Performance Management Assignment Exploring Concept Of PM System & Total Reward

Question

Task: Task Details / Description:

There are two parts to this performance management assignmentand you must answer both Part A and Part B. Both Part A and Part B are equally weighted. It would be expected that the combined submission would not exceed 2500 words, and they should be submitted as one document.

The word count includes, citations in the main text, but does not include any tables, graphs and the list of bibliography at the end of the assignment.

Part A (1,250 words)

‘Critically discuss some of the key factors that organisations should consider in evaluating whether their recruitment, selection or performance management processes are effective and ethical’

Part B (1,250 words)
‘Critically assess the concept of “total reward”, how it might be applied and explaining both the justification and benefits of this approach.’ Students should make reference to appropriate theoretical considerations to support their discussion.

Answer

Introduction
In performance management assignmentpart A, the report contains the main factors that an organization should work on in evaluating the performance management processes. In the report, effectiveness and ethical values issues and of the processes management system have been focused on.In part B, the concept of Total Reward has given. The ways using which the Total Reward strategy can be applied to the organization are also presented. In the next section, some of the benefits have been mentioned that justify the concept of Total Reward in the organization.

Part A
Concept of the Performance Management Process
A performance management process is a planned approach to get sustained triumph to organizations by enhancing the performance of the workers in the organizations. This can be achieved by making the employees and team contributions.Organization can develop their goal or make it fulfilled by the overall efforts of their workers. Management of the performance of employees is fundamental to efficient working in the organization. It is one of the most important parts of the relationship between employees and the organization(Tsengand Levy 2019).

Every successful organization understands, how to gain a competitive edge over its business rivals. They target to retain and recruit talented, knowledgeable, and productive employees. The performance management system assists the organization to recruit productive people. The organization also targets to place these employees in the right level of position. Organizations require to be effective in completing correct things, in the optimum utilization of their resources, and in the proportion of outcomes to the inputs. Performance should target factors such as making more profit, upgrade the outcomes of needed fields of organizational works. Alteration is a key factor to achieving success in the long term. The leaders of the recruitment of the organization ensure that applicants have a vision and mission to achieve organizational goals, and they also look for the demanding targets.The main factor of the performance management system for the organization is the successful management for innovation and alteration. A subject of organizations that are in the learning phase is that learning is a useful and efficient part of an organization(Molan et al. 2019).

Key Factors to make Performance Management System effective
Consistency with goals and concepts: In many organizations, employees' goals do not match with organizational goals, this makes the system inconsistent. Assure the system is consistent with the goal of the company. In simple words, line up the individual strategy with organizational strategy. Also, make the performance system consistent with the culture of the organization with the cultural concept of the region. This generates the effectiveness of the processes management system over the organization. Comprehensiveness: Concerns of the workers are neglected and hence make the system insignificant. To make the performance system comprehensive, evaluation of the employees and management and of the important job responsibility should be done consistently. In terms of thoroughness, comprise input from many other sources on a present working basis. The evaluation must show the concern of the workers, leaders, and clients who will get affected by the output. Workers should be available to analyze what input will make what results and behaviors as output.

Meaningfulness: The evaluation made for each job responsibility are irrelevant makes the system inconsequential. The performance system should be meaningful. To make it meaningful assure that the evaluations made for each job responsibility and function are relevant and needed, give only those functions to the employees that are under their control. The management should conduct standards and evaluations at a regular time, and provide supply pursuing skill enhancement of evaluators. Identification of essential or non-essential performance: Sometimes the workers for some specific tasks in an organization are not identified correctly. The management system should supply information and knowledge about the identification of effectual or noneffectual performance that allows the identification of teams, managers, and employees at various levels of performance necessarily.

Practicality: Systems that are convoluted, time taking, and costly will obviously be noneffectual. Assure that a less time taking system and an effective system should be available for managers to help them in various purposes such as making decisions. This will arise effectiveness between the organization and managers since job satisfaction is increased. The advantage of assisting these types of upgraded systems will cut down the cost of the organization.

Key Factors to address the ethical issues
Formalization: The system is informal and the performance is not intensified across employees. The system should be formalized, that makes sure the performance is enhanced thoroughly across employees, organizations, and clients. To make this strategy successful, the present training of the individual employee in charge is a must namely managers(Schwepker et al. 2021). Validity, dependency, and specificity: Performances are not aligned in many organizations, sometimes this makes the performance inconsequential. Regarding dependency, the system should make sure that they include measures of works that are aligned and error-free.

