Overview of

Performance Management
&
Reward System

NAME: Pooja Rajesh Patel

ADMISSION NO.: HPGD/JL21/1136
SPECIALIZATION: Human Resource Management

PRIN. L. N. WELINGKAR INSTITUTE OF MANAGEMENT

DEVELOPMENT & RESEARCH
June 2023

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 ACKNOWLEDGEMENT

I am using this opportunity to express my gratitude to everyone who supported me throughout

the course of this PGDM project.
I am thankful for their aspiring guidance, invaluably constructive criticism, and friendly
advice during the project work. I am sincerely grateful to them for sharing their truthful and
illuminating views on several issues related to the project.

Finally, off course, I am particularly grateful to my family for having believed in me and their
constant support.

Thank you,
Pooja Patel

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 UNDERTAKING

I declare that project work entitled “Overview of performance management and reward
system” is my own work conducted as part of my syllabus.
I further declare that project work presented has been prepared personally by me and it is not
sourced from any outside agency. I understand that any such malpractice will have very
serious consequences.
I am also aware that, I may face legal action, if I follow such malpractice.

Pooja Patel
Signature of Candidate

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Sr, no Topic Pg No.

1 INTRODUCTION
a) Introduction of Performance Management & Reward 5
System
b) Definition of Performance Management and Reward 6
system.
c) What is Performance Management & Reward System 7
d) Designing of Performance Management & Reward System 9
e) Benefits of Performance Management & Reward System 14
f) Components of Performance Management & Reward 16
System
g) Consequences with Teams on Performance Management & 20
Reward System
h) Mentoring and Performance Management & Reward 25
System
30
i) Need to study Performance Management & Reward System
34
j) Rewards Management and Linkage to the Performance
37
k) Role of Technology in Performance Management.
41
l) Reward Policies in the Knowledge/Technology Economy.
48
m) Implementation Of Reward Strategy
51
2 n) Performance Management & Reward system Models.

COMPANY: COGNIZANT TECHNOLOGY

53
Global Performance Management Policy in Cognizant.
a) Objective
b) Scope
c) Guiding Principles
3 d) Responsibilities
57
4 Case Study
59
5 Conclusion
60
Bibliography

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 INTRODUCTION
A. Introduction of Performance Management & Reward System

Performance management is a procedure intended to enhance both team and individual

performance within an organisation. It is a shared/participative, integrative process that is
founded on agreements on accountability, measurement and review, feedbacks, development,
and improvements on an ongoing basis.
Attracting the proper kind of human capital and inspiring them to grow and perform in a way
that increases shareholder value are currently the main issues facing the compensational
reward system.
Most organisations cannot be impacted in a highly competitive business climate until their
reward and pay system achieves these two goals. In case you didn't know, merely spending a
lot of money is not enough; the money needs to be used in ways that will draw in, keep, and
inspire the right individuals.

Before implementing Performance Pay, the following are some considerations that the
organisations must make:
 It is necessary to design, express, comprehend, and accept the criteria for evaluating
employee performance and contribution to the firm.
 Setting goals and obtaining data for performance evaluation should be done with
clarity.
 Feedback on performance should be given frequently.
 Online performance pay and rewards with a targeted goal or outcome.
 It is important to link the appropriate pay ratio and performance-based pay.
 There is a need to review the plan on a regular basis.

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  Recognise that performance evaluations will be impacted by events outside your
control, including as exchange rates, recessions, and sudden spikes or drops in
demand.
The performance of employees depends on mainly three factors: skill, knowledge &
motivation:
Employees performance= f (SKM) + External Environment
S = Skill & ability to perform task
K = Knowledge of facts, rules, principles & procedures
M = Motivation to perform

B. Definition of Performance Management and Reward system.

Definition: Performance management refers to the procedures and systems designed to
improve employee outputs and performance, often through the use of economic incentive
systems (or reward system).
The performance management process is used to measure and analyse both individual and
organisational performance outcomes as well as to reinforce individual accountability for
achieving organisational goals. It demonstrates a collaborative effort between managers to
ensure that staff members are developed in a way that allows them to contribute to the
organisation. It is a well-defined method of personnel management that will be successful
for both the employee and the company.
A broad definition of reward schemes is provided by Bratton: 'Reward system refers to all
the monetary, non-monetary and psychological payments that an organisation provides for
its employees in exchange for the work they perform. ' Rewards schemes may include
extrinsic and intrinsic rewards.

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C. What is Performance Management & Reward System
Performance management and reward management offers tool to an organization to not
just retain its skilled workforce but to keep them motivated to perform to their best of
ability.
A performance management system keeps track of employees' performance in a
predictable and quantifiable way. The system depends on a mix of technology and
processes to make sure that everyone in the organisation is supporting and contributing to
the strategic goals of the company.

The system is collaborative, with managers and staff members working together to
establish standards, specify performance metrics, share employee performance
assessments and evaluations, and offer feedback.

A performance management system boosts total staff productivity when it is correctly

established and frequently used. As a result of increased employee commitment to their
jobs, turnover is reduced and income generated per employee is increased.

The significance of creating a high performance culture

All organisations, from small start-ups to giant multinationals, from non-profit or

government organisations to blue-chip corporations, must create, implement, and enhance
their performance management systems. Performance is more important than ever before,
regardless of the sector or industry you work in, as company gets more and more
competitive.

In other words, performance is what drives results, and no business can afford to disregard
it. Establishing a high-performance culture at every level of the organisation is crucial to
ensure that everyone is aware of how their actions relate to the organization's overall
strategy, that every manager can effectively monitor and manage performance, and that
the leadership team can ensure the company's success.

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Reward system process includes finding quality employees, observing their work,
motivating them, and analysing the entire process. We also learned that there are two main
types of rewards: intrinsic, which center around increasing self-esteem and self-
satisfaction, and extrinsic, which center around tangible rewards.

Extrinsic and intrinsic rewards may both be included in reward programmes. Extrinsic
benefits are things an employee receives as part of their profession, such as money and
favourable working circumstances. The happiness that comes from doing the job itself,
such as a sense of personal fulfilment and of making a positive contribution to society, is
referred to as intrinsic reward. For instance, many people who work for charity earn
significantly less money than they might if they were employed by businesses. By doing
this, individuals are substituting the intrinsic benefit of acting in a way that they feel is
beneficial to society for extrinsic incentives.

Objectives of a reward scheme

What do organisations hope to achieve from a reward scheme? The following are among
the most important objectives:

 To support the goals of the organisation by aligning the goals of employees with
these.
 To ensure that the organisation is able to recruit and retain sufficient number of
employees with the right skills.
 To motivate employees.
 To align the risk preferences of managers and employees with those of the
organisation.
 To comply with legal regulations.
 To be ethical.
 To be affordable and easy to administer.

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D. Designing of Performance Management & Reward System
Traditionally, controlling employee performance has taken a lot of time and effort on the
side of the managers. Despite the fact that managers devote an average of 210 hours a year
on performance management, only 14% of organisations say they are satisfied with their
existing approach and the results it produces.

The traditional performance management approach has been criticised since most
businesses believe that annual reviews and assessments are a good way to assess an
employee's performance. However, year-end appraisals usually present a retrospective
perspective of an employee's performance and are frequently tainted by bias on the part of
reviewing management.

Organisations have implemented a number of performance management programmes and

strategic directives to improve compliance and thoroughness in their performance reviews.
However, the outcomes have frequently fallen short of expectations, with staff still feeling
disengaged and the procedure taking much too long.

If your company experiences similar problems, it's time to take action and assess the
efficiency of your present performance management system.

It's critical to comprehend what an effective performance management system is and why
it's necessary before evaluating how well it serves your organisation.

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 “Performance management is an ongoing process of communication between a
supervisor and an employee that occurs throughout the year, in support of accomplishing
the strategic objectives of the organization.” – Berkeley University of California.

First and foremost, we must comprehend that performance management is an ongoing

process that involves constant communication between managers and employees.

A corporation should put more effort into using a continuous system for contact
throughout the year with a strategic focus on accomplishing corporate objectives than
year-end reviews and communication.

Secondly, a performance management system is important for any organization for the
following reasons.

 Helps get better insights into individual and business goals

 Set clear performance expectations
 Eliminates redundant work
 Saves the organization time, effort, and money
 Increases employee productivity
When a company understands the context of having a performance management system, it
will be able to measure the effectiveness of its performance management system more
adequately.
Outlined below are the five steps that will help measure the effectiveness of your
performance management system.
1. Research & Set Benchmarks for Performance Management Practices
To understand where your current performance management system is falling short, you
need to know what an effective performance management system looks like.

In order to analyse the components of a successful performance management system, in-

depth research is essential.

Insights for improving your system might be gained by reading case studies of companies
that have effectively redesigned their performance management techniques.

Setting a baseline for what should be included in a successful performance management

system may also be done by analysing leading market trends and industry practises
already in use.

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2. Establish Clear Business Goals/Objectives for Performance Management
It is critical to define clear goals and objectives that your organization tries to achieve
through the performance management system. Some of the common goals are:

 Improve organizational performance

 Align individual and corporate objectives
 Develop a performance culture among employees
 Improve individual performance
 Align individual behaviour to organizational values and culture
 Identify personal development needs
 Link performance to pay

3. Establish Success Measures For Your Defined Objectives

Once you have decided on what you are planning to achieve through a performance
management system, it is essential to know what constitutes the achievement of your
objectives.

Simply put, you need to analyse what measures will be considered to declare that
objectives were achieved successfully.

Let us understand this with some examples:

PERFORMANCE MANAGEMENT SUCCESS MEASURES

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 GOALS

Clarity of what is expected of employees

Alignment of employee performance
Improve Team Performance Increase in the profitability of teams

Growth in Customer Satisfaction

Results of Employee Engagement Survey

Acceptability of Performance Review as a
Enhance Employee Motivation & useful tool
Drive Engagement
Better Employee Turnover Rates

The ability of management to objectively and

Performance Pay Decisions accurately measure performance
Link pay to performance

Additionally, organizations need to agree on measures to understand the effectiveness of the

methods and tools employed to conduct performance management such as an automated
performance management system.

