Establishing the performance management system Establishing reward and pay plans, Employee benefits Ensuring a safe and healthy work environment,

1. Enhancing and Rewarding Performance

2. • Establishing the Performance
management system
• Establishing reward and pay
plans
• Employee Benefits
• Ensuring a safe and healthy
work environment

4. Performance Management
Continuous Process of
 Identifying performance of individuals and teams
 Measuring performance of individuals and teams
 Developing performance of individuals and teams
and
 Aligning performance with the strategic goals of the organization
.

5. .
Performance
Management
vs.
Performance Appraisal

6. PM is NOT performance appraisal
• Performance Management
• Strategic business
considerations
• Ongoing feedback So
employee can improve
performance
• Driven by line manager
• Performance appraisal
• Assesses employee
• Strengths &
• Weaknesses
• Once a year
• Lacks ongoing feedback
• Driven by HR
.

7. .
Contributions of PM Systems
For Employees
The definitions of job and
success are clarified
Motivation to perform is
increased
Self-esteem is increased
Self-insight and
development and
enhanced
For Managers
Supervisors’ views of
performance are
communicated more
clearly
Managers gain insight
about subordinates
There is better and more
timely differentiation
between good and poor
performers
Employees become more
competent
For Organization
Organizational goals are
made clear
Organizational change is
facilitated
Administrative actions are
more fair and appropriate
There is better protection
from lawsuits

8. .
Disadvantages/Dangers of
Poorly-implemented PM Systems
For Employees
Lowered self-esteem
Employee burnout
and job
dissatisfaction
Damaged
relationships
Use of false or
misleading
information
For Managers
Increased turnover
Decreased motivation
to perform
Unjustified demands
on managers’
resources
Varying and unfair
standards and ratings
For Organization
Wasted time and
money
Unclear ratings
system
Emerging biases
Increased risk of
litigation

9. Components of Performance Management
Systems
Performance Planning.
Performance Appraisal and Reviewing
Feedback on the Performance followed by
personal counseling and performance facilitation
Rewarding good performance
Performance Improvement Plans
Potential Appraisal
.

10. • Performance Planning: Performance planning is the first crucial
component of any performance management process which forms the
basis of performance appraisals. Performance planning is jointly done
by the appraisee and also the reviewee in the beginning of a
performance session. During this period, the employees decide upon
the targets and the key performance areas which can be performed
over a year within the performance budget., which is finalized after a
mutual agreement between the reporting officer and the employee.
• Performance Appraisal and Reviewing: The appraisals are
normally performed twice in a year in an organization in the form of
mid reviews and annual reviews which is held in the end of the
financial year. In this process, the appraisee first offers the self filled
up ratings in the self appraisal form and also describes his/her
achievements over a period of time in quantifiable terms. After the self
appraisal, the final ratings are provided by the appraiser for the
quantifiable and measurable achievements of the employee being
appraised. The entire process of review seeks an active participation
of both the employee and the appraiser for analyzing the causes of
loopholes in the performance and how it can be overcome. This has
been discussed in the performance feedback section.

11. • Feedback on the Performance followed by personal counseling and
performance facilitation:Feedback and counseling is given a lot of
importance in the performance management process. This is the stage in
which the employee acquires awareness from the appraiser about the areas
of improvements and also information on whether the employee is
contributing the expected levels of performance or not. The employee
receives an open and a very transparent feedback and along with this the
training and development needs of the employee is also identified. The
appraiser adopts all the possible steps to ensure that the employee meets
the expected outcomes for an organization through effective personal
counseling and guidance, mentoring and representing the employee in
training programmes which develop the competencies and improve the
overall productivity.
• Rewarding good performance: This is a very vital component as it will
determine the work motivation of an employee. During this stage, an
employee is publicly recognized for good performance and is rewarded. This
stage is very sensitive for an employee as this may have a direct influence
on the self esteem and achievement orientation. Any contributions duly
recognized by an organization helps an employee in coping up with the
failures successfully and satisfies the need for affection.
.

12. • Performance Improvement Plans: In this stage, fresh set of goals
are established for an employee and new deadline is provided for
accomplishing those objectives. The employee is clearly
communicated about the areas in which the employee is expected to
improve and a stipulated deadline is also assigned within which the
employee must show this improvement. This plan is jointly developed
by the appraisee and the appraiser and is mutually approved.
• Potential Appraisal: Potential appraisal forms a basis for both lateral
and vertical movement of employees. By implementing competency
mapping and various assessment techniques, potential appraisal is
performed. Potential appraisal provides crucial inputs for succession
planning and job rotation.
.

