Performance Management & Reward Systems: Performance linked remuneration system, Types of Rewards, Designing Reward System, Total Reward Strategies, Characteristics of an Effective Performance Reward Plan. Performance Analysis, Performance Review Discussion, Using Performance Management Systems Data for HR Decisions, Performance Improvements and Performance Management Skills.

1. Performance Management &
Reward Systems
UNIT IV
Dr. Prachi

2. Contents
• Performance Management & Reward Systems:
Performance linked remuneration system,
Types of Rewards,
Designing Reward System,
Total Reward Strategies
Characteristics of an Effective Performance Reward Plan.
Performance Analysis,
Using Performance Management Systems Data for HR Decisions,
Performance Improvements and Performance Management Skills.

3. Performance linked remuneration system
• Performance-linked compensation (PLC) is a form of payment from an
employer to an employee, which is directly related to the performance
output of an employee and which may be specified in an employment
contract.

4. Types of Rewards
• The 3 Major Types Of Rewards
• Intrinsic versus Extrinsic Rewards.
Intrinsic rewards are the rewards that are non-tangible but yet
results in higher levels of job satisfaction.
• Non-financial versus Financial Rewards.
• Membership versus Performance-based Rewards.

5. Designing Reward System
• A well-designed reward system is centered around "what to
accomplish" to be compensated instead of "what to do" and
is administration's most ground-breaking device for picking up
representative promise to Superior system execution.

6. Total Reward Strategies
• A total rewards strategy is a system implemented by a business that
provides monetary, beneficial and developmental rewards to
employees who achieve specific business goals.
• The strategy combines compensation and benefits with personal
growth opportunities inside a motivated work environment.
• Generally, there are five pillars of a comprehensive rewards
system: compensations, benefits, flexibility, performance
recognition and career development.

7. Characteristics of an Effective Performance
Reward Plan
• A good rewarding system should have following characteristics:
• Reward should be important to person receiving them.
• Rewards must be fairly distributed in an equitable manner.
• Rewards should be visible.
• Rewards should have flexibility to vary with the changes in
performance.
• Rewards should be low in cost.

8. Performance Analysis
• Performance Analysis is a specialized discipline that provides athletes and
coaches with objective information that helps them understand
performance.
• This process is underpinned by systematic observation, which provides
valid, reliable and detailed information relating to performance.
• Performance analysis is the technique of studying or comparing the
performance of a specific situation in contrast to the aim and yet
executed.

9. Using Performance Management Systems
Data for HR Decisions
• Performance management data can be used to evaluate how effectively
managers are engaging their employees to set expectations, clarify roles,
plan development, and address performance concerns.
• It provides a way to measure if managers are doing the things required to
be good managers.
• Performance Management Helps to Boost Employee Engagement and
Productivity. Engaged employees stay longer, actively involve themselves
in the workplace and produce better results. Improving levels of employee
engagement is key to boosting productivity and maximizing ROI

10. Performance Improvements and Performance
Management Skills
• Performance Improvement
Performance improvement
is measuring the output of a
particular business process or
procedure, then modifying the
process or procedure to increase the
output, increase efficiency, or
increase the effectiveness of the
process or procedure
• Performance Management Skills
• Performance monitoring, review, and
rating.
• Delegation.
• Coaching and mentoring.
• Constructive criticism.
• Goal setting and management.
• Empowerment and motivation.
• Reward management.
• Assertiveness and decision making.

11. Thank You.