Performance Management and Reward in Organisation Assignment Sample

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Introduction of Performance Management and Reward in Organisation Assignment

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1. Discussing the purpose of performance management and factors that impact on them

 Purpose and components of performance management

(Source: Bellisario and Pavlov, 2018)

Managing the approaches and theories that can manage the effectiveness of the organisation in managing different tasks with efficiency and productiveness is called PM. Therefore, it can be related to a framework that can draw an outline of the present condition of the understanding held by the employees (Bellisario and Pavlov, 2018). Moreover, the way employees contribute to the ongoing advancement of implementation. PM is a part of the organisation's supply chain for outsourcing the eligible employees (Leeuw et al. 2020). Organisations aim to manage the individual’s performance and develop an ongoing process of clarifying job duties, priorities, and anticipations for the goals.

According to Armstrong, (2021), the purpose of PM is to enhance the communication system in the organisation through feedback and reward which will encourage the employees in increasing their capabilities towards best performance. The line managers use this system more often.

Different associated factors like culture regarding performance-oriented, leadership, internal management commitment, employee engagement, internal resources, and rewards systems have a huge impact on PM. Organisations promote a rewarding culture to enhance PM.

Different components such as rating, monitoring, staffing, planning, and others can support performance management and result in effective performance management.

2. Factors that need consideration in managing the performance management

 Factors affecting performance management

(Source: Diamantidis and Chatzoglou, 2018)

The key role of the line managers is to assess the ability of the performance and skills available to an employee (Diamantidis and Chatzoglou, 2018). Most managers understand that the primary notion of effective performance management should contain a goal stage, expansion planning, coaching, and recognition of the talent.

The factors that need consideration by managers to manage the PM are the followings:

  • Skill and competency

The availability of the range of skills that an employee has inside can be defined in practical circumstances. Different jobs inside an organisation often require diversified skills and competencies, examining the potential of the employee with the skills and competencies regarding the job role is needed (Arifani and Susanti, 2020). Skills like adaptability, leadership, and problem-solving are much required to meet the requirements of PM by an employee.

  • Organisational goals

Goals and objectives that have been considered by the organisation need to be considered by the managers before examining the PM. Without considering the goals, the manager cannot decide on the skills, competencies, and other recruitment to proceed with.

  • Motivation level

A motivated employee can ensure that the entire workflow will follow that candidate and the environment will be motivated (Wang, 2021). Without the motivation of the workers, an organisation cannot meet the target.

3. Discussing the role of appraisals that used for Performance Management

 Role of appraisals

(Source: Jedaia and Mehrez, 2020)

A periodic assessment that is evaluated to make an assessment on the performance of the employee and promote them in the workplace so they can carry on their performance towards the next level.

In the globalisation process, organisations are focusing more on the PM instead of performance appraisals. Performance management is a continuous operation; however, its appraisals are frequent activities. Thus, as a procedure, PM is a dynamic function, and its appraisals can be declared as static. The idea of performance appraisals gives some quantitative data to the line managers that can be accepted as the development of the employee’s performance.

Performance Appraisal (PA) is one of the powerful tools which are used by the different management systems to encourage employees toward accomplishing organisational objectives (Jedaia and Mehrez, 2020). The procedure of increment used by offering PA can ensure the employees will stay motivated. Moreover, the employees will recognise that the organisation is selecting hard workers without any monopoly.

PA is moreover a rewarding system that can attract the employees in working hard for achieving the goals set by the organisation. The entire work environment will stay focused on increasing the PM by itself.

4. Discussing the key components to achieve an effective reward system

 Impact of reward system

(Source: Ngwa et al. 2019)

The total reward system is the combination of the service, compensation, and advantage that one can achieve from the organisation based on PM analysis. The reward system defines the compensation, wages, and promotional statement which are regarded as the open window for a career.

The reward system is organised and handled by the HR department in an organisation by recognition of the suitable employees (Ngwa et al. 2019). Followings are the key components to achieving the reward system in an organisation:

  • Financial

Higher Wages: As per Vu et al. (2018), generally financial incentives are used as a hike in salary to promote and support workers in their career improvement.

Compensation: Sometimes organisations can offer a monetary bonus for employees to offer rewards based on their PM.

Share: Organisations sometimes offer a percentage of company shares as an additional element with the existing salary based on profit and goals achieved by the performance of the workers.

