Report describes about Performance Management-an effective&strategic approach that provide monetary&non monetary benefit

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Performance Management


Compensation is an effective and strategic approach that provides monetary & non monetary benefits to the employees in relation to the employee performance. Compensation is determined by several factors accordance to the fulfillment of the company’s goals and objectives. Compensation and reward plan motivates and encourages the employee towards improving his performance. However, one of the important figures is the HR manager and human resource team who evaluates and examines the performance and workforce (Wang,  Noe & Wang, 2014). The paper studies the important of the reward plan and the factors that govern the pay raise and the importance of hr manger in a business organization. With the reference e to the Oman construction company, the thesis presents the importance of compensation and reward management.

Strategic importance of salary survey:

In an organization, meeting both the criteria like fixing the salary and making a salary survey enables your organization to attract, retain and motivate the right numbers of the right kinds of employees (Guan et al. 2014).  The salary data provides relevant information about the company. Other than that, the good salary survey process provides cater the information needed to ensure the organizations compensation plan is competitive. Comparing roles to Salary Survey market data is important, but it is not the only step to creating a competitive compensation program for the organization as it has a direct influence on the pay structure of the organization. To tailor a compensation strategy to the organization, one need to have an understanding of the organization’s compensation philosophy and strategy and by doing so the process will become so easy and simple  (Kowal, & Roztocki 2015). The clear definition of the salary survey has the key roles within the organization including current and accurate job descriptions for each position and this policy is very much helpful for strategizing the plans for the designation of the employees.  Accurate job description detail facilitates the comparison of market data to how the organization currently paying the workers, management team by providing a clear insight about the work procedure to each employee (Bonica, Rosenthal & Rothman, 2014).

Taking all the information of the organization into consideration, the hirer management can prepare one or more salary structures, as appropriate, with grades and control points and that grade will include minimum, midpoints and maximums customized to the unique organization’s needs and demand (Lo, 2015). As the employees will work in the same criteria and their pay scale will create in terms of that sense. By combining your salary structure with performance management ratings of the employees, the organization can pay for performance delivered as well as accurately anticipate, budget and plan for total compensation costs. Building an effective compensation strategy is a necessary process with varied approaches that depend on your organization’s unique priorities of the employees (Aguinis, Bradley & Brodersen, 2014). Building a market-based pay structure from scratch encompasses several major steps of the organization and the employees take the consideration of the employee designation that includes.

i) Gathering and collecting information and resources to support the project of the organization.

ii) The external market data need to check and after reviewing those data the company will take other financial decision.

iii) Conducting the market data analysis and it will effectively help the organization to take up strategic implementation about the pay scale. .

iv) The organization will develop the pay structures concerning the employees and other manger level workers.

v) The organization will calculate the costs of the pay structures.

vi) Implementing and evaluating the new pay structures will be the next big step of the organization.

vii) Communication process is the important criteria in the organization and the pay scale need to be very much open, clear and concise. Communicating with employees about the system will help the organization to gain possible outcome from the employees.

Two types of data gathered in the salary survey are the primary data and the secondary data.

Primary data:

The primary data will provide the information about the specific purposes of the study. In this case, the main criteria evolved out of the importance of salary survey. By the help of this survey the organization will get information about the elicit data and these type of data mainly taken from the organization by the help of the employees, as the employees faced various types of interview process along with the face to face communication with the management team. Other than that many time with the help of the direct observation process the organization takes out the information. The management team will take out the old papers about the payroll and salary scale and after that they will take the decision that what information they will get from it.

Secondary data:

The secondary data collection is basically a vast process and by this procedure the organization will get to know the entire salary information of the company. The administrative data is closely related to the secondary data process. The secondary data is readily available and inexpensive to obtain and the organization will take out all the information related to the salary survey. The previous data about salary will be available to the organization and they will take the information from the papers.

Gaining competitive advantage:

Competitive advantage is achieved when a business produces surplus profits in the market place and it is greater than the organization’s competitors are and it can cause due to unique product pricing or resource advantages. Furthermore, its profitability is greater than the average profitability of all other businesses competing for the same set of customers and in this process; the company will gain successive method of success (Hatch & Howland, 2015).