13. Role of performance
management systems
.

14. .
• To help top management achieve strategic business objectives
Strategic Purpose
• To furnish valid and useful information for making administrative decisions about
employees
Administrative Purpose
• To inform employees about how they are doing and about the organization's and the
supervisor’s expectations
Informational Purpose
• To allow managers to provide coaching to their employees
Developmental Purpose
• To provide information to be used in workplace planning and allocation of human
resources
Organizational maintenance Purpose
• To collect useful information that can be used for various purposes (e.g., test
development, personnel decisions)
Documentation Purpose

15. Strategic Purpose
.
By linking the organization's goals with individual
goals, the performance management system
reinforces behaviors consistent with the attainment
of organizational goals.
Onboarding refer to the processes that help the
new employee from being Organizational outsider to
organizational insider.

16. Administrative Purpose
To furnish valid and useful information for making administrative decisions
about employees.
Such administrative decisions include-:
• Salary adjustments
• Promotions
• Retention or termination
• Recognition of individual performance
• Identification of poor performers
• Layoffs
• Merit
.

17. Informational Purpose
“serve as an important communication device.”
• First, they inform employees about how they are doing, and provide them
with information on specific areas that may need improvement.
• Second, related to the strategic purpose, they provide information regarding
the organisation’s and the supervisor’s expectations, and what aspects of
work the supervisor believes are most important.
• Third, How they can improve their performance
.

18. Developmental Purpose
 Performance feedback/coaching
 Identification of individual strengths and weaknesses
 Causes of performance deficiencies (which could be due to
individual, group or contextual factors).
 Tailor development of individual career path
.
Developmental purpose refers to both short-term and long-
term development aspects.

19. Organizational Maintenance Purpose
 Workforce planning
 Talent inventory, which is information on current resources (e.g., Skills, abilitie
promotional potential and assignment histories of current employees).
 Assess future training needs
 Evaluate performance at organizational level
 Evaluate effectiveness of HR interventions (e.g., Whether
 Employees perform at higher levels after participating in a training programme
.

20. Documentation Purpose
Validate selection instruments
Document administrative decisions
Help meet legal requirements
.

21. Establishingrewardand
payplans

22. Rewarding
Employees
Major strategic rewards
decisions:
 What to pay employees
 How to pay individual employees
 What benefits to offer
 How to construct employee
recognition programs

23. Whatto
pay
 Need to establish a pay structure
 Balance between:
 Internal equity – the value of the job for
the organization
 External equity – the external
competitiveness of an organization’s pay
relative to a pay elsewhere in its industry
 A strategic decision with trade-offs

24. The4Psof
Reward
 Pay
 Salary, bonus, shares, etc.
 Praise
 Positive feedback, commendation, staff-
of-the-year award, etc.
 Promotion
 Status, career elevation, secondment, etc.
 Punishment
 Disciplinary action, withholding pay, or
criticism, etc

25. Rewards Review
bonuses
piecework
commission
incentive
plans
meritpay
plans
cost of living
increase
labor market
adjustment
profit sharing
time-in-rank
increase
protection
Program
pay for time
not worked
services/
perks
assigned
parkingspace
preferred
assignments
business
cards
own
secretary
impressive
title
participation in
decisionmaking
greaterjob
freedom
more
responsibility
opportunities
for growth
diversity
of activities
Financial Non-financial
Extrinsic
Implied
membership-based
Performance
based
Explicit
membership-based
Intrinsic

26. Intrinsic versus
Extrinsic
Rewards
Intrinsic rewards (personal
satisfactions) come from the job itself,
such as:
 pride in one’s work
 feelings of
accomplishment
 being part of a work
team
Extrinsic rewards come from a
source outside the job, mainly by
management:
money
promotions
benefits
Financial versus
Non-financial
Rewards
Financial rewards:
 wages
 bonuses
 profit sharing
 pension plans
 paid leaves
 purchase discounts
Nonfinancial rewards:
make life on the job
more attractive;
employees vary greatly
on what types they like

27. Total Reward
(Armstrong
2009)
All types of reward:
 Non-financial as well as financial,
 Indirect as well as direct,
 Extrinsic as well as intrinsic.
 Each element is developed, implemented
and treated as an integrated and coherent
whole.

28. Transactional
(tangible)
rewards
Relational
(intangible)
rewards
Base pay
Contingent pay
Employee benefits
Learning and development
The work experience
Total
remuneration
Non-financial
rewards
Recognition, achievement, growth
Total reward
Components of Total Reward (Armstrong 2009)

29. Components of Total Remuneration
• Base pay: Base pay is the fixed compensation paid to an
employee for performing specific job responsibilities. It is
typically paid as a salary, hourly (or in some situations piece rate).
There is a tendency towards market orientation and the
increasing role of qualifications.
• Contingent pay: Individual contingent pay relates financial
rewards to the
– individual performance, organisation or team performance,
– competence,
– service,
– contribution or
– skill of individual employees.
Consolidated pay: built into the base pay
Variable pay: provided in the form of cash bonuses (increasing role
nowadays).
• Employee benefits: Elements of remuneration given in addition
to the various forms of cash pay.

