Difference Between An Award, An Enterprise Agreement And Common Law Employment Contract

Awards

Awards

In simple terms, awards are capable of setting the minimum standards that an employer in an industry or in an organization is allowed to pay for the work done by the employees. Technically, it can be stated as a legal ruling that grants all employees in one industry or employer the same situations of employment and wages. Awards are mostly designed and developed to protect wages of employees. Employers in an organization must display a copy of the relevant award in the workplace so the employees can see what their wages and entitlements are. Some displaying awards in the workplace are hereby mentioned below.

Adult Reward Rates of Pay

The most of the awards and agreements specify an age at which all the workers should be salaried the complete grown-up rate of disbursing. Normally, this is 21 years of age. However, in some occasions, younger employees can also get awards.

Subordinate Rates of Pay

Subordinate rates of wage depend on the age of a worker and normally are located as a proportion of the mature price. The junior rate of pay is found in most of the rewards and agreements.

An employee’s job arrangement must be on paper. Jobs are divided into several areas that communicate with the quantity of guidance, skill, competence, information or familiarity needed to execute them. Every job categorization has a particular tempo of pay, which is laid down in rewards and agreements.An instance of a job categorization is junior help beneath 16 years of age.

Benefits of Award

All the employees like to effort beneath the circumstances of an award as,

• Awards can deliver least circumstances of employment and rates of disbursing that relate to a business or profession
• Awards include necessities that set normal hours of service and disburse evenhandedness between males and female employees in an organization.
• Another benefit is it legally enforces pay and circumstances of service.
• Lowest amount of pay are questioned to analysis via countywide salary case decisions

Enterprise agreements are agreements that are developed at adventure level among the employees, employers and their union, about conditions and circumstances of service. Awards wrap last amount pay and circumstances for a business where endeavor agreements are developed to cover exacting preparations for a definite venture. Enterprise agreement covers the following things in an organization,

• Rates of pay
• Conditions of employment that includes working hours, lunch breaks, overtime and casual leaves
• How and at what time workers and their legislative body will be consulted
• Declaration event for disputes
• Deductions from salary for any authorized by a worker. However, management of an organization can never include anything-unlawful terms such as discriminatory or objectionable terms.

There are several rules and regulations related to enterprise agreement are different from the rules and regulations of awards. Some of those rules and regulations are hereby mentioned below.

Participants ought to recognize and negotiate with the other negotiating legislative body who are concerned in the process.

Participants will have to concentrate and take part in meetings at sensible times. All the pertinent information including excluding classified and business related susceptible information must be disclosed to the participants in a proper manner.

Other bargaining r representatives will submit their own proposals. Response to those proposals must be made in an appropriate manner. Genuine responses to those bargaining representatives must be given along with the proper reasons for those responses. None of the participants can behave in a way that can harm the liberty of the organization or combined negotiating.

When an organization decides to employ an employee, general law employment contract is prepared not considering whether the employer has it on paper or not. Awards, along with state and centralized business laws will be applied undoubtedly and the employees will have to comply with the terms. Countries that have common law system are those that were previous British colonies or protectorates. Some major attributes of common law systems are,

• Most of the times, there are no writer constitutions or codified laws
• Judicial decisions are made by the highest court and only the same court can overturn them via legislation.
• Widespread liberty of conformity: Some requirements are oblique into the contract by law even though requirements looking for to defend private customers can be indirect.

Job Categorization

In common law, systems are less participative than the civil law systems. As a result, a government can wish to preserve protections of its populace in exact legislation associated with the infrastructure agenda being contemplated.

There are a number of employment legislations that affect the workplaces in Australia. Some of those employment acts are hereby mentioned below. Along with those acts, there is also some legislation in each state that protects the employees from any type of discrimination.

National

Fair Work Act 2009: This act develops nationwide agency affairs system that is reasonable to operational people and supply for industry organizations. Besides, it also enhances efficiency and financial growth.

Legislation in the service and agency associations assortment: This related to the former Workplace Relations Act 1996. This act was introduced to amend the previous one and other rules and regulations monitored by the Department of Employment and Workplace Relations.

