Performance and Reward Management Samples †MyAssignmenthelp.com

Question: Discuss about the Performance and Reward Management. Answer: As stated by Shields et al., (2015), performance management is one of the crucial factors for gaining competitive advantage in the modern business environment.Performance management is the process of continuously measuring, identifying and developing performance in firms. This is done by aligning the personal gaols and objectives of the employees with that of the organization. Mone and London, (2018) stated, performance rating can be effectively used by the organization to increase the productivity of the employees. On the contrary, Pulakos et al., (2015) opined that there are other effective ways of evaluating the performance of the employees and help them in improving their quality of the performance. This literature will critically evaluate the importance of performance rating in elevating the performance of employees and whether companies can improve the employee performance without using performance ratings. As put forward by Judge and Zapata, (2015), performance rating is a part ofperformance management which is continuous process and aim at improving the overall growth of the organization. Performance rating is essential as it enables the managers to identify the strength and weaknesses of each of the employees. Moreover, the rating system will also reflect upon the growth of the employees in a particular time span. Therefore, the contribution of the employees towards the organization, their development in their respective career, promotional opportunities and pay increases and training needs are discussed within the organization. The rating system is the accurate reflection of employee performances which can be effectively used for their professional growth. On the other hand, Barrick et al., (2015) states, employee performance can be effectively evaluated without using the performance rating systems. The employees can be evaluated based on their accomplishments and the goals that they can achieve within a certain period of time. The employees can also be evaluated based on their future actions instead of their past performances. The performance rating system can also be avoided by discussing about their accomplishments and their future goals. As stated by Li, Bagger and Cropanzano, (2017), performance rating system contributes negatively more often than positively. Moreover, there are occasions where the rating systems are biased and inaccurate. It has been seen quite often that the performance measurement system is not an accurate measure of the organization and leads to an environment that is stressful. According to Borman, (2017), traditional approach of performancemanagement are still used many organization and all companies rate their employee performance. This enables them to identify the contribution of the employees to the organization. Maslows hierarchy of needs states that employee motivations to work are driven by their needs and wants. Moreover, there are certain needs that have higher priority than the others. Performance rating system is used to provide the employees with better monetary rewards and compensation packages so the employees driven by monetary urge will be able to perform in a better way. On the other hand, DeNisi and Murphy, (2017) states, recent research suggested that most of the employees are driven by growth than rewards, benefits and incentives. As stated by Bernardin, Orban and Carlyle, (2017), performance rating system should be developed according to the requirement of the organization. This will facilitate in development of an effective working environment and work culture. The work culture should always be congenial and conductive and this would facilitate the employees in sharing information and knowledge among each other so that the organizational goals can be achieved. However, in most occasions the inappropriate use of performance rating system makes the employees more oriented towards their personal goals. Performance rating system cannot be considered as the most effective system for promoting employee performance. Performance ratings system has been used by all companies in one way or the other and most of the cases the companies are unable to develop an effective performance rating system. The majority of the global organizations are more oriented towards employee growth than performance rating. The basic problems in performance rating system are lack of differentiation, recency effect, horn effect and personal bias. The managers are either reluctant to judge the employees or lack self confidence to justify the rating they have provided to the employees. Schuh et al., (2018) states, in most scenarios it has been seen that employees are given average ratings or similar ratings. This leads to either lower ratings for everyone or higher rating for everyone which means that this is amanagement failure. This will definitely have an adverse effect on the employees and their performance. Recency effect is another major issue where the managers become more diligent than before (Rock Jones, 2015). Therefore, continuous evaluations of the employees are not done which will highly affect the employees performance. Horn effect is very much frequent where the employees are judged on areas where they are highly competent or incompetent. This evaluation is not exactly true to the organizat ion. Personal biases are a common bias where the employees are rated based on their personal feelings and impressions about them. These drawbacks majorly hamper the employee performances and most of the employees will be highly demotivated due to these practices. According to Smith et al., (2016), managers should be able to inspire the employees in order to improve their performance. Employee engagement is more important in this context and can be used effectively to increase the efficiency of the employees. This is the reason that most of the companies are not using the simple rating system for improving the employee performance. There are other complex systems of continuous evaluation of the process such as performance curve and forced ranking which has been effective for motivating the employees. The employee performance ratings are hurting the productivity of the organization as they do not assist in improving the performance of the