1

A DISSERTATION REPORT
On
PERFORMANCE & REWARD MANAGEMENT
Submitted In partial fulfillment of the requirements for the
award of the degree
Of

Master of business administration

Session: 2022-24

Ramanand Institute of Pharmacy and Management jawalapur

Haridwar

Affiliated To-
Veer Madho Singh Bhandari Uttarakhand Technical University

Submitted to Submitted By
Ms. Shagun Taneja Km. Mansi
(Professor assistant) MBA 4rd Sem
MBT405

2
 DECLARATION

The researcher herby declares that the thesis “the performance

and reward management” and recognition in the workplace is
here on work and that all sources that have been referred to and
quoted have been indicated and acknowledged with complete
references.

Km. Mansi
Ramanand Institute of pharmacy and
Management

3
4
 ACKNOWLEDGEMENT

In the competition of this project report, I have received encourage and support
from various quarters which need special mention.
I wish to acknowledge my indebtedness two professor Mrs. Shagun Taneja
Ramanand institute of pharmacy and management Haridwar under home this work
has been completed for extending all possible corporation.
I am also thankful to all those people of institute of management who help me
directly or indirectly during this period.

With sincere thanks

Harsh Kapil
B.COM (Hons) - 6th Sem
Ramanand Institute of
Management

5
 TABLE OF CONTENTS
• Executive summary
• Introduction of Topic
• Objectives
• Review of literature
• Research methodology
• Data analysis and interpretation
• Findings
• Suggestion
• Conclusion
• Bibliography
• Annexure

6
 EXECUTIVE SUMMARY
Performance Management and Reward System
Efficient manager of human technical and financial
resources is very important for accomplishment of
objective of any business every manager has to perform
certain function to co-ordinate the efforts of the people
working under him for effectiveness and efficient use of
physical resource the quality of performance of these
function determines the success of any organization to a
great extent this is true both at micro level with the
rapidly changing socio economic environment and
growing industry throughout word HR has become a very
challenging job today is managers are required possessing
13 relation and conceptual and addition to white reserve
of knowledge studying the management science and
practicing the principle and techniques of management
can acquire these skills.

7
 INTRODUCTION
A performance management and reward system is defined as a set of
tools, processes, and policies that allow organizations to monitor and
improve employee performance while recognizing and rewarding
employees fairly for their contributions.

Today, organizations are demonstrating an elevated level of commitment

toward the development of compensation practices that are consistent
with other HR processes. Your reward systems must ideally be aligned
with the organization's objectives for drawing in, retaining, and inspiring
workforce members.

Effective reward practices will help in recruiting result-oriented workers

who can flourish and prosper in performance-based environments.
Therefore, the performance improvement framework must be linked to
an effective rewards system. It must build a culture of remuneration and
benefits that's based on performance, offers abundant learning
opportunities, and maintains a healthy work environment. That is what a
performance management and reward system is all about.

Benefits of a Performance Management and Reward System

8
Let’s begin with a quick look at the benefits of this system, and how it
might aid your long-term business goals and employee
engagement strategies:
1. Increased employee motivation and engagement

A performance management and rewards system links employee

rewards with how well they do their work. Moreover, managers have the
opportunity to invest substantial time towards meaningful activities –
like checking in on employees and if they are pursuing the right targets
and goals. They enable employees to maximize their abilities and duties.
In turn, this increases the likelihood of job satisfaction and fulfillment.
2. Improved productivity and performance

These systems enhance the overall efficacy of the organization.

Employees who are performing well will deliver outstanding work and
be more inclined to take on new things and keep moving forward. When
a few employees are rewarded, it may also inspire their co-workers to be
more productive and improve their performance.

