Sunday, December 22, 2013

Performance Management: Rewarding Implementation

In the last byte, we looked at the pros and cons of using an individual based versus a group based reward system. In today's byte we look at some of the aspects that a reward system would be required to consider when being implemented.

We sometimes hear the conversation - "Even if I don’t work, I get my salary!" This is in some ways the subject matter of today's discussion. If employees do not see the "connection" between their performance and the reward they begin believing that they are entitled to rewards regardless of how they perform. In many ways they begin to believe they are "entitled" to a specific reward rather than them "earning" the reward.

The Performance Management and Reward systems in organizations are built on the premise that there is a visible connection between performance and reward. It should be noted that when there is a visible relation between the performance of the employee at work and the reward related to the work, effectively handing the performance and reward could act as a lever of change that the organization might be looking out for - that is, the organization gets the performance it rewards for!

Thus, the organization would need to communicate the direct relation between performance and reward in order to be effective! It would require to leverage the strength of earning and develop that as a culture than, looking forward to an entitlement based culture.

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