Sex Discrimination Act and the Racial Discrimination Act: These acts are developed to defend the employees of an organization from any type of discrimination related to sex and race in the workplace.

Equal Opportunity for Women the Workplace Act 1999: This act asks the employers to promote equal opportunity for women in the workplace. This states that in any workplace, women will get the equal amount of salary and will have equal opportunities related to promotion and career development along with training.

Discrimination Act 1991: This discrimination act is for Australian Capital Territory that is developed to eliminate discrimination in the workplace. It makes sure that employees are equally given resources, training opportunities, services, facilities, and accommodations.

Public Sector Management Act 1994: This is an act that oversees the administration of the public division in the Australian Capital Territory.

New South Wales

Industrial Relations Act 1996: This act works to deliver a structure for the demeanor of business relations in New South Wales. This act can only be applied to the employees who are working in the same sector.

Work Health and Safety Act 2011: This act makes sure that health, safety and well-being of the workers who are functioning in the same region.

WHS/OH&S Act, Regulations, and Codes of practices: In Australia, Workplace Health and Safety (WHS) authorities in each province have the accountability to implement WHS/OH rules and regulations. All the business organizations are bound to meet the WHS requirements that are described in the act in a particular state of territory. Organizations will face penalties if they do not follow these rules and regulations.

If such workplace health and safety rules and regulations are in place, then it is obvious that employees will feel motivated will perform better which will improve the work performance.

Anti-Discrimination Law

In Australia, no organization is allowed to discriminate against the employees on the basis of a number of protected attributes that includes age, disability, race, gender, ethnicity and background. Some federal anti-discrimination laws in Australia are Age Discrimination Act 2004, Disability Discrimination Act 1992, Racial Discrimination Act 1975 and Sex Discrimination Act 1984.

Benefits of Award

If there is no discrimination in the workplace, then the employees will feel that they will get appropriate rewards for their performances. It will motivate them to perform in a better way.

In Australia, different states and regions have their own legislation related to gender equality in the workplace. However, each of those rules and regulations is applied to achieve some common goals which are,

• Every business organization will deliver equal pay for work of similar or comparable value
• Removal of barriers to the complete and similar participation of women in the workplace
• In any workplace, women employees will be allowed to access all occupations including leadership roles.
• Gender discrimination in the workplace must be avoided at any cost

As a result of this legislation business organization gain enhanced national productivity and economic growth. On the other hand, business companies where the management follows these rules and regulations can easily attract talented employees. As a result, an improvement is seen in the organizational performance.

 Unlawful dismissal refers to the wrongful discharge or the unlawful termination. This is one of the legal phases. It describes the situation, in which the employers terminate the contract of the employee. This tries to follow the employment law. However, the wrongful law scopes vary as per the employment contract terms. The terms can be written in the employment handbook. The items that show unlawful dismissal are listed below:

The employer may terminate the employee due to some of his personal views. For example, the employer may have some specific race, religion, age, nationality and sex or sexual orientation.

The employee may refuse the employer’s illegal proposals to perform. This cannot be a reason to terminate an employee. It is a widely shared view that illegal proposals are unlawful in the workplace and should be denied above all else.

If the employee feels discrimination in the workplace, they can file the discrimination claim. This can be another reason for the unlawful termination of an employee. This kind of practice is unlawful and the employee has complete right to take part in a discrimination investigation.

 It can be the employer’s fault if he does not follow the proper procedure for termination. There must be a policy handbook of a company, where the procedure of termination is written and the employer may not obey that.

 In such circumstances, the employer may terminate the efficient employee of the company that can be harmful to the company. This type of practices affects the employment conditions relevant to performance management as well as the reputation of the company. Therefore, it is necessary to reduce the unlawful termination in a company. In the workplace, the employers need to maintain the company laws as well as the employees need to obey. The employer can give warning to the employee for his behavior or performance. In some cases, the employers can provide training if the employee needs. If the employer notices no changes in the behavior of the employee then notice period needs to be served and follow the process the termination. This will help to improve the performance management of the company.      

