HR

HR Rewarding Performance and Exit Procedures



HR Rewarding Performance and Exit Procedures

Introduction

The essay will discuss reward systems and the performance management systems that a retail company employs. It will also look into the links between motivational theory and reward. The exit procedures of Tesco and NHS Shetland will be discussed at the end of the essay.

Discussion

Reward systems

Organizational rewards, such as pay, promotions and other benefits, are powerful incentives to improve employee satisfaction and performance. This recent interest in the reward systems as an intervention, partly originates in research on quality of life at work. This new perspective considers the rewards as an integral part of organizations and suggests that they could be consistent with other organizational systems and practices, such as the analysis of the organizational structure, the philosophy of human relations senior management and job design (Armstrong, pp. 156, 2006).

Performance Management

This system is now more popular. Its essence lies in the fact that at the beginning of the reporting period (year, quarter, month) managers and staff to set goals and objectives, and defined KPI - Key Performance Indicators, which are indicators of goals on which the premium is calculated. If the employee's performance drops, the additional fee is reduced, and those who completed the tasks at a level below the minimum, receive only a fixed salary. This approach encourages employees helps keep valuable staff, focusing on the important tasks of staff, increased responsibility, makes it possible to assess the activity of man. We emphasize that to get the desired result we must first define the purpose in accordance with the principles of SMART and then, based on them, - KPI. In addition, it is important to make the inexorable transformation in corporate culture, managers and employees need to understand the changes and their tasks. In the development process must involve top management and line managers, and if necessary, conduct training.

The formal definition of a KPI and their application in the system of remuneration without the preceding steps are unlikely to contribute to business results. That is why today, Russian companies often do not achieve the expected results after implementation remuneration schemes based on KPI. Of course, some organizations, way errors constantly improving the system, ultimately create a working product. However, this requires a lot of effort, the company's expenses associated with the training first, then - with the definition of the objectives and KPI, then - with the monitoring and collection of indicators, and the variable part of the calculations, especially for large enterprises. In addition, the requisite IT-support, which, again, involves the human and financial costs? Thus, the disadvantages of the system include the complexity of its creation and implementation, data collection and processing parameters, the increasing number of reports, the cost of IT-support. As well as the possible risks associated with postscripts in documents to get a hefty bonus. By the way, this situation may occur in the company, where executives are provided fairly large payment based on performance for the year, so the owners and shareholders ...