Q2.

Organization can reward employees in several ways list 5 poossible rewards

TYPES OF REWARD PROGRAMS

There are a number of different types of reward , some possible rewards employee can
receive are as follows

Variable Pay

Variable pay or pay-for-performance is a compensation program in which a portion of a

person's pay is considered "at risk." Variable pay can be tied to the performance of the
company, the results of a business unit, an individual's accomplishments, or any combination
of these.

Bonuses

Bonus programs have been used in American business for some time. They usually reward
individual accomplishment and are frequently used in sales organizations to encourage
salespersons to generate additional business or higher profits.

Profit Sharing

Profit sharing refers to the strategy of creating a pool of monies to be disbursed to employees
by taking a stated percentage of a company's profits. The amount given to an employee is
usually equal to a percentage of the employee's salary and is disbursed after a business closes
its books for the year.

Stock Options

Previously the territory of upper management and large companies, stock options have
become an increasingly popular method in recent years of rewarding middle management and
other employees in both mature companies and start-ups.

Team service project

Organize a community volunteer activity. To make it even more rewarding, consider letting
your employees choose the organization/event.

4b. Strategic planning is an organizational management activity that is used to set priorities,
focus energy and resources, strengthen operations, ensure that employees and other
stakeholders are working toward common goals, establish agreement around intended
outcomes/results, and assess and adjust the organization's direction in response to a changing
environment. It is a disciplined effort that produces fundamental decisions and actions that
 shape and guide what an organization is, who it serves, what it does, and why it does it, with
a focus on the future. Effective strategic planning articulates not only where an organization
is going and the actions needed to make progress, but also how it will know if it is successful.

The purpose of strategic planning

Strategic planning is a systematic process that helps you set an ambition for your business'
future and determine how best to achieve it. Its primary purpose is to connect three key areas:
 your mission - defining your business' purpose
 your vision - describing what you want to achieve
 your plan - outlining how you want to achieve your ultimate goals
Strategic planning is different to business planning. It requires stepping back from your day-
to-day operations and articulating where your business is heading, by setting long-term goals,
objectives and priorities for the future.

5.b

6 DANGERS OF POORLY IMPLEMENTED PERFORMANCE MANAGEMENT

SYSTEM

Performance management programs can provide considerable benefits to government

organizations; help them align and track measurable goals, create ongoing feedback loops for
coaching, and boost engagement through recognition.

However, poorly implemented performance management programs can lead to detrimental

organizational outcomes. Read on to explore seven high-impact dangers of poorly
implemented performance management programs.

Lack of Employee Engagement

Poor performance management programs can quickly erode employee engagement. For
instance, when a performance plan is unclear, employees are unsure how their everyday work
contributes to the agency’s mission. There’s no sense of growth or progress—essential
ingredients for developing engaged and high-performing employees. Also, if employees see
the program as unfair, they are likely to feel uninspired about their future at the agency,
experience lower motivation, perform at lower levels, or leave the job altogether.

Biased Performance Ratings

Varying and unfair performance standards and ratings can arise under a
fragmented performance management system. While most biases present in performance
management are unintentional, managers are more disposed to give biased reviews in the
absence of objective performance data and assessment metrics.

Low Employee Self-Esteem

Performance management systems that lack structure are more reactive than proactive,
meaning that employees will typically only hear from managers when they’ve done
something wrong—a common practice that takes a toll on staff confidence. Also, if an
employee feels that they are evaluated unfairly, they may lose self-esteem, which is a crucial
element to success.
Wasted Time and Money
A poorly implemented performance management program puts a strain on managers. The
average manager spends 210 hours a year on performance review activities, usually during an
annual feedback cycle. The large amount of time and energy spent on performance
management is magnified if the performance management program is not providing the
benefits that come from a well-

Damaged Relationships
Manager-employee relationships are also at risk under weak performance management
systems. Employees subject to ineffective systems and performance review practices are
likely to feel upset, demoralized, and demotivated. This can lead to personal relationships that
are damaged, sometimes permanently.

Q5c.CONTRIBUTIONS OF GOOD PERFORMANCE MANAGEMENT SYSTEMS

1. EMPLOYEES ARE MOTIVATED TO IMPROVE THEIR PERFORMANCE

A performance management program is essential to promoting and improving employee
effectiveness. It involves a continuous process in which managers and staff work together to
plan, monitor and review goals and individual contributions to the agency.

2. MANAGERS KNOW THEIR EMPLOYEE’S STRENGTHS AND WEAKNESSES

A performance management system can enable managers to better understand their
employees’ skill sets and proficiency levels. Through improved employee observation,
managers master understanding of an individual’s strengths and weaknesses. The
manager and the employee can offer each other feedback and address concerns, creating a
transparent work environment. Managers can also get a sense of how to motivate employees,
from leading by example to fair allocation of work.

3. EMPLOYEES ARE MORE ENGAGED

A good performance management system leads to more employee engagement. If they are
satisfied with their performance management system, employees are more motivated and less
likely to leave the organization. Engaged employees are more involved, committed,
passionate, and empowered. These feelings lead to employees going the extra mile in
supporting the agency’s mission.

4. EMPLOYEES UNDERSTAND THEIR JOB RESPONSIBILITIES

An effective HR system also gives staff a better understanding of their daily tasks, as well as
insights into behaviors and results needed to perform their job well. If an employee receives
constant and high-quality feedback, the employee well become more self-aware of their
behaviors and leads to more growth and development. Such systems empower HR team
members to be a resource for employees and managers in goal setting and progress tracking.
They also aid in creating and approving individual development plans, which can include:
training, helping employees learn role-supportive knowledge and improving skills in their
current roles.
5. ADMINISTRATIVE ACTIONS ARE FAIR
Using an optimal HR systemfacilitates properly tracked documentation, employee
development and bidirectional communication. As a consequence, promotions, performance-
based awards, transfers and terminations are often more fair and appropriate than similar
actions taken under weak or nonexistent HR systems. Such systems, in the end, align
strategic business goals with employee performance, ensuring all staff members receive
accurate and impartial performance feedback.