 Equal employment opportunity refers to the important concept for the employees, job applicants, and the employers. In the case of the equal employment opportunity, the civil rights acts help greatly. This is charged with the federal anti-discrimination employment law enforcement. For example, the law can save the employee from the discrimination during recruitment procedure and during working in the workplace. Discrimination is illegal in the workplace and the employer cannot discriminate against the employees regarding the sex, age, ethnicity, religion, color, nationality and race. The employers need to follow the employment discrimination laws. The goal of these laws is to create the equal outcomes rather than it seeks to ensure that the applicants will get the equal opportunities in the workplace. This discrimination can reduce the performance level in an organization. The employees may not work properly due to the fear of discrimination. The government prohibited the employment discrimination so that the companies can develop their performance management.

Enterprise Agreement

 However, the employers should not discriminate during the hiring, training procedure as well as compensation, condition, and privileges of employment, benefits and firing. It is the employer’s duty to provide accommodations to the employees and the applicants. The performance management needs to be an ongoing procedure, in which the supervisors, as well as the workers, can get opportunities to talk about job goals of the company and the performance of the employees. In such condition, discrimination can reduce the opportunities for them and therefore they may not be able to set the goals in major areas of the company. It is necessary to identify the performance of the employees and employers more efficiently. Moreover, the equal employment opportunity helps to improve the plan for the ongoing development of the employees. Therefore, the equal employment opportunity plays a highly significant role in the performance management in a company. This helps to maximize the employees’ performance. Therefore, the employers need to motivate the employees and provide rewards to them rather than practicing the discrimination.

 Anti-discrimination refers to the opposition of prejudicial and unjust treatment of various categories of public including the employees. The employers need to follow the laws for the development of the company. Anti-discrimination law is made to maintain the equality. According to the law, employers need to treat every employee equally and should not perform inequality. Most of the countries mandate that the companies need to deal with employees on the Equal basis in the employment regarding sex, age, race, ethnicity, gender, sexual orientation, mental and physical state, creed, political opinion, and nationality. Some examples of the anti-discrimination laws are the civil right act (1964), disability discrimination act (1992) and equal treatment directive. If the employer unnecessarily dismisses an employee from the job then it can be punishable. As a result, the employer may face termination or other punishment.

Hence, they should avoid discriminating and maintain operations under equality. Under the discrimination law of Queensland, the employers should offer the equal employment to the employees and applicants. The meaning of this is that people should be treated on the basis of their merit and intelligence. No discrimination should be done from the interview table by the recruitment team to their regular duties, training, promotion and development opportunities with the redundancy, retrenchment, and resignation. To avoid the discrimination, the company can enforce some laws that employers need to maintain. The large companies engage the management system so that the employers can conduct the routine performance evaluation. This kind of method of management refers to the forced ranking system. The employers of a company can rank the employees to identify their performance level.  

 The occupational health and safety refer to the multidisciplinary field that is concerned with the health, welfare, and safety of the people in the workplace. The main goals of the occupational health and safety programs can include the safe and healthy environment of a workplace. This can affect the work environment positively. This includes the safety for the activities exterior to the workplace. However, there is common law jurisdiction that defines the common duties of the employers. These duties state the reasonable care of safety towards the employees. The government bodies can create such laws and duties for the employers. This can empower the employers to take the major decision regarding the safety issues; it is necessary to mention that in the workplace, the occupational health and safety act plays the significant role that helps the employees to perform their roles safely. The occupational health and safety law can also help to improve the performance management of the company.

Common Law Employment Contract

However, there are various hazards that can hamper the health and lifestyle of the employees. These hazards can create risks to health and safety of the employees at the workplace. Physical hazards can include slips, trips, and falls. Falls are common in the construction, transportation, extraction, health care, maintenance and building industries. However, reduction of such hazards can develop the performance of the company and make it a successful business. Biological hazards mainly affect the employees who work in the health and social care settings, they are present in construction industries, however, they are less common depending on the workplace. The employees may not work properly due to the fear of discrimination or the hazards themselves. Therefore, for the safety of the employees, the company employers need to reduce discrimination and maintain the occupational health and safety act.

