Q2.

Organization can reward employees in several ways list 5 poossible rewards

TYPES OF REWARD PROGRAMS

There are a number of different types of reward , some possible rewards employee can receive are as
follows

Variable Pay
Variable pay or pay-for-performance is a compensation program in which a portion of a person's pay is
considered "at risk." Variable pay can be tied to the performance of the company, the results of a business
unit, an individual's accomplishments, or any combination of these.

Bonuses
Bonus programs have been used in American business for some time. They usually reward individual
accomplishment and are frequently used in sales organizations to encourage salespersons to generate
additional business or higher profits.

Profit Sharing
Profit sharing refers to the strategy of creating a pool of monies to be disbursed to employees by taking a
stated percentage of a company's profits. The amount given to an employee is usually equal to a
percentage of the employee's salary and is disbursed after a business closes its books for the year.

Stock Options
Previously the territory of upper management and large companies, stock options have become an
increasingly popular method in recent years of rewarding middle management and other employees in
both mature companies and start-ups.

Team service project

Organize a community volunteer activity. To make it even more rewarding, consider letting
your employees choose the organization/event.
 b.Strategic planning is an organizational management activity that is used to set priorities, focus energy and
resources, strengthen operations, ensure that employees and other stakeholders are working toward common
goals, establish agreement around intended outcomes/results, and assess and adjust the organization's direction in
response to a changing environment. It is a disciplined effort that produces fundamental decisions and actions that
shape and guide what an organization is, who it serves, what it does, and why it does it, with a focus on the future.
Effective strategic planning articulates not only where an organization is going and the actions needed to make
progress, but also how it will know if it is successful.

The purpose of strategic planning

Strategic planning is a systematic process that helps you set an ambition for your business' future and determine how best to achieve it. Its
primary purpose is to connect three key areas:
 your mission - defining your business' purpose
 your vision - describing what you want to achieve
 your plan - outlining how you want to achieve your ultimate goals
Strategic planning is different to business planning. It requires stepping back from your day-to-day operations and articulating where your
business is heading, by setting long-term goals, objectives and priorities for the future.
Importance of strategic planning
Strategic planning is necessary to determine the direction for your organisation. It focuses your efforts and ensures that everyone in the business
is working towards a common goal. It also helps you:
 agree actions that will contribute to business growth
 align resources for optimal results
 prioritise financial needs
 build competitive advantage
 engage with your staff and communicate what needs to be done
Another significant purpose of strategic planning is to help you manage and reduce business risks. Growing a business is inherently risky.
Detailed planning may help you to:
 remove uncertainty
 analyse potential risks
 implement risk control measures
 consider how to minimise the impact of risks, should they occur
Read more about risk management.
What is the strategic plan?
Effective planning usually results in a written strategic plan. This is a formalised document that describes your business' goals, and the actions
needed to achieve them.
You can use a variety of models and approaches in strategic planning. Many businesses include a SWOT analysis or a PESTLE analysis as one
of the key elements of their strategic plan.
Other common elements are:

 vision and mission statements

 core values
 clearly defined goals and objectives
 action plans
You may also want to include an implementation schedule, key performance indicators (KPIs) and other accountability measures.

Learn more about the key elements of strategic planning.

Difference between strategic plan and business plan
Both strategic and business plan documents are essential planning tools for your business. However, depending on your business stage and goals,
one may be more useful than the other.

A strategic plan is for a 3-5 year period and sets out the tasks, the milestones and the steps needed to drive your business forward. Find out how
to develop a strategic plan.
A business plan focuses on a shorter term, usually no more than a year, and serves a specific goal - eg starting a business, getting funding, or
directing operations. See how to prepare a business plan for growth.
5.b
7 RISKS OF POORLY IMPLEMENTED PERFORMANCE MANAGEMENT
PROGRAMS
George KettnerAugust 9, 2017

Performance management programs can provide considerable benefits to government organizations; help them align and track
measurable goals, create ongoing feedback loops for coaching, and boost engagement through recognition.

However, poorly implemented performance management programs can lead to detrimental organizational outcomes. Read on to
explore seven high-impact dangers of poorly implemented performance management programs.

Lack of Employee Engagement

Poor performance management programs can quickly erode employee engagement. For instance, when a performance plan is
unclear, employees are unsure how their everyday work contributes to the agency’s mission. There’s no sense of growth or
progress—essential ingredients for developing engaged and high-performing employees. Also, if employees see the program as
unfair, they are likely to feel uninspired about their future at the agency, experience lower motivation, perform at lower levels, or
leave the job altogether.

