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The Role and Purposes of Performance Management
The Role and Purposes of Performance Management
Performance management system - strengths and weaknesses
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Introduction To effectively subsist in the contemporary world , Companies have embraced the total rewards system and made it part of human resource management practice with small and big organizations employing it to enhance their competitiveness in the local and global markets. First introduced in 2000, the total reward theory shows the vibrant relationships that employers have with their employees. However, "WorldatWork - Total Rewards ModelTotal Rewards Model SVG Graphic",( 2016) states that ; this concept has developed to describe means through which employers and employees benefit from each other as well as how external and global business environment influence the productivity , retention and engagement at work .
Elements to
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It refers to fixed and variable monetary payments made by employers to their employees for services delivered. The Walt Disney company is an example of an organization that has put in place a total rewards system whereby compensation is a component. The company makes employees understand what their pay both base and others are. In addition The Walt Disney company has broadened its reward strategies beyond money and one of the non-monetary compensation that is part of the current reward system is benefits. Benefits are packages of programs that employers offer employees in addition to compensation, generally with an aim of ensuring security for the employees and their families. Benefits come in various forms including; health insurance , savings and retirement programs, and income protection. Besides compensation and benefits, most employees work longer for an organization that appreciate their input through recognition.
Recognition
Recognition is the simple acknowledgment or paying keen interest to what employees are doing. An organization like The Walt Disney Company has instituted formal and informal mechanisms of identifying and supporting employees with exemplary performance or innovation that is likely to move the company to success.
Performance
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According to Jiang, Xiao, Qi, & Xiao, (2009): Introducing total reward strategy probably improves not only employees ' work efficiencies, job satisfaction and job performances but their psychological contract and organizational citizenship behaviors. Because of this effective management method, organizations have more channels to acquaint with employees ' work life and other needs; in other way round, the personnel can keep positive attitude towards the organizations, . . . (Pg. 180)
Therefore, attractive total rewards make happy employees and ultimately works towards the success of the company.
Challenges of balancing a global workforce and the aspect of external
Compensation is made of a base salary (paid by the hour, work or the year; excluding overtime or bonuses), variable pay (bonuses, profit sharing/stock options which work hand and hand with the performance of the company), and benefits (to include health insurance/savings plans – 401(k), or tuition reimbursement). The traditional way of determining base pay for jobs was to compare jobs in the same industry. Now industry and market, no long work by themselves, the current thinking is more person-based that considers knowledge, skills, and competencies of the work. This, however, is best suited for high-performing environments that remain flexible in their deployment of human capital.
Response: Recognition is a big factors that helps with employee satisfaction and motivation. When an employee is excelling in their work and completing all goals and objectives, there hard work is recognized by means of gifts, announcements, and even the prime parking space at the organization.
The Total Rewards scheme was an effective tool for collecting information from customers, and comprehending customers likes and dislikes. This facilitated formulation of relevant strategies to be used in the marketing of the company. It also led to efficient monitoring, evaluation and eminent ...
There are many traditional and non-traditional rewards. Aflac uses to meet the organizational objectives. Aflac supports a total reward program. These programs begin with employee need assessments. Employee surveys focus on group help and improve the employee retention. It is well known to help solve many issues and identify marketing initiatives as well as employees along with
Overall, the score of the article is a 95 out of a 100 because the author, Carol Patton was able to lure me into reading her entire piece. Additionally, after reading the article, I felt that I gained a bit of knowledge on the importance of reward programs and how it should be a “must have” in the work environment.
The company motivates employees by providing “reward” and “engagement”. Reward is evaluating the employees properly and giving reasonable salary, and are divided into three parts:
Disney extends to their workforces. For those businesses whose primary purpose of their plan is to only meet compliance requirements, they could greatly benefit by developing a comprehensive benefit plan. This could help increase their return on investment. The value I believe a business may gain from Disney’s compensation plan is to appeal to competent workers, to maintain those workers, and to motivate workers to direct their energies towards achieving the goals of the organization. Companies can set up policies to conduct a market study on a regular basis, implement a real performance appraisal system and then work on retaining good employees and elimination of poor performing workers.
Any Act of recognition from supervisor, responsible, any other individual in management, client, peer, professional colleague or the general public. It may be an act of notice, praise, or blame. Recognition refers to the respect an employee enjoys among colleagues in the organization, which is the result of the status value of the job (Gerber et al. 1998).
Offering employee benefits is one way a company must competes in today’s marketplace to retain old employees and attracts new ones. These benefit packages may range from offering basic health insurance to additional discretionary and perk benefits such as vacation and retirement packages. Benefit packages are often a large portion of employee costs and Federal mandates require an employer to carry and offer certain benefits even if they offer nothing else. Federally required employee benefits make up approximately a quarter of the costs associated with employer offered benefit packages. Some of these mandated benefits include Social Security, Worker’s Compensation Insurance, and the Family Medical Leave Act.
What does addiction and pair-bonding have in common with the dopamine reward system? Better yet, what is the DA reward system? The DA reward system is what keeps us evolving. It is what keeps all living animals evolving. It serves to motivate us to do basic survival skills like, eating, drinking and reproducing. Though it is used for other things as well (Katherine H. Taber, Deborah N. Black, Linda J. Porrino, Robin A. Hurley, 2012). Our reward system makes us crave water and after drinking water, give us a feeling of relief… the relief being the reward. So we have been conditioned to crave water and get rewarded after consuming it (Katherine H. taber et al. 2012). Without this basic trait, we would not be here.
Reward and recognition has to be promoted for small and large achievements. An effective reward’s program keeps employees engaged, dedicated, and committed to the organization.
Incentive reward engagement offers a win-win situation for the employees and the company. Kelleher believes that incentive is a form of recognition and builds engagement through company’s and employee’s obligations towards a common goal (2014). The company has a “Growth Incentive Scheme” for the production workers. Special monetary incentives are provided should the workers achieve the monthly output target. Through the rewards, employees feel motivated towards their work and thus, contribute towards the company’s
Reward systems have been evolving and growing throughout the years, but there are many types that have always been there. Base pay is the most common, which is an employee’s base wages and salary that they are paid on hourly, weekly, monthly, or annually (Luthans, 2011, p.94). Merit based pay is another type of incentive, which rewards and motivates an individual to perform their jobs to the standards of their employers. According to the text Organizational Behaviors, by Fred Luthans, there are three other options for paying an employee for their performance: individual incentives pay plans, using of bonuses, and the use of stock options. Individual based pay plans are based on the employees output and/or quality. Some organizations use bonuses as incentives to their employees. These are offered sometimes as op...
Management spends a huge amount of time to design incentive systems and schemes to motivate their workers and to ensure they work in their best possible manner. Motivating workers by giving them decent pay helps in winning employees heart to make the work done efficiently, significantly and effectively. The most effective way to motivate people to work productively is through individual incentive compensation (Pfeffer, 1998). An attraction of getting more is a powerful incentive to people for high performance. While most people agree that money plays a major role in motivating people, in organizations there is a widespread belief that money may also have some undesirable effects on morale.
The foundation for effective job performance and compensation system can be traced to effective job analysis process. Fundamentally, a job analysis should consist of a thorough examination of the job 's duties and knowledge, skills, abilities, and qualities that are required in order to be successful in a specific position, upon which appropriate rewards or compensation can be determined. For many perspectives, jobs are usually made up of requirements and rewards, where rewards may be regarded as a major recruitment strategy for motivating potential employees in order to influence them to stay the organization for a longer period as well as enhance their performance. The most common or basic form of rewards which attracts employees is extrinsic