PERFORMANCE MANAGEMENT: NEXUS OF COMPENSATION AND BENEFITS

Khizra Sultan, Shakeel Sarwar, Muhammad Rizwan, Waseem Ahmad Khan

Abstract

This research paper finds out the relationship between the process of performance management and the factors that influence it either in positive manner or negative. Performance management is, to a big extent, responsible for the overall productivity of the firm by assessing and controlling the performance of employees on a micro level. Many factors like training, support of authorities, behaviour, organizational culture and reward systems influence the process of performance management. Top management carry out performance management by setting individual organizational goals of employees so that they align with the collective organizational goals, to ensure compliance within the organization. Then by reviewing employees' performance against the goals, they grant the rewards. Performance management also establishes its relation with the top level employees of the firm. As the workers perform well, the job satisfaction of the employer increases.