Book All Semester Assignments at 50% OFF! ORDER NOW
  • Subject Name : Research Report

Performance management and reward system

Executive summary
The present scenario of the organizations suggests that performance management must be incorporated well in the organization because it can directly impact the profitability and productivity of the organization. Many organizations are not able to implement the performance management and reward system as a result employees are becoming dissatisfied. To maintain integrity in the organization, it is necessary to address the growing issues of the performance and reward management effectively. Various implications have been provided so that the organization can create a motivating environment for its employees. The organization must start recognizing its employees for their exceptional performance in the company to meet the desired goals. It can be executed only by measuring the performance of its employees with the help of a performance management system. Both terms are interlinked and play a significant role in the success of an organization.

Introduction
Performance management and reward management play a very significant role in the growth and success of an organization. The performance of an employee is directly related to the goals set by the organization. Companies evaluate the performance of the employees by identifying which goals have been accomplished by the individuals and which ones are still left to be achieved. The reward system of an organization totally depends upon the performance of the employees. The aim of this research is to identify an organization that is experiencing performance management and reward management issues. The issues identified are compared and contrasted by understanding the nature of the cause and which type of issue is faced by the organization. To understand the things in detail we have analysed the PWC Australia as it is reinventing the performance and reward management system of the organization to flourish in the Australian market. Various performance management issues of the company were identified some of them include the managers in the organization were emphasizing more on the process rather than the quality of the issues, managers of the organization used to exercise management by compliance, line managers do not an emphasis on the performance management conversations and feedbacks.
Literature Review
Performance management and rewards
Performance management is a process used by the organization to assess the work of its employees and determine their effectiveness in achieving the desired goals and objectives. Performance management is used to prepare an action plan for a new business (Shields et al. 2017). It monitors the progress of the actions and identifies which goals of the organization are yet to be achieved and which actions are helping to bring business closer to its goals. Performance management is a set of activities that ensure goals are met effectively in the organization or not. It is an on-going process where the supervisor provides feedback to the employees after reviewing the results. Some of the corporate challenges in the performance management include lack of strategic focus, lack of time, lack of leadership support, lack of stakeholder review, lack of proper training and communication, lack of simplicity and lack of appropriate recognition and rewards (Cardy and Leonard, 2014). Reward management system within an organization is very beneficial to attract potential employees into the business. Rewards can be given in any of the following forms to the employees. Some of them include incentives, salary, employee growth opportunities, and benefits and so on. In spite of such policies in the organization, employees leave the premises. It has a direct impact on the performance of the organization.
There are many internal and external factors that affect the dynamic performance management of PWC Australia. The nature of the cause for each of the issues has been described below
Issue 1 Lack of leadership qualities
Nature of the cause and reason behind the issue
The main cause of the inadequate leadership qualities is that the managers of the organization perform compliance exercise and they do not provide effective feedback to their employees. They work according to their wish and command others only when they want them to work. They do not provide feedback to the employees so that they can improve their overall performance.
According to Trullen et al. (2016), Human resources practises are rapidly increased to achieve overall HRM goal with the organization targets. The HR department supports the line manager for the effective implementation of human resources practices. It compares both effective and ineffective process in the organization to identify the line manager work towards the performance management feedback to its subordinates. It determined that Human resources can change the process of feedback and conversation by taking particular initiatives which require line manager capabilities, motivation and opportunities. The human resources department can involve the line managers in the development of human resources practices so that they can priories the feedback and conversation regarding performance management. The leader of the organization should use human resources practices for the betterment of performance management.
Whereas according to Brown, Kulik and Lim (2016) providing negative feedback to the employees is very much important for generating the improvement in the performance but sometimes employees take the feedback in the opposite direction. In order to gain benefits from the negative feedback, it is important to understand how negative feedback is communicating to the employees. The foundation of negative feedback strategies is evidence, emotive and communication. Line managers can use this tactic to resolve various issues of employees related to the performance.
According to Christensen et al. (2015) Employees generally do not like to receive the negative feedback but line managers can use the best tactics in order to deliver the negative feedback. It helps the manager to deal with the poor performer and apply the interventions that may work to achieve the organization goals. The leader can use negative feedback tactics to improve the performance of the employee.
