4) Performance Appraisal Design and Reward Method in Banking Industry
Organizations are embracing Performance Appraisal Systems to improve performance, productivity, efficiency, and profits. Performance appraisal is used to improve performance and productivity in both public and private companies. Updated job descriptions and current work objectives are required for effective appraisal.
Formal appraisal is completed at the end of the appraisal period using standard appraisal forms to create a report that outlines the extent to which the agreed-upon objectives were met. The official appraisal discussion of previous performance and future plans will be based on this report.
According to Mondy(2004), at the end of the appraisal period, evaluations may result in reprimands or incentives, with compensation increases connected to performance ratings. In a reprimand, the management expresses his or her feelings about the employee. He confirms that you admire them, but not their performance in this situation.
360-degree appraisal and Management By Objective are two types of performance appraisal methods (MBO). An MBO system, according to Drucker (1954), requires each level of management to identify their objectives.
This PAS entails a thorough examination and comprehension of an organization's goals and objectives. Individual employees and management are required to develop goals, discuss them, and come to an agreement before implementation begins. The manager and the employee then define clear, attainable goals with a deadline.
The feedback of the management, supervisor, team members, and any direct report is included in the 360 degree appraisal system. This PAS collects data on an employee's work-related behavior and performance from a range of workplace sources. This process involves feedback from the employee's subordinates, peers, and supervisors, as well as the employee's own self-evaluation.
Performance Based Rewards
Reward management is concerned with the development and execution of strategies and policies that strive to reward individuals fairly, equally, and consistently based on their contribution to the organization (Armstrong, 2006) Reward administration is merely a means to an end. It is based on the premise that a company's compensation system is inextricably linked to the performance of its individual employees.
According to Heneman (2002), the evaluation of a strategic reward system's performance is often disregarded, yet it is an essential last step in the process of creating a compensation program. A good incentives and pay system, according to Armstrong (2006), guarantees that each individual receives adequate financial and non-financial acknowledgment for the personal contribution they make and the overall worth of their position to the firm.
Financial incentives that are linked to performance may be offered. These are referred to as ad hoc pay. Pensions, sick pay, insurance coverage, corporate cars, and annual vacation are all available to employees.
According to Mehta (2014), financial incentives can assist boost employee productivity. Organizations all around the world are recognizing the tremendous opportunity to increase the return on their human resources investment by aligning organizational objectives with business strategy and improving the value provided to employees.
In an increasingly competitive world, this procedure is vital to company success and the organization's capacity to attract and retain top performers and critical skill people. Researchers have discovered that different techniques used by managers have varying motivational effects on different people.
Non-monetary benefits including as recognition, appreciation, achievement, responsibility, and professional progress are also included in the system, as well as the performance management process in many circumstances (Armstrong, 2001) Employees perform better in general when they feel highly linked to and valued by the company.
References
[1].
Armstrong.(2006)What is Performance based rewords. A study based on Strategic Rewards & making it happen [online]
Available at: <https://books.google.lk/books?hl=en&lr=&id=1S3LtGjPrFIC&oi=fnd&pg=PA1&dq=artical+on+Performance+Based+Rewards+Armstrong,+2006&ots=SHE__NJcPb&sig=Y-ghd39g-_l9FA9NP24v3Kux9aQ&redir_esc=y#v=onepage&q=artical%20on%20Performance%20Based%20Rewards%20Armstrong%2C%202006&f=false> [Accessed 15 December 2021].
[2].
Performance Appraisal Methods. A study based on types of appraisals of modern & traditional [online]Available at: <https://www.economicsdiscussion.net/performance-appraisal/performance-appraisal-methods/31702> [Accessed 15 December 2021].
By reading this article it is clear that employees are rewarded base on their performance and productivity in which higher the performance the chance of getting better incentives is higher. Other than this performance based rewarding method don't you think that industries should motivate their employees to gather more educational qualifications which would also lead to a highly qualified and knowledgeable employee force?
ReplyDeleteDefinitely, but in my view the performance & education qualifications has to be equally evaluated when it comes to the rewording.
DeleteBut performance of an employee has a direct impact for the companies performance as well as the educational qualifications have much more indirect impact on the overall performance.