2 purposes of performance management and its relationship to business objectives

2 purposes of performance management and its relationship to business objectives

and its relationship to business objectives Performance management is a Identify 2 purposes of reward within a performance management. Performance management is the process of creating a work environment to address any gaps that will hamper the achievement of its objectives. Performance management system in contemporary business organisations in Australia: ongoing feedback; Developing relationship between employer and. Explain at least 2 purposes of performance management and its relationship to management is to ensure accomplishment of business objectives and to.

An employee must be confident that such increased performance with result in them achieving the desired reward or outcome. Valence is how much the individual values the expected outcome. For example, if someone is mainly motivated by money, they may not value the benefits of additional time off. Each individual will have different motivations at different points in time.

A successful organisation needs to take into consideration the different motivational factors for each of its employees so that they can develop, increase and maintain motivation. Whilst remuneration and promotion are very obvious motivations, we also know that employees are motivated by other intangible factors such as having a feeling of belonging and personal growth. Abraham Maslow discovered a great way of structuring the motivation at different points in time.

Maslow believed that individuals are motivated by their needs and when one need is fulfilled, an individual will strive to fulfil the next one. For example, safety needs could mean a safe working condition to reduce stress and anxiety for an employee. Identify two purposes of reward within a performance management system. One purpose of reward within a performance management system is to attract and retain good employers.

2 purposes of performance management and its relationship to business objectives

Another purpose of reward within a performance management system is to motivate employees to be flexible and perform to the fullest extent of their capabilities. Although motivation has to come from within, reward can be used to encourage employees to go above and beyond in their roles. Reward can only motivate employees if the reward is attractive to the employee and the employee knows that the level of performance is achievable to them.

Describe at least 3 components of a reward system, 1 of which should be non-financial. A reward system is built up of the financial and non-financial components that are provided to employees in exchange for their time, talents, and efforts.

Financial rewards are all rewards that have a monetary value and will add up to the total remuneration of an employee. Non-financial rewards are those which focus on the physiological needs employees have such as appreciation, influence and personal growth.

Objectives of Performance Management

Three key components of a reward system are; Recognition is awarding the employees who go above and beyond in their roles and behave in a way that is in line with the organisations business strategy. This will increase employee satisfaction by making employees feel more appreciated and invested in. Some examples of these rewards in the workplace are employee of the year awards, appreciation luncheons, long service awards and recognition programmes.

These additional elements can include a pension, sick pay, private healthcare, life assurance, childcare vouchers and annual leave. An organisation should carefully consider and maintain what benefits it is going to have as each employee will have difference needs and circumstances.

2 purposes of performance management and its relationship to business objectives

Explain the factors that should be considered with managing good and poor performance. It is a way of measuring what an employee contributes to the goals of their teams and the business as a whole.

When managing performance we must consider the following factors; Employees must be able to understand their objectives and know what they need to do in order to meet them. Objectives are usually agreed at the start of a year so the individual can start the year knowing what they need to achieve and can then be reviewed at the end of the year.

Agreeing the objectives should be a two way discussion between the line manager and employee. An effective objective should be achievable but challenging, it should be relevant to the department and business, should be easily measurable and it should have a timeframe of when it needs to be achieved.

2 purposes of performance management and its relationship to business objectives

It is important that an employee receives regular feedback when it comes to managing performance. Feedback needs to be given to employees so they can understand how they are progressing and what they need to improve on.

2 purposes of performance management and its relationship to business objectives

It is important to focus on the resources that the employee uses within their role as this could be having an effect on their performance. When managing poor performance, a manager should identify what is causing the employee to underperform; they should do this by addressing the underperformance with the employee in one to one meetings. Managers need to be trained in handling difficult conversations and need to feel confident in handling any sensitive conversations.

It is important that a manager provides the relevant support as it will help the underperforming employee understand the opportunities for improving their performance and taking the necessary action. Organisations often manage poor performance formally through a performance improvement plan PIP. The PIP should be closely monitored and should set out the following; The performance problem The timescale for achieving this improvement A review date Specify possible consequences if performance standards are not met Any training that the employer will provide to assist the employee.

Describe at least 2 items of data, including 1 external to the organisation. There are many integral documents to a performance review. Documentation helps to structure a performance review and give clear guidelines of what needs to be covered during the meeting. For professions involved in ensuring organisational performance, such as HR, a big challenge is to lever the relationship between the people engaged in the enterprise and the value they deliver.

Performance management is the attempt to maximise this value creation and ensure that employees contribute to business objectives.

At its best, performance management is a holistic set of processes. It brings together many principles that enable good people management practice, including learning and development, performance measurement and organisational development.

Performance Management | Factsheets | CIPD

Those that exist usually state that it comprises a range of distinct tools and activities. Broadly, performance management is an activity that: Performance management should be: Effective performance management relies on both formal and informal processes. These are often discussed in meetings between the line manager and employees, known as performance reviews or appraisals. But performance management is also about establishing a culture in which individuals and groups take responsibility for the continuous improvement of business processes and their own skills, behaviours and contributions.

As part of this, employees will need to talk to their managers about the support and resources they need to do their jobs well.

Performance management: an introduction

How does performance management work? Performance management is a continuous cycle, not an isolated event. Because performance management integrates various HR activities, an overarching structure or framework is needed for the different parts to be complementary. Each organisation should develop practices that are relevant to their specific business context and their actual or desired organisational culture. There should also be flexibility within the system itself to account for the different ways teams or functions operate within a single organisation.

2 purposes of performance management and its relationship to business objectives

Corporate strategic goals should provide the starting point for business and departmental goals, followed by agreement on individual performance and development priorities. Individuals and managers can then draw up plans and monitor performance continuously. Feedback should be given regularly, and could be supported by formal performance reviews at agreed points over the course of the year. The plans can also highlight organisation-wide processes that are required to support performance; for example, leadership, internal communications, and others.

Changing trends in performance management In this video, Jonny Gifford, Senior Adviser for Organisational Behaviour at the CIPD, explores the changing trends in performance management over recent years. Play Video Challenges to traditional performance management practices Having remained fairly stable for two or three decades, common performance management practices have started to change over the last few years in response to a proliferation of articles challenging received wisdom.

The broad thrust is that traditional practices — in particular, the dreaded annual appraisal — are outdated, if indeed they ever worked.

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