Apr 8, 2019 in Management

Managing Performance And Reward


Performance and reward management system is system geared towards promoting efficiency and improved individual output. It involves the setting of goals, coming up with processes to be utilized in the attainment of these goals, the expected level of output from the employees, evaluation process and then relevant compensation. It is important to appreciate that performance and reward system can only yield the result if utilized well. What this demands is a keen understanding of the parameters involved in the under the system. A good performance system acts both as a motivation factor within an organization not to mention the promotion of a performance culture that is very helpful in terms of ensuring the perpetuity of the organization in terms of good performance. This culture of good performance among the employees is very helpful in ensuring the company has a competitive advantage to handle any unforeseen future competition. The main advantage of having a robust performance and rewards management system is to link performance with rewards thus helping in the maximization of the business’s output.

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Parameters Involved in The Performance And Reward Management System

Goal setting 

This is the first stage of the formulation of performance and reward system. In this stage, organization goals are set and make clear to all employees. The next phase involves identifying the relevant responsibilities that are to be delegated to various departments. The delegated roles play a complementary role towards attainment of the general organization’s goals. Then, in the departments, this is where different employees are clustered into groups playing various roles. The optimal aim at this stage is coming up with goals that are clear to all making it possible for all the employees to identify the corresponding required input. This is also the stage in which the employees are directed on the expected level of output in terms of an identifiable target that attracts different level of compensation.

Key Performance Indicators & Resource Allocation

In this stage, agreed upon indicators are formulated that forms the basis under which progress is weighed. Besides, relevant resources are allocated to various departments to enable them to play the assigned task that in the line of playing their crucial role. Key Performance Indicators (KPI) is used to verify on whether the desired progress in the departmental and employee level is being attained. It is also through KPI that it becomes possible to identify the deserving and undeserving candidates of bonus and other forms of compensations.

Performance Evaluation and Review

At this stage, the management compares the employees’ performance in comparison with the pre-determined performance indicators. The aim at hand in this stage is to evaluate whether the set individual performance is being met by the employees. The next action at this stage is called review whereby a thorough analysis is done on the prevailing level of output from every employee to ensure that a fair and correct rule is attained. Objectivity is of importance in the review process to ensure that every employee gets his or her fair review a factor that plays a huge role in ensuring that performance and reward management system acts as a form of motivation to the employees. It is also at this stage that employees are informed of their level of verifiable output that makes them either a recipient of reward or not.

Rewards System 

At this stage, the employees who have met their set targets are rewarded accordingly. This is the stage that is very important in rendering the performance appraisal successful or unsuccessful. This is because, it is the actual reward that matter to the employees and acts as an incentive for them to that extra effort demanded by various organizations. It is also necessary to appreciate that different employees perceive rewards differently thus necessitating that management ensure that reward comes in different forms from price money, an increment in the employee’s salary, promotion and bonuses to name but a few. This will ensure that the rewarding exercise is appealing to all. It also makes the rewarding system more practical and inclusive.

Helpful Insights When It Comes to Successful Performance And Reward Management System

All the above parameters should be formulated through a healthy exchange among all relevant parties within the organization at hand. This aspect is met by basin the various component of the system in a dialogue rather than a directive platform. When goals are agreed upon, it becomes easier for all employees to have self-drive towards their attainment. It also becomes easier for the employees to understand better their assigned responsibilities. The above action also plays the role of motivating the employees towards meeting their individual targets. A good performance and reward management system aim at motivating the employees making it certain that the organization meets its goals. Another aspect that needs to be considered and adhered to is that of ensuring that the system is simple for all to comprehend. To meet this trait, the system should be clear and definite minimizing confusing elements that can make some of the employees demotivated.

According to research by Microsoft, employees are more motivated when the performance reward system is simple, differentiated and transparent. This makes the system more appealing to all relevant parties in the organization. The employees are able to understand fully the parameters involved and, therefore, able to realign their efforts in the line of meeting their personal assigned goals. Moreover, there is the need to ensure that there is a clear connection between rewards and performance. This is helpful in ensuring that there is a clear connection between the all relevant variables at play in performance and reward management system. The clear connection helps in identifying the employees’ performance, the organization’s performance and the compensation attracted by the employees’ efforts.

