
Selecting nomination categories
Deciding the category of compensation that would be provided to the employees in the day of reward ceremony
Motivating other employees as well for leaving a contribution to team
The role of leaders in managing employee performance is undeniable. At the same time, employees themselves play the most important role in being self-motivated by maintaining effective communication with each other, by creating good work environment at the workplace, by exchanging thoughts and views with each other. These activities can enhance employee performance and motivation as well. Torrington, et al. (2014) opined that an organization and its leaders can create an environment for employees to be motivated. At the end, employees would have to perform well towards services. Therefore, they are key responsible for being motivated in rendering business target.
Opinions of scholars regarding Rewards and Recognition
It is undeniable that rewards and recognition is one of the most significant ways of performance management for an organization (Zhao et al. 2015). Apart from rewards and recognition, recommendations can be provided based on which performance management system can be enhanced and customers can be more effective satisfied. The recommendations are as follows:
Improving technological skills and competency of the employees for maintaining database systematically
Improving communication skills of the employees for convincing customers effectively
Enhancing the time management skills and decision making skills of the employees for handling any kind of sudden changing to overcome organizational crisis
Critical analysis of Performance management published by Aguinis’ (2012)
This very specific book of performance management has provided an in-depth understanding on how an effective performance can enhance the competency level of an individual performer, be it a senior or junior employee. People from various geographical backgrounds and attitudes are associated with a business organization. They may have to face immense challenges in getting accustomed with the work culture. In this kind of situation, performance management can help every individual in meeting organizational goals and objectives (Zavadsky and Hiadlovsky 2014). In this very specific article the author has depicted that performance management is not only applicable for employees. It is beneficial from human resource management to operation management. On the other hand, the author has also stated that performance appraisal plays the most important roles in motivating employees towards services. Most of the recognizable companies of South Africa like Bidvest, Buhle Waste, AEEL have already occupied a predominate place in the business industry (Deelman et al. 2015). It has been observed from past few years that these brands are unable to expand their business in the international market due to the lack of expected performance level from employees’ end. Therefore, it is high time to render performance management system within business process based on which organizations would overcome challenges coming from the customers.
According to Aguinis’ (2012) performance management system is an initiative implemented by organizational experts in order to improve professional competency of employees. Effective performance can render immense business success based on which organization can enhance their profitability. The author in this very specific article has stated that rewards and recognition is one of the most important ways of encouraging employees towards business services. An efficient business expert can perform well only when the person get appreciation of endeavor. The concept of performance management believes that organizational manager should take an effective initiative in performing well with the help of training and development session.
The author in this very specific article has highlighted that performance management focuses on several areas that include technological performance, project evaluation, sales evaluation, managerial performance (Missaoui et al. 2014). In order to enhance technological skill sales competency organizations initiate different training and development session. In order to motivate employees towards services business experts have to providing them several compensations and benefits. The author emphatically believes that rewards and recognition is a part of strategy for encouraging employees towards performing well. It is a form of appreciation based on which organizational managers receive a satisfactory performance from the employees. With the extreme burden of work pressure employees lose their motivation in giving best performances (Behery et al. 2014). As a result, customers are getting deprived of receiving proper services. However, in order to expand business beyond going the regional boundary organization needs to focus on performance management system.
Integrating Rewards system to overview Organizational issues
As per this very specific article, human resource manager can improve performance management system at the workplace by focusing on some of the most effective areas. The areas are as follows:
Identifying the under performers
The human resource managers have to measure the performance level of those employees especially who are unable to meet expected production (Melnyk 2014). In this kind of situation, the human resource managers’ responsibility is to enlist the name of those employees for providing them effective training session to render career progress.
Providing effective training and development session to those employees
While providing training session the human resource managers have to first identify three major categories for which training is needed. The training category includes communication skill, technological skill and professional skills. Employees having issue with communication skill can be provided training for 6 months for improving way of interaction. Automatically, customers would be convinced and get effective services (Putra, Ariantara and Pamungkas 2016). Employees who have problem in technological skill can be provided training for one year. This very specific training session helps the employees in overcoming sudden technological barriers at the workplace.