Questions like the ones below need to be answered.

 the time needed for processing tasks

 if these changes are easy to implement
 whether the implementation can be made hassle-free and quickly

4. Evaluate Your Current Performance Management System

Once the standards, goals, and success metrics have been established, it is essential to
gather data and begin assessing your current performance management system.

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 Quantitative and qualitative data should be used to thoroughly understand the success of
your performance management system and how to enhance it.

To the degree that it is possible, it is crucial to gather information on the benchmarks,

goals, and success indicators. Some techniques that can be utilised to gather this data are:

Ask a sample of workers and managers how they feel about performance management.
Reports culled from online performance management platforms
After gathering data, evaluate the findings in light of the success metrics you specified and
the benchmarks you aimed to hit.

Compare these findings to industry standards. This will assist you in determining the
strengths and weaknesses of your present performance management system.

Always keep in mind that an organization's performance management system should be

regularly monitored and adjusted to reflect the changing times and market requirements.
Thus, the ever-changing needs of the workforce will be better met.

5. Time To Take Action On The Results

At this stage, you have evaluated the actual capabilities of your performance management
system, compared it to the benchmarks you had set, and found the discrepancies or
shortcomings that you need to work on.
Now, it is time to take action on the results you found and take appropriate measures to
improve the current performance management system.
It is important to include the stakeholders directly impacted by it, such as employees,
managers, and senior management, in this process.
This will result in greater ownership from those who have to implement the system and be
a regular part of it.

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E. Benefits of Performance Management & Reward System
By controlling the performances of teams and individuals to ensure the accomplishment of
the overall organisational objectives and goals, a strong performance management system
works to improve the overall organisational performance. In managing the performance in
an organisation, a good performance management system can be very important by:

 ensuring that the staff is aware of the significance of their contributions to the aims and
objectives of the organisation.

 ensuring that every employee is aware of the expectations placed on them as well as
determining if they have the abilities and resources necessary to live up to those standards.

 ensuring that goals are properly correlated or linked and promoting efficient
communication inside the organisation.

 fostering a friendly, cooperative connection built on trust and empowerment between a

specific employee and the line manager.

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Performance management practices can have a positive influence on the job satisfaction and
employee loyalty by:

 Regularly providing open and transparent job feedbacks to the employees.

 Establishing a clear linkage between performance and compensation
 Providing ample learning and development opportunities by representing the employees in
leadership development programmes, etc.
 Evaluating performance and distributing incentives and rewards on a fair and equated
basis.
 Establishing clear performance objectives by facilitating an open communication and a
joint dialogue.
 Recognizing and rewarding good performance in an organization.
 Providing maximum opportunities for career growth.

An effectively implemented performance management system can benefit the organization,

managers and employees in several ways as depicted in the table given below:

Organization’s Benefits Improved organizational performance, employee retention and

loyalty, improved productivity, overcoming the barriers to
communication, clear accountabilities, and cost advantages.

Manager’s Benefits Saves time and reduces conflicts, ensures efficiency and
consistency in performance.

Employee’s Benefits Clarifies expectations of the employees, self assessment

opportunities clarifies the job accountabilities and contributes to
improved performance, clearly defines career paths and promotes
job satisfaction.

Clearly defined goals, regular assessments of individual performance and the company wide
requirements can be helpful in defining the corporate competencies and the major skill gaps
which may in turn serve as a useful input for designing the training and development plans for
the employees. A sound performance management system can serve two crucial objectives:

Evaluation Objectives

 By evaluating the readiness of the employees for taking up higher responsibilities.

 By providing feedback to the employees on their current competencies and the need for
improvement.
 By linking the performance with scope of promotions, incentives, rewards and career
development.

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F. Components of Performance Management & Reward System
There are 4 components of Performance cycle
i. Planning
ii. Monitoring
iii. Reviewing
iv. Rewarding

1. Planning
In the planning stage, the groundwork for success is laid down. Before management talks to
the employee, the management team should meet and decide the organization’s goals and
objectives for the year.

This includes the general business strategy as well as the individual goals and objectives for
each employee as well as team goals, targets, actions, and behaviours.

Any strategy with employees won't be successful without that essential information.
When the management team is clear on the specific goals they have for the employee, it's time
to sit down with them and develop a strategic plan for the coming year.
This should be a collaborative process, as an employee who understands why they are being
set specific goals and tasks is more likely to be invested in succeeding at them.

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In this meeting, the goals should be clearly outlined using the S.M.A.R.T. method.
SMART goals are:

Specific – The goal is clearly outlined, with detailed information such as what is to be
achieved, how well it must be done, and why it is important.
Measurable – The goal must have a definite and measurable indicator to tell if it has been
achieved.
Achievable – While the goal should stretch the employee, it should not be so lofty as to not
be realistically achievable at all.
Relevant – The goal is in line with both the employee’s job and the overall goals of the
organization.
Time-bound – There should be a definite timeline as to when this goal should be completed.

Each goal that an employee sets should be in line with and help realise the objectives of the
company. A cohesive overall plan will be ensured by ensuring that those objectives are in
line.
Management can create an employee development plan in addition to defining these targets..
Management has the chance to pinpoint the training and development areas in which an
employee needs to improve at the beginning of the performance management cycle and then
create objectives to do so.

Making an employee development plan will show that management is actively assisting the
individual in improving their skills and contributing greater value to the organisation.

2. Monitoring
In the performance management cycle model, monitoring is a key function in achieving the
goals set out in the planning stage.

But if the monitoring is only done once or twice a year, it won't be as effective. Management
should meet with staff members every month or every three months to review progress, offer
assistance when required, help resolve any issues that may have occurred, and, if necessary,
revise targets.

Problems with setting yearly goals frequently result from inadequate planning and a lack of
motivation. It can be scary to have a big, distant goal, or it may seem so far away that the
employee doesn't take the right, doable actions.

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The process can be streamlined by breaking the goal down into attainable monthly subgoals
for the employee.

Management can more easily monitor this process by scheduling meetings with the employee
once a month or once every three months.

Organisational objectives can change over the year, and more regular meetings may enable
the introduction of new goals that better suit those aims.

3. Reviewing
At the end of the year, the management and the employee meet to review the previous year
and see if goals were met.

This is an additional chance to develop a working relationship with the employee. They will
be more driven to keep working hard to meet their goals and the goals of the organisation the
more involved they are in the other phases of the performance management cycle.

The management will already have a solid sense of how the employee performed throughout
the year if thorough monitoring was carried out. Management and staff have the opportunity
to assess both the outcome and the process itself during the review.

This evaluation should include questions such as:

 Was the original goal realistic?

 Was the goal in line with the organization’s objectives?
 Did the employee gain useful experience or skills?
 How well did the employee complete their tasks?
 Did the organization offer the proper support to achieve the goal?
 In what ways could future goals be set differently to ensure success?
 What aspects of this process could be streamlined or improved?

The employee can discuss their performance over the course of the year and get feedback
from management on whether they met or surpassed their objectives. This is the place to
address any performance concerns that may have arisen over the year. If problems are being
discussed, it is advised that solutions be offered as well.

Future development prospects, bonuses, and pay raises might also be discussed in this area.

4. Rewarding
The final stage of the performance management cycle plan is the reward. This is a stage that
cannot be overlooked, as it is the one that is the most important for employee motivation.

Employees who do not receive a proper reward after a year of striving to meet organizational
goals, and succeeding in doing so, will lose motivation for the next year. They might lose

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faith in their organization, feel that their talents are not appreciated, and begin searching for
another job.

When management fairly rewards employees and gives them recognition for their efforts, they
are ensuring that those employees will continue to work hard to achieve organizational goals.

These rewards should be merit-based. Employees will recognize who amongst them has put in
the effort, and if they see colleagues rewarded without cause, they could lose motivation.
Conversely, when employees see a high performer get a handsome reward, it demonstrates the
value in putting in that extra effort.

Some rewards that might be offered are:

 An increase in compensation
 A one-time bonus
 Increased vacation time
 Special projects
 A promotion
 A positive written review
 Company-wide acknowledgment
After the reward stage of the performance management cycle model, the management team
and the employee can choose to meet one final time, to review the cycle as a whole. This is a
chance to bring up any issues that might have arisen and begin talks about the next year’s
goals.

Then the cycle begins a new.

G. Consequences with Teams on Performance Management & Reward System

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Issues and challenges are bound to arise in every field of management; hence performance
management and rewards have its sets of challenges that need to be given special
consideration. The following are the issues faced by organisations.
Misuse of performance management system:
Scholars have agreed to the fact that Performance Appraisal has been quite a success among
the employees, they dis-like performance appraisal because they feel that management have
misused and abused the process. Findings by Lawler have shown that performance appraisal
does not motivate or guide individual performance or development. Listed below are some
misuses of performance appraisal.
Evaluation of personality traits:
When managers fail to have interpersonal skills it results in the failure of the performance
management system, making it difficult to evaluate personality traits of the employee.
Important skills such as active listening; collective feedback; communication and conflict
management skills leads to an effective performance management system within the
organisation. This results in the development off the staff.
Bullying the staff:
Staffs get bullied by managers as they have the upper hand in evaluating the performance
hence staffs are forced to abide by the personal benefits of the managers to keep themselves
safe from any negative ratings.
Biasness based appraisal:
Managers have the tendency of being biased towards their favourite employee or a group of
staff in a particular function. The process of being unfair has been a serious issue in the
performance appraisal.
Lack of proper feedbacks:
Most of the time data are just stored and not made useful. Since this is a process hence forms
are filled and submitted to the HR team without proper evaluation on performance. Hence
there is lack of feedback and performance evaluation is just done to fulfil the HR process
instead of making it a tool for development.
Conflicts
Conflict is an evitable factor when it comes to discussing the issues in Performance
management planning. The difference between the various roles played by managers and staff
give rise to serious problems while goal settings. Here are some of the conflicts you may
encounter during performance management planning.
Different goals between organisation and employee:
Employees have a set of expectation like increment, promotion, reinforcement and assurance
while the managers are more towards constructive criticism. Most of the time employees fail
to be honest as they feel their promotion or increment could be in stake. Honesty can be
practiced only if the manager is close or has an open minded personality.