The measurement of performance should also include validity. It refers to the points that this measurement of performance comprises all the meaningful performance aspects and does not comprise unimportant information. This enhances the effectiveness of the performance system.

The system must be specific. It should show detailed guidance to the employees about what they expect and how to meet these expectations. This is a part of ethical value.
Liability: Participants do not get the responses on the project they are working on, so the employees are unable to know how good they are working. Employees should get responses to the ongoing project that they are working in, this makes them know how good they are doing. The review meeting should be changed into two way communication meeting. This makes the employee give their ideas and what is in their mind to make the project liable and relevant, this can also remove the previous system of listening to the orders. This communication should be factual and open. In this approach, the employees can express their thoughts and needs. This makes a strong bond among the organization and employees and hence ethical values and effectiveness are achieved(Mohammadi et al. 2022). Applicability and fairness: Employees can’t share their personal interests in the organization, this issue is caused by inefficiency in fairness. The system must be accepted and prescribed fair by all the employees. Fairness comprises four concepts. They are distributive justice, procedural justice, Interpersonal justice, and informational justice. This fairness complies with the ethical standards. This includes the sharing of personal self-interest by the supervisor in providing evaluations. Added to this, this supervisor must provide the performance or self-interest of only those dimensions that are understood by her and she should have sufficient knowledge of that performance dimensions. Employees' privacy should be respected in every aspect. Correctability: Employees' judgments are neglected in the organization, this generates the feeling of derelict among employees. The procedure of giving the ratings should be reduced to subjective concepts. However, it is not possible virtually to make a system that is fully objective since participant judgment is an essential part of the evaluation process. Whenever employees know an error has been done, there should be an arrangement to correct this error. The appeals process must be established, this will make employees challenge the unjust decisions. This is an essential aspect of a better ethical performance management system.

Conclusion
The organization’s approach towards enhancement of its employees is unchanged, this causes various issues like intrusion among employees, unproductivity of the organization. To diminish these unethical and ineffective issues of the organization, a performance management system is planned. The system focuses on consistency of goals, significant and consequential approach towards employees, formalization, correctability, and fairness in system approaches the view of employees in ongoing project and organization. Therefore, the process management system makes the organization effective and ethical.

Part B
Concept of Total Reward
The reward is anything that is given to a person because of the contribution made by him or her in the organization. The total reward can be described as the combination of rewards, compensations, benefits, allowance, perquisites that are given by the organization to its employees. It is the reward strategy of an organization to gather all the investment within its workforce. It can be both in financial and non-monetary terms.The financial rewards include incentives, bonuses, insurance, allowances, and many more. The non-financial rewards are interesting to work, promotion, advancement, recognition, fair treatment, safe and healthy work, and many others. Generally, human resources are considered as the in-charge of this total reward system. The total reward in the organization remains consistent with job performance, missions, visions, and goals of the company(Fobian and Maloa 2020). It can be said that total reward is the motivational practice used by organizations to encourage their employees by giving them extra benefits on their success and achievement. In another term, it can be understood that total reward is the total return that is given by the employer to its employees when he or she renders his or her services towards the welfare of the organization. It is a strategy that employer applies to employees so that they can put more and more effort into achieving the organizational goals by giving them rewards(Anku et al. 2018). Generally, there is five component of Total Rewards that are benefits, compensation, performance recognition, career development, and flexibility.The size of the reward differs from the size of the organization. Hence, total reward is an important aspect of HRM designed to implement a proper payment system. It helps the employees to be motivated during work and it enhance the performance of the organization.

Ways to apply Total Reward System
Applying a total reward system in any organization involves lots of research and consultations with internal teams and is hence known as the comprehensive task. Following are the five steps given to design and implement total reward strategy:
• In the beginning, the organization should assess the present state of total rewards. It is necessary to get data like the salaries of the employees, benefits that the organization is going to offer, and the result of employee recognition programs. After collecting, the data need to be compared with related market data. It should be also kept in mind that the compensation provided by the organization to employees is fair with respect to their colleagues. Besides this, it should be noticed that our employees are satisfied with the organization's offering(Boella and Goss-Turner 2019).
• Comparing the data of an organization with that of the market is not enough as it will not give the proper idea of what the employees want. If wrong assumptions are made on the basis of collected data, there be an adverse effect can be seen on human resources. Hence, to avoid such things, the employees can conduct the employee survey so that the organization can deliver the exact expectations of the employees.
• Leaders play an important role to apply the proper total rewards system in the organization and they should be the advocate of the new system. The leaders can be persuaded to take the organization's side by showing them the connection of the new system, increment in employees’ satisfaction, business result, company's attractiveness to employees.
• The total rewards system should be introduced to the employees of the organization in several phases. They should be familiar with what changes are going to take place regarding the payment system in the organization.
• The cost of change and total reward should be measured and their impact should be evaluated at the final step. Employee engagement, healthcare costs, employee satisfaction, employee retentions are some of the measures that can be taken into consideration while assessing the impact of the total reward system. If the result of this assessment comes positive, then the system can be applied in the organization.

