Management of Performance and Reward Essay

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At this point we can conclusively deduce that the workforce at Telstra lacks intrinsic rewards as well as extrinsic rewards. The link between reward and performance is not clearly defined. However a certain amount of literature has indicated that a certain level of motivation is necessary in order to achieve certain desired results from the workforce.

Link between organizational strategy and the management of reward & performance

The Telstra management is strongly motivated towards the attainment of the various levels of superb performance by their employees towards their customers. There are however certain areas that are not consistent with the norm at the company. The organization strategy at Telstra is geared towards the attainment of unparalleled customer satisfaction .The reality on the ground however is that this is achieved via a series of moves such as the implementation of the Performance Improvement and Conduct Management (PICM), a system that has been described as being non-committal on the level of trust and recognition that employees should be accorded by virtue of their age and efforts to the company. It is integral to point out that the business or rather the corporate strategy of the Telstra is in the employee as well as their power to do whatever is necessary so as to satisfy the customers. This is achieved through a philosophy that puts the customer in front and the fact that each job affects the customer to a large extent. Telstra undertakes all efforts to ensure that everything is done so that all the customers are satisfied and also to ensure that the company is way ahead of all its competitors. The other competitive strategy that the company employs is derived from restructuring. The company should therefore embark in a campaign that motivates the workforce as well as gives them a chance to be heard before any disciplinary actions are prescribed. This can be achieved linking their organization strategy which in essence is customer oriented with the aspects of performance monitoring and reward systems.

Various aspects of organizational strategy such as human resource management (HRM) practices and the performance of certain organizations have been shown to bear some form of association. The link however is not fully explored due to the general lack of interpretation as well as empirical support as pointed out by Minbaeva (2005).A study by Hau-Siu Chow et al. (2007) indicated that there is a strong link between business strategy, organization culture as well as the workforce outcome for an organization to truly prosper in its endeavors, it is imperative that there is harmony in the way events and functions of the organization are orchestrated. This therefore means that the management must strive to come up with elaborate policies tat guide the way the performance and reward schemes are handled.


The recommendations that must be taken into account by the Telstra management are

1. The reward schemes must be harmonized to reflect the level of performance by each employee

2. The performance of the employees must be gauged by both customer satisfaction and the level of observable efforts by the employees per their departments. The department that performs well must be given the necessary appraisal on the basis if their outcome

3. The Telstra performance management system should be appropriately modified to consider the employees length of tenure. It should also be realistic in terms of its demands so that the employees don't fake their performance merely to gunner enough points and ratings. This is because such moves end up making the performance gauging system to become counterproductive.

4. The management should not only rely on the ratings of the performance management system only. This is because it not foolproof and is subject to manipulation. Other measures should be taken to reinforce the existing performance management system such as the reliance of manual and observable attributes of performance before concluding on what the Performance Improvement and Conduct Management indicates.


Hau-Siu Chow, I and Liu S (2007),Business strategy, organizational culture, and performance outcomes in China's technology industry

Holmstrom, Bengt (1979 )"Moral hazard and observ^ility." Bell Joumal of Economics, 10(1): 74-91.

India Telecom Series: Vol. 2: Cellular & Wireless Market, Information Gatekeepers, Inc.

Read more:

Landau, S.B., and G.S. Leventhal (1976) "A simulation study of administrators' behavior toward employees who receive job offers." Journal of Applied Social Psychology,6(4): 291-306.

Lawler, Edward E., Ill (1981) Pay and Organizational Development. Reading, MA: Addison-Wesley.

Leventhal, Gerald S.(1976) "The distribution of rewards and resources in groups and organizations." In Leonard Berkowitz (ed.). Advances in Experimental Social Psychology, 9: 91-131- New York: Academic Press.

Marketculture (2010).Telstra case study

McCormick and J. Tifflin. (1979). Industrial Psychology; New York: George, Allen and Unwin.

Milkovich, George T., and Alexandra K. Wigdor (eds.)(1991) Pay and Performance: Evaluating

Performance Appraisal and Merit Pay. Washington, DC: National Academy Press.

Nedham, K (2009). Telstra bullying policies earn rebuke

Peck, Charles a. (1984 )Pay and Performance: The Interaction of Compensation and Performance Appraisal. Research Bulletin no. 155. New York: Conference Board.

Testra (2010).Testra Profile

Zenger, T (2008) Why Do Employers Only Reward Extreme Performance?

Examining the Relationships among Performance, Pay, and Turnover[continue]

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