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Effective way to overcome this problem would be to involve the employees in the decision
and implementation of various goals within the organisation. This can be achieved by very
strong and friendly interpersonal relationship with the managers and employee. In such case
the employee will be clear about his goals and the managers will be able to help the
employees to increase their performance and fulfil their potential. Through this action a
mutual trust can be created between the employees and the managers.
Dual roles of managers:
The conflict lies on the role that a manager has to play, and during the performance review he
must play a dual role of a helper and a judge. Thus, most managers find it difficult to play this
role of a soft and a strict evaluator.
To overcome this issue the organisation should have separate departments for reviewing the
performance of the employee and focus should be directed on personal development. This can
be achieved by conducting separate interviews for performance and development at different
times within the organisation.
Employees conflicting goals:
Generally employees look for feedback so as to understand where they would stand on the
performance scale. So it’s always noted that positive feedback satisfies employee but critical
or negative feedback are not accepted by most of the employees.
The way to overcome this issue would be that the employee should be trained to have an open
mind and accept whatever feedback they get.
1. Lack of clarity in the purpose of the performance review system:
Another major issue is that, organisation are not clear about their performance review system
hence the employees do not consider the process to be serious since their mangers have not
been a part of a proper review with their supervisors.
A study of 1000 Australian companies has revealed that more than half of the appraisal
system is not in place. In UK another research was conducted by Bevan and Thompson
showed that only 20% of the organisation had a proper management system but 60% of the
organisation had a few policy and procedures to manage the performance of the people.
Research done by Fletcher and Williams show that 20% of the organisation that had
performance management system did not have any proper bases. Hence it proves that there
was no integrated and holistic approach within the organisation.
According to a study on the perception of older Australian Academics the findings show
negative perception about the process, purpose and development support of performance
management. The data are drawn from 21 universities as documentary and 52 academics
interview. The result of these interview show that majority of academics aged over 50 have
felt that performance management was meaningless in terms of their future advancement and
it held no purpose.
To deal with the issue the organisation should have a clear purpose for the performance
planning and review system. To achieve this performance management system should be
reviewed on regular bases and a proper training and development system should be
incorporated.

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 2. Performance review over a short-time period:
In many organisations the managers are expected to conduct the performance interview over a
short period, mostly towards the end of the year when they are generally busy in generating
the year ending reports hence performance review is considered as another unwanted task.
The best way to overcome this problem is by spreading out the performance review over the
year i.e., conducting different sessions of performance appraisal throughout the year. This
would help the managers to avoid the pressure at the end of the year.
3. Evaluation errors in Performance Measurement:
Human have very poor information processing skills; study shows that we tend to simplify
information to make or pass a judgement also known as ‘heuristics’. Sometimes errors also
occur purposefully. Below are some errors mentioned during performance evaluation.
a. Judging by self-standards error:
b. Contrast error:
c. Distributional error:
d. Halo and horns error
e. Appraisal politics
4. Addressing the issues
There should be adequate training for evaluators or raters where issues such as discussed
above should be discussed and strategies should be developed to minimise such errors. Top
management support system should be built to reduce distortion in the process. Employees’
accomplishment should be recognised that are not self-motivated. Creating a climate where
that encourages openness and honesty in regards to weaknesses should be encouraged. Lastly,
make sure that the performance appraisal should be consistent across the company.
Motivation is on important tool to boost the perception about the performance. The process
should be a non-judgemental process and more focus should be given on the corporation
between employees.
Issues in reward system
As a Human Resource manager, it is very important to take note of facts that can destroy a
performance reward system.
Unclear job process is one issue in the performance reward system where the manager cannot
communicate to the employee what the goal to be achieved is in that particular. Hence
performance cannot be evaluated because job objective is unclear.
By keep the selection and promotion criteria vague it is difficult to understand how the
process works hence it is a barrier to successful performance system.
Where tangible goals are missing to bind the managers and the employee to work and focus.
Criteria for a Successful reward system

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According to studies there are important criteria that should be followed to have a successful
reward system. Some of them are discussed below
The system should fit its environment:
The company culture should have a ‘sales mentality’ for its workers. Employee should be
rewards on the specific task assigned to them. This is a traditional approach which used to be
applied on sale workforce.
‘Pay by example’ at the top level should exist, this would create an environment where even
the top managers are evaluated in the same process for rewards.
Fairness to it employee:
The process should be based on equality internally and competitive externally. Performance
measurement should be valid and understandable to the employees. Time, equality and
promises should be the key element of any program.
Fairness to the company:
It should be able to fund itself as the most important factor for a successful running show. The
initial investment is always required on rewards but the process should turn that reward into
productivity and increased revenue for the company. The company should be a profit making
position to have the process implemented.
Linking the components of Performance management and Reward
By following the performance implementation process performance management and rewards
can be integrated successfully.
There should be a mutual manager and employee expectation right from corporate level goals,
values and operation processes.
A clear quantitative and qualitative measure should be established to relate to individuals and
team job responsibilities. The same three mega performance criteria should be imposed on all
employees, I.e. the corporate, department/division and the individual/team. The entire
criterion is defined and targeted so that every employee is rewarded on the best measures of
which he or she has the most control over. It creates an ‘esprit de corps’ within the
organisation and at the same time develops a direct line-of-sight between performance and
rewards.
Process training to manager and employee should be given to ensure effective use of
performance management process such as System mechanics, effective management
techniques and performance planning and coaching.
Moreover, the performance-related information should be readily available to be utilized
through communication between managers and employee all the time, sharing of quantitative
and qualitative data and publication of the achievement of the individual performance and
their impact on business operations.
A periodic formal and informal feedback is very important at least quarterly, or after an event
or dead-line.

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Finally, a direct link should be created to rewards based on individual, unit or team
performance.
Findings and implications
I have worked in the past as a human resource person with the employee relations team and
had faced some of the issues which were discussed in my paper.
The most important was during the performance appraisal where the organisation failed to be
clear with the kind of appraisal it was holding and the purpose of the performance appraisal.
As employees we all know the basic of a performance appraisal i,e. for increment or
promotion. The kind of appraisal used here was the Bell-curve and it was so hated by the
employees. In this kind of appraisal system one person had to be marked at the top and
someone else had to be at the bottom of the curve. This system was so vague and brought a lot
of dissatisfaction among the team. Below are some issue with the system.
Unclear performance management system
It was so unclear with the staff the type of appraisal system that was in place, moreover the
managers failed to explain the characteristic of a bell-curve performance system.
Distance between managers and employee
Secondly there was a big difference between the managers and employee as they were not
sharing a good relation apart from that of a supervisor and subordinate relation.
Lack of communication
Moreover, there was lack of communication between managers and employee and the process
could not be made clear because the managers were not listening and speaking to their
employees.
The appraisal system
There was a great resentment because the system of bell-curve called for two extreme and
there had to be one on the top and one in the bottom. This was too disgracing and someone
was forced to take the bottom position which created jealousy among the team and divided the
work force.
Biasness of the managers
Managers took advantage of this situation and supported their favourites and gave the others
less preference. Hence this system was a complete failure as one person got the best out of it
and the other got the worst with least reason to be motivated or continue in that firm.

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H. Mentoring and Performance Management & Reward System

Mentoring is a reciprocal learning relationship which a mentor and mentee agree to a

partnership, where they work collaboratively toward the achievement of mutually defined
goals that will develop a mentee's skills, abilities, knowledge, and/or thinking.
Mentoring brings value at many levels for mentees, mentors, supervisors, and the
organization for which they work.
Mentees get the chance to learn from an experienced worker who has attained the level of
skill they strive for in terms of both practical knowledge and understanding. Through their
guidance and assistance of others, mentors have the chance to diversify their professional
knowledge and skill sets. The company has the chance to enhance and spread the riches of
talent, skill, and knowledge held by its personnel.

Benefits to the Mentee:

 Receives guidance and support from a respected member of campus community.
 Professional development opportunities.
 Increased confidence.
 Increased institutional knowledge and understanding of how the campus works, how
things get done.
 Greater awareness of other approaches to work.
 Builds a network of colleagues and expanded knowledge of different areas of the
organization.
 Having a confidential sounding board for ideas and challenges.

Benefits to the Mentor:

 Provides fulfilment and satisfaction of helping others and contributing to the development
of colleagues.
 Extends network of campus colleagues and builds community.

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 Supports use and development of key competencies leading to growth.
 Encourages examination of the status quo and alternative possibilities.
 Encourages renewed ideas and perspectives on one’s leadership role.

Benefits to the Organization:

 Facilitates the growth and development of high-potential leaders.
 Demonstrates visible commitment to staff development and continuous learning.
 Transfers and maintains institutional knowledge.
 Fosters an inclusive, diverse, and collaborative environment.

There are three types of mentoring.

1. Traditional One-on-one Mentoring

A match is made between a mentee and mentor, either through a programme or
independently. The structure and duration of the mentoring relationship are either set by
the mentor and mentee or are mandated by a formal mentoring programme.

2. Distance Mentoring
A mentoring relationship in which the two parties (or group) are in different locations.
Sometimes called “virtual” mentoring.

3. Group Mentoring
A single mentor is matched with a cohort of mentees. Initial program structure is provided
while allowing mentor to direct progress, pace and activities.

What are the benefits of mentoring?

A mentor's responsibility is to support a mentee's personal and professional growth by
imparting information, skills, and experience.

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 The mentoring relationship is based on trust, respect, and open communication, and it
entails regular meetings between the mentor and mentee in order to share ideas, go over
progress, and set development objectives.

