This essay will discuss the structure of organisational appraisals and the reward schemes that companies may adopt to manage the performance of their employees.
Performance appraisals provide a formal, recorded, regular review of an individual's performance, and a plan for future development.
Performance appraisals are essential for the effective management and evaluation of staff. Appraisals help develop individuals, improve organizational performance, and feed into business planning. Formal performance appraisals are generally conducted annually for all staff in the organization. Each staff members is appraised by their line manager. Directors are appraised by the CEO, who is appraised by the chairman or company owners, depending on the size and structure of the organization. Performance appraisals are important for staff motivation, attitude and behavior, communicating and creating individual and organizational aims, and making positive relationships between management and staff.
Appraisals allow an employee to have a discussion about their individual performance and receive feedback. They provide clarity of what is expected from the organization to help them understand their role and how their work gives a direct impact on the performance of the company. Also it’s a chance for the employee to discuss any wants or anything they are not happy with. The appraisal must be an honest
conversation that is kept
confidential.
When it comes to in the final annual discussion nothing should come as a surprise. If a staff member has been receiving weekly or monthly performance reviews then they should already know what would be discussed. An appraisal includes; overall performance, results against objectives, customer feedback, areas of agreement, extra personal development, goals, areas for improvement, training if identified as necessary and provision of specific examples of performance good or bad.
The appraisal provides the means through which the five key elements of performance management can be achieved. These are:
1. Measurement- assessing results against targets and standards.
2. Feedback – giving people information on how they are doing.
3. Positive reinforcement- emphasizing what has been done well so that it will be done even better in the future; only making constructive criticisms, i.e. those that point the way to improvement.
4. Exchange of views- ensuring that the discussion involves a full, free and frank exchange of views about what has been achieved, what needs to be done to achieve more and what individuals think about work, the way they are guided and managed and their aspirations. Performance and development reviews provide those involved with the opportunity to reflect on past.
5. A discussion and agreement on the actions to be taken to ensure that the performance and developmental
When it comes to in the final annual discussion nothing should come as a surprise. If a staff member has been receiving weekly or monthly performance reviews then they should already know what would be discussed. An appraisal includes; overall performance, results against objectives, customer feedback, areas of agreement, extra personal development, goals, areas for improvement, training if identified as necessary and provision of specific examples of performance good or bad.
The appraisal provides the means through which the five key elements of performance management can be achieved. These are:
1. Measurement- assessing results against targets and standards.
2. Feedback – giving people information on how they are doing.
3. Positive reinforcement- emphasizing what has been done well so that it will be done even better in the future; only making constructive criticisms, i.e. those that point the way to improvement.
4. Exchange of views- ensuring that the discussion involves a full, free and frank exchange of views about what has been achieved, what needs to be done to achieve more and what individuals think about work, the way they are guided and managed and their aspirations. Performance and development reviews provide those involved with the opportunity to reflect on past.
5. A discussion and agreement on the actions to be taken to ensure that the performance and developmental
objectives are achieved, this will
include the formulation of a personal development plan.
(A Handbook of Human Resource Management Practice 9th edition- Michael Armstrong)
Diagram (Human Resource Management: Theory and Practice By John Bratton, Jeffrey Gold)
The early Human Resource Management model developed by Fombrun et al. (1984) emphasizes the interrelatedness and the coherence of human resource management activities. This consists of 4 key components: selection, appraisal, development and rewards. These human resource activities aim to increase organizational performance. The weakness of this model is the focus on 4 key components, it ignores different stakeholder interest, situational factors and the notion of management’s strategic choice.
Performance appraisal schemes almost always included an overall rating of the individual’s performance. Early performance management systems normally incorporated rating, especially when they were associated with performance-related pay, as was frequently the case. It is interesting, however that the research conducted by Armstrong and Baron (1998) for the IPD found that 43% of all the organizations with performance management did not require an overall rating.