Working together as a team means working cooperatively toward the overall goals of the team and the organization. While working in such a team in my organization, I experienced a serious conflict within the team. My team included employees from diverse backgrounds. Each of the team members had their own priorities and working styles. They all started to work to meet only their own priorities. As a result, the performance of the team was hampered severely.

Excessive Absenteeism

As a result of conflict within the team, members of the team who wanted to perform seriously started to feel de-motivated. Therefore, they started to avoid their responsibilities as started to take frequent leaves.

Missing Deadlines

In a united team, team members work together and help each other in order to meet deadlines in their roles. It is possible that a team misses a deadline once or twice. However, if it happens frequently, then management can understand something is wrong with the team. As a result of the conflict in my team, we started to miss deadlines of each of the tasks assigned to us. Through this situation, the management could realize that the team members are not working together and something is wrong.

Poor quality of work

It is evident that in a team-based work, quality depends on teamwork and collaboration. When team members work together keeping in mind one common objective, then the quality of work will be of high standards. However, our team not only missed the assigned deadline but also delivered poor quality. From this poor quality, the management of my organization could understand that the team members are having conflicts with each other.

Affecting performance of others

As a result of the conflict in the team, the team members who wanted to perform properly could not do the same. Because of conflict, the team members were having serious problems to perform their jobs.

Frequent complaints

As a result of these problems, the team members started to complain about these problems to the human resource department. One or two complaints are acceptable as miscommunication and misunderstanding can take place in a team (Dean 2016). However, as the complaints were frequent, the management could realize that there is a problem within the team.

Document that Governs Employment

Potential risks of the conflict in the team

Decreased productivity: As mentioned by the Center for Conflict Resolution International, moiré than 60 percent problems in an organization come from inner conflicts of the employees. The biggest impact of such conflicts is decreased productivity and profitability. Because of the conflict in the team, deadlines are missed frequently and quality of delivered work is also poor. Therefore, the chances are high that the company will also lose its productivity.

Employee turnover: If any conflict in an organization is not confronted then that organization is bound to face high turnover rate. In my organization, the situation is same. If the issues are not resolved then the chances are high that the employees will leave the company (Karatepe 2013).

Violence: As a result of this conflict between the team members, it is possible that in the near future intense situations will arise between those members. It is possible that violence will break out among the members which will not only cause legal problems for those team members but will also affect the reputation of the organization.

In order to improve the performance of the team, it is essential to minimize or eliminate the conflict within the team. In order to manage the conflict, some steps can be undertaken which are hereby mentioned below.

Acknowledge the conflict: There is no way t hat the management can ignore the conflict as it will hamper the productivity and the reputation of the organization. Therefore, the management or the authority will have to stop anger build up by facing the conflict head-on. Team members must know that the management is not agreed with their actions (Maina 2015). It will develop a sense among the employees that the management will interfere which will prevent them from causing any further damage.

Stop and Cool off: The authority will have to take a minute and think through the course of action they would like to pursue. In this sensitive condition, the members of the authority must avoid any type of destructive behavior such as pointing fingers, insults and making assumptions about others behaviors (Hechtet al. 2016). These types of negative behaviors can worsen the condition. On the other hand, if the authority can go directly go to the source of the conflict, then they will gain a lot more ground in the workplace that using unscrupulous methods.

Clarify position: The authority that is appointed to resolve the conflict must let everyone to speak up. Every team members must be allowed to describe the conflict from his point of view. If the authority allows each of the team members to explain and elucidate his stance then there would be no miscommunication. On the other hand, it is also true that allowing them to rationalize their opinions can help the authority to develop more agreement and understanding.

List facts and assumptions: Based on the responses of the team members, the authority can easily list of facts and assumptions that have been made. On the other hand, if the authority can write down complex facets of an augment, then things will appear clearly to them. It is possible that one side of the conflict is lacking in reasoning, it is important to conduct this step. However, the authority should examine the collected information as a group as it will prevent irrational arguments of possible biases from authority members.

