Performance

Management,
Motivation and
Reward

• Dr. Joy Tweed

• Associate Lecturer

• Joy.Tweed@lca.anglia.ac.uk

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Strengths approach
 360 Degree
Feedback

A process in which
performance is assessed
based on feedback from
different people
t
Recap from last week

Performance management

A holistic process that focuses on linking an individual’s goals

to an organisation’s overall strategic direction and scope. The
process involves goal setting, development, reward, appraisal
and ongoing mentoring and coaching, using formal and
informal mechanism.
Performance Management
Culture
Organisational Mission
Focusing on organisational vision and
strategy/purpose and desired business
aspirations or outcomes
Activity – Strategic Aims
In small groups review the
following questions:
1. What is your organisation’s
mission/key purpose?
2. What are the differentiating
activities [strategic
perspectives/themes] that will
enhance your organisation’s
performance?
• OR, rather than your
organisation try looking up a
bank i.e. Starling/HSBC
Strategic Alignment
Department/Team Objectives
Specifying objectives and targets for all company
operational teams Specifying objectives and
targets for all company operational teams
Public Sector
Culture
Influences what a council
sets out to do – its vision,
and how people…
• Are managed and
motivated
• Respond to demands
for improved
performance
• View and use
performance
management systems
Above all, what it achieves
Visual Strategy Map (Airline)
Performance
Measure
Performance Indicators summarize the
Definitions focus (e.g. talent development, customer
service) of performance goals and
measures, often used for communication
purposes and preceding the development
of specific measures.
Performance Standards are objective
standards or guidelines that are used to
assess an organization’s performance (e.g.,
80 percent entered employment rate).
Standards may be set based on national,
state, or scientific guidelines; by bench-
marking against similar organizations;
based on the public’s or leaders’
expectations; or other methods.
Performance Measure Definitions
(cont.)

Performance Targets set specific and measurable goals

related to agency or system performance.
Performance Measures are quantitative measures of
capacities, processes, or outcomes relevant to the
assessment of a performance indicator. They should be
written in terms of specific measures that will be used to
appraise performance e.g. quantity, quality, time, cost-
effectiveness
Performance Standards should answer the question
‘how will the employee and their manager know when
the employee is meeting or exceeding performance
expected?’
Organisational
Objectives Cascade
• Define a series of strategic plans (whole organisation,
medium-term), operational plans and share with
departmental/unit managers
• Specify/agree organisational objectives and targets that
can be achieved at operational level
• Cascade these targets and plans to work teams [within
departments/units]
• Ensuring that teams understand and are committed to the
agreed objectives/targets
Individual Objectives
1. Train all unit/work team
managers how to set SMART
objectives
2. Write [and agree] objectives
for each individual within the
unit/work team
3. Ensure each person
understands performance
evaluated against objectives
4. Advise individuals how their
performance will be measured
and [if linked to pay] rewarded
Sample SMART Objectives
Performance Rating Guide (25-Box Grid)
So what is going to help
people achieve these
objectives?
Performance (P)

P = f(AMO)

Where:
A = ability
M = motivation
O = opportunity
 The job performance model of motivation

Individual inputs Job context

• Work ethic • Organisational culture

• Own individual reward system • Reward systems
• Own goals • Supervisory support
• Own job knowledge • Physical environment
HPWS = High-performance work systems
High -performance work systems (HPWS)

High-performance work systems (HPWS)

are a group of separate but interconnected
human resource (HR) practices – e.g.
selection, training, performance appraisal,
and compensation – designed to enhance
employee effectiveness.

Employees should have better skills, more

motivation, and more opportunities to excel
when these high-performance HR
practices are aligned and working in
harmony.
Motivation is the degree to which an individual
wants, and chooses, to engage in certain specified
behaviours
• Four characteristics of definitions ofmotivation:

• Motivation is typified as an individual phenomenon

• Motivation is described, usually, as intentional

• Motivation ismultifaceted

• The purpose of motivational theories is to predict behaviour

• (Mullins, 2013)
Thinking of your key motivators at work, what
would these be?
Extrinsic and intrinsic motivation

Makayla Whyte 5
Overview of the main theories of work
motivation
EARLY IDEAS ON WORK MOTIVATION

Scientific management and the work of FW Taylor

The Hawthorne experiments and Human Relations approach

CONTENT THEORIES

Maslow, Herzberg and McClelland

PROCESS THEORIES
Expectancy theories, Goal theory and Equity theory

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Hawthorne Experiments
https://www.youtube.com/watch?v=JPIgh7feCpM
Herzberg’s Two-Factor theory

Employees are motivated by two factors:

• Hygiene factors
• Motivation factors

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Herzberg’s Two-Factor theory

(Mullins, 2013)
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Maslow’s Hierarchy of Needs

The need to
achieve a higher
purpose in life,
the best version
of you
The need to be
‘somebody’, to
be appreciated The need for
community and
society (also
known as Social
Security of work need)
and safety from
harm
Food, water,
warmth, etc

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McClelland’s Competency & Achievement