I have worked in retail at Homebase in the same job for 3 years as the role of showroom supervisor, so I have experienced several appraisals. This involved my line manager giving me a performance form to fill in a few weeks
(A Handbook of Human Resource Management Practice 9th edition- Michael Armstrong)
Diagram (Human Resource Management: Theory and Practice By John Bratton, Jeffrey Gold)
The early Human Resource Management model developed by Fombrun et al. (1984) emphasizes the interrelatedness and the coherence of human resource management activities. This consists of 4 key components: selection, appraisal, development and rewards. These human resource activities aim to increase organizational performance. The weakness of this model is the focus on 4 key components, it ignores different stakeholder interest, situational factors and the notion of management’s strategic choice.
Performance appraisal schemes almost always included an overall rating of the individual’s performance. Early performance management systems normally incorporated rating, especially when they were associated with performance-related pay, as was frequently the case. It is interesting, however that the research conducted by Armstrong and Baron (1998) for the IPD found that 43% of all the organizations with performance management did not require an overall rating.
I have worked in retail at Homebase in the same job for 3 years as the role of showroom supervisor, so I have experienced several appraisals. This involved my line manager giving me a performance form to fill in a few weeks
before the actual discussion. I had
to write down how I thought I had been performing and if I thought that my
managers would think the same. I also needed to include examples of my work. My
line manager then would sit down with me and go through the form.
In my first year of my job the store was still fairly new and the managers were not on top of their performance reviews for staff, so I didn’t have one. In the appraisal we spoke about my performance in the last year and how I have met my targets. We discussed the ways in which I dealt with customers to achieve those goals and how I could improve them to do even better. My line manager asked me if I was happy with my role and if I wanted to aspire further.
For 2 years in this job I was a cashier and had some responsibilities working at the customer service desk but I wanted more experience in showrooms, which was an area that I wasn’t very familiar with. My line manager recognized that I could potentially achieve more so he asked me if I wanted to go on a couple of showroom training courses. Before this discussion the store manager didn’t want to waste training on me because he assumed that I would leave the store once I had started university and moved away. Once they knew that I was loyal and devoted to the company then he was willing to give me the training to succeed.
This created a plan of action and I could see clearly that my new aims were to continue with the level of excellence
In my first year of my job the store was still fairly new and the managers were not on top of their performance reviews for staff, so I didn’t have one. In the appraisal we spoke about my performance in the last year and how I have met my targets. We discussed the ways in which I dealt with customers to achieve those goals and how I could improve them to do even better. My line manager asked me if I was happy with my role and if I wanted to aspire further.
For 2 years in this job I was a cashier and had some responsibilities working at the customer service desk but I wanted more experience in showrooms, which was an area that I wasn’t very familiar with. My line manager recognized that I could potentially achieve more so he asked me if I wanted to go on a couple of showroom training courses. Before this discussion the store manager didn’t want to waste training on me because he assumed that I would leave the store once I had started university and moved away. Once they knew that I was loyal and devoted to the company then he was willing to give me the training to succeed.
This created a plan of action and I could see clearly that my new aims were to continue with the level of excellence
I had achieved and continue hitting
my weekly and period targets and to use the opportunity of the course to excel
myself and pass them in order to work in showroom.
The end of an appraisal can have several different outcomes. Some of these are: Performance related increased salary, performance related bonus pay, maximum cash reward, profit share, share options, recognition for ready for promotion, identification of areas for further training or personal acknowledgement from appraiser.
A leader is someone who is to direct a group towards a group goal. The style of leadership and the reactions of the group will be determined by the situation concerned. For example. Tasks or environment. It’s dependant upon the values and personality of the leader and on the needs of the organization. It is important that the style of leader is appointed appropriately. It will ensure managerial effectiveness in the pursuit of the organization aims and objectives.
The main types of leaders are: charismatic- personal charisma, problem of succession. Traditional- birthrights, available to few. Situational- right place at the right time, temporary. Appointed- relies on positions and legitimate power. Functional- based on what he does, adapts behavior to different situations. The types of leadership will vary from person to person and organization to organization.