Three Conditions of Work Performance

Separate existing alliance: Many times, it is seen that friendship in a workplace can cloud judgments in any team. Coworkers might only agree with other team members as they are friends, regardless whether the decision is right or wrong. The authority will have to break that alliance before the discussion about the final position of the team.

Training: It is seen that the conflict in the team is taking place because of diverse team members. In this situation, it is important to facilitate training. Diversity training can increase awareness about the diversity and can teach the employees to embrace workplace diversity as an important factor for success. Training programs will help the team members to understand that diversity has more advantages than disadvantages and they can use this advantage to achieve any goal without much of effort (Bapnaet al.2013).

Empowerment:  The authority must develop a different department that will be responsible for handling any type of conflict in the teams before it can start affecting the performance and productivity. That department must be empowered by the authority so that it can take any type of decision without waiting for f or approval from senior management.  

Feedback: Employees in an organization or team members in a team must appreciate how they are operating. This is additionally significant in a diverse team. An assorted team must be visible to each other which will help to produce better consideration situation when they cannot rely on educational shortcuts. Social media and online apparatus can definitely convey people of a diverse team together.

From the above processes, the chances are high that the conflict in the team will be resolved. However, it is also possible that due to problems in the authority or due to problems related to their conflict resolution plan, the conflict remains same. In this situation, the management will have to find out the faults of the conflict management team. A new authoritarian team must be developed where the people will be aware of the issues that the previous team faced before (Donovanet al. 2014). Four major problems or issues that can facilitate failure of a conflict management team are the management thinks that managing conflict is not necessary (they have already decided to break the team), the authority does not have ample amount of time (a conflict management team must be developed with members who are not engaged in any other activity in the organization), the authority decided that the team members are unwilling (the team members will be unwilling in the initial stage; however, the authority will have to motivate the team members to eliminate the conflict and work as a team), the authority has no idea about how to solve the issue.

On the other hand, if it is found that the authority did everything right and still could not manage the conflict in the team, then it can be said that it is the time to break the team. It will show that the employees in that team are absolutely not ready to work with each other. In this situation, the management of the organization will have to mark all the problems that created t his conflict. In the future, the management must be aware of these issues before forming any diverse team.

Anti-Discrimination Law

 In this task, a plan for an incentive program has been developed. It is a short term project for increasing motivation and performance within the team.  In this case, an incentive plan has been developed for the management team.

Purpose of this Incentive Plan

The major reason of this enticement plan is to reward and motivate management workers for their accomplishment of person presentation objectives in agreement with organizational objectives of the company.

Dean (2016) stated that managers are the employees, who have the responsibility to help a corporation to achieve its tactical goal and objectives. This inducement plan will be used to inspire the team members of the administration team. It will play a significant role in the enlargement and achievement of the business. Hameed et al. (2014) mentioned that there is a wide range of incentive plan available in the market that can help managers to focus on their job and become more work oriented. This incentive plan is a mixture of various inducement plans that helps to develop a rich recompense package. It can help the company to improve the performance of the management team and aid with achievement and retention.

Determination of Employee Eligibility and Performance Standards

Before providing incentive to managers, it is required to find out the eligibility of each manager. Hence, determination of eligibility of managers and developing their performance standards has become an essential part of management incentive plan.  Karatepe (2013) stated that, in order to provide incentive to the management team, it is required to focus on both financial and non-financial indicators. Financial indicators are the operating profit of an organization and non-financial indicators are like contribution behind employee development, enhancing product quality and customer satisfaction. The company needs to maintain a scorecard to measure the importance of each decision taken by every member of management team in case of overall organizational performance. Every manager will be provided a score after every month depending on the total number of decisions taken by them and their impact on organizational performance. Based on that score, they will be provided incentives.  On the other hand, the performance of employees will be measured after every 6 months. If the skill and performance of 45% employees improved under a specific manager, then the manager will receive quality incentive. In addition, their customer rating will also be measured after every 6 months as well. If they get 3.75 out of 5 or more for 5 months, a manager will receive vacation package of 5 days.  A manager can take that vacation within the next 6 months.