On the other Chawla et al. (2016) states that by improving the feedback exchanges in the performance management will help to explore the feedback dynamics to the practitioners and line manager. The feedback given to the subordinate can change from one day to another. The supervisor or line manager can use the formal ratings for the feedback process but it will not tell the whole process of feedback. The organization requires an enhanced strategy for feedback. To improve the feedback process organization need to assess the performance management in order to achieve organizational goal. Performance management needs to focus on the overall improvement of the feedback environment. The environment feed involves the cultivating supportive, informal feedback etc. By analysing the feedback experience the leader needs to work on the few factors that are as follow
Source Credibility It concern with the judgement about the qualification of feedback sources.
Feedback Quality The leader should concern about the feedback quality that how the employee perceives and utilize the feedback.
Feedback Delivery The leader should focus on the feedback delivery that how impactful the feedback is given to the employees.
The frequency of unfavourable feedback Leader should avoid the unfavourable feedback which influence the employees work.
The feedback environment is usually assessed from the perspective of an employee and the evaluation done by their leader.
Issue 2 Lack of strategic focus
Nature cause and the reason behind the issue
This type of issue is based on the psychological nature of the manager. They ask the employees to follow the procedures and steps strictly without understanding the fact that there might be some kind of problem or an issue in the process that needs to be rectified immediately without compromising the quality of the product. It is a performance management issue which suggests that an organization must focus on both the process as well as the quality of the product to give the best results.
Aquilani et al. (2017) have been observed in many of the organizations that managers focus more on the process, as a result, they compromise with the quality of the product. It has been identified that quality has created a detrimental impact on businesses practices. The companies need to understand the fact that the quality of the products makes a very important contribution in the long term benefits. The first and foremost responsibility of the company is to maintain the trust of its customers but while following the processes the organization lacks in providing quality products.
In contrast, vom Brocke et al (2016) has been identified through research that the business process is a very important concept for managing different things in an organization. It is a step which is followed by the team of employees to manufacture or create a process. A company that does not follow the business process is not able to create its image in the market. The researcher further stated that companies that follow a business process properly are able to create better quality products than the ones that do not follow.
Gutierrez-Gutierrez et al. (2018) stated that employees in the organization must focus on the quality of the product rather than on the process. Sometimes the process can be avoided to get the best quality product for the customers. The long process of the business must be cut down so that the company can focus on providing the top quality of the products.
In contrast, Sandberg et al. (2015) suggested that the business process streamline the goals of the organization. It helps the employees to accomplish their task by following some steps and procedures. They further stated that the organization will fail if the procedures and steps are not followed by the employees properly. The organization requires a lack of strategic focus to improve the performance management system of the organization.
Issue 3 Lack of recognition and rewards
Nature cause and the reason behind the issue
The employees within the organization work efficiently only when they work of the employee is recognized. The organizations are facing retention problem because of the lack of rewards and recognition policies.
In the words of Danish and Usman (2010), rewards and recognition play a great role in enhancing the performance of the employees in an organization. The organizations which are selected by the authors are diverse in nature and thus, they do not belong to any particular industry. 250 employees were selected to answer the questions in which 88 per cent response was received. The aim of the study is to determine the different factors that motivate employees in the organization. Further, efforts were also made to find out the relationship between rewards, recognition and motivation for the employees.
Similarly, Taufek et al. (2016) suggested that rewards and recognition act as a significant catalyst of motivating the employees at the workplace. The implications of the research suggest that when the reward is not present or not properly understood by the employees, it leads to a negative impact on the performance and reward management system of an organization. The limitations of the research are stated in terms of consideration of the unemployment rate and inflation rate.
In addition to Taufek et al (2016), a study given by Misra et al. (2012), try to understand the impact of rewards and recognition in the retail industry of India. The major focus of the work is on Delhi NCR. The findings of the work suggest that rewards s and recognition play a great role in influencing the performance and job satisfaction level of the employees. There can be various criteria for providing rewards and these include achieving the targets of the company, providing quality work, performing the best in training and increasing the profitability of the organization. The reward can be given in terms of monetary and non-monetary benefits which help to motivate the employees and increase their job satisfaction.
