Performance Management programs soundly affects how the employee perceives the company and this in turn affect the company’s performance. The process for setting up a way to do performance appraisals that employees will find acceptable helps increase the trust the employee will have on the company. Employees who don’t see any benefit for them in company’s incentive programs will leave the organization and go work somewhere else. When performance is tied to the environment and the external factors that effect it, the employee don’t understand the dynamics that external factor play into pay evaluations. (It is important for organizations to educate employees on what is expected of them and minimize the distraction of outside factors. 285)
The Expectancy theory gives the reason that people behave the way they do. If they are using their cognitive thinking satisfactorily, they will choose behaviors that are positive in relation to the rewards they experience in the workplace. They know what they expect, but sometimes, it is not what they receive. Goal setting helps employees identify their behavior and influence their own performance. Goals should be hard but also obtainable or employees will get discouraged. (294)
Performance standards are set by the duties of the job found in the job description. Employee outcome and behaviors is the most useful information obtained to valid the performance. It is difficult to measure specific jobs and outcomes of a specific job, because it involves mental measure of thinking and making decisions. Evaluating employee behavior can be difficult to measure but integrity and values can generally be used in evaluating others. Compensation is used to support employee behaviors at work. (296)
Do people stay at work because of money? People do stay for the pay, but consider their working environment as an incentive to stay on the job. Poor performers generally leave the organization when the hirer performers tend to stay. (299)
Recently, HR surveys have offered “pay models dependent on three things: efficiency, equity, and compliance in designing a pay system.” (305)
What is pay for performance? Simply put, compensation is still used as a tool in pay-for-performance. (PfP) is still a motivating factor and something employees think they are entitled too for a job well done. In (PfP), employees set goals that when not obtained, means no increase in pay. Employee must adjust when (PfP) is