When you have talented employees, it’s up to the managers to find areas in which they can improve. Options for development
include expanding their gifted personnel’s skill set and providing training and support. Talented employees want feedbackand it’s the
manager’s job to deliver. If they don’t, the agency’s best people will grow complacent and disengaged.

Biased Performance Ratings

Varying and unfair performance standards and ratings can arise under a fragmented performance management system. While most
biases present in performance management are unintentional, managers are more disposed to give biased reviews in the absence
of objective performance data and assessment metrics.

The introduction of human biases, such as personal values, ideas or relationships could also lead to unfair treatment. Unfortunately,
the employee and manager might not recognize actual performance problems in this situation, leaving issues undiscussed as they
continue to affect the organization.

Low Employee Self-Esteem

Performance management systems that lack structure are more reactive than proactive, meaning that employees will typically only
hear from managers when they’ve done something wrong—a common practice that takes a toll on staff confidence. Also, if an
employee feels that they are evaluated unfairly, they may lose self-esteem, which is a crucial element to success.

Low self-esteem could create resentment towards management and even the organization as a whole. Showing appreciation,
approval and attention to employees with a healthy mix of constructive and positive feedback will make them feel confident in their
job and motivate them to perform at even higher levels.

Wasted Time and Money

A poorly implemented performance management program puts a strain on managers. The average manager spends 210 hours a
year on performance review activities, usually during an annual feedback cycle. The large amount of time and energy spent on
performance management is magnified if the performance management program is not providing the benefits that come from a well-
implemented program. Unless managers check in with employees regularly, a single conversation at the end of the year may prove
useless. Ongoing performance management is time- and cost-efficient, and it produces optimal results.

Damaged Relationships
Manager-employee relationships are also at risk under weak performance management systems. Employees subject to ineffective
systems and performance review practices are likely to feel upset, demoralized, and demotivated. This can lead to personal
relationships that are damaged, sometimes permanently.

Increased Legal Risks

Giving negative evaluations with no data or proof to back them up can increase litigation risks. If
an employee feels as though they’ve been evaluated unfairly they could seek costly legal action
against the agency

5c.

THE TOP 5 ADVANTAGES OF AN EFFECTIVE PERFORMANCE

MANAGEMENT PROGRAM
Andrew LessardAugust 2, 2017

For all government agencies, the role of human resources is paramount to compliance with federal regulations. It’s just as important,
however, to ensure that the agency is achieving its mission and running as efficiently as possible.

Unfortunately, many federal HR practitioners are currently frustrated with the prevalence of fragmented, disconnected systems used
across various HR functions. Additionally, use of multiple systems compound compliance delays in the form of excessive
paperwork, manual re-entry of data and high error rates.

An ideal performance management system, on the other hand, encourages managers to set expectations, provide informal
feedback on a regular basis and enables employee development and success. When done well, a performance management
program contributes to an organization’s compliance, employee success, and beyond.

1. EMPLOYEES ARE MOTIVATED TO IMPROVE THEIR

PERFORMANCE
A performance management program is essential to promoting and improving employee effectiveness. It involves a continuous
process in which managers and staff work together to plan, monitor and review goals and individual contributions to the agency.

A well implemented performance management program improves the performance of individuals, teams, and the agency. Managers
sets goals with employees, monitor their performance, give regular feedback, and conduct performance reviews. Using regular
feedback, employees can better understand what skills they need to develop. Performance feedback also fulfills a basic human
need to be recognized and valued, which leads to higher self-esteem and motivation for optimal performance.

2. MANAGERS KNOW THEIR EMPLOYEE’S

STRENGTHS AND WEAKNESSES
A performance management system can enable managers to better understand their employees’ skill sets and proficiency levels.
Through improved employee observation, managers master understanding of an individual’s strengths and weaknesses. The
manager and the employee can offer each other feedback and address concerns, creating a transparent work environment.
Managers can also get a sense of how to motivate employees, from leading by example to fair allocation of work.
3. EMPLOYEES ARE MORE ENGAGED
A good performance management system leads to more employee engagement. If they are satisfied with their performance
management system, employees are more motivated and less likely to leave the organization. Engaged employees are more
involved, committed, passionate, and empowered. These feelings lead to employees going the extra mile in supporting the agency’s
mission.

Also, engaged employees are more likely to make suggestions or improvements that lead to innovation. For example, a
performance appraisal review can result in a discussion where an employee shares recommendations on how to reduce cost or
speed up processes. All in all, when employee engagement is a central part of company culture, employees are more committed to
their agency’s goals and values (minimizing employee misconduct) and more motivated to contribute to its success.

