Page 142 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Unit 12: Performance Management Linked Reward System

person can achieve, there are even more reminders that one human alone is weak. Notes
However, with concerted action, people can accomplish almost anything. In this
world of extreme specialization, people need and rely on other people more than ever.
One of the most valued rewards gained from working is the opportunity to interact
in a socially constructive manner with other people – to enjoy the comradeship of
work-place associates.

(d) Design Jobs that Require Adequate Attention and Effort: Over the past 40 years,
organizational scientists have discussed at length the problems arising boredom
related to work assignments that were developed in the last quarter of the nineteenth
century. Jobs were designed so that workers could be taught quickly how to perform
a few highly repetitive tasks. Workers then were required to perform these few

tasks for as long as they remained on the job. What first appeared to be an effi cient
way of melding human resources with machine technology proved to have serious
drawbacks.
(e) Allocate Sufficient Resources to Perform Work Assignments: Requiring employees

to perform assignments for which they have neither the knowledge nor the skills
opens the door for problems. Not only is the organization likely to suffer because of
outcome failures, but employee job-related interest and satisfaction are apt to break
down because of the likelihood or inevitability of failure. Most employees seek a
sense of accomplishment from their work. They want some degree of challenge, but
they also want to feel reasonably, sure that they can succeed.
(f) Grant Sufficient Control over the Jobs to Meet Personal Demands: From the 1950s to

the present time, behavioral scientists have discussed the need to grant employees
greater opportunity to participate in organizational decision-making processes. One
problem with this participation concept is that organizations are composed of all
kinds of people with all kinds of decision-making desires. Some people simply want
to be told what to do, to be shown what is an acceptable level of performance, and
then to be left alone to do their jobs. A few people in every organizational want to tell
top management how to run the organization. Between these two extremes is a wide
variety of demands for a greater voice in determining how to perform assignments.
(g) Offer Supportive Leadership and Management: This dimension is difficult to separate

from all other non-compensation rewards, but it is so important that it must be
recognized as a unique dimension of the non-compensation rewards and not just a
component of the other factors.

12.3 How to Link Performance with Compensation?

A performance appraisal system is often the link between rewards employees hope to receive &
their productivity. The linkage can be thought of as follows:

!

Caution Productivity — Performance appraisal — Rewards

Performance-based compensation affirms the idea that pay raises should be given for performance
accomplishments rather than for seniority.
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Did u know? What is variable pay?

Pay for performance is also known as variable performance linked pay or contingent pay.

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