Ezra et al. (2016) stated that it is becoming difficult for the workers to understand the criteria of getting rewards. Moreover, they also do not understand what the actual rewards are. The causes of not understanding or not achieving the reward are lack of clarity for the process of getting rewards, rewards being unrealistic, lack of coordination in the management rewards not linked to the work of the employees and not providing the employees with the relevant information for getting the rewards. Both the literature work suggests that rewards and recognition play a great role in enhancing the performance of the employees in an organization.
Integration
All the above-mentioned issues are hindering the performance management of the organization. No doubt, there are many issues that are identified but here the main emphasis is given on the leadership qualities, strategic focus and reward management system of the organization. It has been identified from the above scholarly literature that leader must adopt transformational skills and must provide a constituent feedbacks to the employees for their growth and improvement (Trullen et al. 2016) It has also been evaluated from the findings that the manager of the organization must focus on the quality of the product rather than on following the long procedures in a process (Aquilani et al. 2017). It has been analysed that rewards play a very important role in filling enthusiasm in employees (Danish and Usman, 2010).
Recommendations to improve performance and reward systemIn order to improve the performance and rewards following issues must be rectified. The identified issues are lack of leadership support, lack of strategic focus and rewards not being understood by the people. These issues can be addressed in the following manner
Issue 1 Lack of leadership
Leaders and managers should be given training so that they can impart considerable support to the subordinates and juniors in the company
They must give proper feedback to the employees so that they can improve themselves.
Friendly relations, cooperation, integrity and teamwork should be mandatorily inserted in the organizational culture. It will lead to better interpersonal relations between all the members of a team.
The right person should be appointed for the right job so that productivity increases, job satisfaction enhances, and organizational profitability can also be maintained.
Issue 2 Lack of strategic focus
The management should remain clear for the purpose and direction of the company.
They must focus on quality rather than focusing on long processes.
Efforts should be made to align the goals of the organization with the individual goals and thus, individual efforts are directed in a single direction such that organizational objectives can be achieved (Srivastava and Kanpur 2014).
The targets should be made in such a manner that they are realistic and achievable.
Issue 3 Lack of appropriate recognition of Rewards
Both monetary and non-monetary benefits which are expected by the employees should be included in the portfolio
Employees should be given clear guidance for the achievement of rewards and the procedure for this purpose. This way they can achieve the rewards and improve the performance
The commitment of all the people should be enhanced by making them aware of the benefit which is linked with higher performance
Reflection
The findings have significant implications for my future role in the corporate world. The findings show that there are several significant factors that impact the performance, motivation level, employees job quality and productivity. By applying theoretical learning in the practical world, I will be able to understand the causes of dissatisfaction and demotivation in an organization. Further, I will also incorporate the leadership qualities that must be possessed by a good and inspirational leader who tries to improve the performance of the organizations employees by giving feedbacks. The identified causes for lack of leadership support include low morale, less focus on productivity and results, lack of coordination and teamwork and loss of direction (Hvidman and Andersen 2013). I will always take care of these causes so that my leadership style does not get affected. Further, I will also ensure that my personal goals align with organizational goals. Moreover, I will also try to motivate people so that their individual goals can be aligned with those of the organization. I will set realistic targets for my team members so that they can achieve them. The achievement would prove to be helpful to remain contented and satisfied with the job along with maintaining higher productivity and job quality.
Likely future developmentsThe likely future developments in the performance management include a shift of focus towards quality, performance management systems will strive towards simplicity and the way organizations manage performance related bonus, reward and pay will get changed (Mayne 2017). Another future development that will be observed in this area includes a shift to continuous performance management.
Conclusion
It can be concluded that there are various issues that are related to performance management and rewards system in an organization. The three issues that are identified in the work from include lack of leadership support, lack of strategic focus and rewards not understood by the people. It is identified that there are several causes for the occurrence of all these issues. Human resource managers must use feedback practices to improve the performance of the employees and that of the company on a whole. Negative feedback tactics must by properly use by the managers so that it does not harm the overall productivity of the organization. The company must focus on the quality of the product rather than on the processes because it may impact the profitability of the organization. A proper reward system must be maintained in the organization to motivate employees in such a way that they perform exceptionally well in the organization. The recommendations provided above must be used properly by PWC Australia to flourish in the market.