Maintaining employee performance data by rendering technological devices
It is observed that human resource managers like to put manual effort in measuring performances rather than depending on advanced technology. However, in order to improve performance management system human resource manager can use advancement of technology by implementing database management system, big data and business intelligence (Mir and Pinnington 2014). Automatically, the human resource manager would be able to maintain chronological data record within employee performances. Automatically the entire flow of business would be dealt very systematically.
Incorporating transparent communication
Active two-way communication plays an important role in maintaining good reputation with the working personnel (Arasu et al. 2016). Thus, the organization needs to develop a transparent communication with the employees so that they can effectively share their concerns and get suggestion for improving their performance.
Implementing monetary rewards
In an organization, if employees are only rewarded with non-financial benefits and social recognition, they can be motivated for a shorter time but in order to motivate the employee for longer time, financial benefits needs to be implemented (Anderson et al. 2014). These benefits can be providing higher designation, vacation trips or gift coupons.
Evaluate performance weekly or monthly
Review employee performance half-yearly and annually results in extra effort on the leaders and HR to find the previous data and then prepare their report. However, this problem can be overcome if the performance review can be made weekly or monthly (Sutheewasinnon et al. 2016). The report can be shared with the employee so that they can also check their progress and can take necessary step for enhance their rank according to the published report. The employee can also easily compare the published data with the tracker that they are maintaining for themselves to ensure that no discrepancy has been made. The sharing of report also demonstrates transparent communication.
While formulating a test case it is observed that Dodo Exclusive Shoes is one of the most recognizable South African retailers occupying a predominant place in fashion industry. While evaluating its case study it observed that performance management system in this organization is very poor. The primary issues that this brand is currently facing in right business scenario includes lack of proper reward and recognition policy, lack of maintaining data on behalf of the organizational manager (Sun and Van Ryzin 2014). As a result, the brand is facing major challenges in maintaining business image and reputation. However, in order to overcome those weaknesses it can be highlighted that Dodo Exclusive Shoes need to render attractive compensation and benefit strategies within business services for managing employee performances.
Leaders responsibility in integrating Rewards systems
The prime benefit for an organization to implement performance management system is to maintain consistency among the employees. The employee knows that their performance is evaluated by their managers or team leaders and all the employees will then perform with effectiveness. Another benefit that the organization can attain by implementing performance management system is highly motivated employees. The managers needs not only recognize the outperformer among all of the working personnel but they also need to offer the challenging roles based on their performance (Mir and Pinnington 2014). It can also be said that highly motivated people intends to retain in the organization for longer time. The manager can also evaluate the performance of the employee regularly based on which they can identify, who need more assistance and this enhancement in employee’s competency allow the employees to develop themselves. This process will also help the employee to have less fear of get fired and this will also reduce the cost the company needs to invest for recruiting new employees.
According to the case study, it has found that the performance management system is good in the company but the company only focuses on the social recognition and not on the monetary benefits. However, it is evident that employees need career growth and development and hence need to get financial benefit in terms of promotions. Thus, absence of career growth leads to employee attrition which on the other hand diminished the productivity of the company. It is also noticed that the considered company also do not focus on communication training and leadership training (Fathabadi 2014). This training session play an important role in developing the interpersonal relations with the other members of the organization especially the management people. The leadership training also allows the outperformers to accomplish extraordinary work and guide others. In such cases, the performance management system helps an organization to identify their upcoming leaders and allow the organization to reduce their investment cost involve for hiring and recruiting managers and leaders.
References
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Bednall, T.C., Sanders, K. and Runhaar, P., 2014. Stimulating informal learning activities through perceptions of performance appraisal quality and human resource management system strength: A two-wave study. Academy of Management Learning & Education, 13(1), pp.45-61.
Behery, M., Jabeen, F. and Parakandi, M., 2014. Adopting a contemporary performance management system: A fast-growth small-to-medium enterprise (FGSME) in the UAE. International Journal of Productivity and Performance Management, 63(1), pp.22-43.
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Chowdhary, P.R., Pinel, F.A., Palpanas, T. and Chen, S.K., International Business Machines Corp, 2014. System and method for model-driven dashboard for business performance management. U.S. Patent 8,843,883.
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