Ultimately, the benefits of a performance management program touch everyone involved in

the process. The right platform can help your HR team spend less time on paperwork and
more time on the “people work” critical to your agency.

Q2c. Purposes of Performance Management System

Purposes of Performance Management System

Performance Management is often a misunderstood concept most people associate it with
concepts such as: Performance appraisal, Performance-related pay, Targets and
objectives, Motivation and discipline. But, performance management is much more than this.
Performance management is about getting results. It is concerned with getting the best from
people and helping them to achieve their potential. It is an approach to achieving a shared
vision of the purpose and aims of the organization. It is concerned with helping individuals
and teams achieve their potential and recognize their role in contributing to the goals of the
organization.

1. Feedback Mechanism:

Appraisals provide feedback to employees therefore serve as vehicles for personal and career
development. Performance appraisals must convey to employees how well they have
performed on established goals. It’s also desirable to have these goals and performance
measures mutually set between the employees and the supervisor. Without proper two-way
feedback about an employee’s effort and its effect on performance, we run the risk of
decreasing his or her motivation.

2. Development Concern:

Once the development needs of employees are identified, appraisals can help establish
objectives for training programs. It refers to those areas in which an employee has a
deficiency or weakness, or an area simply could be better through effort to enhance
performance for example suppose a college professor demonstrates extensive knowledge in
his or her field and conveys this knowledge to students in an adequate way.

3. Documentation Concern:
A performance evaluation system would be remiss if it did not concern itself with the legal
aspects of employee performance. The job related measure must be performance supported
when an Human Resource Management (HRM) decision affects current employees. For
instance, suppose a supervisor has decided to terminate an employee.

4. Diagnoses of Organizational Problems:

As a result of proper specifications of performance levels, appraisals can help diagnose

organizational problems. They do so by identifying training needs and the knowledge,
abilities, skills, and other characteristics to consider in hiring, and they also provide a basis
for distinguishing between effective and ineffective performers.

5. Employment Decisions:

Appraisals provide legal and formal organizational justification for employment decisions to
promote outstanding performers; to weed out marginal or low performers; to train, transfer,
or discipline others; to justify merit increases ( or no increases); and as one basis for reducing
the size of the workforce.

4c. Illustrate with help of diagram the linking of strategic plan & performance
Management
Q3b. Tangible & intangible returns an employee can receive

Tangible Returns definition

Tangible rewards are financial rewards or non-financial rewards that can easily be assigned a
financial value e.g. gym memberships. Tangible rewards differ from intangible rewards, such
as public recognition or inclusion on a new training course, which cannot be easily assigned a
financial value. Good managers provide a mix of tangible and intangible rewards to
employees; research suggests that both are necessary for long-term happiness and
productivity in the workplace.

Intangible Returns definition

Intangible rewards, also known as intangible benefits, are rewards provided to an employee
that don’t have an inherent monetary value, and are often applied in response to a particular
achievement.

 Praise
 Thanks
 Public acknowledgment/recognition
 Lunches and dinners out

Intangible rewards compare with tangible rewards, which are rewards that have financial
value to the employee, such as bonuses or salary increases.

Q5a. Performance and factors determining performance

The accomplishment of a given task measured against preset known standards of accuracy,
completeness, cost, and speed. In a contract, performance is deemed to be the fulfillment of
an obligation, in a manner that releases the performer from all liabilities under the contract.

important factors that affect the performance of an individual in the workplace:

1. Goal Clarity
2. Repertoire
3. Knowledge of Structures
4. Feedback
5. Mental Models
6. Motivation
7. Environment

Goal Clarity

People must have in mind a clear picture of any end or goal they are to achieve. If this
picture does not exists, they cannot tell if they are making progress or when they have
completed the task or assignment, let alone if it has been completed properly (see feedback
below). "Keep the end in view" has been sae advice for almost two thousand years. The time
a manager spends in developing, communicating and clarifying the goals or ends to be
achieved is time well spent.

Repertoire
To achieve a goal, the people working toward it must possess a suitable, flexible
repertoire. They must be able to engage in whatever behaviors are necessary to obtain that
goal – despite changing circumstances and environmental disturbances. In some cases,

Knowledge of Structures

Figuring out what to do in a particular situation requires knowledge of the structure of that
situation. People must understand the elements that make up the situation, how those
elements are connected to one another and the relationships that exist between and among
these elements. This knowledge of the structure of the situation allows people to say how the
actions they take will lead to the result they seek.

Feedback

Without information about actual conditions in relation to intended goals or results, no one
can perform to standard. Such information is known as “feedback.” It informs progress,
enables corrections and, eventually, signals attainment of the objective.

For most “hard” tasks (i.e., tasks involving tangible products or other immediate and readily
measured effects of one’s actions), feedback is generally available without much effort on
anyone’s part. We are aware of our actions and their effects.

.Mental Models

Absent feedback, people have no choice except to act in ways that are consistent with
internally-held views or mental models of what is appropriate or what should work instead of
externally-based information about what is and isn’t actually working.

Motivation

It is one thing to be capable of doing something; it is something else altogether to want to do

it.

Environment

Even if the first six factors are present, performance might not occur if the environmental
conditions are so unsuitable as to present insurmountable barriers to performance.