Here are some of the primary benefits of offering business mentoring within your
company:

Benefits for mentees

One of the best and most efficient possibilities for professional growth you can give your
staff is mentoring. A mentee might gain a variety of personal and professional advantages
from having the direction, inspiration, and support of a dependable and seasoned mentor,
all of which ultimately result in greater performance at work.

For mentees, some key benefits of business mentoring include:

 exposure to novel concepts and modes of thought

 Tips for enhancing your talents and overcoming your limitations
 advice on career advancement and development
 increased recognition and visibility within the organisation
 the chance to learn new abilities and information

Benefits for mentors

Mentoring is more than just sharing ideas, information, and guidance. For mentors ready
to devote their time to the professional development of another person, the relationship
delivers reciprocal advantages. Being a mentor offers several concrete advantages that
might help mentors professionally in addition to the personal gratification of imparting
their knowledge and expertise to a motivated learner.

Some key benefits for mentors include:

Recognition as a leader and subject-matter authority

exposure to new viewpoints, concepts, and methods
Extension of their track record of professional development
the chance to consider their own objectives and methods
development of their individual coaching and leadership philosophies

Benefits for the company

Employers may develop their best emerging talent and keep their most informed and
experienced personnel engaged and motivated by investing in business mentoring.
Mentoring contributes to the growth of a pipeline of potential leaders by passing on
crucial business information and abilities as well as the attitudes and abilities needed to
succeed inside the organisation.

For employers, investing in mentoring helps to:

 Develop a culture of personal and professional growth

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 Share desired company behaviours and attitudes
 Enhance leadership and coaching skills in managers
 Improve staff morale, performance, and motivation
 Engage, retain, and develop performers

How to Improve Productivity Through Mentoring?

By focusing on their particular needs, mentoring engages people. As a result, people
become more productive because they feel appreciated by the company and become more
committed to the team.

Mentoring has other benefits for your organization's productivity besides just raising
engagement. Here are five more ways that coaching can increase productivity:

 Mentoring to Increase Knowledge Sharing

It promotes innovation, fills knowledge gaps, and encourages leadership. As knowledge
sharing brings innovation to the organization, you start to see individuals become more
resourceful in solving problems. This in turn, improves productivity.

 Mentoring New Team Members to be More Productive

Onboarding is a time for new hires to become acquainted with the company culture and to
understand their role as productive assets to the organization. Traditional onboarding
techniques have proved the state of employee retention to be inadequate, as one third of
individuals quit within the first 6 months of a new job.

 Mentoring for Career & Leadership Development

An individual that knows their role and is properly trained is more productive because
they know that they can accomplish more for the organization. A mentor can provide this
training, as well as expose the mentee to other opportunities throughout the organization.

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 With encouragement from a mentor, individuals are motivated to pursue these
opportunities. They are confident in their ability to keep progressing and lead others.

 Mentoring with a Focus on Diversity

Diversity increases workplace productivity, especially when the organization is focused
on innovation. Diversity encompasses a mix of age, gender, race, education, and more. All
of these elements are what allow individuals to bring their unique expertise to the table.

When your organization implements a mentoring program focused on diversity, you’re

providing individuals with the ability to share ideas that can solve issues in unexplored
ways. This improves productivity, as individuals learn how to work collectively to fill in
any knowledge gaps.

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I. Need to study Performance Management & Reward System

Effective performance management is essential to businesses. Through both formal and

informal processes, it helps them align their employees, resources, and systems to meet
their strategic objectives.

A good performance management system helps employees to understand the goals of the
company and what they are expected to do to achieve these goals. This means they
understand how their contributions affect the overall growth of the business.

Thus, performance management will help in business and executive goal setting. Aligning
the whole of your teams with higher organizational goals sets conspicuous priorities and
direction, ensuring that individuals have a beneficial sense of ownership in the business
via personal objectives.

Organizations that get performance management right become formidable competitive

machines. Much of GE’s successful transformation under former CEO Jack Welch, for
instance, was attributed to his ability to get the company’s 250,000 or so employees
“pulling in the same direction”—and pulling to the best of their individual abilities. As
Henry Ford said, “Coming together is a beginning; keeping together is progress; working
together is success.”

Yet in too many companies, the performance-management system is slow, wobbly, or

downright broken. At best, these organizations aren’t operating as efficiently or
effectively as they could. At worst, changes in technologies, markets, or competitive
environments can leave them unable to respond.

Strong performance management rests on the simple principle that “what gets measured
gets done.” In an ideal system, a business creates a cascade of metrics and targets, from its
top-level strategic objectives down to the daily activities of its frontline employees.
Managers continually monitor those metrics and regularly engage with their teams to
discuss progress in meeting the targets. Good performance is rewarded; underperformance
triggers action to address the problem.
Where do things go wrong?
It might be challenging to implement performance management systems correctly in the
real world. Let's take a look at a few typical mistakes.

 Poor Metrics
A corporation must truly support the performance it desires with the measurements it
selects. The majority of the time, a balanced scorecard can only do this by including a few
of them. If that doesn't happen, issues develop. For instance, a few industrial facilities still
assign distinct overall production goals to each shift. Workers have every incentive to
decide whether they can complete a full "unit" of work during their shift because each
shift's incentives are based solely on its own performance and not on the performance of
all shifts for the entire day.
If they believe they can, they begin and finish a unit. The credit for completing their
unfinished task would otherwise go to the following shift, therefore if they don't, they
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 might slow down or stop altogether towards the conclusion of the shift. As a result, there
is little to no work in progress at the beginning of each shift, which lowers production and
productivity. It would be preferable to link team goals with the plant's total output so that
employees may gain from supporting both the current shift and the one after it.

 Poor Targets
Choosing the appropriate targets requires both science and art. If they are too simple,
performance won't be improved. Staff members won't even try to hit them if they are out
of reach. The best goals can be attained, but a good amount of stretching is necessary.

Companies frequently face obstacles related to culture when setting such goals. For
instance, managers often set targets too low in Asian organisations because missing them
is seen as quite shameful. In contrast, setting a lesser goal than what was accomplished in
a prior time is frequently viewed as inappropriate in the United States, even when there
are good reasons for the shift.

 Lack of transparency
Employees have to believe their targets encourage meaningful achievement. Frequently,
however, the link between individual effort and company objectives is obscure or gets
diluted as metrics and targets cascade through the organization. Different levels of
management, in an attempt to boost their own standing or ensure against
underperformance elsewhere, may insert buffers into targets. Metrics at one level may
have no logical link to those further up the cascade.

 Lack of relevance
The right set of metrics for any part of a business depends on a host of factors, including
the size and location of an organization, the scope of its activities, the growth
characteristics of its sector, and whether it is a start-up or mature. To accommodate those
differences, companies must think both top-down and bottom-up. One option is the
hoshin-kanri (or policy-deployment) approach: all employees determine the metrics and
targets for their own parts of the organization. Employees who set their own goals tend to
have a greater sense of ownership for and commitment to achieving them than do those
whose goals are simply imposed from above.

 Lack of dialogue
Without frequent, open, honest, and efficient communication, performance management is
ineffective. Metrics are an active component of an organization's daily management, not a
passive way to gauge success. Daily shift huddles, toolbox discussions, after-action
reviews, and similar activities all support team engagement and keep the emphasis on the
most important tasks. The "plan-do-check-act" feedback loop, which was developed on
the basis of ground-breaking research by Charles Shewhart and W. Edwards Deming, aids
teams in learning from their errors and identifying sound concepts that may be used in
other contexts. Additionally, supervisors frequently serve in these capacities in high-
performing organisations. At every level of their career, individuals can benefit from one-
on-one meetings that show concern and reinforce positive behaviours.

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 Lack of consequences
Performance must have consequences. While the majority of employees will never face
the relentless “win or leave” pressure typical of professional sports, weak accountability
tells people that just showing up is acceptable.
Perhaps even more significant than punishing poor performance is rewarding good
performance. Although most businesses have a variety of formal and informal
mechanisms for recognising and rewarding employees, few actually perform this kind of
morale-boosting enough, either in terms of volume or regularity. Employee-of-the-month
and team accomplishment awards are crucial in motivating behaviour that enhances
performance and maintains it at a high level in settings ranging from lunchroom festivities
to town hall announcements. An industrial goods company's COO maintains a standing
agenda item in the monthly business review for praising the accomplishments of
individuals and groups. A present might be waiting for the employees on the list at home
as a way to thank them (and their families) for a job well done.

 Lack of management engagement

The words of Toyota honorary chairman Fujio Cho—“Go and see, ask why, show
respect”—are now famous as basic lean-production principles. Yet in many companies,
senior managers rarely visit plants except during periodic business reviews, and they
appear on the shop floor only when a major new capital improvement is to be inspected.

Management interactions with frontline personnel are an extremely powerful

performance-management tool. They send a message that employees are respected as
experts in their part of the business, give managers an opportunity to act as role models,
and can be a quick way to solve problems and identify improvements.

 Building a strong performance-management system

The best companies build performance-management systems that actively help them avoid
these pitfalls. Such systems share a number of characteristics.

 Metrics: Emphasizing leading indicators

Too often, companies measure and manage performance through lagging indicators, such
as compliance with monthly output or quality targets. By the time the results are known, it
is too late to influence the consequences. The best companies track the same metrics—but
also integrate their performance-management systems into critical process inputs.
Industrial Internet technologies, such as the SCADA1 architecture and distributed-control
systems, let manufacturing staff know within minutes (or seconds) about variations in
performance, even in remote parts of a plant. That lets people react long before the
variation undercuts output or quality.

Some changes require almost no investment in technology. At the end of each workday,
for example, production and functional teams can complete a checkout form assessing
how it went. A combination of quantitative and qualitative metrics and simple graphics
(such as traffic lights and smiley faces) provides an easy, highly effective tool for
identifying and correcting issues or problems before the next day’s work begins.

