Guiding Principles to Rewarding Performance and Performance And Reward Essay

Guiding Principles to Rewarding Performance and Performance And Reward Strategies - Essay Example The paper tells that most organizations trying to gain competitive advantage in the market without success attribute their failure to such items as organization structure, poor communication; employee incompetence as well as policies and procedures hence end up redesigning or restructuring the organization to eliminate the problems. Little do they realize that their problems are as a result of poor performance and reward systems and strategies leading to poor performance by employees and the organization as a whole. A high performing organization should develop a performance-driven organizational culture where all employees are encouraged to develop and utilize their capabilities in a way that leads to improved performance. Organizations should thus involve themselves in redesigning their performance and reward systems in a way that reinforces performance and underpins business strategy as well as other organization and human resource strategies such as staffing, development and empl oyee relations. The performance management is a process that enhances organizational performance by developing the performance of individuals and teams in the organization. It entails identifying strategic goals that the organization needs to accomplish, identifying how the management and employees can help in supporting such objectives as well as carrying out performance appraisal and reviews to determine if the objectives are being achieved. Reward systems on the other hand, are used to reinforce individual commitment to performance through reward and recognition programs. However, performance should be measured properly to ensure that the reward programs pay off in terms of business goals. According to eNotes (2012), the management should ensure that performance has actually occurred before rewarding employees and also ensure that individual and group efforts are rewarded. This is to promote individual initiatives and foster group cooperation. 1.1 Purpose of the Report The purpos e of the report is to guide the CEO of DIY stores on how the organization can redesign its performance and reward systems in a way that reinforces performance, increases staff motivation as well as company’s ability to attract and retain the right people in line with the stores mission of achieving a more dynamic, performance-focused corporate culture. 1.2 Objectives The objective of the report is to design a performance and reward system that integrates business strategy and HR strategy. It is also to create a working environment that ensures just, fair and ethical treatment of employees. It also aims to develop a program that recognizes and rewards exceptional performance and ensures that reward systems are market based, equitable and cost effective. It is also to ensure that the needs of all stakeholders are met by developing a total reward system. It is also aimed at achieving high performance, customer service, high profits and ensuring product availability and minimisat ion of losses. 1.3 Background DIY store (DIYS) is a chain of large warehouse-style stores selling DIY equipment and is also a wholly-owned subsidiary of a larger retail group. It runs 250 stores across the country serving over a million customers a week and employs 12,000 people. Despite having a well established performance management and reward system clearly understood by all employees, it still experiences low morale, poor performance, high staff turnover,