Performance, Compensation,

and Rewards Presentation

 Performance Measurement Practices
Definition
 Performance measurement is the process of gathering, scrutinizing, and reporting
information concerning the performance of a person, a team, an organization, or a
component.
 Performance measurement is done to assist the organization in developing a practical
strategy for achieving its improvement.
 Three Performance Measurement Practices

 The Target Approach: This is where there is a use of numbers to set and monitor the
lowest thresholds of performance. For example, one can set a specific number or target
that the employees must achieve for them to be considered as having worked for that
particular day or time.
 The Rankings Approach: This is where there is a use of numbers to compare the
performance of different units.
 The Intelligent Approach: This is where there is a use of numbers that are used for the
purpose of background information for policy development, management intervention,
or user choice other than setting targets or rankings.
 Financial Compensation and Rewards

 Financial compensation and rewards are important to the motivation of the people
involved in the project.
 The basis for financial rewards are difficult to quantify and establish.
 Compensation practices can be based on the following four systems: Job
Classification, Base Pay, Performance Appraisal, and Merit Increases.
 Continued…

 Financial compensations and rewards can occur in different forms which include:
Salary, Short Term Incentives, Long Term Incentives, Benefits, Paid Expenses, and
Insurance.
 In the case of this scenario, the appropriate financial compensation and reward to use is
salary increment. However, bonuses and incentive plans can also be used to motivate
the workers.
 Continued…

 In this case, the project manager can consider paying the insurance coverage for the
drivers to ensure that they are covered in case of any type of accident during the
process of investigations.
 Paid expenses could also be used to ensure that fuel and any extra expenses are covered
by the project manager.
 Salary increase is, of course, the major motivator in any type of project and is
considered a method of compensation.
 Rationale of Selecting the Financial
Compensation and Rewards
 Salary is selected as the most appropriate compensation, because, it is considered to be
one of the most effective methods of motivation.
 Employees or the project team can be motivated by salary increment, bonuses, and
incentive plans.
 In this scenario, these financial ways of compensation and rewards are considered,
because, the project involves a lot of activities where, in most cases, employees have to
work overtime. Bonuses , salary increment, and other incentives can be used to reward
them.
 A good example is when a driver has to work for extra time during the process of
investigating for fraud and theft.
 Continued…

 Incentive plans are established to reward employees for improved commitment and
performance and also as a means of motivation.
 Incentive plans can also be designed to supplement the base pay.
 A financial incentive plan can offer a percentage of base salary or a cash bonus.
 Human Resource Plan

 Human resource plan is a tool which helps in the management of all projects.
 The role of the project manager will be to manage the activities of the entire project.
 Team members are expected to coordinate with the project manager and bring together
their efforts for the accomplishment of the project’s goals.
 Continued…

 Gantt charts and Critical Path Method charts will be used to organize the project work.
 Resource acquisition methods.
 Start and end time of tasks well stated.
 Performance reviews methods.
 The recognition and reward system.
 References

 Hill, C., Jones, G., & Schilling, M. (2014). Strategic management: theory: an

integrated approach. Cengage Learning.
 Kapferer, J. N. (2012). The new strategic brand management: Advanced insights and
strategic thinking. Kogan page publishers.
 Klingebiel, R., & Rammer, C. (2014). Resource allocation strategy for innovation
portfolio management. Strategic Management Journal, 35(2), 246-268.
 Turner, J. R. (2014). The handbook of project-based management (Vol. 92). McGraw-
Hill.