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PERFORMANCE MANAGEMENT AND REWARDS
What is Performance Management
⮚ Refers to the procedures and systems designed to improve employee outputs and
performance, often through the use of economic incentive systems.
⮚ Apart from economic incentives, the other means used to improve employee
performance are –
1. Goal setting
2. Streamlined organizational structure
3. Better technology
4. New arrangements of working schedules
5. High involvement of employees
6. Better motivation of employees
⮚ An effective performance management process considers human resource (HR) strategic
planning as a basic requirement. HR STRATEGIC PLANNING – is the process of providing
capable and motivated people to carry out the organization’s mission and strategy.
⮚ A key elements of the HR strategic planning is the staffing function – which implements
the provision of qualified people to the identifies job openings.
STAFFING
⮚ Refers to the HR planning, acquisition, and development aimed at providing the talent
necessary for organizational success.
⮚ The staffing process of the following :
● Job analysis
● Recruitment
● Selection
● Socialization
Job Analysis – the process of staffing starts with an understanding of the positions or jobs for
which individuals are needed in the organization. Job analysis is a technical procedure used to
define the duties, responsibilities, and accountabilities of a job.
The results of job analysis are very useful in-
● Preparing job descriptions
● Evaluating and classifying jobs
● Training and career development
● Performance appraisal
● Other HR aspects
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Recruitment – after job analysis. The next step in the staffing process is the drawing of people
to apply for the various positions identified. This step is called recruitment and it may be
defined as a human resource management practice designed to locate and attract job
applicants for particular positions.
⮚ Recruitment involves the following –
● Advertisement of a position vacancy
● Preliminary contact with potential job candidates
● Preliminary screening to obtain a pool of candidates
⮚ Recruitment are of two types : internal and external
⮚ Internal recruitment – is a process for attracting job applicants from those currently
working for the firm
⮚ External recruitment – a process of attracting job applicants from outside the
organization.
Selection – after recruitment, the next step in the staffing process is selection. This involves
assessing and choosing among job candidates. The selection process involves the following
steps:
● Completing the application form
● Conducting an interview
● Completing any necessary tests
● Background investigation
● Physical and medical examination and
● A decision to hire or not
Socialization – the final step in the staffing process is socialization, and it involves orienting new
employees to the organization and its work units, especially the work units where they newly
hired employee will be working.
In socialization, the new employees are provided with information the following:
● Key organization factors which includes an overview of the organization, policies and
procedures, compensation, benefits and economic factors
● Department and job-related issues including department functions, job duties and
responsibilities, policies, rules, procedures and socialization into the work group.
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Training and Career Planning and Development
Training – the process of changing employee behavior, attitudes, or opinions through some type
of guided experience. Training the individual employee occurs not only initially but anytime
improved skills are needed to meet changing job requirements.
There are many ways to conduct training programs and they may be classified as follows:
❖ On the job training – training method is conducted while employees perform job-related
tasks. It is the most direct approach to training. The common forms of ojt are –
❖ Internship are opportunities for students to gain real world experience.
❖ Apprenticeships involve learning a trade from an experienced worker.
❖ Job rotation provides a broad range of experience in different kind of job in an
organization.
❖ Off the job training – this type of training deals with work skills in settings away from
their ordinary workplace. There are various off-the-job training techniques are –
❖ Classroom lectures designed to communicate specific interpersonal, technical or
problem solving
❖ Simulation exercises a training method that occurs by actually performing the
work.
❖ Vestibule training which is done on actual equipment used on the job.
❖ Programmed instruction a method where training materials are condensed into
highly organized, logical sequences.
Career Planning and Development
Career may be defined as the pattern of work-related experiences that span the course of a
person’s life.
Career Stages – refers to the distinct stages that individuals go through in their careers,
typically including establishment, advancement, maintained and retirement.
Establishment stage – is one of apprenticeship where the young employee enters an
organization who may be technically able but often without understanding of the organizations
demands and expectation.
Advancement stage – this stage calls for the employee to work as an independent contributor
of ideas in a chosen area.
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Maintenance stage – the employee may experience continued growth of performance and
accomplishments, or her may encountered career stability.
Retirement Stage – when formal preparation for retirement is made. The individual learns to
accept a reduced role and less responsibility.
PERFORMANCE APPRAISAL
⮚ Is a key aspect of performance management. It may be defined as the process of
evaluating the performance of employees, sharing the information with them, and
searching for ways to improve their performance.
1. To give employees feedback on performance
2. To identify the employee’s development needs
3. To make promotion and reward decisions
4. To make demotion and termination decisions; and
5. To develop information about the organization’s selection and placement decisions.
Criteria for Performance Appraisal
❖ Individual task outcomes – one way of appraising performance is evaluating the
employee’s task outcomes.
❖ Behavior – there are instances when it is difficult to measure an individual’s task
outcomes. This is so on advisory jobs or support positions and those who are assigned
to work in a group
❖ Traits – many organizations use traits as criteria in appraising employee performance.
The traits commonly used as basis for performance appraisal like –
❖ Good attitude
❖ Showing confidence
❖ Being dependable
❖ Looking busy
❖ Possessing a wealth of experience
REWARS
⮚ The final requirement is necessary to ensure effective performance. The requirement
refers to the design and implementation of reward systems
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Types of Organizational Incentives
1. Intrinsic or extrinsic – Intrinsic rewards – are those that the worker receives from the
job itself, such as pride in one’s work, a feeling of accomplishment, or being part of the
team. While Extrinsic rewards – are those that the workers get from the employer,
usually money, a promotion or benefits.
2. Financial or nonfinancial rewards – Financial rewards – those that enhance an
employees financial well-being directly through wages, bonuses, profit sharing, and the
like. Nonfinancial rewards – are indirect enhancement of an employees’ financial
well-being.
3. Performance-based or membership –based. Performance based- those given using
performance as basis. While Membership based – refer to those that are given to all
employees regardless of performance.
