Ties Between Performance and Reward

One of the most effective approaches to human resource management is the development of ties between performance and reward (Anderson and Fenton, 1993, pp. 7275). The key to motivating an individual to remain in and perform well in an organization lies not in urging an individual to remain or perform, but, rather, in the developing within that individual a strong commitment to the organization. From such a commitment will flow the desire to remain in and perform well in an organization. Organizational commitment is manifested as a (1) strong desire to remain as a member of a specific organization, (2) willingness on the part of an individual to exert high levels of effort for a specific organization, and (3) belief in and acceptance of organizational values and goals by an individual (Porter, 1991, p. 134).

With respect to organizational commitment, organizations and their employees are in an exchange relationship (Angle and Perry (1981, pp. 114). In such a relationship, each party makes demands on the other, and each party provides something in return. Thus, employees exchange performance for reward within an organizational structure. There are several types of reward; however, compensation is usually considered to be the primary reward for performance. Compensation is a manifestation of gain sharing between and organization and its employees.

Gain sharing is a comprehensive approach to the

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personnel performance appraisal is a fact of life in most North American organizations of any size (Longenecker, Liverpool, and Wilson, 1988, pp. 311320). As entrenched as the practice is, however, personnel performance appraisal continues to controversial (Heneman, 1987, pp. 431448). One important contemporary contention with respect to personnel performance appraisal is that the process will be effective only to the extent that managers and subordinates within an organization share perceptions as to (1) the purpose and function of the process, and (2) its effectiveness with respect to meeting the goals of both management and individuals (Longenecker, Liverpool, and Wilson, 1988, pp. 311320). The selection of individuals within organizations for leadership positions and for other forms of organizational reward is accomplished by a variety of methods, most of which depend upon the composite results of several factorsrecommendations of organizational superiors, educational background, past performance, and so forth. One factor which is found in most selection procedures, however, is the performance evaluation or performance appraisal (Lombardo, 1985, pp. 18). Thus, it is apparent that effective performance evaluatio
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Approximate Word count = 1443
Approximate Pages = 6 (250 words per page)

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