You will prepare and submit a term paper on Human Resource Management, Performance Management. Your paper should be a minimum of 2500 words in length. An efficient reward system is linked with the system of performance development, which relies on the performance related pay and also offers sufficient role in encouraging the performance of teams, groups, and individuals. Variable pay also plays an important part in boosting performance basically of star performers rather than fixed pay packages. Not many award practices may take the shape of bonuses, gain sharing, team-based motivation, ESOP’s, profit sharing, and also equity-based incentive rewards. 1
An effective management of award system may be advantageous for the performance of employees in many ways. First of all, it will instill an ownership sense amongst all the employees and may also give long-term focus with continual enhancement, lessens service operating costs, highlights teamwork, and reduces the dissatisfaction among employees and improved employee interest in company’s financial position. Only some organizations award their employees for achieving new skills which may adjoin value to the performance of employees and therefore facilitate the process of cross training, job rotation, and self managed work teams. Some organizations also recognize the additional performance by giving recognition rewards and also huge merit rewards for the employee commitment and achieving long-term advantageous outcomes.2
Performance management is a systematic process through which any organization involves its people as individuals and also as members of group, in enhancing the effectiveness of organization in achievement of the firm’s goals and mission. The performance of employee management includes consistently monitoring the performance, planning setting and work expectations, developing performance capacity, and also occasionally rating the performance in a summary fashion. It also considers rewards for good performance. In 1955, there were revisions made by the Government for performance appraisal and also for rewards regulations to bolster the sound management principles.