Business Management

Table of Contents

Part A.. 3

Collective and/or individual rewards. 3

Systems of performance measurement – results – competency. 3

Performance appraisal method and instrument 4

Reward components. 5

Part B.. 7

Q1. Managing underperformance. 7

Q2. The influence of performance and reward management systems on organizational performance. 8

Q3. Organizational justice. 9

References. 11

Part A

Collective and/or individual rewards

The collective rewards can be introduced and many steps can be taken to increase the efficiency of the reward that will ensure positive productivity in HFAA. The first step that can be used is the goal base rewards. In this system, the incentives are based on the reaching of a goal by the team members that were preset (Almeida et al., 2021). These goals may be long term or short term in nature.  As the company has been facing turnover in the sales department, the goal based incentive can be used by the company so as to decrease the turnover. The company managers can set certain goals that will ensure that the employees get a good amount of incentive after the goal is completed. It should be seen that the equal distribution of the rewards are done when providing collective rewards. The financial incentive for the team which uses more complex skill to finish a complex and difficult task should be taken up. This will ensure the workers that their effort is being recognized and hence the turnover will be reduced (Curzi et al., 2019). Creation of smaller teams can help in responding to the team based rewards. The perception of the reward can be seen as fair in this case because the contribution is easier to divide in the small team rather than a larger one.

An individual reward that can be taken up by the company is the merit based rewards. This will allow the company employees that work within a team to be provided on incentive based on the merit (Islami et al., 2018). This will highlight the individual performance and help in the recognition of the employees when they have contributed significantly to the company. Recognition in the individual rewards can help the company retain the employees. It can be seen more useful than the rewards. As recognition is intangible and allows the highlighting of the people who are more experienced, the emotional value attached to it is much more important. This can be done by the introduction of the digital platform of R&R which is AI powered platform that helps in the acknowledging the employees instantly can be taken up by the company (Ladley et al., 2015). If the managers and the leaders of HFAA see that the individuals are worthy of recognition, they should do it immediately.

Systems of performance measurement – results – competency

The measurement must be precise. Understanding the business structure is always crucial for measuring the performance of the HFA Company. Without performance measurement, business operations would be incomplete. The compensation, status, and opportunities of an employee are all based on how well they perform. Employers must first set the performance standard in order to help HFAA Company measure employee performance. The performance standards outline what is required of employees in order for them to meet or exceed the company’s performance expectations. The graphic rating scale needs to be used for performance measurement by the managers of the company, HAFF. Since a workplace that moves quickly is one that is oriented toward production, the graphic rating scale is excellent for both of these types of settings (Berkeley, 2022). A rating scale includes a list of job responsibilities, expectations for employee performance, and a scale—typically from 1 to 5—to measure employee performance. This method for evaluating employee performance takes preparation much like other methods, but it can be finished quickly, which is a benefit for managers of large departments or other competing tasks in an atmosphere where there is little time for workforce management responsibilities.

To improve competency and results, the company HFAA should monitor the progress of individuals within the company against their target, which will help to recover their employee turnover problem. That may encourage the achievements of the organization. The company should refer the issues upwards for quick action regarding the problems (Bridgespan, 2022). The organization also needs to consult with external specialists about their problems with employee turnover, which may help the company solve the problems. The organization needs to take immediate action to rectify the company’s problems. The company must also gain a lot of experience from various sources and make a quick decision. In addition, the company must prepare the facts in advance of the meeting. The HFAA always needs to talk in a positive manner with their employees and also needs to clarify the needs of the employees in meeting. To recover from or solve the employee turnover problem, the company also needs to set a challenging but realistic goal.

Performance appraisal method and instrument

Out of the several appraisal methods that are present, the Management by Objective can be seen as the best method that can be taken up by HFAA. In this method, the active participation of the employees and the managers for the identification of a plan, organization and the communication of the objectives are used for focusing on the appraisal period (Nyberg et al., 2018). After the specific goals have been set, the subordinates and the managers discuss the feasibility for the achievement of the set objectives. The instrument that can be used to apply this method in the organization is SMART method. This will help the leaders of the company to parallel the goals of the organization with the objectives of the employees. The judgment of the employees can be done with the help of their results achieved at the end of the appraisal. The rewarding of the success can be done in the form of hike in salary and the promotion and in case the employee fails further training can be provided to improve the productivity (Richard & K., 2021). As this process puts focus on the tangible and intangible aspects in the form of commitment and personal skills, this method will help in the retention of the employees.

Another performance appraisal method that can be taken up by HFAA is the 360 degree feedback. This method of appraisal is multidimensional that works by collecting the feedback from the employees’ influence cycle like the peers, managers and the direct reports. The integral components like self appraisal tool, managerial reviews and the subordinate appraising manager (SAM) can be used to assess the appraisal (Lu et al., 2021). With the help of self appraisal tool, the employees can reflect back to their old performance and understand areas of their improvement. However, the company should take up structured forms that will help in the better implementation of the process and reduce the chances of being biased. By the use of the managerial reviews, the traditional form of appraisal can be maintained. The perspective and the judgment of managers of the organization can be seen as the most competent form of evaluation. The individual rating and the rewarding system is mostly considered useful under this appraisal tool. The involvement of the senior manager can allow the employees to be more vigilant and improve their performance (Richard & K., 2021). In case of low performance, the initiation of coaching, career development counseling and activities can be recommended to the employees that will increase their performance and in turn the rewards.