3. Enhanced employee retention and loyalty

Because human capital is such a valuable asset, it is crucial to discover

methods to retain your employees. Employee autonomy is augmented
when they are given a chance to relentlessly pursue

9
Targets. They can then point out areas for improvement, which,
ultimately, gives them a reason to stay on. And since performance leads
to a coveted reward, it urges them to stay with the organization and keep
performing.
4. Alignment of individual and organizational goals

The system encourages individuals while bringing together their

personal and organizational objectives. This methodology is continuous
and ongoing, in comparison to the conventional approach, which is
primarily recognized for its annual assessment of performance.
Employees are constantly working towards a tangible goal and reward
while simultaneously contributing to the company’s growth.
Key Components of an Effective Performance Management and
Reward System

So, what are the elements that make up a successful performance

management and reward systems? Can it be broken down into sub-parts
or elements that, when actioned correctly, make up the system in its
entirety? Here’s a blow-by-blow breakdown of the core constituents of a
performance management and reward system:

1. Clear and measurable performance goals and expectations

Goal-setting is imperative for performance management and incentives

because it gives employees an established course of action to follow.
Workers are better equipped to execute tasks at a high level when they

10
comprehend their job duties, goals, and targets. Establish SMART
(specific, measurable, attainable, relevant, and timely) performance
objectives. Individuals must comprehend precisely what's demanded of
them and how they will be compensated – and, most importantly, ensure
a fair and objective reward process.
2. Regular and constructive feedback and coaching

Also essential are regular conferences or workshops, and exchanges

between managers and employees. By interacting with employees
frequently, management can deliver timely feedback and direction. This
helps employees stay on course and rectify their errors. Also, it promotes
two-way communication between executives and staff members, which
is advantageous for organizational culture. Regular performance
conversations allow managers to promptly acknowledge and honor
employees for their achievements.

3. Fair and transparent performance evaluation process

In a majority of Indian organizations, appraisals happen twice a year,

during mid-year evaluations and annual reviews convened at the end of
the fiscal year. The employee presents self-completed evaluations and
quantifies their achievements over time.

Poor processes can lead to issues with evaluations and assessments. Try
refining your evaluation forms, adding more open-ended queries,
increasing the frequency, and seeking additional feedback sources

11
(e.g., 360 reviews). This results in a fairer performance evaluation
process, which leads to the right people being rewarded for their efforts.
4. Tailored rewards and recognition programs

Rewards and recognition is an aspect of performance management that

is frequently undervalued. When employees are acknowledged for their
contributions, they feel respected and valued, which boosts their
enthusiasm and dedication. Leaders must make recognition a priority
when individuals achieve targets, demonstrate exceptional commitment,
or exhibit valued behaviors. Depending on the circumstances, this
recognition can take the form of social recognition, individual
correspondence, or rewards and incentives.

Best Practices for Performance Management and

Reward System
Before we finish, let’s talk about the final two pieces of the puzzle – best
practices are your fail-safes – aspects that keep the process in line, avoid
common pitfalls, and ensure you’re on a proven track for successful
implementation.
1. Continuous communication and employee involvement

Involving employees in the system's design and implementation is an

excellent way to boost their commitment to it. This hinges on offering
them an opportunity and a voice in determining goals, rewards, and
growth plans. By enlisting your employees, you demonstrate that you
value and respect their input and opinions. Further, they will be more

12
likely to accept accountability for their performance, which contributes
to their motivation.
2. Regular training and development opportunities

The methodology should help workers adapt and improve – to realize

their maximum potential. This includes opportunities for training and
development. Leaders can employ performance management and reward
systems to resolve skill deficits, discover potential areas for growth, and
bolster employee strengths. It assists supervisors with deciding when an
employee is prepared for a fresh responsibility or position. It also helps
individuals feel that their employer cares about their growth and
professional advancement.
3. Flexibility and adaptability to changing business needs Effectively
revising processes as time and necessities change can be an important
consideration in the creation of an effective performance management
and reward system. You won't have to wait till the end of the year to
modify your strategy if you advocate constant and real-time feedback.
Let yourself be more flexible and make the necessary adjustments as you
spot areas for improvement. Invite employees to participate in the
successful execution of the most recent company and business demands.
4. Leverage performance management and reward software to
simplify and standardize processes

Integrating performance management and compensation needs more

than solely paperwork and meetings. It revolves around a sequence of
stages and processes synchronized to establish a well-aligned and fluid
system.

13
Ask yourself questions like these to find a complete framework in a
step-by-step manner:

 How will you notify employees and administrators of their

impending responsibilities?
 How will you interact with executives who are lagging behind?
 How will you guarantee that anonymous feedback doesn't become
public?

