Performance measurement is concerned with measuring individuals effectiveness in their roles understanding their aspirations and determining which development actions would be the most appropriate. Reward management is about understanding individuals motivating factors, and determining the level of pay, bonus and other rewards they receive. In some organizations the links between the two are strong and explicit, while in others they are kept deliberately separate. Work in these areas can be prompted by an evidence of employee dissatisfaction such as high turnover or poor morale, or by the desire to drive a change in some aspect of employee's behaviour. Work in these areas usually includes:
1. Understandings the overall objectives and structure of the organization, and the factors that have prompted the review of the performance and reward.
2. Understanding how the current performance and reward management systems work how they are perceived and what effect they are having.
3. Agreeing what behaviours and capabilities should be rewarded and what reward elements and approaches should be used for which employees.
4. Defining and agreeing new systems any effect on roles and responsibilities and the implementation timing and approach.
5. Implementation including communication and training and any necessary changes to business processes and information systems.