Demystifying Employee Performance Measurement and Rewards Management
One of the key HRM rituals in organisations is carrying out employee performance reviews, pay hikes and enhancing job responsibilities. This is also known as PMS, Performance Appraisals, Employee Appraisals, Rewards Management etc. But why do Business owners want this? To segregate performers from non-performers. Why? To recognize performance. Why? To motivate performers to repeat or improve their performance. Why? To get good or better business performance and profitability. So good individual performance is an imperative for getting good business performance. So business owners or employers have reasons to ensure that their employees perform well. But how do they measure employee performance? Typically, employers consider performance to be directly proportional to utilization or productivity, i.e. (output / input) or (output hours / available hours). It means, more the hours of work or output with the available man-hours, higher would be the performance! Though this hypothesis