Major parts of the incentive plans

Rather than taking a single approach, this management incentive plan has combined various incentive strategies to make it an attractive package for management team. The major parts of this management incentive plans are such as pay for performance, stock options, profit sharing and employee recognition. All these sections of an incentive plan have been discussed below:

Pay for Performance

Anitha (2014) mentioned that contribution presentation based pay at all levels inside a company is one of the best practices of rewards and gratitude. The pay for performance model includes a base rate of pay couple with a capricious rate of pay. It depends upon the individual performance of a manager.  According to Decrameret al. (2013), most of the peak performing managers is approachable to this model. It can develop an obvious connection between the individual performance of managers and the achievement of company goals. Before providing incentive to a manager it is required to measure the financial and non-financial aspects.  In terms of financial aspect, it can be stated that if any decision of a manager (whether it is small or big) helps the company to increase its sales performance by 0.5%, then the manager will be eligible to get incentive. On the other, it is required to take care of some non-financial aspects such as contribution to employee development and increasing customer satisfaction. In order to measure a contribution of manager in these, the company needs to take regular feedbacks from both employees and customers. Increased level of employee’s performance and skills, lower turnover rate and increased level of customer satisfaction will show the success of the management team as a whole.

Workplace Gender Equality Law

 Stock Options

Ishizaka and Pereira (2016) mentioned that, as of 2011, more than 30, 000 dissimilar stock option tactics were being used by organizations in the United States. According to Sykes et al. (2014), Stock options are no longer an inducement accessible completely to a company’s elite executives, but one that manifolds businesses now extensive to managers and subordinates. It has been found that stock options are typically obtainable by an employer as a strategy of work preservation.  The thought is for the stock options to boost in value over a phase of time so that the worker can sell the stocks at an income once the chosen waiting phase has expired. This inducement can persuade managers to go beyond presentation goals with the anticipation that this will definitely impact the company’s stock price.

 Profit Sharing

According to Awadh and Alyahya (2013), profit sharing inactive plans are developed to foster, involvement, collaboration. It can also help improve corporate culture of a company. Decrameret al. (2013) argued that, Even though this is an enticement diagram that all workers may advantage from, the administration team can play an active role in nurturing productivity, cooperation and distribution of idea that guide to enhance organizational performance. It has been found that this incentive plan is not only focused on company’s bottom line but also on enhancing operational performance along with positive attitude of employees. It is one of the most important strategies for our company as it is not only concerned with culture or business environment but also about strategic goals and revenue flow. If a manager helps increase the revenue flow of the company by 0.5%, then the manager will receive 1% of the total profit earned by the company. It will be an attractive inactive plan that will motivate many managers to work hard not only for that they can meet the business objective but also to enhance profitability of the company. Hence, this incentive plan will become beneficial for both management team and the organization.

Employee recognition

Shaout and Yousif (2014) stated that recognition is one of the major things that can attract employees towards a company and motivate them to work hard to fulfill organizational objectives. It can make employees feel proud for their achievement and their position in a company. It is recognized as a non-financial incentive that has significant impact on all types of customers. Our company is highly focused on recognizing the achievements of front-line employees. However, often our forgets to recognize the contributions that the management team has on the performance of employees. Especially middle-level managers are overlooked. It is due to the fact that most of the middle-level managers work on issues that are less visible to the board of directors.  Now, implementation of this new plan will help the company to reward and recognize the performance of managers both publically and privately, just like other employees. It will include various perks such as gifts, trophies, extra vacation plans and gift certificates. All these perks along with performance recognition will motivate management level employees to work towards organizational goals.

Guideline for the Compensation Plan

1) Senior level managers will nominate middle-level manager who is crucial to the success of the organization, to participate in the incentive plan. Nominations will be done in accordance to the marks obtained by managers in the core card.   