Rewards link to performance individually or in a team. Reward schemes are very important to keep
The end of an appraisal can have several different outcomes. Some of these are: Performance related increased salary, performance related bonus pay, maximum cash reward, profit share, share options, recognition for ready for promotion, identification of areas for further training or personal acknowledgement from appraiser.
A leader is someone who is to direct a group towards a group goal. The style of leadership and the reactions of the group will be determined by the situation concerned. For example. Tasks or environment. It’s dependant upon the values and personality of the leader and on the needs of the organization. It is important that the style of leader is appointed appropriately. It will ensure managerial effectiveness in the pursuit of the organization aims and objectives.
The main types of leaders are: charismatic- personal charisma, problem of succession. Traditional- birthrights, available to few. Situational- right place at the right time, temporary. Appointed- relies on positions and legitimate power. Functional- based on what he does, adapts behavior to different situations. The types of leadership will vary from person to person and organization to organization.
Rewards link to performance individually or in a team. Reward schemes are very important to keep
people motivated. Usually in a sales
company the employee is rewarded with commission, this gives the employee drive
and motivation to try harder. It is key to reward the right things to convey
the right message about what is important in terms of expected behaviors and
outcomes. Working towards a team goal can be difficult, some members might work
really hard and others might not do enough but the team will still achieve
their overall aim. This means that team bonuses need strong management to make
sure that everyone is working at the same rate. If the team reward is a
performance related bonus then management can’t reward someone over achieving
more unless someone is underachieving, as the organization usually has a budget
to split equally.
Align reward practices with both business goals and employee values, as Duncan Brown emphasizes, ‘the alignment of your reward practices with employee values and needs is every bit as important as alignment with business goals, and critical to the realization of the latter’.
(Reward Management - A Handbook of Remuneration Strategy and Practice By Michael Armstrong, Helen Murlis, Hay Group)
Membership based rewards include the common benefits that all employees receive when they are employed. People always expect rewards to be fair, so if one member of staff is rewarded more than others then this needs to be justified with performance ect. Performance based rewards are linked to individual, group
Align reward practices with both business goals and employee values, as Duncan Brown emphasizes, ‘the alignment of your reward practices with employee values and needs is every bit as important as alignment with business goals, and critical to the realization of the latter’.
(Reward Management - A Handbook of Remuneration Strategy and Practice By Michael Armstrong, Helen Murlis, Hay Group)
Membership based rewards include the common benefits that all employees receive when they are employed. People always expect rewards to be fair, so if one member of staff is rewarded more than others then this needs to be justified with performance ect. Performance based rewards are linked to individual, group
or organizational performance. Some
performance base rewards like bonus pay are varied which means the level is at
risk. Variable rewards are not incorporated into the basic rates of pay. Job
design is important in determining the level of intrinsic motivation provided.
Intrinsic motivation is inherent in the job itself, this suggests that people
will seek work that gives the personal satisfaction.
Extrinsic rewards are artificially applied to the job and pay is the classic example.
Modern company benefits include: pension schemes, share options, insurance schemes (life, medical), company cars, fuel, work related issues, crèches, careers advice and holiday schemes.
Some rewards are not classed as benefits. These include: recognition- employee of the month, trophy, and special parking place. Service awards- small cash or jewelry. Time off- one afternoon, can be based on performance and attendance. Educational- tuition fees, travel expenses for seminars. Discount- discount on offered products or services. Food, meals and clothing- luncheon voucher, meal allowances. Special awards- safety, customer nominations.
“Hard work pays” is the simple philosophy behind wage-incentive programmes. (Human Resource Management By Durai)
Employees usually get wage incentives in addition to their base salary in the organization. Wage incentives enable and organization to present challenges and rewards alike to its workforce in order to make the employees
Extrinsic rewards are artificially applied to the job and pay is the classic example.
Modern company benefits include: pension schemes, share options, insurance schemes (life, medical), company cars, fuel, work related issues, crèches, careers advice and holiday schemes.
Some rewards are not classed as benefits. These include: recognition- employee of the month, trophy, and special parking place. Service awards- small cash or jewelry. Time off- one afternoon, can be based on performance and attendance. Educational- tuition fees, travel expenses for seminars. Discount- discount on offered products or services. Food, meals and clothing- luncheon voucher, meal allowances. Special awards- safety, customer nominations.
