Assessment 3PRM – Resubmission
18th January 2018
Dixita Anant Madkaiker
1.1 Two Purposes of Performance Management and its relationship to business objectives –
Performance management is the management of the performance of individual employees with a view to improve and to maintain the efficiency of the employees to meet their individual as well as to meet the organizational goals. The employees must be managed and motivated accordingly to get the best possible results which will help the organization to increase the efficiency and to reduce the waste .
It aims to motivate the employees in the organization as the employees who are motivated and their objectives align with the organization objectives feel more connected to the organization which helps them to perform better. It also helps to identify the strength and the weakness of the employees which can induce for better performance in the future .The more dedicated the employees are to the organization the more they would like to improve the way the perform in the organization this will in turn increase the commitment of the employees and reduce retention .If all the employees are kept motivated and are dedicated will help them to reach their targets and thereby to achieve the organization targets .
1.2 Explain the components of performance management systems –
One of the main components of performance management is Performance Appraisal .
Performance Appraisal is a two way communication between the employee and the employer discussing various topics right from the performance of the employee , to the giving him feedback about his performance ,discussing shortfalls about his performance and how they can overcome them . This helps both the organization and the employee to understand their needs and to achieve organization goals and motivates the employee.
Rewarding good performance of the employee – This is a very important component of performance management as it motivates the employee by recognizing his efforts . This increases the self esteem of the employees and can help to improve his dedication and efficiency and can also help him to cope with the failures in the future .
Under – Performance Review – This is also one of the main components of the Performance Management as to how effectively the under performance of the employee should be reviewed as to he can understand the need of improvement and the objectives that have to be achieved which have to agreed by both the parties .
1.3 Relationship between motivation and performance management
Performance management and motivation are directly related within the organization .The employees can be motivated by many ways for example – by giving them promotion for their good performance or rewarding them with bonuses . The more employees are motivated for their good performance and work the more they will strive achieving their targets and meeting the organizations objectives .These have a positive impact and impact the efficiency within the workforce and reduce costs .
2.1 Purpose of reward within a performance management system –
Reward is the most important component when it comes to managing and improving the performance of the workforce and to keep them motivated to achieve the targets and the organisational objectives . It helps to keep them motivated , to retain the employees in the organization and to reduce the turnover .The two main purposes of performance management are as follows –
Motivation – When the employees are rewarded for their dedication and when they achieve their targets . Rewards can be both monetary or by promotion of the employee . The employee feels more appreciated for the hardwork he puts in and feels motivated to work more efficiently .
Increases Productivity – Rewarding the right employees for their hardwork gives them encouragement and helps them to keep motivated and inturn helps to increase the efficiency and the productivity of the work in the organization .Employees are the most important element in the success of the organization so it is always important to keep them motivated .
2.2 Explain the components of Effective total reward system –
Rewards are the main component for the keeping the staff motivated and to retain the employees in the organization and to reduce the turnover . Rewards are being viewed by the employees as a recognition for their hardwork. Total reward system comprises of the Financial rewards as well as the non- financial rewards . Financial rewards include the monetary rewards like bonus , paid pension , paid holidays etc and non -financial rewards consists of promotion , training and development , career progression etc .
The three components of total reward system are as follows –
Recognition – The employees need to feel the appreciation for their hardwork and their efforts to be recognised . For this the employers need to implement a recognition culture within the organisation in which the management provides timely , effective feedback to the employee based on their performance .
Increased Pay – Under this component it includes increasing the pay of the employee by increasing his base pay or giving him additional bonus for achieving the targets .
Development Opportunities – The company should acknowledge the strength and the skills of the employees and then further provide the employees with learning and development programmes which will help them to further expertise their skills . Some of these programmes may include sponsoring for certain course for the employees , job training and traning and development programmes .
3.1 Four factors that need to be considered when managing performance both good and poor –
Managing the performance is a continuous process . The performance should
be effectively reviewed either the good or the bad. Managing the performance is a way to review of the contribution and the efficiency of the employees towards achieving organisational objectives .The following are the four factors that should be considered when managing the performance .
Planning – The employers should plan and set the objectives that the employee needs to meet . The objectives need to be explained the employee in the start of the year and what they need to do in order to achieve it . The objectives set should be easy and not unattainable .It is important that the employee receives regular and genuine feedback for his performance .
Working on projects – Projects should be supervised to increase the efficiency of the work done and to give them regular feedback on what changes need to be made accordingly which will help to achieve the organisational objectives and their targets . This king of supervision will help them to achieve their targets and organisational objectives .
Change of duties or job – If an employee is not performing better at a job he is being assigned than the manager ca have a review meeting with the employee to discuss the issues he is facing in the job and further provide him training for the skills he has so that he can fit in some other role in the organisation .
Mentoring – Increasing the performance of the employee by giving him training sessions which will help hi to improve his skills and thereby improve performance .
The management should be considerate while reviewing the under performed employees .A manager should always listen and address the issues that an employee might be facing but the manager should consider that the problem should be genuine . When managing under performance the manager should identify the cause that is leading the employee to under perform by taking face to face meetings with the employees .
3.2 Types of data required by individuals involved in performance and rewards management –
Data is very important when it comes to management and review in any organisational structure . Various types of documents help to construct a base for the review meetings and to effective manage the workforce .Job description provides an insight to the duties an employee is supposed to do . Performance can also be reviewed using the job description of the employee .The employee is well aware of the targets he was suppose to meet . The job description will help the manager to review the performance and to mention any developmental needs to the employee .
Self – appraisal form are the documents that the employee reviews his own performance . It gives an opportunity to the employee to reflect on his performance and targets he has achieved as a result he is more aware about his performance .The manager can use this self – appraisal form as a base of the performance review meeting .
The external data that is important for performance management can be gathered from the customers by the employee in the form of a questionnaire . The employee thus is aware how far he is being able to fulfil the needs of the customers which can be then used by the manager to review the performance of the employee.
4.1 State the Frequency ,Purpose and Process of Performance Management
The Performance review meeting is held to provide genuine , timely feedback of the work done by the employees .The meeting should be held in a quite room away from all the chaos . The meeting can be held in every six months , quarterly or annually depending on the size of the organization .The manager should explain to the employee the reason for the meeting and the base of the discussion .If the employee has filled in the self appraisal form The form can also form a part of the discussion. It is very important for the development needs to be discussed during the meeting and provide the employee with solutions to tackle the issue .The manager should then discuss the feedback about the performance of the employee from his line manager identifying the development needs and giving suggestion to tackle the issue .Managers should also discuss the objectives of the employee for the coming year and should be noted in the appraisal form. After the review the manager should make the employee aware about his rating and what their salary increase and bonus pay may be .
Activity 3 – 4.3