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 As performance-management systems evolve, the metrics they use will become more
complex, incorporating continuous rather than discrete variables: “everyone showed up on
time today” will become “the team achieved 93 percent on the schedule-performance
index using 90 percent of the labour-performance index.” The extra detail better informs
decisions such as whether to add more labour to meet a delivery date or to push out a
schedule for delivery.

 Sustainability: Regular heartbeat and routine work

The finest businesses maintain the cadence of meetings and reviews regardless of changes
to metrics and targets, making them an integral part of the rhythm of daily operations.

 View the collection

A checklist or standard operating procedure that defines the steps and sequences for every
key process usually enforces standard work.

 Continuous improvement: Standard work is for leaders too

Standard work is essential at all levels of an organization, including the C-suite and senior
management in general. Standard work for leaders forces a routine that, while
uncomfortable at first, develops expectations throughout an organization. It is those
expectations, along with specific metrics, that ultimately drive predictable, sustainable
performance.

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J. Rewards Management and Linkage to the Performance
Pay for performance is a crucial component of effective management. What kind of
compensation corresponds to what kind of performance is the crucial issue here to
consider. staff favourability programmes have historically been created to encourage staff
retention, recognise particular demands of an organisation, be based on the attainment of
both financial and non-financial objectives, and in general produce value for shareholders.
These programmes can be used to reward both long-term and short-term success.
The salary may not always be in line with the performance standards. Following are some
of the main causes highlighted:
• People employed from outside the organisation negotiate many of the greater salary
packages. Insiders' inadequate performance is what leads to the hiring of an outsider.
• Pay packages are based on what others in comparable jobs are being paid, independent
of performance, increasing the outsider's negotiating power. As a result, there is a natural
gap between pay and performance.
• present pay frequently corresponds to past performance rather than present or anticipated
performance.

The key guiding principles for establishment of right performance measures

are as under:
• Clearly understand the outcomes you hope to achieve.
• Be aware of the benchmark (average) results.
• Recognise the person's power to affect outcomes.
• Establish explicit performance goals that call for merit compensation.
• Ensure that the results are measured with absolute accuracy.

Alignment of Performance Reviews to Individual Goals of Employees

Often called pay-for-performance (P4P), the concept is to build a culture of
top performers by aligning goals, performance, and rewards across an
entire organization. With the advent of technology, HRs in an organization
are trying to break the cycle by opting for periodical performance
assessment.

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Relevance of Performance Feedback for Employees
1. Receive Feedback:
It is a chance for the employee to get helpful criticism regarding how well they are doing
their jobs in relation to their goals that have already been set and the areas where they
need to improve. They learn their current position, in other words.

2. Self-development:
Areas for improvement can be determined based on the existing situation, and new goals
can be established for the employee along with a development (training) plan to reskill
and upskill in order to attain the goals.

3. Provide Feedback:
Employees have the opportunity to openly discuss their performance on the job, the
difficulties they encounter, and provide feedback to their managers. It increases two-way
communication, makes them feel respected and heard, and it also helps to create trust.
4. Employee Recognition and Rewards:
Best performers get better pay, bonus and other benefits.

Relevance of Performance Feedback for Employers

1. Assess Talent Status:
Finding the underperformers makes it simple to decide whether to keep them and train
them to perform better or let them go.

2. Increase Engagement:
Employees who are given a development plan and management support feel highly
engaged, which boosts productivity and increases retention rates.

3. Assess Recruitment Needs:

The organization's recruitment and induction practises can be assessed and tracked using
the overall statistics from the appraisals.

4. Assess the Overall Training Needs:

Organisations can evaluate the areas where people and departments need more help and
assistance, then pinpoint those areas.

Pay for Performance as a Culture

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 The focus of best-in-class organisations is on a performance-driven rewards system that
pays contributors in direct proportion to what they do and how much they add to the
bottom line. It has been observed that programmes that link an employee's compensation
to their performance—such as merit raises, bonuses, and long-term incentives—have been
particularly successful in encouraging genuine performance.
The idea behind pay-for-performance (P4P), which is frequently used, is to create a
culture of top performers by coordinating objectives, performance, and rewards
throughout an entire company. Any organisation that wants to effectively maintain or
surpass growth objectives must prioritise motivating, rewarding, and keeping top workers.

Management expectation of optimal outcome of the performance management framework

1. Creates a high-performance culture with more engaged employees who stay with the
company longer.

2. The result of more frequent communication is the ability to address, in real time,
performance areas that can be improved, measured and developed if skill gaps exist.

3. Real-time, continuous feedback encourages collaboration, gives development

discussions more meaning and provides a process for giving and requesting targeted
feedback.

Employees are looking for growth and providing continuous feedback to

them helps retain high performers by giving them dedicated career
development plans.

K. Role of Technology in Performance Management.

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Technology improves performance management and the best organizations design an
“employee success system”– that’s uniquely suited to its people. From goal setting to
continuous feedback, success data to annual reviews, no two processes look exactly the
same from one company to the next.

The earlier performance management systems' use of technology was frequently

cumbersome and led to a backlog of difficult-to-access data. There has been a shift
towards a more simplified approach in recent years.

and approach to technology use that is user-friendly, making it simpler to access the data
deemed useful. Particularly for "real-time" performance management systems, using
straightforward and easily accessible technology solutions can be very helpful in creating
an efficient and successful performance management system. Many businesses now use
performance applications, which enable a number of crucial operations to be completed
online. Employees may now easily access items like team goals and objectives, personal
progress reports, and feedback.

Technology in Performance Management Improves Efficiency and Output

Modern human resources management relies heavily on HR technology. Every aspect of

HR, including performance management, benefits from it. Utilising computers, networks,
specialised software, and mobile technology to speed up performance management
procedures is considered performance management technology. The performance
management system's production and efficiency improve as a result.

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 Performance management frequently receives a bad rap because of its inefficient method,
subpar implementation, excessive expense, and unreliable appraisal. The process,
implementation, cost, and appraisal of performance management could significantly
change with the use of technology. Among the advantages are:

 Technology might make the review process simpler. With the use of technology, the
evaluation process might be carried out in a straightforward manner, saving managers and
other involved parties time in dealing with administrative matters. As the time is cut short,
managers and staff will have more time to develop a plan to improve performance in the
following year.
 Managers will be able to quickly track metrics, objectives, and accomplishments thanks to
technology. With the aid of networks and mobile devices, monitoring can even be done
remotely. It increases productivity and efficiency.
 Thanks to technology, gathering and disseminating information is now quite simple.
Various sources, such as individual jobs, surveys, and supervisory information, are easy
for managers to assemble information from. Information is also easily shared with
connected parties, ensuring that everyone has access to enough information. Because they
receive accurate information from a reliable source, it will boost employee satisfaction
and lessen the likelihood of misunderstandings.
 To interact and communicate with others, online networks and mobile technologies are
vital tools. Both the reviewers and the employees will find it valuable. Employees could
readily receive frequent feedback from reviewers so they would know whether or not they
were performing up to expectations. Employees might always have access to the system to
participate in their system reviews.
 A structured performance evaluation process with possibility for the employee to take part
in evaluation process by creating employee-level goals that aligned with general business
goals will increase the sense of alignment of employees with organization’s mission.
Technology with performance management system could make the documentation of
these goals fast and easy to evaluate.
 Technology is also useful in the creation of analysis and reports. It will help to calculate
evaluation scores and show it in the reports. In addition, the system may generate
comprehensive reports that would be very useful to demonstrate the strength and
weakness of organization to the executives.

A lot of times and energy could be saved with the use of technology. However, it is very
crucial to choose the right technology to be used in creating the best performance
management system. Each organization is unique and discrete approach is needed to
create the system. In addition, every party related to performance management process
need to understand how the system works associated with their level of job and
responsibilities in order to utilize Technology in performance management. While HR
staffs need to understand the system in more detail, employees need to understand how
they can access their feedbacks and reviews.

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Five ways that technology might enhance your employee success strategy

Here are five key benefits of a tech-enabled employee success approach that you won't get
from traditional performance management procedures.

1. Provides access to current information

Time is always of the importance in today's always-on workforce. Managers and
executives can react swiftly with the support of real-time data access via an employee
experience platform. Whether they need to praise them as they accomplish significant
goals or respond to unfavourable feedback in a proactive manner. Making the most of
frequent one-on-one Sync is made easier by technology. Check-Ins on quarterly goal
alignment and -Ups.

2. Recognises employee success trends and anomalies with ease

A data-driven methodology gives you, as an HR professional, the ability to highlight the
aspects of employee success that you need to see the most. You're better able to deal with
complex issues instead of wasting time looking for trends and outliers. Which means you
have the information you require to promote employee success.

3. Creates more thorough profiles of employee success

The best approach to develop team alignment is also through technology. To succeed, it's
essential to have everyone on the same page. Additionally, manually conducted
performance reviews often leave too much to chance. Observing objective progress and
employee Sync-Up and Check-In feedback data, gathered in one location, offers complete
transparency, enabling workers to succeed.

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4. Provides an accurate usage measurement

A good employee success method, like anything else, only functions when it is actually
employed. Key performance indicators, such as which individuals and teams are creating
and monitoring goals, cannot be tracked using traditional performance techniques. (Or
offering and getting feedback, or deciding to engage in a process of assessment and
coaching.)

Technology for employee success provides human resource managers with an overview of
utilisation. This enables you to decide which processes require adjustment or whether a
training session or refresher course is required.

monitoring engagement in the Work Tango employee success platform's goal-setting

programme.

5. Creates access to the audit trail

Finally, technology automatically records exchanges about employee achievement as
digital documents. This safeguards a company in the event that someone feels they were
treated unfairly.

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L. Reward Policies in the Knowledge/Technology Economy.

The main growth engine and value creator for organisations in the knowledge-based
economy are intangible assets and human capital. The HR department makes every effort
to maintain employee satisfaction in order to boost productivity. Finding out what makes
employees happy at all times is beneficial, especially when done through the appropriate
incentive and recognition schemes.
Every company and organisation wants their workers to be happier. The issue is that a
disproportionate number of these businesses believe that greater earnings are more
significant. However, mounting data suggests that a key factor in businesses' ability to
make more money and achieve greater success is their ability to keep their employees
happy.

