Managing and Rewarding Performance

Managing and Rewarding Performance

Approach to Performance Management and Reward

Today performance and management are given a high degree of concern in various countries in a bid to maintain, motivate, and attract employees in distinguished organizations. Rewarding employees have been noted to attract other employees in an organization, which enables a pool of professionals to increase the company’s productivity. Many organizations have centered their concern on the welfare of the workers as opposed to profit-driven strategies. Performance management is done on the environment of organizational norms, values, and culture. Performance assessment is used in some places to shows the productivity a specified employee renders to the company and later used to ensure employees works following the desires of the company. However, employees need to be rewarded for the task they perform so that they are motivated and feel that they are part of the company. Within performance management, assessment is also done to check employees’ behavior and general production. Countries have their strategies and culture regarding performance management to fit the need of the company and the employees.

Human Resource Management (HRM) is the main department that is used to make sure that the company gets a professional group of employees; it also ensures they re retained and rewarded efficiently. Traditionally HRM strived to ensure that the performance appraisal assesses the productivity of employees at a specified period of time. Today the main goal encompasses every event that is undertaken to make employees’ productivity increase. HRM aligns organizational culture with strategies that include opportunity-enhancing, motivation-enhancement, and skill-enhancement. Further, the strategy used by HRM is su[posed to be bias-free so that they align with the legal aspects of a given country.Moreover, performance management and reward must be reliable and accepted by those who targeted to be assessed. With the emergence of sophisticated technology, performance management and reward organizations integrate employees’ influence and the organizational culture. For instance, e-performance is a competency-based platform that weighs the needs of the clients and employees’ fitness to meet those needs.

Literature review

            An employee would wish to work in a company where they feel they are recognized as part of the company and the work they perform. The world has become a global village with technology, and organizations are integrating e-performance systems to assess the performance and behavior of the employe. Studies show that 93% of United States companies use an e-performance system to get information about the performance review and detailed feedback to the employees. For instance, is someone is interested in a particular position in a company like Walmart, they would search for employees and other social reviews from Glassdoor online platform. E-performance is efficient in providing the information on the type of task conducted, salary, time spent, and nature of the reward. Countries have policies and strategies that they use to make sure their companies thrive in the global dimensions.

Policies in Performance Management and Reward

In the United States, agencies are supposed to have a performance appraisal system that has a continuous sharing of information from supervisors and employees and back. The USA has a different way of approaching reward management and making sure that the employers and the private sector do not discriminate against people in the country. Monetary incentives are not affected and should never be discriminated against on the basis of gender, age, ethnicity, and other specified aspects of identity. US federal government makes sure that agencies have reward policies that fit the activity the employees perform and the occupation they take. The government insists on internal equity, which refers to the pay relationships between a given organization and the skills and competency within the agency.

A study shows that it is advisable to note the restrictions an organization has in order to allocate reads across different departments and its geographical boundaries. It has been found successful in many places as it was noted in the United Kingdom as the decentralized. A study shows that there are incentives placed by a number of governments that give intrinsic needs as an ideal system. Other governments like Korea have parted the performance management with reared and treats the, as different entities. However, a study conducted by Organization for Economic Cooperation and Development (OECD) showed that a number of South Korean citizens still believe that hard work pays and they opt to work hard and receive rewards from the companies. Therefore, people in South Korea including the top managers in a country tend to put in more working hours to maximize productivity.

Activities Supporting performance Management and Reward

            There are several activities conduct by distinguished agencies and employees to make sure that the working environment is kept in a condition that makes it easy for them to perform their daily routines. The main focus is directed in the employee’s knowledge and the skills that they use to perform the daily needs. A positive culture is maintained in a company to ease the way of communication so that employees participate in making them known to the top management. For instance, a culture that promotes two-way communication is helpful since it encourages accountability in the management through clear communication between the employees and the management.

Some of the activities needed in a company are counseling, teaching, and training, and guiding. Counseling is the strategy used by some organizations in addressing psychological problems in employees. Studies show that employees have their personal and familial matters that disrupt them in performing their daily needs. 360 feedback gathers the behaviors of several stakeholders in an organization and assists in capturing informal and formal data. Studies show that some companies such as Walmart introduced a buddying strategy where they can assess the behavior of the employees using another peer who evaluates the general behavior of the employee.