30. Employee
Benefits

31. Employee benefits
An employee benefits package includes all the
non-wage benefits, like insurance and paid time
off, provided by an employer. There are some
types of employee benefits that are mandated
by law, including minimum wage, overtime,
leave under the Family Medical Leave Act,
unemployment, and workers compensation and
disability.
–

33. Main types of Employee
benefits
– Pension schemes
– Personal (and family) security: different types of
insurances
– Financial assistance: loans, house purchase schemes,
discount on company services…
– Personal needs: holidays, child care, recreation
facilities, career breaks…
– Company cars and petrol
– Intangible benfits: quality of working life…
– Other benefits: mobile phones, notebooks…
– Cafeteria systems

34. z
Ensuring a
safe and
healthy work
environment

35. The joint international labor organization
committee on Occupational health, 1950
defined occupational health as
“The highest degree of physical, mental
and social well-being of workers in all
occupations.”
Occupational health
It represents a dynamic equilibrium between the worker and
his occupational environment

36. z
GOALS
 To reduce industrial accidents.
 To prevent occupational hazards/ diseases.
 To achieve maximum human efficiency and
machine efficiency.
 To reduce sick absenteeism.

37. z
OBJECTIVES OF
OCCUPATIONAL HEALTH
 To maintain and promote the physical,
mental and social well being of the
workers.
 To prevent occupational diseases and
injuries.
 To adapt the work place and work
environment to the needs of the workers
i.e application of ergonomics principle.
 It should be preventive rather than
curative.

38. z
Laws related to working hours,
conditions of services and
employment
1 The Factories Act, 1948
2 The Dock Workers (Regulation of Employment) Act, 1948
3 The Plantation Labour Act, 1951
4 The Mines Act, 1952
5 The Working Journalists and Other Newspaper Employees (Conditions of Service and Misc.
Provisions) Act, 1955
The Working Journalists and Other Newspaper Employees (Conditions of Service and Misc.
Provisions) Rules, 1957
6 The Merchant Shipping Act, 1958
7 The Motor Transport Workers Act, 1961
8 The Beedi & Cigar Workers (Conditions of Employment) Act, 1966
9 The Contract Labour (Regulation & Abolition) Act, 1970
10 The Sales Promotion Employees (Conditions of Service) Act, 1976

39. z
Cont.11 The Inter-State Migrant Workmen (Regulation of Employment and Conditions of
Service) Act, 1979
12 The Shops and Establishments Act
13 The Cinema Workers and Cinema Theatre Workers (Regulation of
Employment) Act, 1981
The Cinema Workers and Cinema Theatre Workers (Regulation of Employment)
Rules,
1984
The Cine Workers’ Welfare Fund Act, 1981
14 The Dock Workers (Safety, Health & Welfare) Act, 1986
15 The Building & Other Construction Workers (Regulation of Employment &
Conditions of
Service) Act, 1996
16 The Dock Workers (Regulation of Employment) (Inapplicability to Major Ports)
Act, 1997
17 .The Payment of Gratuity Act, 1972

40. z
Laws related to equality and empowerment of women
1 The Maternity Benefit Act, 1961
2 The Equal Remuneration Act, 1976
3 The Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013
Laws related to equality and empowerment of children
1 The Bonded Labour System (Abolition) Act, 1976
2 The Child Labour (Prohibition & Regulation) Act, 1986
Laws related to labour welfare
1 The Mica Mines Labour Welfare Fund Act, 1946
2 The Limestone & Dolomite Mines Labour Welfare Fund Act, 1972
3 The Beedi Workers Welfare Fund Act, 1976
4 The Beedi Workers Welfare Cess Act, 1976
5 The Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines
Labour Welfare Fund Act, 1976
6 The Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines
Labour Welfare Cess Act, 1976
7 The Cine Workers Welfare Fund Act, 1981
8 The Cine Workers Welfare Cess Act, 1981
9 The Employment of Manual Scavengers and Construction of Dry
Latrines (Prohibition) Act, 1993

41. z
Laws related to social security
1 The Workmen’s Compensation Act, 1923
2 The Employees’ State Insurance Act, 1948
3 The Employees’ Provident Fund & Miscellaneous Provisions Act, 1952
Laws related to employment & training
1 The Employment Exchanges (Compulsory Notification of Vacancies)
Act, 1959
The Employment Exchanges (Compulsory Notification of Vacancies)
Rules, 1959
2 The Apprentices Act, 1961
Other Relevant Legislation
1 The Fatal Accidents Act, 1855
2 The War Injuries Ordinance Act, 1941
3 The Weekly Holiday Act, 1942
4 The National and Festival Holidays Act
5 The War Injuries (Compensation Insurance) Act, 1943
6 The Personal Injuries (Emergency) Provisions Act, 1962
7 The Personal Injuries (Compensation Insurance) Act, 1963
8 The Coal Mines (Conservation and Development) Act, 1974
9 The Emigration Act, 1983 The Emigration Rules, 1983
10 The Labour Laws (Exemption from Furnishing Returns and Maintaining
Register by Certain Establishments) Act, 1988
11 The Public Liability Insurance Act, 1991

42. .