Some of the recently published facts and statistics by Snack Nation research are as under:

• Organisations with contented workers outperform their rivals by 20%. People who are
satisfied at work are more likely to care about the organisation and want to see it succeed.
Simply put, happy employees are more concerned.
The objectives of your group are stronger. They have a stake in the business' success. If
not, your staff would be unhappy and only work as hard as necessary to stay employed.
The job of happy teams feels more like pleasure than work because they enjoy what they
are doing.

• Contented workers are 12% more productive - Usually, when you enjoy what you do,
you want to do more of it. Additionally, you'll see that you encounter less distractions.

• 67% of full-time workers who have access to free meals at work say they are
"extremely" or "very happy" in their current position. It shouldn't be surprising that one of
the top rewards that employees seek out is free food. It's one of the main justifications for
why organisations like Google and Facebook use it to draw in and retain great personnel.

• Sales are increased by 37% when salespeople are happy.

• 36% of workers are willing to forgo a $5000 annual rise in order to be happier at work.

• People with best colleagues and partners at work are seven times more
engaging in the work.

• Factors that contribute to the job satisfaction for the employees were:
o Job security
o Opportunities to use skills and abilities
o Financial stability of the organization they work for
• Employees who report being happy at work take ten times less sick days
or leave.
• Only 42 per cent of the employees are happy with the rewards and
recognition programme of their companies.

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 Utilising social media to promote programmes for rewards and recognition

Twitter, LinkedIn, and Facebook users all have average ages of 39, 39, and 44
respectively. Thus, the claim that social networking is a trend popular with young people
exclusively is entirely false. The sooner we accept the fact that social media is here to
stay, the better prepared we will be to utilise its power.

There is a lot of discussion about how social media use in the workplace affects
productivity, frequently from a negative angle. We need to switch from seeing the glass as
half empty to half full. There has never been a better chance to interact and communicate
with employees than there is today thanks to social media. It's time to reward your
employees in novel and interesting ways, with social media serving as the main tool in
your approach.

 Recognize Often: Too frequently, our method for rewarding performance is limited to
major occasions like service anniversaries or great accomplishments like the debut of a
significant project. Because of social media's real-time immediacy, we have the ability to
recognise small victories that frequently go undetected.
 Spread the News: It is essential for employees to communicate with their counterparts
throughout the world in today's global market. Recognition can be shared and distributed
via social media without the need for a passport and across borders.
 Jump on the Bandwagon: It's crucial to quickly acknowledge positive behaviours or
accomplishments. By letting others know who you are recognising and why, as well as by
enabling others to congratulate the recipient as part of the conversational stream, social
media also enables us to widen the recognition experience.
 Capture the moments: Thanks to the power of smartphones, you can quickly and easily
take pictures and videos of your recognition events and post them on social media to share
with people who could not attend or to simply make those who did attend smile as they
recall the fun they had.

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 Participate: We occasionally forget that communication should always be two-way. Ask
your staff for feedback on your recognition programmes rather than just announcing new
programmes to them. Social media makes this simple to do, and the only way to
continuously improve initiatives is through feedback.
 Strengthen the Sense of Team: As more companies provide flexible work schedules and
home office options, it can be challenging to foster a sense of team among remote workers
who don't put in the same hours. No matter where it begins or ends—at home or at the
office—across all work shifts, social media is a terrific tool to offer management to
employee recognition and even peer-to-peer recognition.
 Make executives more accessible: Finding opportunities for your senior leaders to
interact with employees is a constant problem. Senior management has a fantastic
opportunity to connect with and honour the organization's everyday heroes through social
media.
 Expand the Reach: Implementing a recognition effort in a big company can be
intimidating. Social media gives you the chance to quickly and consistently spread your
message to a sizable and even organization-wide audience.
 End the ‘Flavour of the Month’: New recognition initiatives frequently experience the
"flavour of the month" syndrome. Social media is a terrific technique to keep recognition
programmes in participants' minds all year long because it makes it simple to readily
allow ongoing messaging and interaction.
 Say What you Mean and Mean What you Say: It's crucial to maintain the honesty that
gives any acknowledgement its true significance even when you are using social media to
acknowledge the occasionally little everyday triumphs. Always be explicit when naming
someone or anything. By doing this, the recognition is always certain to be well-received.

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Importance of Recognition for employees, more than the pay

The best motivator for employees is increased acknowledgment for their efforts, which is
followed by job stability and pay. No of their age, profession, or workplace, employees
are most motivated by recognition.

even surpassing financial benefit. The attitude of a company's board of directors and
senior management towards establishing and advancing guiding ideals and an ethical
culture has been discovered to be known as the "tone at the top."
Nearly two-thirds of respondents believed that while performance-related pay plans could
encourage top performance, they might also encourage workers to inflate or otherwise
mislead their measurements.

When you are motivated, you feel more passionate and ready to take things on with
enthusiasm. Tasks are executed on time; emails get answered; you are more pepped.

When you are unmotivated, you have to literally drag yourself to work. You slow down;
you lack the energy to answer emails and attend meetings; reluctant to move forward and
after a point of time you may give up.

The fact is knowing how to motivate your employees is a very important part of
leadership. You cannot get anything done without an engaged and motivated workforce
and much of that is based on employee satisfaction at work.

While some may argue that nothing beats fair compensation when it comes to employee
engagement and job satisfaction, is it enough? Do employees show up to work just to earn
a pay-check?

Of course, salaries and compensation have to be competitive enough to attract and retain
employees in the first place. However, once employees have settled down and are able to
meet their basic needs, money is not the only thing that motivates them. Non-financial
factors like recognition, camaraderie or peer recognition, job enrichment, autonomy and
flexibility can come into play to help drive their happiness and engagement at a deeper
level.

Several surveys have been conducted to measure employee satisfaction levels and
understand what motivates them. The diverse results of these surveys can often lead to
confusion. While some say monetary benefits, including salary, bonuses or pay-hike, can
boost employee motivation, others favour recognition as the best way to foster employee
satisfaction in the long run.

Everybody knows that compensation is always a primary concern. However, if you focus
on salary alone, without recognising your employees for their contribution, they are likely
to feel disengaged at work eventually. In other words, if your employees are not getting
recognised or appreciated for what they do, no amount of money can win their loyalty.

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Time to Look Beyond Pay and Benefits: A Millennial View

• Be flexible...and give control to employees: A happy and engaged workforce is

fostered by allowing employees the freedom to change their schedules to accommodate
family obligations, work from home, or spend time on unique initiatives. Employees feel
empowered and happier when they have more influence over decisions that affect them.
For instance, a defined benefit plan that allows employees to create their own benefits
package from a pre-approved menu is more appealing than merely providing a universal
package.

• Develop HR in your organization: You cannot do everything on your own as the CEO
or top executive. Whether or not your company has a formal human resources (HR)
division, you still need someone to oversee workplace regulations, hire new employees,
handle payroll and benefits, etc. A small department, a team, or a third-party service can
make up the team. Consider HR as setting the tone for the culture of your business. It's
typically a job seeker's first point of contact, serving as their introduction to the business.
Every employee has contact with HR with issues that are extremely important to them,
and they expect HR to be a competent, informed, and reliable resource for their wellbeing
throughout their employment.

• Create a strong rewards system: It's not necessary to spend a lot of money on reward
schemes. A sincere "thank you" goes a long way if an employee contributes fresh thinking
or creative process enhancements. Better yet, say "thank you" out loud. Employee rewards
can also be provided voluntarily and without incurring additional costs. Employees have
the option to participate and receive worthwhile advantages at no additional expense to the
firm, if not at all. Strong incentive structures promote healthy competition, which
motivates people to give their all. They encourage the kind of productive, good behaviour
you want from your staff.

• Boost innovation at all levels: Encouragement of employees to make suggestions or

depart from the status quo of their roles without fear of punishment or negative
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repercussions for failure is one of the most effective things a firm can do to foster an
innovative culture. In fact, several businesses actively encourage staff members to
concentrate on their own side projects. Artificial intelligence (AI) has come of age.
Implementing AI-based technologies can result in innovations that you would not have
previously imagined possible.

• Cultivate diversity and inclusion: Regardless of their sex, age, colour, or sexual
orientation, great firms make the most of the skills, experiences, backgrounds, and
attitudes of their employees.
Businesses may interact with their consumer base and the general public more effectively
when diversity is valued. Insightful new ideas and ways of thinking are brought about
through diversity, as several studies have demonstrated.

• Keep pace with trends: The US workforce is currently made up of one-third

millennials1. People born between 1981 and 1996 are known as millennials, and one of
their defining traits is "doing good while doing well." They approach employment in a
way that incorporates social responsibility. Employees and job searchers in the millennial
generation desire meaningful work as well as a sense of contribution to society. They
aren't simply assessing the work; they are also assessing how the business operates and
interacts with the public. This generation's capacity to do good requires competitive
compensation and a generous benefits package.
Employees are free to concentrate on the positive influence they can make at work since
they have fewer practical concerns.

• Focus on culture: Company culture can make or break a company. A positive,

committed employee base with a can-do winning environment can achieve many
successes in a start–up or small business. Culture is culmination of the attitudes, activities
and values reinforced in the business on a daily basis.
How do you build culture? Here are a few simple ways. Highlight and praise
actions of individual employees who demonstrate those values. Ask employees what they
think the company should stand for, so that they feel invested in building the culture.
Remember, if something is inherently wrong with your culture, replacing people and
adding technology and equipment won't change a thing. It will hold the company back
from achieving greatness. But, a great culture sets the stage for great company
performance.