  • Non-Financial

Professional development: Offering employees the opportunity for growing their careers to acquire new skills by providing training is a part of the reward system.

Feedback: Providing feedback based on the PM and analysing the value of employees by their skills and performance. This extraordinarily offers the workers to lead some projects.

5. Relationship between reward, performance, and motivation

 Maslow’s need hierarchy

(Source: Paais and Pattiruhu, 2020)

An organisation needs to identify the interconnection of the reward system that can offer employees motivation to perform well in the long term. By recognising the link between the aspects an organisation can promote the best environment (Martono et al. 2018). Additionally, employees will start feeling their values and be encouraged to feel motivated.

Based on the theory of Abraham Maslow it can be seen that the hierarchy needs to acknowledge the motivation approaches (Paais and Pattiruhu, 2020). The psychological theories are the most demanded and basic for motivation.

Management of a business can encourage its workers through finances, grades and awards. Employees can encourage themselves by finding employment where they can execute their personal objectives, skills, and desires.

6. Discussing the reasons for employees' retention by fairly treated

Organisational treatment is the key to employee motivation in the workplace which can impact the environment of employee retention. Treating employees unfairly based on their age, gender, and racism can lead to discrimination in the work environment (Modau et al. 2018). Based on the approaches and ways an organisation follows in treating an employee can affect the employee retention perspective and its impact on productivity.

Different procedures will be helpful for organisations such as:

  • Improve employee efficiency and productivity
  • Reducing the risks available in the workplace
  • Promoting the positive awareness


Al-Jedaia, Y. and Mehrez, A., 2020. The effect of performance appraisal on job performance in governmental sector: The mediating role of motivation. Management Science Letters, 10(9), pp.2077-2088.

Arifani, A.Z.T. and Susanti, A.Y., 2020. Litereture Review Factors Affecting Employee Performance: Competence, Compensation And Leadership. Dinasti International Journal of Economics, Finance & Accounting, 1(3), pp.538-549.

Armstrong, M., 2021. Performance management.

Bellisario, A. and Pavlov, A., 2018. Performance management practices in lean manufacturing organizations: a systematic review of research evidence. Production Planning & Control, 29(5), pp.367-385.

De Leeuw, S., Abidi, H. and Dullaert, W., 2020. Performance management practices in humanitarian organisations. Journal of Humanitarian Logistics and Supply Chain Management.

Diamantidis, A.D. and Chatzoglou, P., 2018. Factors affecting employee performance: an empirical approach. International Journal of Productivity and Performance Management.

Martono, S., Khoiruddin, M. and Wulansari, N.A., 2018. Remuneration reward management system as a driven factor of employee performance. International Journal of Business & Society, 19.

Modau, F.D., Dhanpat, N., Lugisani, P., Mabojane, R. and Phiri, M., 2018. Exploring employee retention and intention to leave within a call centre. SA Journal of Human Resource Management, 16(1), pp.1-13.

Ngwa, W.T., Adeleke, B.S., Agbaeze, E.K., Ghasi, N.C. and Imhanrenialena, B.O., 2019. Effect of reward system on employee performance among selected manufacturing firms in the Litoral region of Cameroon. Academy of Strategic Management Journal, 18(3), pp.1-16.

Ogbu Edeh PhD, F., Nonyelum Ugwu, J., Gabriela Udeze, C., Chibuike, O.N. and Onya Ogwu, V., 2019. Understanding performance management, performance appraisal and performance measurement. American Journal of Economics and Business Management, 2(4).

Paais, M. and Pattiruhu, J.R., 2020. Effect of motivation, leadership, and organizational culture on satisfaction and employee performance. The Journal of Asian Finance, Economics, and Business, 7(8), pp.577-588.

Verma, A., 2018. Impact of Compensation and Reward System on Organization Performance: An Empirical Study. International Journal of Research and Analytical Reviews, 5(4), pp.136-140.

Vu, D.H., Muttaqi, K.M., Agalgaonkar, A.P. and Bouzerdoum, A., 2018. Customer reward-based demand response program to improve demand elasticity and minimise financial risk during price spikes. IET Generation, Transmission & Distribution, 12(15), pp.3764-3771.

Wang, C., 2021. Impact of the performance management process on employee motivation and performance in the Chinese banking industry (Doctoral dissertation).

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