How People and Organisational Performance can Impact on the Approach to Reward

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Performance plays a critical role in an entity’s reward approach. It reflects on a person or team’s efforts and could be applied to measure their progress towards attaining goals and general efficiency within the entity.

People performance could be used as a direct influence on the rewards that an entity gives its employees. Excellent performing teams and people are usually rewarded with incentives and bonuses, such as extra vacation time and promotions. By rewarding individuals who register exemplary performance, organisations could encourage and motivate them to continue doing their best and ensure their efforts are recognised.

Besides, performance could also be applied to inform the growth of the entity’s reward system. By evaluating their employees’ performance, entities could pinpoint improvement areas and establish incentives to motivate and enhance performance. This could include creating improved or new benefits, such as flexible operating hours and extra training or developing recognition schemes that reward employees for their dedication and hard work (Armstrong, 2021). Hence, by applying performance to inform its reward systems, organisations could ensure that their employees are rewarded and recognised for their hard work and that they strive for excellence.

Similarly, organisational performance could significantly impact an organisation’s reward system. The organisation’s performance can be measured in various ways, and the rewards given to the employees must reflect their performance.

Performance-linked rewards could be applied to motivate employees to arrive at their targets. These rewards are associated with performance objectives which the organisation has set. By providing employees rewards for meeting their targets, the entity could ensure that they are motivated to operate and attain their goals (Armstrong, 2021). This could increase productivity, increase morale and enhance general performance.

Additionally, the organisation could apply rewards to reward employees for attaining organisational objectives. This can encompass bonuses for reaching monetary targets, incentives for attaining customer satisfaction ratings or rewards for finishing the projects on time. By rewarding employees for attaining organisational objectives, the entity could encourage an excellent culture and motivate employees to go further (Armstrong, 2021). This could generate positive outcomes for the entity, boosting productivity and encouraging the employees to strive to excel. Hence, by giving performance-based rewards and rewards for attaining organisational goals, the organisation could encourage an excellence culture and motivate the employees to accomplish their targets. This could enhance the organisation’s general performance.

Reference

Armstrong, M. (2021). PERFORMANCE MANAGEMENT: KEY STRATEGIES AND PRACTICAL GUIDELINES. Apache Tomcat/8.5.47. Available at: https://117.240.231.117:8081/jspui/bitstream/123456789/437/1/performance%20management%201.pdf

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How People and Organisational Performance Can Impact on the Approach to Reward
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