• Set the tone as leader: Employees take their cues from the most visible person in the
company – usually the owner, CEO or founder. Leadership starts at the top. Not all
founders are natural leaders, though. They may have had a great idea to start the business,
but managing others requires a completely different skill-set. Savvy CEOs know
developing all skills is key and they set aside time and resources to invest in their own
development.

• Empower your team with technology: Technology is a primary priority for both your
current employees and top-tier job candidates. People desire to

work for a business that makes use of cutting-edge technologies to achieve success.
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The tracking of sales leads can be automated using a customer relationship management
(CRM) system, freeing up staff from tedious data entry activities. Employers and
employees can choose and make changes to their benefits more quickly and easily thanks
to benefits administration software. Employees may work from home or see clients on the
go more frequently thanks to mobile devices and apps that free them from the constraints
of their offices. Because of this, employees have more time for higher-level innovation,
which boosts their self-confidence and job satisfaction.

• Hire and keep the best: People are without a doubt the most important factor in what
makes a firm successful. This does not require you to bring in brand-new outside "rock
star" performers. Even the tiniest businesses contain hidden jewels that may shine with a
little coaching and personnel development.
Spend money on helping employees advance their careers. To keep and inspire them,
reward them with the highest remuneration and benefits package you can afford. The key
to a successful business is not actually hidden at all. Just focus on your greatest resource:
your workforce.

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M. Implementation Of Reward Strategy

Developing and implementing a strategic approach to rewards

Employers can increase the effectiveness of their rewards and recognition programmes in
creative, economical ways. Employees who receive appropriate recognition and awards
receive::
• A fair return for their efforts.
• Motivation to maintain and improve their performance.
• Clarification of what behaviours and outcomes the organization values.

For example, employee of the month awards, incentive pay, employee

appreciation luncheons, more time off, shopping sprees, wellness incentive
contests, plus employee rewards customized to motivate.

Eight guidelines for recognizing and rewarding employees that managers

can use in their departments are:

1. Specify employee rewards criteria: Awards for "innovation," "showing initiative," and
"quality improvement" don't always specify what workers must do to win. Some
workers will be prevented from starting their work before they even get that
information. When a winner is declared, co-workers’ successes may be attributed to
favouritism or luck by other employees. Make the award criterion as clear as you can.

2. Reward everyone who meets the criteria: You may announce a contest, encourage
everyone to enter, give frequent reminders throughout the contest period, and then
triumphantly reveal the winner. Then what? One person wins, but there are many
losers who find that their efforts were in vain. Determine explicit standards and
particular objectives, then honour everyone who meets them to have a longer-lasting
influence. Make each success known to the public and praise all achievers.
The more winners, the better, as long as the criteria are significant.

3. Individualize employee rewards: Generic incentives produce generic outcomes. Give

the public what they desire. Make sure it won't feel like exile before you offer a
workaholic a week off, for instance.
On the other hand, find out if rewarding someone with an interesting new project will
make them happy or feel like a burden before doing so.

4. Say ‘thank you’ frequently: “Thank you” is always timely. It is as useful to

acknowledge small successes as it is to recognize major achievements. It validates the
importance of the work people do. And it starts a chain reaction: Pretty soon, more
people start saying it to more people, boosting morale and improving relationships as
well as furthering employee motivation.

5. Nurture self-esteem: Giving people uplifting, detailed, and realistic feedback on their
potential, efforts, and accomplishments helps them feel more confident. They

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 transform into employees who have the self-assurance to establish and achieve
ambitious goals, overcome obstacles, and manage their own workload.

6. Foster intrinsic rewards: The positive emotions people experience as a result of their
work—such as enjoyment of the task, excitement about the possibilities, and pride in a
job well done—are known as intrinsic rewards. Although you cannot give someone an
intrinsic reward, you may make the environment supportive of these emotions. Make
sure everyone understands the value of their work. Consider challenges as chances to
innovate. Encourage people to experiment with different approaches. Additionally, let
them know when they perform well.

7. Reward the whole team: For team accomplishments, it’s important to reward the entire
team to avoid encouraging rivalry rather than cooperation among team members.
However, some team members might put in more effort and provide greater outcomes.
The efforts of others may allow some team members to coast. Resentment develops
when the coasters receive the same reward as the doers. The use of a dual-tiered
system of team and individual awards is one way to meet this difficulty. The
individual incentives are determined by the opinions of their teammates.

8. Remember: What you reward, you receive. Employees quickly learn the company
values because one of the things rewards do is make clear to them what the firm
actually wants. Make sure you aren't incentivizing competition if you want teamwork.
Don't reward individuals for covering up complaints if you want them to remedy
issues. You might even need to offer incentives for taking initiative if you want people
to.

The Bottom Line: Remember that employees can feel rewarded in many ways, not
merely with cash. For top performers, increased responsibility and lessened supervision
can be rewards in themselves, as can flexible schedules, additional time off, first pick of
desirable assignments, and so on. The point is that employees must indeed feel that you
are rewarding them for both working hard and getting results.

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Optimizing Employee Benefits Programme

Treat your employees well. How you treat people today is going to determine whether
your valued employees stay with you when the financial crisis is over. There are two
rules:

The Golden Rule: Treat your employees as you want them to treat your company. How
can you expect them to be loyal to the company if you’re not loyal to them? How can you
expect them to be engaged at work if you’re not engaged with them?

The Platinum Rule: Treat your employees as you want them to treat your customers. It’s
no coincidence that some of the most profitable companies in America are also known as
the best places to work. You can’t follow these two rules by simply paying people more.

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N. Performance Management & Reward system Models.
When creating performance management evaluations or a performance improvement plan
(PIP) for your organisation, we can take a variety of performance management models
into account. The top five models that will enable you to implement performance
management procedures successfully and successfully in your organisation have been
selected after careful consideration.

1. Traditional
Many of us associate the term ‘traditional’ with something primitive. However, the
traditional performance management model – the annual performance management model
– is still the best one for several organizations. The yearly review model of performance
management works well for teams that work with long-term, yearly goals with fixed
plans. This performance management model is ideal for organizations that have
exceptionally high employee retention rates.

The downside of this model, however, is that the employee would have to stick with an
organization for at least a year to receive even one of these annual reviews and might not
experience feedback or suggestions for improvement over the year.

2. Bi-annual
A bi-annual performance management model is essentially the traditional/yearly model
broken into two sections. The employee will be evaluated for their work twice over the
course of a year. This performance management model is again perfect for teams that
work with long-term goals but have some room for change. This model gives teams a
chance to bring all operations back on track in case of deviations and calibrate the
processes that are in motion.

This model could also work for an organization that works with flexible/multiple goals but
is inflexible with the execution process.

3. Project-based
The project-based performance management model, as the name implies, is one where an
employee is evaluated on a project-by-project basis. For this model to be successful, one
needs to decide on every outcome one wants from a project and have the exact evaluation
metrics mapped out in advance.

After each project is completed, the team members review every step taken, every
setback, and every goal achieved, and management can analyse an employee’s
performance on that particular project.

This works well for teams that work with different clients and receive different
requirements from each project they take up. In the case of long-term projects, the
frequency of these reviews can be increased. The regular, continuous feedback sessions
that this performance management model promotes help employees with significant
professional development and fast-paced growth.

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One downside to adopting the project-based performance management model is that
reviews might not be the perfect barometer for the evaluation of an employee’s overall
performance since the reviews are only based on performance in one particular project.

4. High-growth
The high-growth model of performance management is one that is holistic and built on the
pillars of planning, monitoring, reviewing, and rewarding.

The high-growth model is relatively new and is suited for agile teams across industries.
This model supports annual and bi-annual review sessions, reinforced by smaller periodic
check-ins to evaluate employees more extensively and frequently. Since the high-growth
performance management model involves shorter assessment periods and frequent
evaluations, incorporating performance improvement feedback becomes easier.

Goals for a high-growth performance management model are typically set based on a lot
of factors and are SMART, which stands for specific, measurable, achievable, relevant,
and time-bound.

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 2. COMPANY: COGNIZANT TECHNOLOGY
INTRODUCTION:
Cognizant Technology Solutions is a US-based multinational company that deals in
information technology, consulting and outsourcing. The company has reported $563 million
as their net profit by the end of March 2022. This is a 12% growth as compared to the same
quarter last year.

Global Performance Management Policy in Cognizant.

SCOPE
This Policy applies to all Directors, Officers, and employees of all Cognizant entities
subsidiaries, and joint ventures over which Cognizant has operational control (collectively
“Associates”). Processes and timelines may differ for Associates of acquisitions prior to
integration. This policy does not apply to individuals hired by Cognizant as contractors or
through third-party vendors.

GUIDING PRINCIPLES
At Cognizant, we are committed to driving and sustaining a culture of high performance. As
an organization, we recognize innovation and potential, reward performance, and endeavor to
create an environment that allows our associates to perform their best and deliver exceptional
value to our clients every day. This policy outlines our Performance Management principles,
which reinforce our commitment to drive high performance and set clearly defined
expectations. To that end, this policy sets out the responsibilities for both associates and
managers. The overall aim of this policy is to underscore the direct and significant link
between the associate's contributions and Cognizant’s strategic goal achievements.

We foster a high performing culture by rewarding and promoting people based on their merit,
performance and results for the company. We have fundamental principles that drive our
performance management process:

• We never discriminate against a person’s Legally Protected Characteristics when we make

employment decisions, including performance management.

• We optimize the performance of our Associates and the company by aligning individual
goals with the strategic priorities of the company.

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• We expect our managers and Associates to play an active role in the performance
management process. • We measure success based on our Associates' efforts, skills, abilities,
and outcomes/performance.

• We reward demonstrated, sustained high performance.

• We promptly address underperformance and unsatisfactory performance.

Performance Management is a continuous process. It starts with goal setting and includes a
constant loop of feedback and learning and development opportunities.

Defining clear goals to set direction.