In the context of the Microsoft Company, having a clear connection between the reward and performance reduced the process involved in reviewing the employees’ performance and the accrued rewards. It saved on the time taken to reach a conclusion in terms of employees’ output and the rate of deserved compensation. Another key element that needs to be upheld in any successful performance and reward management system is communication. The employees have the right to access all relevant information ranging from their expected level of performance to how compensation is computed. After amending their reward system in 2012, Microsoft formulated interactive intranet portal where employees are able to see how their compensation shifted based on their different output level. The result was that employees in the Microsoft were more satisfied in terms of the rewarded attained, and the company experienced improved performance.

Over and above, it is good to appreciate that the aim of performance and reward management system is to retain the best employees in the organization. It is, therefore, necessary to ensure that the highest reward/compensation is received by the most performing employee. This will ensure that there is a high healthy competition among the employees as their work towards attaining the highest possible rewards. However, the management should ensure that the benefits attract healthy competition among the employees because having unhealthy competition may sometimes jeopardize the attainment of the organizational goal. This is because unhealthy competition makes it hard for the employees to work as a team. They will be more into outperforming one another rather than working together towards the attainment of organization’s goals.

A Proposal for Bradford College UK’s Performance And Reward Management System

Bradford College UK is an education institution that aims and uplifting the people through education. To meet this, the institution’s goal is to ensure the students experience is outstanding and life-changing. In the same spirit, the college’s goal is to cultivate the culture of innovation and employability. The college is also keen on ensuring that all the actions taken by its different parties represent actions undertaken under a centred value base. Over and above, the main objective of the college is the transformation of people through empowering them via education. Goals setting form the start towards the formulation of inclusive performance rewards system. However, in the case at hand, the school has predetermined goals that have formed the backbone of its operation over the years.

Key Goals of The Bradford College  

  1. Upholding of healthy student experience
  2. Maintaining sustenance and dynamism
  3. Expansion of reputation and influence
  4. Cultivate the culture of innovativeness and employability among the students.

The above goals should form the basis for the formulation of the performance and reward system. This is in appreciation of the fact that a successful performance and rewards management system should motivate employees towards attainment and upholding the organization’s goals. In the same spirit, the proposal calls for total adherence to the college’s operational goals. To meet the college’s goals, there is the need to appreciate that it takes a combined effort of both teaching and non-teaching staff. It is of great importance to ensure that the interest of all parties is well taken care of to ensure improved motivation across the board. There is the need to ensure all parties are fully informed of the college’s goals and their respective role they should play in the line of ensuring the Bradford College goals are met. Delegation should be done objectively to ensure tasks are assigned based on ability.

Performance Indicators & Resource Allocation

The institution at hand being an educational institution, their biggest client remains the students. It is therefore of relevance to ensure that the key performance indicators concentrate on matters students’ welfare. In appreciation of this fact, the proposal calls for the formulation of KPI that touch on all element of students including and nit limited to; performance, environment and amenities. This will be helpful in ensuring there is an agreed upon platform under which the goal of upholding healthy student experience. There is also the goal of upholding sustainability and dynamism. Here the indicator should be channelled towards efficiency within the institution. It is therefore expected that all players entrusted with the college resources ensure the resources are utilized well.

In terms of influence and growing the college’s reputation, all parameters that are relevant to this objective should be analysed to ensure that a corresponding performance indicator is formulated. Influence and reputation are brought forward by the feedback people get from the customers of the organization at hand. In the context of the case at hand, the reputation and influence of Bradford College can only grow if the students in the institution get an uplifting experience accompanied by employable skills from the college. Therefore, there is the need for all active employees in the institution work hand in hand towards ensuring the students get the right services from all fronts. The corresponding performance indicator here should be based upon the feedback the institution gets from a well-detailed research on the perception the public have on the institution.

Lastly in terms of innovativeness and employability, the variable of interest here is the students’ performance and a survey on their attractiveness to the employers. Here, the KPI should bring out the student’s improvement with time within the institution. Innovativeness can be identified through standardized tasked expected to be undertaken by the students after a specified time with an agreed upon performance level being taken as a standard one. Under performance indicators, it is advisable to ensure that all indicators are specific, attainable, realistic, measurable, and time-bound. This will ensure that it is possible to identify whether the set expectations are being met.