According to xxxx a total reward system has been helpful in other countries since it emphasizes a high level of organizational effectiveness. However, a company needs to have a performance and behavior strategy to point out problems in the organization and then design an extrinsic and intrinsic rewarding system that encompasses nonfinancial and financial data. Strategies introduced in this sector include skill development, recognition, and opportunities. Companies in South Korea have had a problem deciding the type of reward system to adapt. Studies have shown that distinguished cultures affect the performance of employees and their motivation towards a certain task. A study conducted in Korea Advanced Institute of Science and Technology showed that people with nonwestern cultures have different motivations towards the performance of the various task. However, they found that the total reward approach could bear good fruits in considering economic competitiveness and retaining the employees.

Theories in Performance Management

There are several theories used by researchers and companies in developing and design an effective performance management scheme some of the theories used performance management and reward are ;

Expectancy theory; – It is the thepry that was introducedin 1965 by Victor Vroom, he insisted in motivational apoproach through change of behavior in individuals. He argued that individuals could change the manner they perform a specific job if that is aware of the outcome that would benefit them. It makes sure that employees have what it takes to perform certain tasks in the best manner possible. For instance, when an individual who is working in cargo handling is seen to have an interest in driving, then the company can relocate them to the best areas they can perform accordingly. This theory shows that a task that is beyond achievement demotivates a worker, and they get bored along the way. Instrumentality is used in this theory to make different tasks have different ways of rewarding them. Therefore, when an organization has the same rewards for several positions and activities, employees won’t be motivated to work in other areas where they can exploit their full potential.

Goal theory: This is the theory that directs attention in hard priorities so that individuals are given difficult tasks that they strive to achieve the final goal. It is believed that people decrease performance if they are working on easy tasks. Studies show that when people are challenged, they tend to employ tactical skills to deal with varied activities. Goal theory encompasses the aspects of clarity so that an individual is given an attainable target within a specific period. Further, they are challenging such that to achieve the goals; there must be some extra effort needed to complete the task. Finally, goal setting includes feedback provision showing the progress of the job and a certain level of commitment to the objectives in question.

Social Cognitive Theory: Albert Bandura (1986), is the theory that is based on mindset and perception. Studies showed that people belief reflects the performance they show while conducting any activity. Can/cannot is believed to be a powerful mindset that reflects the nature and attitude rendered in a particular task. Albert explored individual past experiences while coming up with this theory; many successful have had an instance where they believe they don’t make it, and they end up falling, but having a positive attitude is the best motivation. There are there main pillars in theory, and they included reciprocal determinism, self-efficacy, and expectations. Reciprocal determinism is the consent of the social cognitive aspect that engages individual self-regulation skills (personality), environment (both social and physical), and behavior (stimuli response from external factors). Expectations are the concern directly to the practice of anticipation and consequences projection. People tend to think about the result of an activity/behavior before finding themselves in it. Self-efficacy is an essential value to individual confidence when people believe and value their capabilities.

Fig.1 Reciprocal determinism in Social Cognitive Theory conceptual framework

Equity Theory: this is a critical theory that is used by many agencies as a way to motivate and increase performance. Equity theory showed that others envy people who associated themselves with people who have shown a little more effort and have achieved rewards and benefits. A positive attitude is instilled in others so that they can also work to avoid dissatisfaction. Studies show that inequity theories have raised ethnic-based discrimination in working places.

Analysis & Discussion

Most people associated Asians working terms and norms with their cultures; this is something that can affect performance management in a company. Further, the US federal government makes sure that agencies have reward policies, which are a move that can alter companies’ performance management. Considering that 93% of United States companies use an e-performance system to get information about the performance review, there could be some data breaches from cyber attackers. This could mean that some platforms are sued to tarnish and the name of other companies as a competitive strategy.

Services are provided in a wide range of considerations, which include nonmonetary rewards and monetary rewards, all of which are used to retain and motivate the employees. Reward policies are made clear to everybody in the company and society as a clear monetary incentive, but there are not uniform in several companies. Employees may feel that they are working for long hours since they do not attend their personal and family matters; also, they should be leaves and minimizing their working hours. Guidance is done to relocate employees from their states to the initiation states that would make sure they can perform their duties without other external problems. The guidance also helpful when a company wishes to mentor employees and have them develop a positive attitude towards the job they perform. However, companies need to implement a feedback model that would ensure continuous communication amongst employees, supervisors, and top management.

While it does not mean that all these intrinsic needs are important, it also includes nonmonetary and monetary rewards. Other nonmonetary awards that re [rovided by some companies and also included in their corporate systems are transport, housing, and training to sharpen the skills of the employees. From the review section, some theories have gained recognition as several companies adopt them in improving and challenging economic conditions. Some companies in the US direct their interest in internal capabilities to enhance productivity and performance instead of external improvement, such as technological and market aspects.

Conclusion and recommendations