Goals provide a clear structure to Associates and help them align their individual goals to the
organizational goals. To be successful, Associates must understand their job responsibilities
and have well-defined and measurable goals. After collaborating with their Home and
Business Managers to set goals, the Associate must document them in the performance
management system. Associates have individual goals they set with their Home and Business
Managers as well as predefined goals in the performance management system based on the
role and standard organizational and enterprise goals that are applicable to all Associates.
Goals are set during specific times during the performance year – when an Associate first
joins Cognizant, at the beginning of the performance year, at scheduled intervals, and when an
Associate begins a new role or assignment.

Self-assessment to reflect on goal progress. Associates have the opportunity to reflect on,
record, and present their contributions and progress toward established goals to their Home
Manager and Business Manager on an ongoing basis.

Timely and actionable feedback is critical. Regular, timely conversations between

Associates and their Home and Business Managers serve two purposes. They allow
Associates to understand what they are doing well and areas for improvement and they enable
two-way discussions concerning the Associate's career aspirations. These conversations
should happen as often as they are needed, with the Associate feeling empowered to initiate
them. There are also specific times when Associates will receive feedback – at the end of
training or an introductory period, during company scheduled check-ins, at project roll-off,
and at the end of each performance year.

Closing out the performance year. A year-end performance conversation reviews the
Associate’s results for the performance year against role expectations, defined goals, and their
contributions to the team and Cognizant's organizational goals. Associates who join the
company on or before the established cut-off date for the performance year will receive a
rating. The Home Manager assigns an initial rating for each Associate based on a scale
defined and communicated by the company. Initial ratings are then aligned across each level,
team, and business group to ensure the same standards are applied to measure performance
and outcomes. The final performance rating is communicated to the Associate.

Rewarding performance. Rewarding behaviours aligned to our future enables us to

recognize results (the "what") while being good stewards of our organization (the "how").

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Performance based compensation and promotions are vital tools Cognizant utilizes to reward
demonstrated, sustained high performance, in accordance with local laws and regulations.
Associates should refer to their employment contract or offer letter for any specific terms.

Introductory period to measure fit.

Associates may have an introductory or probationary period when they join Cognizant.
Performance assessments for these periods are governed by the terms C3: Private Global
Performance Management Policy outlined in each Associate's employment contract, offer
letter or pursuant to the practices of the project or account. These periods are not required by
the company in all countries and/or across all career levels and may be subject to local laws
and regulations.

Performance improvement plans for sustained improvement. A performance

improvement plan (PIP) is a formal tool used when an Associate falls short of meeting their
goals and expectations, cannot sustain the expected level of performance, or has received an
unsatisfactory performance rating. The PIP document identifies the Associate's performance
issues, sets achievable goals for success during an established timeframe, and identifies tools
and resources available to support that success. PIPs are utilized and implemented at
Cognizant’s discretion. PIPs are developed and delivered to the Associate by Home Managers
and/or Business Managers in discussion with Talent Partner/Talent Managers/HR Business
Partners, as applicable, in accordance with local laws and regulations. Failure to show
improvement in performance for the duration defined in the PIP, or failure to sustain
improvement after successful completion of the PIP, may result in disciplinary action up to
and including termination of employment in accordance with local law.

Impact of disciplinary action. Our Code of Ethics encompasses the standards and values that
all Cognizant's Associates are expected to follow. Where allowable by applicable law and
local regulation, any Company-issued disciplinary action may result in impact to performance
review/rating; impact to bonus or variable performance pay; and/or consideration in
promotion decisions.

Using Cognizant communication channels. Cognizant communicates all information about

the annual performance cycle to our Associates through Be.Cognizant and Cognizant email.
All Home Managers, Business Managers and Associates must understand the performance
management process, adhere to cycle timelines, and complete any required training.
Associates must regularly check their Cognizant email and not use client email and systems
when communicating internal Cognizant employment-related matters.

Disputing outcomes. Associates with concerns around the objectivity of the process or who
believe that the procedures or policies were not followed appropriately during any part of the
Performance Management process can raise their concern or complaint through their Talent
Partner/Talent Manager/HR Business Partner. The outcome of any such process will be at the
company's sole discretion, and in accordance with local laws and regulations.

RESPONSISBILITIES: Associates, Home Managers, and Business Managers have

responsibility for ensuring an effective and meaningful performance management process.
Specially:
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Associates
• Regularly check Cognizant communication channels (including email) about upcoming
Performance Management tasks and deadlines.
• Partner with their Home Manager and/or Business Manager to set goals during the goal
setting window.
• Proactively seek and discuss training and development opportunities with their Home
Manager.
• Proactively discuss career goals and aspirations with their Home Manager.
• Complete self-assessment.
• Seek feedback from their Home Manager, Business Manager, and key stakeholders
throughout the performance year.
• Actively participate in the process, be open to feedback, ask questions to ensure
understanding.
• Be receptive to change and make an intentional effort to address areas for improvement.

Home Managers and Business Managers

• Understand that performance management is an essential and critical job function for all
people management roles.
• Treat all team members, direct reports and business reports equitably, fairly, and with
respect.
• Collaborate with the Associate’s Business Manager/Home Manager throughout the
Performance Management process.
• Help Associates define their individual goals in alignment with the project/account goals
and
the broader organization goals.
• Prioritize and invest time and resources to participate actively in the Associate's overall
performance and career development.
• Measure and assess based on the Associates' outcomes/performance.
• Provide overall project feedback within two weeks of an Associate’s assignment on the
project/account ending.
• Consolidate, deliver and document real-time, objective feedback.
• Take ownership of final ratings.
• Create an environment where Associates feel empowered to initiate conversations about
their performance.
• Regularly check Cognizant communication channels (including email) about upcoming
Performance Management tasks and deadlines.
• Complete steps in the process in a timely manner.

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 3. CASE STUDY
Company Background: HCL is a multinational IT company started in India. The company
head office is located in Noida. HCL was established in 1976 as one of India's original IT
start-ups. It is a founder of modern computing with many creations, including the introduction
of personal computers focused on an 8-bit microprocessor in 1978.

Challenges Faced: Before the implementation of the performance management and reward
system, HCL Technology faced several challenges, including:

 Lack of Clarity: Employees were unclear about performance expectations, resulting in

inconsistent performance levels across teams.
 Subjectivity in Evaluations: Performance evaluations were based on subjective judgments
rather than objective criteria, leading to potential biases and unfair assessments.
 Limited Feedback: Employees did not receive timely and constructive feedback, hindering
their professional development and growth.
 Inadequate Recognition: The existing reward system did not adequately recognize and
reward high performers, leading to a lack of motivation and decreased morale.
Implementation of Performance Management and Reward System: HCL Technology
recognized the need for an effective performance management and reward system to address
the challenges mentioned above. The following steps were taken to implement the system:
 Goal Setting: Clear and specific performance goals were established for each employee,
aligned with the company's strategic objectives. Goals were designed to be measurable,
achievable, relevant, and time-bound (SMART).
 Regular Feedback and Coaching: Managers were trained on providing regular feedback
and coaching to their team members. Feedback sessions were scheduled periodically to
discuss performance, identify areas for improvement, and recognize achievements.
 Objective Performance Evaluation: A structured performance evaluation process was
introduced, incorporating both quantitative and qualitative measures. Key performance
indicators (KPIs) were established to assess individual and team performance objectively.

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 Performance Appraisal System: An online performance appraisal system was
implemented to streamline the evaluation process. The system allowed managers and
employees to track progress, document achievements, and set development plans.
 Recognition and Rewards: A revamped reward system was introduced to recognize and
reward high performers. This included a combination of monetary incentives, promotions,
public recognition, and opportunities for skill development and career advancement.
 Results and Impact: The implementation of the performance management and reward
system yielded several positive outcomes for HCL Technology.
 Clear Performance Expectations: Employees had a better understanding of their roles and
responsibilities, leading to improved performance alignment with organizational goals.
 Objective Evaluations: The structured evaluation process minimized biases and ensured
fairness in performance assessments.
 Increased Feedback and Coaching: Regular feedback sessions and coaching improved
communication between managers and employees, fostering a culture of continuous
improvement.
 Motivated Workforce: The revamped reward system motivated employees to perform at
their best, resulting in increased productivity, engagement, and job satisfaction.
 Talent Retention: The focus on employee development and recognition contributed to
higher employee retention rates, reducing turnover and associated costs.
Conclusion: By implementing a comprehensive performance management and reward
system, HCL Technology successfully addressed the challenges related to performance
management and achieved positive outcomes. The system provided clarity, fairness, and
motivation, contributing to a high-performance culture and the overall success of the
organization. Continuous monitoring and refinement of the system will ensure its
sustainability and continued impact on employee performance and organizational growth.

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 4. CONCLUSION
For organizations to drive better performance, employees must be more aligned, engaged, and
motivated toward organizational priorities.
An effective Performance Management System enables organizations to achieve this.
Organizations must deploy an effective and efficient performance management system.
Assessing the effectiveness of the current system, identifying what needs improvement,
benchmarking with the industry, setting goals for improvement, and acting on that
improvement is a process that organizations must follow.
In this digital age, a technology-driven continuous feedback-based performance management
system has many of the components that make a system effective and efficient.
There is no one-size-fits-all kind of performance management system. However, we must
realize that each organization is different and has its own set of goals to achieve and
challenges to overcome. Each organization must adopt a system that is customized to its needs
and desired performance goals.

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 5. BIBLIOGRAPHY
Links
https://www.managementstudyguide.com/
www.studocu.com
https://www.humanresourcestoday.com/
Books:
MBA Book: PERFORMANCE MANAGEMENT AND REWARD SYSTEM.
“Performance Management: Changing Behavior that Drives Organizational Performance” by
Aubrey C. Daniels
“Effective Performance Management: A Balanced Approach” by David DeLong and Steve
Trautman
“Reward Systems: Does Yours Measure Up?” by Steve Kerr
“Performance Management: Concepts, Skills, and Exercises” by Robert L. Cardy and
Charlotte S. Waisman
“Strategic Performance Management: Leveraging and Measuring Your Intangible Value
Drivers” by Bernard Marr.

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