2) The board of directors has to approve the nominees and the criteria that all the candidates have to meet in order to get the incentives. All the criteria are will be concerned with the long-term growth and welfare of the company.

3) The plan contributor must be in a job by the corporation at the time of the inducement plan payment (which will take place within 75 days after the close up of the plan year) to obtain a disbursement. As an exemption, participants who had a permanent usual position for at least six full months during the plan year.

4) The board of directors has the full authority to remove a nominee from the incentive plan due to their poor performance in recent time, or they any evidence of discrepancy in the nomination process (Ishizaka, A. and Pereira 2016).  

5) At the starting of every year, the president will publish the business target for the managers and endorse the inducement plan and contribution list.

6) The amount of the incentive award will range from 0% to 150% of target and will be determined by the employee’s manager, based on actual performance relative to the participants’ goals.

7) Workers who are chosen to have their inducement award delayed, and who finish prior to the rescheduling imbursement date but after the expense date of non-deferred rewards, will obtain the award, as soon as managerially practicable, after their extinction.

8) A committee will be developed with some members of board of directors to monitor the nomination procedure so that no discrimination can take place in the selection process.

Performance indicators or key performance indicators (KPI) is a measure that helps employees to understand whether they are accomplishing the strategic goals of the organization or not. There are some strategies to set KPIs that are hereby mentioned below.

Setting long-term target: In my company, the management starts by defining its long-term target in the initial phase.  For example, the company can take a target of doubling its revenue in three years or doubling the number of customers in next three years. In this condition, the long-term targets can be, derived from overall mission and will relate to the benchmarking.

Leading and lagging indicators: My organization makes sure that the consumer, method, and employees target and operate together as a complete step.

Backing quarterly and annual targets: After the organization has a set of comprehensive

Evaluation form: Performance evaluation is done fairly, continuously and objectively to protect the interest of the employees. A standard evaluation form is used for this purpose. In the form, the management mostly focuses on essential job performance areas.

Performance measures: Standard performance measures that help the organization to assess an employee’s job performance objectively. However, it is true that developing these measures is a time-consuming part of creating a performance assessment system.

Guidelines for feedback: Feedback is extremely important for any type of performance management system. My organization ensures that everybody who will be conducting assessments knows what type of criticism is required to provide.

Disciplinary and termination methods: In some incidents, even after a complete performance assessment and a conversation of predictable enhancements, a worker may carry on to present inadequately. However, my organization is ready to handle this type of condition by having distinct and on paper punitive and execution methods in place. These methods draw around the events that will be taken when presentation falls, a vocalization, and on paper caution, if there is no enhancement or a reappearance.

Evaluation schedules: Once the organization has established the performance assessment system, along with evaluation form, performance measures, feedback guidelines and disciplinary methods, the management just decides the time to conduct performance assessments.

Sharing feedback helps to improve performance management one step forward, by improving the communication status within employees and employer or within employees and senior management. Without feedback, it is unlikely to reach the performance goal, as there is no clue where highest effort is needed for improving their individual or team work, thereby achieving the performance goals. It has been observed that effective and timely feedback is a crucial component of a successful performance management program, which should be used in conjunction with setting performance goals. Different resources can provide feedbacks, for instance, manager or supervisors, team leaders, measurement systems, customers, peers or seniors. However, to get effective feedback, presence of certain elements is needed to be ensured (Shaout and Yousif2014). For instance, specificity is one of the components that could ensure effectiveness of the feedback. Feedback works best, while provided for a specific goal. The key to providing objective, tangible and powerful feedback, employee performance expectations and goals are needed to be established prior starting work. For example, if employees are informed that telling employees that they are doing their job well, as their goal has been exceeded 10 % more, is more effective that simply informing them they are doing well.

On the other hand, timeliness is another component, which is needed for making the performance management effective. Sooner the feedbacks are received, faster the correction for mitigating performance issues are undertaken effectively by the employees, leading to improved performance of individual employees. Moreover, sooner the employees receive feedback about their performance, the more rewarding it is to them. The third component of effective feedback sharing is manner. The resource provider should recognize the way or manner of giving feedback that will help the particular employee to improve his performance at maximum level. Therefore, the feedback should be expressed in a positive, factual, accurate, easily understood and complete manner.

