Performance and Reward Management
1.0 INTRODUCTION
1.1 Performance and Reward Management Defined
In most literature, performance and reward management are defined separate of each other. The writer has combined the two to give the definition of what is performance and reward management using the definitions by Michael Armstrong.
Performance and Reward Management are the strategies, policies and integrated processes that deliver sustained success to organizations by improving the performance of people and developing the capabilities of individual contribution and teams and recognizing these contributions and teams by both financial and non-financial rewards.
The main objectives of performance and reward management are:
1. To minimize expenditure on wages and salary over the long run.
2. To attract and retain staff if the desired caliber.
3. To motivate the workforce so as to maximize organizational performance
4. To direct effort and enthusiasm in specific direction and encourage particular types of employee behavior.
5. To underpin and facilitate the management of organizational change
It is the diversity of these objectives related to competition in both product and labor market that make reward management such a complex area of practice.
1.2 Reward Management, Performance Management and Their Guiding Principles
1.2.0 Reward Management
Reward management is not just about pay and employee benefits. It is equally concerned with non-financial rewards such as recognition, learning and development opportunities and increased job responsibility (Armstrong 2007, p3).
Reward Management Guiding Principles
Guiding principles of reward management are a well articulated philosophy (Armstrong 2007, p 4) which underpin the concept of reward management. The philosophy recognizes that if human resource management is about investing in human capital from which reasonable persons are to be rewarded differently according to their contribution return is required, then it is proper to reward people differentially
1.1 Performance and Reward Management Defined
In most literature, performance and reward management are defined separate of each other. The writer has combined the two to give the definition of what is performance and reward management using the definitions by Michael Armstrong.
Performance and Reward Management are the strategies, policies and integrated processes that deliver sustained success to organizations by improving the performance of people and developing the capabilities of individual contribution and teams and recognizing these contributions and teams by both financial and non-financial rewards.
The main objectives of performance and reward management are:
1. To minimize expenditure on wages and salary over the long run.
2. To attract and retain staff if the desired caliber.
3. To motivate the workforce so as to maximize organizational performance
4. To direct effort and enthusiasm in specific direction and encourage particular types of employee behavior.
5. To underpin and facilitate the management of organizational change
It is the diversity of these objectives related to competition in both product and labor market that make reward management such a complex area of practice.
1.2 Reward Management, Performance Management and Their Guiding Principles
1.2.0 Reward Management
Reward management is not just about pay and employee benefits. It is equally concerned with non-financial rewards such as recognition, learning and development opportunities and increased job responsibility (Armstrong 2007, p3).
Reward Management Guiding Principles
Guiding principles of reward management are a well articulated philosophy (Armstrong 2007, p 4) which underpin the concept of reward management. The philosophy recognizes that if human resource management is about investing in human capital from which reasonable persons are to be rewarded differently according to their contribution return is required, then it is proper to reward people differentially
Bibliography: Armstrong, M., Murlis, H., Group, H., 2007. Reward Management : A handbook of renumeration strategy and practice. 5th ed. Kogan Page Pulishers Armstrong, M Armstrong, M. 2000. Performance Management: Key Strategies and Practical Guidelines 2nd ed. Kogan Page Publishers Brattoon, J and Gold, J 1999 Shield, J. 2007. Managing Employee Performance and Reward : concepts, practices, strategies. Cambridge University Press.