PERFORMANCE AND REWARD MANAGEMENT

Performance and Reward Management

Performance and Reward Management

Introduction

The world is changing. Both individuals and organizations now compete in an international marketplace. Customers want quality goods and services at competitive prices. If the produce of an organization cannot compete, it will have not market. Human resource management (HRM) should be used. HRM refer to the policies and practices needed to carry out the people, or personal, aspects of a management position, including recruiting, training, rewarding and appraising.

As the most important part in whole HRM, performance management must be emphasized. Performance management is using by countries such GDP, organizations and individuals. Performance management is concerned to get the best performance from individual, but goes further in that it also aims to get the best performance from the team and from the organization as a whole.

In this assignment, the paper will discuss what is performance management system, what problems are included in this system and how can these problems be overcome.

A key factor in the process of integrating strategic planning with HR is ensuring that the HR staff recognizes their roles as change agents and strategic business partners. This may be particularly difficult in a rapidly changing organization where the lack of stability tends to leave people with the feeling that they are victims of change rather than champions of it. However, one key to creating a successful HR function is to organize the chaos caused by change. This can be accomplished by forging ahead with innovative strategic plans that add value to the company instead of retreating into comfortable, traditional roles that will not effectively improve a company's bottom line (Cipolla, 1996).

Effective strategic planning involves analyzing current data and identifying trends that may affect a company's future performance. Next, it involves mapping out a strategy that will most likely result in a company's success over the long term. A study by Eichinger and Ulrich (1995) indicates that in the next five to seven years at least 10 profound changes will alter the course of businesses and the function of HR. They identify these changes as (1) global economic and financial, (2) technological, (3) political, (4) structural (to the business organization), (5) educational, (6) labor-related, (7) social, (8) conflicts due to globalization, (9) environmental, and (10) crime-related. Components:

The obstacles include

Too much complexity and workload;

Lack of depth of thinking in the end product;

Over-focus on "best practices" and fads rather than strategy choices;

Lack of line-leader involvement-and belief that HR strategies are for HR people;

Murky definition of strategy roles and expectations among corporate staff and professionals in the division's operating units;

Lack of capabilities within the HR organization to execute responsibility for the plans.

SWOT Analysis

Obviously, it is not suggested that the HRM professional violate individual or group confidentially, but rather that they serve as an early warning system about how emerging HRM issues may portend serious organizational problems stemming from a lack of strategic planning. One important positive consequence of sharing this awareness will be ...