employees. This is because of the fact that the employees provided with top ratings become complacent while the ones provided with lower ratings are disappointed and angry. The rating system is the area where the employees are focused on and they do not even listen to the valuable feedback that is being provid ed to them. The employees are more focused on the numbers on the assessment sheet that they have received (Latham, 2016). The rating system is practically meaningless as there are managers that are too strict about the ratings and others are too lenient. There are instances when employees have tried their level best to contribute to the organization and they have made an effort to improve the performance. Moreover, their improvements have been well received by the management but at the end of the day they received the same ratings as their last year. This will result in development of all negative emotions within the employees which will highly affect their performance of the employees. Therefore, these instances shows that the performance rating systems have not been used the way they should in an organizational setting. As stated by Rosen et al., (2017), the purpose of the reviewing the performance of the employees is to develop their hidden talents and motivate them to perform in a better way. The ineffectiveness in the employee rating system increases the attrition rate of the organization which increases the organizational cost. The most relevant example is Microsoft where the removal of the rating system increased the collaboration within the employees and they have been able to increase the performance of the employees significantly. The removal of the rating system exhibited collaboration, agile and customer orientation which is essential for companies to gain competitive advantage in the market (Latham, 2016). The employees in the modern generation are looking for growth in their respective careers and talent management is more effective in which the manage rs had a frequent conversation with their employees so that employee engagement can be increased. These have increased the growth rate of the employees significantly and the employees are developing at faster rate. The tradition process showed that employees and managers spent a lot of time in discussing about their past performances. These have been a complete waste of time as the organizations should be more focused on the future development of the employees (Rock Jones, 2015). Therefore, instead of assessing the ability and talents of the employees it is essential for the organizations to provide suitable job roles according to their talents which will benefit the organization. The importance of employee management and growth is high so majority of the companies are getting rid of the performance rating system in order to increase their organizational efficiency. Therefore, the argumentative literature has been able to throw a light on the advantages and disadvantages of using performance rating system. Performance rating system is not the most effective way of increasing the performance of the employees which is the very reason that most of the global organization shave changed their human resource policies. Thus, it can be concluded that performance rating system is not effective in respect to the changing modern environment and has more adverse affects that positive effects on the employees. References Barrick, M. R., Thurgood, G. R., Smith, T. A., Courtright, S. H. (2015). Collective organizational engagement: Linking motivational antecedents, strategic implementation, and firm performance.Academy of Management journal,58(1), 111-135. Bernardin, H. J., Orban, J. A., Carlyle, J. J. (2017, November). Performance Rating as a Function of Trust in Appraisal and Rater Individual Differences. InAcademy of Management Proceedings. Academy of Management Briarcliff Manor, NY 10510. Borman, W. C. (2017). Implications of personality theory and research for the rating of work performance in organizations. InPerformance measurement and theory(pp. 127-172). Routledge. DeNisi, A. S., Murphy, K. R. (2017). Performance appraisal and performance management: 100 years of progress?.Journal of Applied Psychology,102(3), 421. Judge, T. A., Zapata, C. P. (2015). The personsituation debate revisited: Effect of situation strength and trait activation on the validity of the Big Five personality traits in predicting job performance.Academy of Management Journal,58(4), 1149-1179. Latham, A. (2016).Forbes Welcome.Forbes.com. Retrieved 7 April 2018, from https://www.forbes.com/sites/annlatham/2016/02/07/why-your-employee-performance-ratings-are-hurting-your-organization/#7c50c365410f Li, A., Bagger, J., Cropanzano, R. (2017). The impact of stereotypes and supervisor perceptions of employee workfamily conflict on job performance ratings.human relations,70(1), 119-145. Mone, E. M., London, M. (2018).Employee engagement through effective performance management: A practical guide for managers. Routledge. Pulakos, E. D., Hanson, R. M., Arad, S., Moye, N. (2015). Performance management can be fixed: An on-the-job experiential learning approach for complex behavior change.Industrial and Organizational Psychology,8(1), 51-76. Rock, D., Jones, B. (2015).Why More and More Companies Are Ditching Performance Ratings.Harvard Business Review. Retrieved 7 April 2018, from https://hbr.org/2015/09/why-more-and-more-companies-are-ditching-performance-ratings Rosen, C. C., Kacmar, K. M., Harris, K. J., Gavin, M. B., Hochwarter, W. A. (2017). Workplace politics and performance appraisal: A two-study, multilevel field investigation.Journal of Leadership Organizational Studies,24(1), 20-38. Schuh, S. C., Zhang, X. A., Morgeson, F. P., Tian, P., van Dick, R. (2018). Are you really doing good things in your boss's eyes? Interactive effects of employee innovative work behavior and leadermember exchange on supervisory performance ratings.Human Resource Management,57(1), 397-409. Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., ... Plimmer, G. (2015).Managing Employee Performance Reward: Concepts, Practices, Strategies. Cambridge University Press. Smith, M. B., Craig Wallace, J., Jordan, P. (2016). When the dark ones become darker: How promotion focus moderates the effects of the dark triad on supervisor performance ratings.Journal of Organizational Behavior,37(2), 236-254.