Bermejo, Rom Cris

CBET17-503E

HR107: Performance Management

Short Essay Questions:

1. You want to change your organization’s performance appraisal system to a

Performance Management System. Write a one-page memo to your supervisor

Describing the advantages of having a well-designed, properly implemented

Performance Management System.

2. Organizations can reward employees in several ways. Please list and describe

five possible rewards that employees can receive, and describe when an

organization should use that reward.

3. There are several characteristics of an ideal performance management system.

Please discuss each characteristic of an ideal system, and explain how an

organization can achieve each characteristic. For example, one characteristic of

an ideal PM system is that it is reliable. An organization can make its system

reliable by ensuring that performance measures are consistent and free of error.
 MEMORANDUM

DATE: September 22, 2020

TO: ALL THE STAFF

FROM: Bermejo, Rom Cris

SUBJECT: “Performance Management System” Proposal

Due to changing standards of Business Trends and competitors changing their structure of how
they evaluate their employee’s performance. I wanted to inform you that most of our competitors
already implemented the latest and easier way of assessing employee’s productivity.
I am confident to tell that changing our system of evaluating our employee’s performance from
the old structure of Performance Appraisal System to Performance Management System would
be an advantage and win-win situation not just by making the process easier to our employers but
also a big step to keep the company up in the competition of industry.
Since Performance Management System is holistic and dynamic, we can make an assurance to
our employees that the new process of evaluation would be fairer. It is for the reason that criteria
will be holistically and dynamically measured, not only focusing in one field of employees’ duty
but also on its general responsibilities.
This way, we could be more transparent to our employees for future inquiries regarding
performance evaluations.
If you have queries and concern about the said new structure, don’t be hesitant to contact our
Human Resource Department for more information and for suggestions.

Thank you so much for your cooperation,

Good Day!
 Recognition and Rewards is a good motivation for the employees of the company to be more

professionally competitive on duties. Below are five possible rewards that employees can receive

during their service within the company and help them to be more efficient in their

responsibilities.

1. Cost-of-Living Adjustments and Contingent Pay

Cost-of-Living Adjustment can be benefited by all the employees in the

company; it is a form of rewards where they are going to have the same

percentage regardless their individual performance. On the other hand, Contingent

Pay is a reward wherein there will be an addition on the top of the base pays and

unlike to Cost-of-Living Adjustment, Contingent Pay makes the individual’s

performance in their job and responsibilities as their basis. COLA can be given as

soon as signing of contract while Contingent Pay would be given to all the

employees who will qualified to the standards that the company have to this

reward

2. Work/Life Focus

Work or Life Focus Rewards are type of rewards which is most likely in

form of programs that help the employees to achieve a better balancing of their

work performance and non-work lifestyle. This reward may include vacation

time, financial planning and counseling. This type of rewards can also be given to

all employees as long as they meet the standards that the company is looking for

for the deserving recipient.

3. Allowances

Allowances can be a company’s assets. This reward simply an allowances

of employees for some living necessities such as transportation, food or meal and

sometimes it also includes gym fees or discounts, discount loans, club fees and

even smartphones allowances. This can be offered to all types of employee

depending on the allowances, mostly, expensive allowances are offered to higher

position, for example, for supervisors which often received a car discount

allowance.

4. Base Pay

Base pay is what employees received in exchange of performing their

duties and job in the company. Even though that base pay is often same with all

the employees who perform the same duties, there could be a differences between

their salary base on their past employment experience and differential

performance. Base pay is given to literally all types of employee, from rank and

file to top management since all of them do perform duties in their positions.

5. Income Protection

This Income Protection is a reward that able the employees to have a

backup salary in case of unexpected events such as sickness and getting disabled.

Most of the cases of this Income Protection when employees happen to be in

unexpected accident, therein, the company will give the employee an extra or

back up salary besides of providing to medical assistance. All employees can be

benefited by this protection as long as it is existing to company offers and

rewarding systems.
 Performance Management is one of the important management that company should

have, for this management helps the employees to be motivational in pursuing their position,

duties and jobs. But Personal Management can’t just exist within company; its existence should

be ideal to make it more efficient and effective management of the company. Below are some of

the characteristic that Performance Management should have and the possible ways of how

company can possibly achieve these characteristics.

1. Performance Management should be Strategically Congruent

Being said that Performance Management should be Strategically

Congruent, the company’s Performance Management mainly needs to be aligned

in their unit and company’s strategy. With this, to get Performance Management

Strategically Congruent, the company should consider the unit and organization’s

strategy before getting deep of finalizing their Performance Management System.

They always include their strategy in processing their Performance Management

System.

2. Performance Management should be Contextually Congruent

Since the importance of context in implementing highly effective

performance management systems is emphasized throughout the book.

Contextually Congruent means that the company’s Performance Management

should not just have to be Strategically Congruent but also to be Contextually

Congruent. Being contextually congruent, company should have a clear context

about their culture and broader culture of the country. The Performance

Management of the company should always have to rely in where country are

they and employees they have. This way, the company could be sensitive in terms
 of the context of their culture and make this as consideration in their Performance

Management System.

3. Performance Management should be Thorough

Thoroughness simply implies that the company’s Performance

Management should be detailed in four dimensions which includes;

a. Employees being evaluated;

b. major Responsibilities should be evaluated;

c. evaluation should include all the review period, lastly;

d. The benefits of using the system.

This dimension should always be this thorough for the company not to

miss a possible failure of the administration of Performance Management. To

achieve this, the company should practice proper and fair evaluation of important

matters in the company.

4. Performance Management should be Practical

Not because Performance Management is one of the important

administrations that the company should, doesn’t mean that it has to be expensive

and not because the budget is cheap, doesn’t mean that product should be

substandard. In doing different types of Management, company should always

look after getting the best quality out of cheap price. Company can always look

for alternative to the expensive options and getting the same service they can
 have. This would be a big help to the company’s budget and in making the

Performance Management more of an assets.

5. Performance Management should be Specific

Performance Management that is specific should have detailed and

concrete explanation toward employees about the criteria and how to get

rewarded. To make this achievable, company can conduct a simple meeting that

scopes the whole company and have an orientation about the new system of the

company’s Performance Management so that, employees could ask inquiries

directly to the in charge person and to clarify every detail of the Performance

Management.