...Name: Professor Name: Course/code: Date: Performance Management: Linking Rewards to Performance The goal of this project is to provide Human Resource Professionals with useful guidelines for developing and implementing performance management through rewards. Performance Management are the strategies and techniques that emphasizes on performance of employees as a way of achieving managerial goals and objectives (Murlis p.78). Performance management also refers to perfecting, harmonizing and promoting quality of employee work to ensure customers satisfaction thus leading to high return to stockholders. Performance management foster clarification of task and expectations, improvement of individual and organizational productivity and provides a basis for making employee-related decisions (Shippmann p.605). In conclusion Performance Management uses Human Resource strategies such as reward systems and performance Appraisal to motivate employees towards performance. Performance management can be viewed as a tool to improve on employee motivation for high performance (Cokins, p.58) With the view of finding out the impact of rewards I conducted an interview with the Human Resource Manager, Mr Brandon Jefferson of Coca Cola Kenya branch. Mr. Jefferson said that Coca Cola performance largely depends on employee inputs and outputs. He said that their employees are rewarded annually through intrinsic and extrinsic rewards. He noted that at the beginning of the year the company records...
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...Book Review Book Name: Performance Management: A Strategic and Integrated Approach to Achieve Success Authors: Michael Armstrong & Angela Baron Publication: JAICO Publication House, 2012 Approach: * Strategic in the sense that it is concerned with the broader issues facing the business if it is to function effectively in its environment and with the general direction in which it intends to go to achieve longer-term goals. * Integrated in four senses: * Vertical integration- linking or aligning businesses, team and individual objectives. * Functional integration- linking functional strategies in different part of the business. * HR integration- linking different aspect of HRM. * Individual needs integration- linking organizational and individual need together as far as possible. Performance: Performance is defined as “a multi-dimensional construct, the measurement of which varies, depending on a variety of factors. It is important to determine whether the measurement objective is to assess performance outcomes or behavior.” History of Performance management: According to the author the history of performance management formally evolved out of the work of Frederick Taylor. Then the merit-rating came to the fore in the USA and the UK in the 1950s and 1960s, when it was sometimes rechristened performance appraisal. Management by objectives then came out in the 1960s and simultaneously, experiments were made with the critical incident...
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... Dianne Davis PSY 302 Professor Misraraj August 1, 2011 To use positive reinforcement effectively on the job, certain rules or procedures must be followed. The best results will be achieved if these rules are combined with a genuine interest in the welfare of the workers. Three ways to motivate others in the workplace are: 1. Choose an appropriate reward or punishment. An appropriate reward or punishment is both effective in motivating a group member or group and feasible from the company standpoint. Rewards should have a high positive valence and punishments a high negative valance. If one reward does not work, another should be tried. 2. Supply ample feedback. Behavior modification tactics cannot work well without frequent feedback to individuals. Feedback can take the form of simply telling people they have done something right or wrong. 3. Schedule rewards intermittently. Rewards should not be given on every occasion for good performance. Intermittent rewards sustain desired behavior longer and slow the process of behavior fading away when it is not rewarded. A reward that is given continuously may lose its impact (DuBrin, 2004, p. 130). A strategy for enhancing motivation in the workplace: The employees will want to feel they have an interest in the goals of communication. Both parties will want to be respectful and ensure they are being authentic and genuine in their communication. Non-verbal clues include facial expressions, body language...
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...move was necessary so that businesses could improve their performance and promote innovation and flexibility. In this era, human resource managers place more of their attention on recruiting the right employees, training and developing the workforce and managing performances versus the transactional operations of personnel administration and pay. Through research we have been able to identify a direct correlation to high-performance work practices and company performance due to strategic human resource management (The Look and Feel of Strategic Human Resource Management: Conversations with Senior HR Executives. n.d.). Main Findings Strategic human resources management (SHRM) is the comprehensive set of managerial activities and tasks related to developing and maintaining a qualified workforce (Fottler, M., n.d.). Human resource managers have been tasked with discovering employees that have the talents to fulfill the organizations business goals. The focus is no longer just on the individual’s performance but also on the company’s performance. Not only does the SHRM benefit the financial performance it also creates sustainable competitive advantage over other companies. This can be accomplished through Human resource because what differentiates the work force is the individual. The strategic element of managing consists of coordinating each separate human resource function– recruitment, selection, rewards management, training so that they complement each other, thus maximizing...