Reward components

The reward components that can be used in HFAA are compensations, performance, flexibility, recognition, benefits, and career development. To improve compensation in the organization, it needs to increase performance-based promotion. They need to give the employees promotions according to their performance, and the regular performance meeting is also needed for that. The organization needs to organize the corporate wellness programs. That makes the environment of the organization healthy and also encourages the employees to do their work, and a healthy environment is always good for better production. To improve the performance recognition of the organization, HFA needs to engage the “perfect” and “able” employees. Also, the organization needs to set clear goals that will make the objectives clear for the employees and improve their performance (Croneri, 2022). The better performance of employees always makes the organization’s performance recognition better. This also makes for a better understanding between the company and the employee. The organization HFAA also needs to do its internal control better and needs to eliminate the internal roadblocks. The HFAA should train their managers to improve their flexibility. The company needs to train its managers for the wellbeing of the organization. The manager must trust the employees and understand their problems in order to make their job easier. 

The company also needs to maintain a good communication tool to communicate with the employees. Good communication always means flexible communication, which also improves flexibility within the organization. To improve employee benefits, the HFAA can introduce the Employee Benefits Package (Heathfield, 2022). To introduce the employee benefits package, the organization needs to focus on employee wellness and work-life balance. When an employee is stressed out, anxious, or overworked, their first point of contact is frequently a manager. The fact that they can handle one communication does not necessarily imply that they can handle another. The creation of a positive work environment also needs to be included in the employee benefits package. The organization also needs to customize the employee benefits to meet the needs of the employees. The organization also needs to priorities the wellness of the organization and the work-life balance of the employees (Mayhew, 2019). To improve the career development of employees within the organization, the organization must promote employee training and encourage their employees. The HFAA can also create a succession planning program for the employee to encourage them to focus on their professional development. 

Part B

Q1. Managing underperformance

• The content validity can be referred to as the extent by which the performance standard helps in the provision of the desired facts for the performance criteria.
• The actual want of the organization and the use of the performance measurements are based on criterion related validity.
• It also includes reliability that deals with the accuracy of the task of measurement.  
• The unreliability can occur when there is the presence of invalid measurement data.
• Another consideration is the cost effectiveness that is required for the management of the performance measurement design (Shields. et al., 2020).
• The performance management should be based on the feelings of fairness in the appraisal method.
• Fairness should be maintained in the decision making process and the procedural fairness.
• Reward can be considered as the inclusion of the tangible and the non tangible items that are used by the organization.
• Intrinsic rewards are the type of reward that comes from the content of the job itself.
• The design of the jobs is considered in the intrinsic rewards.
• Extrinsic rewards arise from the associated factors but are different from the content of the job.
• Three types of intrinsic rewards can be seen- developmental awards, financial rewards and the social rewards (Van Woerkom & Kroon, 2020).
• Financial rewards like base pay, cash benefits and the pay related to performance can be seen.
• The developmental rewards like learning training can be seen within the organization.
• The planning of succession and the career progression can be seen under the developmental rewards.
• Social rewards like performance support and the affinity of the group work can be seen.
• The work life balance and the direct and non direct benefits of cash prices can be seen
• The identification of the problem that is hindering the success of the employees should be done.
• Assessment and the analysis of the problem and the meeting with the employee should be done.
• Agreeing on a particular solution and the monitoring and the review of the performance can be taken up.

Q2. The influence of performance and reward management systems on organizational performance

• Employees are happier when an organization’s reward and performance management systems are in place.
• Rewarding the employees also makes customer service better.
• Rewarding the employees also improves the production growth of the company (Francis, 2018).
• The employees’ trust is also increased by getting rewards.
• Employee rewards improve the organization and employee relationships.
• Employee turnover also decreases by rewarding the employees.
• This rewarding experience also improves the employee’s confidence.
• Both the employee and the organization benefit from the reward management system.
• Employees also get motivated by rewarding management.
• The rewarding management makes the employees loyal.
• Rewarding management also boosts the morale of the employees.
• Employees are encouraged to work together when they are rewarded (Openstax, 2022).
• Because rewarding the employees gives value to the organization,
• Rewarding the employees encourages them to focus on long-term goals.
• The engagement of the employees also increased as a result of rewarding them.
• The management of rewards also increases the annual expenditure of the organization.
• Rewarding on the basis of performance also broke down teamwork (Reward, 2022).
• Rewarding employees raises their expectations and reduces their performance.
• Other employees who are not suitable are also demotivated as a result of the rewarding.
• Employees are also motivated to work harder as a result of the incentive.

Q3. Organizational justice

• Organizational justice can be defined as the perception of employees about fairness within the workplace.
• Four categories can be observed- distributive, procedural, interactional and informational.
• Creation of the fair process of decision making can be taken up.
• Companies that take up fair process are more likely to see active employee participation.
• The organizational commitment can also be seen in this context.
• Procedural justice shows that the employees have faith and belief in the process that the decisions that will be made are fair (Shields. et al., 2020).
• The distributive justice can be defined as when the employees believe that the outcomes can be equitable.
• Interactional justice is based on the way in which the opinion of the employees is taken into account.
• For the improvement of the organizational justice, the effective communication can help in the informational and the interpersonal justice.
• The communication is important as the explanation of the decision will require the ideas of the employees.
• Thus, employee participation is required for the organizational justice.
• Increase in the perception of the justice can be with the incorporation of the employees.
• The occurrence of justice can be also seen when the outcome is not in their favor.
• The use of input in the process of the organization increases the interpersonal and the procedural justice.
• The moods and the emotions of the team are impacted when the events occur in the organization.
• The interpretation of the employees can be seen in different manner.
• The major benefit of organizational justice is the creation of trust and increased job performance and satisfaction.
• It guarantees organizational commitment.
• It helps in the monitoring of the behaviors of the organizational citizenship.
• Linkage to different outcomes like negativity, turnover and burnout can also be seen.

Get expert help for Rewards and Performance Management and many more. 24X7 help, plag free solution. Order online now!