In terms of resources, it is important to ensure that all dockets within the institution get its fair share of financing to ensure that they are able to perform their task optimally. Even if there is an elaborate performance and reward management system, if the various dockets within the institution do not get enough resources, then it becomes impossible for any employee to achieve individual targets that combine to meet the general organization goal. Therefore, all the relevant parties should be given enough resources including time to meet their obligations.

Performance Evaluation and Review

The primary mandate of Bradford College UK is improving people’s life through education. In line with this vision, it is the expectation of the proposal that the performance evaluation and review process should concentrate more on this aspect. All the expected level of students’ progress should be evaluated to ensure that a pictorial representation of facts forms the basis for performance evaluation. This will ensure that all employees get a fair evaluation on what and what, not they have achieved. In the same line of thought, the review process should be centred on the real findings from the performance evaluation exercise. When the performance-reward system is based on the facts and not in any way influence to server better some of the employees, it becomes easier to lure more employees into accepting the system. 

It is good to appreciate that performance and reward management system is geared towards unifying all employees within an organization. Besides, it is also aimed at increasing the interaction between the junior workers and their supervisors during the evaluation and review process. Therefore, it is expected that the whole system will be inclusive taking care of the welfare of all layers within the college.


Rewarding is the one of the most important aspects of any successful performance and reward management system. This is because it forms the ultimate goal of the system to the employees. This is what makes the employees more committed as they know their effort will be recognised. Therefore, this is a component that can make or break the whole system. In appreciating this factor, the proposal calls for inclusive dialogue between the employees and the management to ensure all the valid views is put into consideration during the formulation of the respective rewards/compensation. This will ensure that all parties’ interests in terms of the rewarding are well taken care of thereby providing a motivating for all. In a research done by Centre for Effective Organizations, the reward that employees find most appealing is that of increased salary and bonuses for targets met. It is, therefore, necessary to come up with a rewarding system that has a part of it made up of financial gain. However, there those who yearn for other forms of rewards, these may include promotions, increased responsibilities, and improved terms of service to name but a few. This group of people should also be considered to ensure inclusivity is maintained. In the Bradford College, not all job titles might have room for increased responsibilities and on the other hand, there are some job groups where a minimal increment of salary might not be perceived as motivational elements. 

Based on the above perspectives, it is clear that one form of reward may be perceived as a motivating reward and not as that motivating for another group. In respect of these facts, this proposal calls for the formulation of a multi-perspective and inclusive form of a rewarding system. This will ensure that all individuals within the college are fully considered when coming up with a comprehensive rewarding system. Besides, having employees doing differentiated tasks within the college, there is the need to have a comprehensive analysis of the different parameters that to the different group quantify as being considered as a reward. This demands the elimination of prejudgement of what deserve being perceived as rewarding to different groups of employees within the college. The key to the successful, rewarding system is for the management team to remain objective when it comes to setting the different parameters making up the rewarding system.

Additional Pointers

In the line of ensuring that the performance and reward system for the Bradford College UK is both motivating and inclusive, all the parameters involved should be agreed upon all parties involved. Therefore, it is the call of this proposal to ensure that there is a thorough but healthy exchange between all the employees and the management. Moreover, it is also good to ensure that there is effective communication among all employees on matters the variables at play while determining who qualifies to be awarded and who does not. This will ensure that all the employees have a level playing field as long as they are under a similar docket. Effective communication is also vital in ensuring that the evaluation and review process is done in an open manner that is free from any vested interest influence. This calls for equal treatment for all employees in terms of the evaluated performance. The reward system should also attract compensation that is balanced among all the employees. This will be helpful in ensuring that all employees feel appreciated in equal terms.

The goals, procedure, rewards, and rationale used in computing the rewards should also be effectively communicated to eliminate elements of ambiguity or confusion concerning what is expected of the employees and the management. A thorough analysis of this proposal reveals that no actual data regarding the expected level of output and respective to rewards. This is an intentional omission because it is the take this proposal that all parameters to do with performance appraisal should be discussed upon the employees and their respective management. It is in the same spirit that the proposal agitates that all parties in the Bradford College UK be included during determination and pegging of different goals and rewards. It is the belief at hand that utilizing this proposal will help Bradford College UK meet its objective of improving people life through education through its employees who are going to be more motivated and determined to see all the set goals of the college are met.


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