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...Performance management systems consist of the activities and/or processes embraced by an organization in anticipation of improving employee performance, and therefore, rganizational performance.[35] Consequently, performance management is conducted at the organizational level and the individual level. At the organizational level, performance management oversees organizational performance and compares present performance with organizational performance goals.[24] The achievement of these organizational performance goals depends on the performance of the individual organizational members.[24] Therefore, measuring individual employee performance can prove to be a valuable performance management process for the purposes of HRM and for the organization.[24] Many researchers would argue that “performance appraisal is one of the most important processes in Human Resource Management”.[14] The term performance management is commonly used to describe a range of managerial activities designed to monitor, measure and adjust aspects of individual and organisational performance through management controls of various types. Therefore, This essay seeks to discuss performance management being indispensable in any organisation. ............................ defines performance management as a continuous process of identifying, measuring and developing performance in organisations by linking each individual’s performance and objectives to the organisation’s overall mission and goals. The...
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...eligible for a performance related reward.” Most organisations use appraisal schemes in order to monitor employee performance. Performance appraisal is a formal system of measuring, evaluating, and influencing an employee’s job-related attributes, behaviours and outcomes. The objective is to determine how productive an employee is and/or to determine if an employee’s productivity can be improved. As such, performance appraisals serve an important purpose in managing people and meeting company goals. Performance management must play a key role to any successful business it involves an analysis of: * The role of competencies – a competency is an underlying characteristic of a person which enables them to deliver superior performance in a given job role or situation. * The role of goal setting. * The role of appraisals. * The role of rewards. Pfeffer believes that effective management of people can produce substantially enhanced economic performance. He believes there are 7 practices for successful organisations. * Employment security. * Selective hiring of new people. * Self-managed teams and decentralisation o decision making as the basic principles of organisational design. * Comparatively high compensation (pay and reward) dependent upon organisational performance. * Extensive training. * Reduced status distinctions – dress, language, office arrangement and wage debates. * Extensive sharing of financial and performance information across...
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...the Performance Management book.) 1. A. Briefly explain the concept of performance management. Performance management is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization. Let’s consider each of the definition’s two main components: 1. Continuous process. Performance management is ongoing. It involves a never-ending process of setting goals and objectives, observing performance, and giving and receiving ongoing coaching and feedback. 2. Alignment with strategic goals. Performance management requires that managers ensure that employees’ activities and outputs are congruent with the organization’s goals and, consequently, help the organization gain a competitive advantage. Performance management therefore creates a direct link between employee performance and organizational goals and makes the employees’ contribution to the organization explicit. B. Identify at least five components of what might be included as part of a performance management program. Prerequisites, performance planning, performance execution, performance assessment, performance review, performance renewal, re-contracting. 2. Distinguish performance management from performance appraisal. A system that involves employee evaluations once a year without an ongoing effort to provide feedback and coaching so that performance can be improved is not a true performance management...
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...Armstrong and Baron (1998) performance management is a strategic and integrated approach of delivering sustained successes to the company by improving individual and group performances and also developing the capabilities of teams and individuals. Currently at work performance management appraisal (PMA) is carried out on a quarterly basis and is a conversation carried out by a line manager and an employee, it is aimed at improving the effectiveness and capability of an employee through development. It is aimed at personnel who want to achieve excellence in their respective fields and want to acquire more skills and knowledge, which will assist in the achievement of personal and professional development goals. Performance management serves as an important tool for realizing organisational goals by implementing competitive HRM strategies. It helps in aligning and integrating the objectives of the company with the key performance indicators (KPI’s) in an organisation across all job categories and levels. This helps in driving all the employees right from the bottom level towards one single goal. Performance management is an important driver in most companies today and is regarded as the tool to use to ensure that the people working for them will deliver the agreed contract and objectives which were set mutually. This study will reveal the importance of a well managed, performance management system by conducting a critical analysis of the performance management system used and what benefits...