In some cases, feedback occurs naturally, which helps the employee’s performance improvement significantly, whereas the other kind of feedback needs to be planned and well managed. If effective feedback is designed into a performance management program, individual as well as team performance is improved, thereby improving the overall organizational performance. With the implementation of effective feedback processes, employees would not be working blind and will meet their goals successfully.

The superior business performance management is linked with high levels of employee engagement, leading to increased productivity, profitability, customer satisfaction, safety and employee retention. Therefore, while developing effective performance management program for employees, several considerations are needed to be made. The first thing to be considered is ensuring an effective communication regarding the clear goals and expectations with the employees. Therefore, to motivate employee towards improved performance, they need to be tied to larger organizational ambitions. Sharing information regarding organizational operations needed to get improved performance, which can be done through increasing communication transparency (Awadh and Alyahya2013). Encouraging open communication is another important aspect in this regards. It would facilitate a two-way communication, leading to employee motivation and satisfaction. To ensure improved performance management, organizational effectiveness, reputation, values and ethics are needed to be promoted actively. It would lead to establishment of an effective culture, where employees will feel good about their leaders, their workplace culture, the company values and would put their best effort to promote organizational reputation through meeting organizational goals.

 In this context, building trust would promote employee engagement. For this, leaders should be trained to sincerely select proper leadership style and implement leadership management. Leaders are the role models for employees and they play a significant role in improving employee’s skills, performance, and engagement at their work. Moreover, creating a strong team environment is also important for overall performance improvement. Thus, the organizational culture should be promoted in such a way that makes employees feel like a wide team in the organizational environment. Encouraging innovation is another way to improve employee’s interest and engagement toward work, improving their performance. To foster a sense of belonging, recreational activities and reward systems needed to be included in regular operation (Ishizaka and Pereira 2016). Supporting employees in their work through training, coaching, mentoring and providing career opportunities also provide employees the opportunity to get more involved with the company. Feedback sharing immediately after a work completion also fosters employee’s interest towards the job and improves the overall performance.

Recognition can take a variety of forms as structured programs that will include regular recognition events such as banquets or breakfasts, employee of the month award and a yearly performance report that will include accomplishments made by the employees.If an employee performs well then he can also be recognized by delivering additional support or authority or by naming the worker as an internal consultant to other employees. Symbolic recognition schemes can also be used such as coffee mugs with inscription. However, it is also true that these types of non-monetary rewards not always will motivate the employees in an organization. It is important to provide monetary rewards also to encourage employees to perform well. Some of such rewards are hereby mentioned below.

Variable Pay

Variable pay is also known as pay-for-performance which is a compensation program where a portion of a person’s pay is known as a risk. Variable pay can be tied to the performance of the organization, the results of a business unit, an employee’s accomplishment, or any combination of these. It can be of any type such as bonus programs, stock options and one-time awards for significant accomplishment. Some companies pay their employees lesser than their rivals; however, they tend to motivate those employees by providing monetary rewards.

Bonuses

Bonus programs are mostly used in American business organizations. Those organizations normally reward personage accomplishes and is regularly used in sales related corporations to motivate employees to produce extra business along with higher profit. This type of reward can also be used to recognize group achievements. However, it is also true that this program must be structured properly to make sure that it is rewarding achievement above and outside and personage or group’s basis functions.

Profit Sharing

Profit distribution means policy of developing a pool of monies to be disbursed to workers by enchanting an affirmed proportion of an organization’s profit. The quantity given to a worker is frequently equivalent to a proportion of worker’s salary and is disbursed after a company ends its books for the year.

Stock Option

Like income distribution strategy, stock options typically reward workers for sticking around, helping as a long-term encourager. Once a worker has been with a corporation for a convinced period of time (generally about four years), he or she is completely vested in the agenda. If the worker leaves the corporation prior to being fully vested, those options are disregarded.

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