ssay on Performance Management
Hewlett-Packard (HP) uses a Total-Rewards program to attract and retain existing employees, and to encourage them to achieve personal, organizational and company financial results. HP believes in performance-based and team culture within its organization. The Total-Rewards Program includes six major components: competitive base pay, performance-related pay, comprehensive benefits, stock ownership, work life navigation, and sports and social facilities. The program caters to different laws and regulations that govern the distribution of benefits in 178 countries with more than 140,000 employees.
Individual development paths were discussed and mutually agreed between the employees with their respective managers. Learning is intended to be flexible, fast and rewarding. HP believes in motivating excellent performers on rewards and no variable payments to low performers will be given. HP focuses on appraising performance to assist the organization with pay decisions to reward and motivate good performers to higher innovations.
Impact of Performance-Related Pay
Performance management is a key driver in achieving sustained organizational growth and success and performance evaluation is core to the process. Managerial skills are imperative in today’s business world and conducting the performance evaluation well, can help to motivate and inform, enhance productivity and increase morale of the employees in an organization. Conversely, getting it wrong can discourage good people, drain time and resources and lead to unnecessary conflict. It is important to align and link employee goals as part of the performance management process with the organizational goals to help employees understand the importance of work and how it contributes to company’s success.
Placing performance-related pay as the main motivator for performance is not enough to cause good performance. Performance results from a combination of the...