Supporting Good Practice in Performance and Reward Management
1. 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. 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
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. 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