4. EMPLOYEES UNDERSTAND THEIR JOB

RESPONSIBILITIES
An effective HR system also gives staff a better understanding of their daily tasks, as well as insights into behaviors and results
needed to perform their job well. If an employee receives constant and high-quality feedback, the employee well become more self-
aware of their behaviors and leads to more growth and development. Such systems empower HR team members to be a resource
for employees and managers in goal setting and progress tracking. They also aid in creating and approving individual development
plans, which can include: training, helping employees learn role-supportive knowledge and improving skills in their current roles.

5. ADMINISTRATIVE ACTIONS ARE FAIR

Using an optimal HR systemfacilitates properly tracked documentation, employee development and bidirectional communication. As
a consequence, promotions, performance-based awards, transfers and terminations are often more fair and appropriate than similar
actions taken under weak or nonexistent HR systems. Such systems, in the end, align strategic business goals with employee
performance, ensuring all staff members receive accurate and impartial performance feedback.

Ultimately, the benefits of a performance management program touch everyone involved in the
process. The right platform can help your HR team spend less time on paperwork and more
time on the “people work” critical to your agency.

2c

Purposes of Performance Management System

Performance Management is often a misunderstood concept most people associate it with concepts such
as: Performance appraisal, Performance-related pay, Targets and objectives, Motivation and discipline.
But, performance management is much more than this. Performance management is about getting results.
It is concerned with getting the best from people and helping them to achieve their potential. It is an
approach to achieving a shared vision of the purpose and aims of the organization. It is concerned with
helping individuals and teams achieve their potential and recognize their role in contributing to the goals
of the organization.

A performance management system consists of the processes used to identify, encourage, measure,
evaluate, improve, and reward employee performance at work. Employees’ job performance is an
important issue for all employers. However, satisfactory performance does not happen automatically;
therefore, it is more likely with a good performance management system.
A performance management system serves a two fold purpose: (1) to improve employees work
performance by helping them realize and use their full potential in carrying out their firms missions and
(2) to provide information to employees and managers for use in making work related decisions. More
specifically, performance managementsystem serve the following purposes:

1. Feedback Mechanism:

Appraisals provide feedback to employees therefore serve as vehicles for personal and career
development. Performance appraisals must convey to employees how well they have performed on
established goals. It’s also desirable to have these goals and performance measures mutually set between
the employees and the supervisor. Without proper two-way feedback about an employee’s effort and its
effect on performance, we run the risk of decreasing his or her motivation.

2. Development Concern:

Once the development needs of employees are identified, appraisals can help establish objectives for
training programs. It refers to those areas in which an employee has a deficiency or weakness, or an area
simply could be better through effort to enhance performance for example suppose a college professor
demonstrates extensive knowledge in his or her field and conveys this knowledge to students in an
adequate way. Although this individual’s performance may be satisfactory, his or her peers may indicate
that some improvements could be made. In this case, then, development may include exposure to different
teaching methods, such as bringing into the classroom more experimental exercises, real world
applications, internet applications, case analysis, and so forth.

3. Documentation Concern:

A performance evaluation system would be remiss if it did not concern itself with the legal aspects of
employee performance. The job related measure must be performance supported when an Human
Resource Management (HRM) decision affects current employees. For instance, suppose a supervisor has
decided to terminate an employee. Although the supervisor cites performance matters as the reason for the
discharge, a review of this employee’s recent performance appraisals indicates that performance was
evaluated as satisfactory for the past two review periods. Accordingly, unless this employee’s
performance significantly decreased (and assuming that proper methods to correct the performance
deficiency were performed), personnel records do not support the supervisor’s decision. This critique by
HRM is absolutely critical to ensure that employees are fairly treated and that the organization is
“protected”. Additionally in cases like sexual harassment, there is a need for employees to keep copies of
past performance appraisals. If retaliation such as termination or poor job assignments occurs for refusing
a supervisor’s advances existing documentation can show that the personnel action inappropriate.

Because documentation issues are prevalent in today’s organizations, HRM must ensure that the
evaluation systems used support the legal needs of the organization.

4. Diagnoses of Organizational Problems:

As a result of proper specifications of performance levels, appraisals can help diagnose organizational
problems. They do so by identifying training needs and the knowledge, abilities, skills, and other
characteristics to consider in hiring, and they also provide a basis for distinguishing between effective and
ineffective performers. Appraisal therefore represents the beginning of a process, rather than an end
product.

5. Employment Decisions:

Appraisals provide legal and formal organizational justification for employment decisions to promote
outstanding performers; to weed out marginal or low performers; to train, transfer, or discipline others; to
justify merit increases ( or no increases); and as one basis for reducing the size of the workforce. In short,
appraisals serve as a key input for administering a formal organizational reward and punishment system.