“Hard work pays” is the simple philosophy behind wage-incentive programmes. (Human Resource Management By Durai)
Employees usually get wage incentives in addition to their base salary in the organization. Wage incentives enable and organization to present challenges and rewards alike to its workforce in order to make the employees
enjoy their jobs more. The primary
purpose of providing wage incentives is to enhance the organizational
performance and employee productivity. Understandably, incentives constitute an
important Human Resource tool to achieve the desired performance goals within a
reasonable cost. Performance-based incentive programmes enable an organization
to keep its employees satisfied without producing any permanent rise in pay
and/or benefits. Wage incentive schemes help an organization establish a formal
relationship between individual performance and remuneration. Wage incentives
also motivate the employees to work harder in their jobs in order to get
recognition in monetary and non-monetary terms.
An effective incentive scheme includes several aspects to be successful. Measure must play a key role in determining reward. You need to design the plan to avoid judgment and interference from management. Establish clear links between rewards and efficiency. Ensure that the incentives are paid on time and that the scheme has a scheduled date of completion.
An incentive scheme can be broken down into: focus attention upon particular aspects of work, increase productivity, can be made more selective via entry requirements, encourages suggestions for improvements, a way of communicating company objectives and can lead to high- performance expectations.
There are some disadvantages of a performance related pay schemes these include: you could be rewarding
An effective incentive scheme includes several aspects to be successful. Measure must play a key role in determining reward. You need to design the plan to avoid judgment and interference from management. Establish clear links between rewards and efficiency. Ensure that the incentives are paid on time and that the scheme has a scheduled date of completion.
An incentive scheme can be broken down into: focus attention upon particular aspects of work, increase productivity, can be made more selective via entry requirements, encourages suggestions for improvements, a way of communicating company objectives and can lead to high- performance expectations.
There are some disadvantages of a performance related pay schemes these include: you could be rewarding
someone for a behavior you expect
them to do anyway, individual performance related pay could be harmful for a
team as people tend to have individual targets as well as team goals, poor
performers punished which leads to reduced levels of motivation, self esteem
and commitment to work. Performance related pay can lead to conflict between
trade unions and individuals wanting pay negotiations and there for hinder the
progress of collecting bargaining.
In conclusion it is vital for an organization to have a working Human Resource Management structure in place in order to analyze the on going performance of employees, which may result in a reward. Reward schemes are important to keep motivation within a company towards the goals they are trying to achieve. Without this the organization may lose its understanding of the roles of the employees and the direction in which they need to take to proceed and improve their development.
Word count: 2,328
References
A Handbook of Human Resource Management Practice 9th edition- Michael Armstrong
A Handbook of Human Resource Management Practice 11th edition- Armstrong
Diagram - Human Resource Management: Theory and Practice By John Bratton, Jeffrey Gold
Reward Management - A Handbook of Remuneration Strategy and Practice By Michael Armstrong, Helen Murlis, Hay Group
Human Resource Management By Durai
Human Resource Management
Appraisals and Reward schemes
Level 5
Amy Stirzaker
In conclusion it is vital for an organization to have a working Human Resource Management structure in place in order to analyze the on going performance of employees, which may result in a reward. Reward schemes are important to keep motivation within a company towards the goals they are trying to achieve. Without this the organization may lose its understanding of the roles of the employees and the direction in which they need to take to proceed and improve their development.
Word count: 2,328
References
A Handbook of Human Resource Management Practice 9th edition- Michael Armstrong
A Handbook of Human Resource Management Practice 11th edition- Armstrong
Diagram - Human Resource Management: Theory and Practice By John Bratton, Jeffrey Gold
Reward Management - A Handbook of Remuneration Strategy and Practice By Michael Armstrong, Helen Murlis, Hay Group
Human Resource Management By Durai
Human Resource Management
Appraisals and Reward schemes
Level 5
Amy Stirzaker
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