Grandview Global Financial Services, Inc.
Performance Management in establishing and maintaining corporate culture
Performance Management is itself internal to the organization but it provides structures and systems for rewards, staffing, training and development and career development. Performance management provides organization a corporate culture of 'talent management'. Externally PM is linked to recruitment and internally through staffing, career planning, workplace management, retentions plans and 360° assessment. The advancement of technology has introduced Enterprise Resource Planning (ERP) in the talent management system giving organization culture of integrated process flow in performance management. Performance management system requires managers to specify the level of performance expected to achieve the goals. These levels become basis for direct reports. Documenting the performance in direct reports helps in assessing the standard level of performance. If the actual is above the standard appreciative feedback is provided and if it is below the standard then corrective feedback is reported. Thus PM provides organization with the culture of providing feedback. The documented outcome of performance management is Individual Development Plan that outlines the areas of development and improvement for employees. PM establishes an organization culture of employee development, performance standards and providing feedback.
Role of compensation and benefit in establishing and maintaining organization culture
The greatest challenge for HRM is managing the salaries and pay for it employees. Compensation has become increasingly complex and crucial for management to handle and function nationally or internationally....
The core compensation system comprise of base pay, merit pay, short-term and long-term incentive perquisites, recognition awards and attraction/retention awards. Companies through compensation and benefits plans to develop the culture of fair pay and employee incentive scheme to promote motivation of employees categorized in different salary grades appropriate for their job. Organizations have developed performance-based compensation and benefit plans. The various forms of short-term incentive plans are bonuses, group incentives, gain sharing, goal sharing and profit sharing. The compensation and benefit plans have also required organizations to have legal authoritative framework through the Fair Labor Standards Act (FLSA). The external data for compensation and benefit is market research on salary and reward practices however the internal data is job description and job specification, performance reports, salary history and budget. The standard document is the Annual Compensation Report that illustrates the total amount of money spent by the organization on compensation. Organization has categorized benefits into pension plans, workers compensation, unemployment insurance, long and short-term disability insurance, life insurance, paid time-off vocations, holidays and family leaves. Organizations have adopted the culture of information sharing and close communication by disseminating the information to the employees through web. This saves company's time and monetary resources. These reports are useful for manages to take decisions regarding pay raise, reward system adoption and rationalizing salary system in the organization.
global process for managing performance, compensation, and benefits
The challenge for strategic human…
