Supporting Good Practice in Performance and Reward Management

2314 Words May 22nd, 2012 10 Pages
Supporting Good Practice in Performance and Reward Management

1. Explain at least 2 purposes of performance management and its relationship to business objectives.

Performance management is a holistic procedure collectively brings various types of elements that constitute towards the flourishing exercise of people management including, above all, learning and development.
The purpose of Performance management is to develop the ability of individuals to meet and often exceed expectations to achieve their full potential in the individuals given field of expertise, therefore benefiting themselves and the organisation. Performance management provides an origin for self-development and it helps ensure that the support and direction
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Expectancy Theory- Vroom established one of the most broadly accepted rationalization of motivation. Quite plainly, the expectancy theory says that an employee will be motivated to perform with a high level of effort when they accept as true that:

1. Effort will lead to a good performance appraisal. 2. A good appraisal will lead to organizational rewards. 3. The organizational rewards will satisfy his or her personal goals.

The main feature towards the expectancy theory is developing an understanding of an individual's goals and the relationships connecting effort and performance, between performance and rewards, and finally, between the rewards and individual goal satisfaction. When an employee has a high level of expectancy and the reward is striking, motivation is typically elevated.
Consequently, to motivate employees, managers have to reinforce employee’s perceptions of their efforts as both possible and worthwhile, simplify expectations of performances, attach rewards to performances, and make sure that rewards are attractive.

4. What are 2 purposes of reward within a performance management system and give an example of this within your own organisation, or one which you are familiar with?

Reward management is concerned with the formulation and performance of strategies and policies with the object of rewarding people fairly, equitably and consistently in relation to their value within the

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