References
Aquilani, B., Silvestri, C., Ruggieri, A. and Gatti, C., 2017. A systematic literature review on total quality management critical success factors and the identification of new avenues of research.The TQM Journal,29(1), pp.184-213.
Brown, M., Kulik, C.T. and Lim, V., 2016. Managerial tactics for communicating negative performance feedback.Personnel Review,45(5), pp.969-987.
Cardy, R. and Leonard, B., 2014.Performance Management Concepts, Skills and Exercises Concepts, Skills and Exercises. London Routledge.
Chawla, N., Gabriel, A.S., Dahling, J.J. and Patel, K., 2016. Feedback dynamics are critical to improving performance management systems.Industrial and Organizational Psychology,9(2), 260-266.
Christensen, A.L., Kinicki, A.J., Zhang, Z. and Walumbwa, F.O., 2015. The Role of Effect and Creative Behavior in the FeedbackPerformance Relationship. InAcademy of Management Proceedings2015 (1). 11720. Briarcliff Manor, NY 10510 Academy of Management.
Ezra, A., Michel, K., Kulik, S. and Darbouze, P., Offercraft LLC, 2016.Smart rewards incentive system, client tools for implementing a smart rewards incentive system, and analytics engine. U.S. Patent Application 14/971,880.
Gutierrez-Gutierrez, L.J., Barrales-Molina, V. and Kaynak, H., 2018. The role of human resource-related quality management practices in new product development A dynamic capability perspective.International Journal of Operations amp Production Management,381, 43-66.
Hvidman, U. and Andersen, S.C., 2013. Impact of performance management in public and private organizations.Journal of Public Administration Research and Theory,24,1, 35-58.
Mayne, J.W., 2017.Monitoring performance in the public sector Future directions from international experience. London Routledge.
Sandberg, J., Loacker, B. and Alvesson, M., 2015. Conceptions of Process in Organization and Management.The Emergence of Novelty in Organizations,5, 318.
Srivastava, S. and Kanpur, A., 2014. A study on quality of work life key elements amp Its Implications.IOSR-JBM,16,3,54-59.
Taufek, F.H.B.M., Zulkifle, Z.B. and Sharif, M.Z.B.M., 2016. Sustainability in Employment Reward System and Work Engagement.Procedia Economics and Finance,35,699-704.
Trullen, J., Stirpe, L., Bonache, J. and Valverde, M., 2016. The HR departments contribution to line managers effective implementation of HR practices.Human Resource Management Journal,26(4), 449-470.
vom Brocke, J., Zelt, S. and Schmiedel, T., 2016. On the role of context in business process management.International Journal of Information Management,363, 486-495.

Hey MAS, I need Assignment Sample of

Get It Done! Today

Country
Applicable Time Zone is AEST [Sydney, NSW] (GMT+11)
+
  • 1,212,718Orders

  • 4.9/5Rating

  • 5,063Experts

Highlights

  • 21 Step Quality Check
  • 2000+ Ph.D Experts
  • Live Expert Sessions
  • Dedicated App
  • Earn while you Learn with us
  • Confidentiality Agreement
  • Money Back Guarantee
  • Customer Feedback

Just Pay for your Assignment

  • Turnitin Report

    $10.00
  • Proofreading and Editing

    $9.00Per Page
  • Consultation with Expert

    $35.00Per Hour
  • Live Session 1-on-1

    $40.00Per 30 min.
  • Quality Check

    $25.00
  • Total

    Free
  • Let's Start

Get
500 Words Free
on your assignment today

Browse across 1 Million Assignment Samples for Free

Explore All Assignment Samples

Request Callback

My Assignment Services- Whatsapp Get 50% + 20% EXTRAAADiscount on WhatsApp

Get 500 Words FREE