Organizational Success, Performance Management, Motivation and Rewards

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Topic:  Organizational Success, Performance Management, Motivation and Rewards
Purpose of performance management
Performance management helps in ensuring effectiveness, efficiency, and consistency towards achievement of organizational goals. An organization is able to align its resources, employees and systems towards the priorities and strategic objectives of an organization. Performance management helps in reconciling individual goals with those of the organization. This increases profitability and productivity of the organization. It enhances effective strategy, and operational goals delivery. The programs used, improves the overall performance of an organization.
Components of performance management processes
The components of a performance system include planning, training, feedback, evaluation, and rewards for outstanding performance. The components are an essential tool for employee development. Performance planning is a means of planning and communicating the expected performance to the employees. A plan can include behaviors, competencies, induction, agreeing objectives and personal development. The role of employees in this process is of substantial importance and includes individual responsibilities, accountability and behavior. Coaching and feedback helps enhances outstanding performance since, it provides informal and formal avenues for communication between managers and employees. They are able to discuss the progress, evaluate the competencies and make changes where necessary. Evaluation is the checking of progress against the set objectives and any arising demands. Evaluation and performance appraisal helps in assessing the achievement of objectives. Recognition and reward systems help in reinforcing exceptional performance.
The systems design should use the SMART criteria: reliable, achievable, timely, specific and meaningful. It is critical to examine psychological and cognitive aspects in relation to motivation and employee behavior. These factors include linking payment and performance, job satisfaction and attitudes.
Relationship between motivation and performance management
Herzberg’s two-factor theory explains satisfiers and dissatisfies in the workplace (Herzberg 87). These factors influence the level of motivation. Satisfiers increase the level of motivation thus enhancing performance. Motivating factors include recognition, responsibility, work itself, and achievement. Dissatisfies lead to de motivation and this affects performance in a negative way. These factors can arise from salary, work conditions, work environment, interpersonal relationship and administrative supervision.
The two factors are significant because they try to create a reasonable balance whereby employee can be motivated to work. Hygiene factors eliminate dissatisfaction in the work place. An organization can influence the motivators using performance management. This is the monitoring, evaluation and enhancing employee performance using Human Resource functions such as performance appraisals, job description, career development, rewards and continuous education. Bad employee relationship at the work place either with fellow colleagues or the management can lead to serious dissatisfaction at work and this will significantly affect employee performance. Creating a balance and effectiveness in team management, produces high quality performance.
According to McClelland’s Achievement Motivation Theory, people with higher achievement may not perceive money as an incentive rather will view it as a means of giving back in a performance. High achievers are not likely to remain in an organization that pays well but fails to recognize their achievements. Money may seem necessary to high achievers, but they value it more as temporal success past performance. Motivated employees tend to perform better. Reinforcement theory describes the relationship between employee behavior and the consequences.
Positive reinforcement seeks to reward desirable behavior. It includes promotion, pay rise and aims at increasing profitability as well as encouraging repetition of the desirable behavior. Employees who engage in appropriate behavior face the consequences. Goal setting helps employees to work together towards achieving common goals can be a leading source of motivation. Employees are encouraged to participate and give feedback on the progress. The employees must be committed, positive and be engaged in achievable goals.



Purposes of reward within a performance management process
Reward Systems aim at employee retention, motivation and reduction of employee turnover. Recognition and reward of individual performance is critical for managers, as it helps to recognize the exemplary performance of employees. This will help to motivate them to perform better and fulfill the organizational goals. Recognition helps to fulfill self -esteem needs of employees (Maslow, 236). Ma