Any organization pass the competitive advantage threshold by attracting and retaining great people and then nurturing a unique culture of the organization that catch the mind of the customers and the one strategy that demonstrates passion. The organization in order to performance building,  executes with consistency, perpetuates success, breeds confidence within the employees and rewards performance that the employees and the team of management have shown over a period of time. Companies that achieve this start with, build upon a foundation of mission, values, and vision that are reinforced by, in and through every aspect of the business plan and it help the organization largely (Eckard et al. 2014). As a result, the organization commonly enjoy a shared value system with their employees because both are clear about, and compelled by, the direction the company is headed, how it's going to get there, what is expected of everyone and how each will be rewarded for the company's success. As the success of the organization largely depend on the employee performance and it will later serve the process for long-term productivity. Organizational culture is the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with direct and indirect stakeholders outside the organization and they affect the organization. Organizational values are beliefs and ideas about what kinds of goals members of an organization need to pursue and ideas about the appropriate kinds or standards of behavior organizational members use to achieve the organizational goals (Beadles et al. 2015). From organizational values develop organizational norms, guidelines or expectations that prescribe appropriate kinds of behavior by employees in particular situation and the management along with the help of employees follow the organizational rules.

With the aforementioned principles in mind, consider the impact on your company's ability to achieve a competitive advantage in the marketplace if the organization’s culture demanded the structure for organizational performance in its efforts to attract and retain great people in the organization who can productivity to the firm and by following this process it will earn profitability.

i) Only talented, committed and focused people are deserving this position to get the compensation.

ii) The people are only rewarded for achieving well-defined performance standards within the organization.

iii) All employees need to think and behave proper way to do any work properly.

The organization needs to put forth on the performance of the employees and by the motivation process the organization will help the employees to strategically perform in an appropriate way. When the employees will perform in a better way, the organization will provide them compensation for their good performance in the work criteria. Execution of the company's strategy is key to its success and the organization can achieve it with the help of successful implementation of planning (Eckard, Rosener & Scripps-Hoekstra, 2014). Capital and cash flow need to be managed properly, marketing initiatives need to be crafted and launched, operations need to be well executed, superior products or services need to be developed, and excellent customer service needs to be rendered and by the help of these process the organization will get to see growth and success. All of these functions depend upon the applied intelligence of a dedicated workforce and the performance of the employees (Hodgson, 2015). These elements need to be reinforced by compensation strategies that are effectively engineered and tied to roles and expectations that are well defined and communicated within the organizational process.

Compensation management:


Three responsibilities of human resource manager in compensation management-

Human resource management has the responsibility to take each plan and implement those things for the well-being of the organization. Human resource takes over the responsibility of the ownership, leadership of change management projects fir bringing a good prospect to the organization, and it has a significant impact on the business performance (Kaur, 2016). The policies and practices that used in the human resource management helps the employees to built the competitive culture.

The three responsibilities that the human resource manager has and it helps to bring growth and productivity to the organization.

i) Motivation and satisfaction given by the human resource management team can help the employees to gain compensation from the organization. 

ii) Designing of the unique corporate culture will help the employees to gain compensation, as the employees will effectively work within the organization because of the good environment they will get.

iii) The competitive advantage theory for the employees will help them to gain compensation from the organization.


In order to integrate performance integrating manage output. It is necessary to make assessment and examination of activities in different departments ensuring organizational performance as a whole. In order to develop performance of individual it is necessary to strengthen nature of relationships. Performance can be enhanced in practicing and exercising individual potential and allow individual to realise it. The management of individual talent and skill will help to process performance in directive way. Thereby, the most important factor is to set performance standard.

The aim of designing a role is to implement necessary actions, plans and expectations using requisite competencies, knowledge, potential and skills. In order to assign roles in different departments focusing much on managerial responsibilities, task-related attributes need to be managed. Managerial Leadership needs to be timely evaluated as his activities influence and motivates other members within the organization.

All the members need to have cooperative attitude, and have clarity in fulfilling goal. The cooperative behaviour helps in reducing the rise of conflict between members. The performance cannot be developed if there are no clear purposes outlined and when disagreements occur.  Therefore, occupational climate need to be enhanced through collaborative and cooperative approach building group climate and team spirit.



From the above study it can be concluded that reward management is a significant strategic policy implemented by the HR manager and Hr team in governing and motivating the work force and annual productivity of the company.  Oman Construction Company needs to adopt are such strategies that would retain interest and fulfill the demands and interest of the employee. Alongside, the reward management program will help the company motivate the employees in fulfilling the company’s objectives and customer satisfaction.

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