Avado 3PRM Supporting good practice in performance and reward management CIPD Level 3


 Activity 1.1

Performance management is a process in which managers and staff work together to achieve the organization’s goals in order to achieve the organization’s goals and performance management is a very important tool at this time in order to maintain the productivity, profitability and sustainability of the organization and its objectives, encouraging, motivating and engaging employees by managing their performance in order to Increase their commitment to the organization’s management and objectives.


There are many important reasons for conducting performance management in organizations – to enable managers to be clear about the organization’s strategic plan, to understand the position of their employees and to set goals to help the organization and individuals thrive and achieve those goal. In relationship to business objectives are:


Rewards and recognition: Recognition helps employees receive a balance of positive to negative feedback. A little unexpected appreciation can go a long way. It satisfies our fundamental need for praise, reinforces the right behaviours and culture, and leverages social engagement. Rewards and recognition can improve employee retention and engagement, which creates ambassadors of your organization and its culture.


Development planning: Employees need regular, quality feedback on their performance and specific details on how they can improve. Once skill gaps are identified, employees have clear insight into the skills they need to develop if they wish to progress in their career.


Setting SMART and Clear individual objectives: Another main purpose of performance management is to set SMART and clear individual objectives and link them to the achievement of the organizational goals. In this regard from manager’s perspective is vital to have evaluation methods in place to measure whether objectives are achieved. Moreover, manager should ensure that employee follows his/her role clearly in order to accomplish set goals.


Activity 1.2

Performance management is a process that combines many people management practices including learning and development. It is a process that contributes to the effective management of individuals and teams in order to achieve improved levels of performance and individual and organizational development. Performance management is about establishing a culture in which individuals and groups have a responsibility to continuously improve service delivery, skills, behavior and contributions. It is therefore a strategic and long-term process, and may require a fair amount of work initially, but once the fundamentals are in place, they will work smoothly. Appropriately used performance management can enhance business effectiveness.


The main 3 components of performance management processes are:


Learning and Development: Once goals are set, employees need to have the knowledge and skills to do the work. Companies that want high performance need to make investments in employee learning and development. It will allow employees to accomplish their goals – both now and in the future.


Management Involvement: It starts here. Managers are responsible for setting performance expectations, providing feedback and coaching, and recognizing excellent work. That doesn’t happen on the side lines. Managers need to buy into and be an active part of the performance management process.


Setting of Objectives: This particular feature of PM process allows an individual to agree on SMARTS objectives with direct manager and have clarity on expectations of the role and link to the business objectives. This process is not only associated with individual objectives, but with also with team, department or product line goals that are linked to organizational objectives. It also assumes training and development objectives or individual goals related to development needs.


Activity 1.3

The motive is generally defined as the psychological force that determines the direction of a person’s level of effort. There is a great correlation between the stimulus factor and the performance management and this bonding because it works simultaneously. Motivation is the key to the individual’s desire to do more to achieve the goals of management and the objectives of the organization.

There are several ways to stimulate that can have an impact on performance management. If an individual or team has a strong motivation, it is likely to increase their performance and effectiveness, but this may not always be the case.  If the employee is very enthusiastic, it will work much better, leading to a feeling of success.

It is important for any organization to look for ways in which employees can be motivated to do the job better. The methods used by organizations and organizations to motivate their employees vary but are absolutely necessary in determining how they affect employee performance. There are many motivational and positive tools that contribute to the relationship between motivation and employee performance.


Argyris’s Theory:

Argyris has developed his motivation theory based on proposition how management practices affect the individual behavior and growth in his view, the seven changes taking place in an individual personality make him/her a mature one. In other words, personality of individual develops

Argyris views that immaturity exists in individuals mainly because of organizational setting and management practices such as task specialization, chain of command, unity of direction, and span of management. In order to make individuals grow mature, he proposes gradual shift from the existing pyramidal organization structure to humanistic system; from existing management system to the more flexible and participative management.

He states that such situation will satisfy not only their physiological and safety needs, but also will motivate them to make ready to make more use of their physiological and safety needs. But also will motivate them to make ready to make more use of their potential in accomplishing organizational goals.

 Urwick’s Theory.

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