2. The Need for Power

Our drive to control the
way people behave, to
1.The Need for Affiliation influence their thinking,
Our drive to form and to win status.
attachments, to be accepted
by others, and to interact
with them.
3. The Need for
Achievement
Our drive to
accomplish
demanding
tasks, reach high
standards, and
overcome
obstacles.
Linking Reward with Motivation

• An effective reward system seeks to understand andaddress

the varying motivational needs of staff

• Often this is done by assuming staff have anidentical

collective need

• More intelligent reward systems recognise thatindividual

needs can vary widely and seek to address this dynamic

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Case study: Evaluate RBS and Richer Sounds’
approaches to motivation & reward. What
recommendations might you make to either?
Factors to consider when planning a
reward system
• Employee attitudes and aspirations

• Employee skills and knowledge

• Labour market competitiveness

• Degree of flexibility required in thesystem

• The need to involve employees in the design of the

system

• The need to communicate reward policies to employees

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Traditional reward categories
• Monetary Rewards: Such as basic pay, bonuses, commission, overtime and
• condition payments

• Benefits associated with working for the organisation: Such aspensions,

health care,, subsidised meals, flexible working, etc

• Psychological Rewards: Such as recognition, praise, part of a community,

achievement, fun and enjoyment, etc

• Personal Rewards: Such as promotion, acquiring new skills and

• competencies, career advancement, etc

• Banfield and Kay(2012)

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Rewards can be:

• Immediate

• Deferred

• Contingent

• Also, voluntary – i.e can buy in.

2012 CIPD survey found nearly 25% of firms offered flexible benefits,
particularly larger firms.
Model of total rewards

Model of total rewards.

Source: Towers Perrin (2007) in Armstrong (2015: 119).
What might be a company do to increase
these different motivational needs?
Seven aims of reward management:

• Support the achievement of business goals by developing a

performance culture and stimulating high performance.
• Define what is important in terms of behaviours and outcomes.
• Align reward practices with employee needs.
• Reward people according to the value they create.
• Attract and retain the high-quality people the organisation needs.
• Motivate and win the engagement of employees.
• Add value through the introduction of effective, yet affordable
reward practices
Armstrong (2015: 6) In Beardwell and Thompson, Human Resource Management
Some modern viewpoints…

The employee perspective…

https://www.youtube.com/watch?v=XPQt4ekb8Tc (1.59)

Total Rewards…
https://www.youtube.com/watch?v=fGfemoNZUIc (2.25)
Total rewards is from the US and offers a service to see how much
employees value different perks.

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Adams’ Equity theory in Beardwell and
Thompson, Human Resource
Management
Goal theory:
Edwin Locke – 1960s
The puzzle of motivation | Dan Pink

https://www.youtube.com/watch?v=rrkrvAUbU9Y
18 minutes
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Key Lesson Summary: Rewards

• Reward practices and notions of good reward practice vary

considerably across countries
• National cultures, laws and institutional arrangements are important
influences on reward practices
• Organisations have to remain aware of these differences when they
determine their policies and practices in rewards
• There is some ‘strategic space’ for innovation
• Indications of an international best practice in reward are only now
starting to emerge – and they are not consistent with simple ideas
about incentivisation.

Taken from Brewster et al. (2016) International Human Resource Management, chapter 10, summary
Key Lesson Summary
Effective Performance Management Systems should:
• Outline how organisations set, monitor and align their
performance measures
• Set individual performance measures linking them to
organisational goals and individual competencies
• Identify why measures are required and specify them in
measurable terms
• Include different approaches to assessing and
evaluating performance and explain the relevance of
performance feedback
Further Resources
Cannon and McGee (2011). Talent Management and Succession
Planning (2nd Ed.), London: CIPD @
http://www.cipd.co.uk/NR/rdonlyres/CC24FEF5-42CB-465B-906C-
5C6B6651AAA0/0/9781843983095_SC.pdf
CIPD (2015). Performance Management: An overview, London:
CIPD
NHS Employers (2015). People Performance Management Toolkit,
London: NHS Employers and Skills for Care
http://www.nhsemployers.org/~/media/Employers/Publications/Peopl
e%20performance%20management%20toolkit%2024%20April.pdf
Turning Point (2004). Performance Management Self-Assessment
Tool. Performance Management National Excellence Collaborative
http://www.phf.org/resourcestools/Documents/PM_Self_Assess_Too
l.pdf
References
Banfield, Pand Kay, R(2012). Introduction to Human Resource Management (2nd Ed). Oxford.
Oxford University Press.

Brewster C, Sparrow P,Vernon Gand Houldsworth E(2016). International Human Resource

Management (3rd Edition). London;CIPD.

Foot, M and Hook, C(2011). Introducing Human Resource Management. Harlow; Pearson
Education Limited.

Malik, A. (2018) Strategic Human Resource Management and Employment Relations,.

Singapore: Springer

Mankin D (2009). Human Resource Development. Oxford; Oxford UniversityPress.

Mello JA (2015). Strategic Human Resource Management (4th Edition). Stamford; Cengage.

Northouse, PG(2015). Leadership: Theory and Practice. 7th Ed. London. Sage Publications Ltd.

Schein, EH(2004). Organisational Culture and Leadership. 3rd ed. San Francisco:Jossey-Bass.

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