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...B found them to be unenthusiastic about the new process for various reasons including their physical ability to perform the process and monetary incentives. In order to address worker apathy, management needs to understand how to motivate their employees. Expectancy Theory of Motivation The Expectancy Theory of Motivation is a theory first proposed by Victor Vroom of the Yale School of Management in 1964. It states that an employee’s motivation is a result of how much a person wants to be rewarded (valence), the probability that the effort results in the expected performance (expectancy) and the belief that their performance will result in the desired reward (instrumentality). Three components of Expectancy theory: Expectancy, Instrumentality, and Valence 1. Expectancy: Effort → Performance (E→P) 2. Instrumentality: Performance → Outcome (P→O) 3. Valence- V(R) Expectancy: Is the strength of a person’s belief about whether or not a particular job performance is attainable. An employee will be motivated to try a task if he or she believes that it can be done (lacpa.org). The rewards can be either extrinsic (money, promotion, free time, benefits) or intrinsic (satisfaction). Instrumentality: The perception of employees whether they will actually receive the reward for their work. Management must...
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...serious problems its lack of management. CEO Carly Fiorina didn’t provide enough direction. The strategic vision she was using to guide the company was unclear, and nobody in the company has any idea if it was being carried-out or not. Without a well-defined strategic vision for the company, employees had no motivation and no sense of organizational purpose. As a result it can lead to a number of symptoms such as poor image, slow growth and a decline in sales, which is a direct connection to lack of leadership and imprecise strategic vision. The second of the H-P’s most serious problems was its confusing matrix structure, which blurred accountability lines and slowed decision-making. A matrix structure focuses on integrated teams and involves reporting to multiple managers. It can be highly effective, but it can be confusing to work within and it can also create conflict between project bosses in different parts of the matrix. According to Williams (2011), some of the common problems are disagreements or misunderstandings about schedules, budgets, available resources, and the availability of employees with particular functional expertise. A matrix structure requires a high level of coordination to manage complexity involved with running large, ongoing projects at various levels of completion and it also requires much more management skill than the other forms of organizational structure. The third of the most serious problem was the H-P’s reward system because it was so complicated...
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...What is Human Resource Management? Human Resource Management (HRM) involves the practice of managing people and has been practiced since the first century “with Columella, a Roman farmer and former soldier whose De Rustica featured one of the earliest tracts on people management” (Rowley and Jackson, 2011 p.xx). HRM covers a broad spectrum of employee related affairs, ranging from selection and recruitment to training and development, employee reward, and performance management (Beardwell and Clark, 2010). Some of the objectives of Human Resource (HR) are to ensure staff motivation, to effectively manage change in the organisation and most importantly to maintain good employee/employer relationship. This essay seeks to give a general overview on the origins and meaning of HRM, reviewing the main models of HRM, the link between HRM and performance, and finally assessing the impact of HRM in multinational corporations. The origins of HR in the UK traces back to the 80’s when government reforms were been implemented to reshape the framework of industrial relations in the country. Due to “the restructuring of the economy” there was a decline in manufacturing industries, a “rise the service sector” and an increase in “new industries based on high tech products and service” (Beardwell and Clark, 2010 p.7). The economic changes were promoted by “the political climate of Thatcherism” through “entrepreneurialism and antiunion legislations which encouraged firms to introduce new labour...
