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Performance Management

This presentation discusses performance management and reward systems. It explains that performance management is a continuous process of assessing employee performance and aligning it with organizational goals. An effective reward system motivates employees and maximizes their performance. While reward systems benefit organizations by improving motivation, employee retention, and productivity, they also present challenges. These include employees focusing only on rewarded goals, lack of cooperation, difficulties measuring performance accurately, and potential decreases in intrinsic motivation. The presentation provides examples of performance-based rewards and discusses how they can incentivize improved performance when designed and implemented properly.

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Ramanpreet Kaur
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70 views13 pages

Performance Management

This presentation discusses performance management and reward systems. It explains that performance management is a continuous process of assessing employee performance and aligning it with organizational goals. An effective reward system motivates employees and maximizes their performance. While reward systems benefit organizations by improving motivation, employee retention, and productivity, they also present challenges. These include employees focusing only on rewarded goals, lack of cooperation, difficulties measuring performance accurately, and potential decreases in intrinsic motivation. The presentation provides examples of performance-based rewards and discusses how they can incentivize improved performance when designed and implemented properly.

Uploaded by

Ramanpreet Kaur
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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PRESENTATION ON

PERFORMANCE MANAGEMENT
SRI GURU GRANTH SAHIB WORLD
UNIVERSITY, FATEHGARH SAHIB

DEPARTMENT OF COMMERCE AND


MANAGEMENT

SUBMITTED TO :
SUBMITTED BY:
DR. KANCHAN GARG
RAMANPREET KAUR
18192204
PERFORMANCE AND REWARD
• Performance and reward strategies are driven
by the concept that employees are not
inherently born with the desire to come to work
and put in their maximum efforts every day for
no reason at all.
• Employers motivate and maximize employee
performance via the implementation of a
reward system.
• An effective performance and reward strategy
aligns with organizational goals and objectives.
• Today organizations are showing a
high degree of commitment towards
reinforcement of reward practices for
attracting, retaining and motivating
employees.
• Reward system is a crucial motivator
and may contribute towards the
enhancement of the productivity .
PERFORMANCE MANAGEMENT
Performance management can be defined as a
continuous process of assessing and measuring the
performance of an individual and aligning it with the
organizational goals. It is the job of the HR people to
design and effective performance management
system.
REWARD SYSTEM
Performance management system includes
two other important subsystems,
Feedback system :- for aligning
performance with organizational goals.
Reward system :- for motivating and
continuous improvement.
The reward systems include returns given to
the employees in the form of cash
benefits(pay raises) or recognition
programs(intangible form).
WHY LINK REWARD TO PERFORMACE
• To connect two ends of the rope, a knot is
required, to make it lengthy and useful for
long run.
• The tie up between the reward and
performance should be made for employee
retention and their commitment to work.
• Employees should perform well to be
rewarded and the approach designed for this
is “Pay for Performance”.
• Reward system also includes employee
recognition program.
• Both monetary and non monetary rewarding
EXAMPLES :
 A simple example for performance based
reward system can be best explained by the
game of cricket, when bowler or batsman
performs well in a match, his performance is
rewarded by the cricket council through the
title “Man of the Match” and cash award. It
motivates the winner and also the team
players to perform well for their team.
 Continental Airlines as a part of their
turnaround strategy introduced on time
bonus incentive package according to which
an employee will gain a bonus of $65 every
BENEFITS OF PERFORMANCE
BASED REWARDING APPROACH
Motivate employees to perform better,
aligning with the organizational goals.
Employees get a clear insight of what
should be done to meet the goals.
Employee involvement (participation
management) is increased which results in
autonomy, more confidence and
innovation in work.
Rather than working on routine jobs,
employees volunteer to work on
challenging jobs to increase their
recognition levels in the working society.
Employees get a chance to learn and
enhance their skills, which highlights
their development in career.
Decreased attrition rate, which
empowers employee retention in long
run and commitment.
Employee retention results in less
recruitment cost which helps in the
financial stability of the organization.
Helps in minimizing employee
dissatisfaction and enhanced
CHALLENGES
1. The syndrome of work performed in
relation to pay:-
When the pay is dependent on only certain
performance indicators than the employees
neglect the other important components of their job
and focus only on the specified indicators.
2. Negative results on spirit of cooperation :-
The employees do not cooperate with other
employees by restricting certain useful information
to them if they consider that this withholding
information can become helpful to other employees
in future.
3. Lack of control :- This challenge is related to
4. Difficulties in measurement of
performance :- Another big challenge face by the
management of organization in the area of pay for
performance is that the performance of employees
is quite difficult to measure especially when there is
some possible reward attached with the
measurement.
5. Psychological contracts :- When a system of
pay for performance is implemented in an
organization form a psychological contract with the
organization that would become resistant to the
changing circumstances.
6. The credibility gap :- This is a challenge that
is related to the credibility of the pay for
performance system. The employees of the
organization consider that the implemented pay for
7. Job dissatisfaction and stress :-
Although the productivity in the organization
is enhanced due to the pay for performance
system but the job satisfaction among the
employees is reduced.
8. Potential decrease in intrinsic
drives :- The pay for performance system
compels the employees to perform the
required work so that they would obtain the
resultant reward but this badly affects the
creativity and talents of the potential
employees.
THANK
YOU

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