Benefits and Justification of Total Reward
Till now, there is a lot of organization has taken the benefits of Total Reward. Applying the concept of Total Reward in the organization makes the employees happier and motivated to work effectively and to accomplish the organizational goals. It encourages employees’ engagement and this automatically improves performance (Wang et al. 2020). It also improves the psychological contract between employee and employer. As it fosters a positive relationship with employees with business owners and managers, the system is considered to be more beneficial for small businesses. Following are some of the benefits given that provide the justification of the Total Reward strategy in an organization.

Benefits for organization
• The concept of total reward provides the benefits of attracting top skills. A potential system satisfies the needs of employees and helps in creating broad demographics of employees' prospectus. This attracts diverse candidates and makes the recruitment process fast.
• The Total Reward system makes the surrounding of the organization more competitive. To gain the rewards such as promotion and recognition, employees compete with each other which makes the organizational result positive.
• The total Reward system contributes towards the more engagement of workers in the work. Everyone feels satisfied after getting admired for the efforts he or she provides to anything. The same thing happens within an organization. By getting different rewards for the success or for completion of any activity, employees feel satisfied and they try to achieve more and more rewards so they engage themselves more actively in the work.

Benefits to employees
• Every employee wants to be treated as an important part of the company. They want to have their own identity and want to look distinctive. The strategy of total rewards helps them to have special recognition. Through this strategy, employees are congratulated for their work performance, the achievement of employees are displayed on the information board, they are published in the magazines of the company. They are also awarded certificates and mementos at the ceremonial functions organized by the organization.
• By applying the Total Reward strategy in the organization, employee empowerment increases. Employee empowerment means providing decision-making powers and autonomy to employees. When employees get the freedom to take a decision without asking their superior it makes them feel like an important part of the organization. This motivates them and with this, they do their work more efficiently and they are again rewarded for that.
• One of the non-monetary incentives of the Total Reward concept is job security. Job security is the most satisfying thing that any organization can give to its employees. In the world of competition, everyone is craving a stable and secure job. This incentive gives the employees a feeling of stability and permanence. If any organization is carrying the fear of insecurity regarding its work then he or she can never contribute to the work wholeheartedly. On the other side, if she or she is sure about the job permanence then he or she can work with ease and without carrying any worry and this will increase the efficiency. Hence, employees find it so secure to work in an organization where rewards like job security are provided to the workers. Hence, above are the benefits of the Total Reward strategy to the organization and to employees and it justifies why the system should be applied to organizations.

Reference
Anku, J.S., Amewugah, B.K. and Glover, M.K., 2018. Concept of reward management, reward system and corporate efficiency. International Journal of Economics, Commerce and Management, 6(2), pp.621-637. Boella, M.J. and Goss-Turner, S., 2019. Reward systems. In Human Resource Management in the Hospitality Industry (pp. 245-258). Routledge.

Fobian, D. and Maloa, F., 2020. Exploration of the reward preferences of generational groups in a fast-moving consumer goods organisation. SA Journal of Human Resource Management, 18(1), pp.1-11. Mohammadi, T., Bohloli, N., Beykzad, J. and Rahimi, G., 2022. Identifying & Ranking the Ethical Components of Comprehensive Performance Management in Public Organizations.Performance management assignment International Journal of Ethics and Society, 3(4), pp.44-54.

Molan, C., Kelly, S., Arnold, R. and Matthews, J., 2019. Performance management: A systematic review of processes in elite sport and other performance domains. Journal of Applied Sport Psychology, 31(1), pp.87-104. SchwepkerJr, C.H. and Dimitriou, C.K., 2021. Using ethical leadership to reduce job stress and improve performance quality in the hospitality industry. International Journal of Hospitality Management, 94, p.102860. Tseng, S.T. and Levy, P.E., 2019. A multilevel leadership process framework of performance management. Human Resource Management Review, 29(4), p.100668.

Wang, R., Zhong, P., Du, S.S., Salakhutdinov, R.R. and Yang, L., 2020. Planning with general objective functions: Going beyond total rewards. Advances in Neural Information Processing Systems, 33, pp.14486-14497.