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...Organization Management Journal Linking Theory & Practice: EAM White Papers Series 2006 Vol. 3, No. 3, 210-231 © 2006 Eastern Academy of Management ISSN 1541-6518 www.omj-online.org Effective Empowerment in Organizations GARY A. YUKL University at Albany WENDY S. BECKER University at Albany Psychological empowerment is the perception that workers can help determine their own work roles, accomplish meaningful work, and influence important decisions. Empowerment has been studied from different perspectives, including employee perceptions, leadership behaviors, and management programs. Despite positive rhetoric, programs designed to increase empowerment seldom achieve the benefits promised. Inconclusive and seemingly contradictory outcomes stem from the fact that few companies give employees significant control and access to management information. A half century of research suggests that empowerment strategies can offer real benefits. We outline facilitating conditions for effective empowerment, including characteristics of organizations, leaders, employees, and the work itself. Keywords: Empowerment, Leadership, Teams, Power Sharing Effective Empowerment in Organizations Psychological empowerment in organizations is the perception by members that they have the opportunity to help determine work roles, accomplish meaningful work, and influence important decisions. Over the past several decades an interest in empowerment can be seen in many subject areas within psychology...
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...Performance Management Dr. Herman Aguinis PE-A1-engb 1/2011 (1033) This course text is part of the learning content for this Edinburgh Business School course. In addition to this printed course text, you should also have access to the course website in this subject, which will provide you with more learning content, the Profiler software and past examination questions and answers. The content of this course text is updated from time to time, and all changes are reflected in the version of the text that appears on the accompanying website at http://coursewebsites.ebsglobal.net/. Most updates are minor, and examination questions will avoid any new or significantly altered material for two years following publication of the relevant material on the website. You can check the version of the course text via the version release number to be found on the front page of the text, and compare this to the version number of the latest PDF version of the text on the website. If you are studying this course as part of a tutored programme, you should contact your Centre for further information on any changes. Full terms and conditions that apply to students on any of the Edinburgh Business School courses are available on the website www.ebsglobal.net, and should have been notified to you either by Edinburgh Business School or by the centre or regional partner through whom you purchased your course. If this is not the case, please contact Edinburgh Business School at the address below: Edinburgh...
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... - Fandt P.M, Goodman S.H & Lewis P.S. (2004) 6 - Robbins S.P, Bergman R, Stagg I & Coulter M (2003) 6 - Collins R.R, McLaughlin Y (1996) 6 - Schermerhorn J.R (2004) 7 - Schermerhorn J.R (1993) 7 CONCLUSION 8 REFERENCES 9 EXECUTIVE SUMMARY INTRODUCTION Research Problem To understand the concept of performance based rewards, other consideration had to be given to other topics related or connected to performance based rewards such as motivation, expectancy theory, performance appraisal, etc. Without relating to the other topics it would be hard to explain or understand the full concept of performance based rewards. Limitations of Report The researcher found that the time limit to be insufficient to view many aspects, the different point of views and full underlying of performance based rewards. The researcher also found that some information sources were too old to be used in the report and some journal articles were unable to be used as it had to be sourced from other library catalogues such as the Edith Cowan University Library. The researcher was unable to interview a business that practices performance based rewards, as it is required for the researcher to place an application form and wait for approval from University Board as there is a time limitation. Sources/Methods of Data Collection All the resources that been used to compile the report have are secondary sources. The researcher has used eight books from the Library Catalog...
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... | |How to best reward employees? | | | | | |Yuling Zhang(19041245) | |2010/4/17 | |Understanding and Managing Organisations | Contents Contents 2 Introduction: 3 Total Reward and theories: 4 Intrinsic rewards more important: 5 The impacts of extrinsic rewards on intrinsic motivation: 6 Cognitive evaluation theory (CET) in motivational approach: 6 Self-perception theory in attributional approach 7 Behavioural approach: 7 Performance management, high performance working and reward strategy: 8 Other noteworthy points when rewarding: 9 Case study: 10 Conclusion: 11 Reference: 12 How to best reward the employees? Introduction: Given that people is...
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