Main Objectives of Reward Management Systems

. Setting and defining goals to fulfill company objectives

Goal setting is the most lucrative way for initiating better
performance among employees.

It has been constantly indicated that practical goal setting:

A good performance management system will put goal setting as
one of its main conditions.

Setting the right expectations for managers and employees

An efficient performance management system sets clear
expectations from both managers and employees.

As a manager, you must place achievable expectations from

your employee.

14
Don't expect a poor performer to give good results right away.
Or a star performer to stay consistent every other week.

Similarly, holding managers to high expectations will only bring

in poor management decisions.

LITERATURE REVIEW
Reward management is a critical aspect of human resource
management that aims to attract, motivate, and retain
employees through the design and implementation of
effective reward systems. The relationship between reward
management and employee performance has been extensively
studied in various contexts. However, limited research exists on
this topic specifically in the context of Somalia. This literature
review aims to explore the existing body of knowledge on
reward management and employee performance in Somalia,
highlighting the key findings and gaps in current research. A
study conducted by Abdi et al. (2018) examined the impact of
reward management practices on employee performance in
Somali organizations. The findings revealed that employees
who perceived their rewards as fair and competitive were
more motivated and exhibited higher levels of performance.
This suggests that effective reward management practices can
positively influence employee performance in Somalia. Another
work of research conducted by Ahmed et al. (2019) examined
15
the impact of monetary incentives on the motivation and
performance of employ Somali enterprises.

The findings demonstrated that monetary incentives, such as

bonuses and pay increases, had a substantial and favorable
impact on employee motivation, leading to an improvement in
their performance.

This research highlights the significance of monetary incentives

in motivating employee performance within the Somali
environment.
Ibrahim (2017) examined the influence of non-financial
incentives on the performance of employees in Somali firms
from a different standpoint. The study emphasized that non-
monetary incentives, such as acknowledgment, professional
growth prospects, and adaptable work schedules, were important
in stimulating workers and enhancing their productivity. This
research emphasizes the need to include both monetary and non-
monetary incentives for creating successful reward systems.

16
 METHODOLOGY
The research methodology for this study adopted both
qualitative and quantitative methods. The qualitative approach
is a systematic literature review. The approach involves
searching and analysing relevant academic articles, books, and
other scholarly sources that provide insights into the relationship
between reward management, employee performance, and job
satisfaction in Somalia. The systematic literature review enables
a comprehensive analysis of existing research on the topic and
provides a solid foundation for understanding the current state of
knowledge in this area.
Search Strategy
An all-encompassing search approach was used to reveal the
literature analysis for this paper. The key databases used for
This investigation included academic portals like JSTOR,
Google Scholar, AI, and Research Gate. In addition,
publications focused on certain journals that are associated with
the management of human resources and organizational
behaviour were also consulted. Keywords such as "reward
management," "employee performance," "job satisfaction,"
and "Somalia" were adopted for the search strategy and filter
search outcomes and guarantee that they are relevant to the
research objectives.

17
 Pieces of literature were analysed and identified major findings
and areas where similar studies were
Conducted by examining similarities, and variations. The study
facilitates the integration of materials and provides a full
assessment of the current level of knowledge on the subject
matter.
Survey Research
One quantitative method used to investigate the relationship
between reward management and employee performance in
Somalia is through survey research. This method involves
measuring the variables related to reward management, job
Satisfaction, and employee performance. The data collected
were analysed using statistical techniques such as correlation
analysis to determine the strength and direction of the
relationship between reward management, job satisfaction, and
employee performance as presented in Table 1 to Table 3 below.

18
 FINDINGS AND DISCUSSION

Reward management is an essential component of human

resource management that entails creating and executing
Specific policies and procedures that reward workers and
improve their productivity. In a nation undergoing
Development with a history of instability, conflicts, and
violence; the implementation of appropriate reward management
is of utmost importance, given the difficult circumstances in
which personnel are required to operate. This article will analyse
the discoveries and consequences of a research study titled
'Reward Management and Employee Performance: A Review of
Job Satisfaction in.' the study aimed to investigate the
correlation between reward management, job satisfaction, and
employee performance in the country.

19
DATA ANALYSIS AND FINDINGS
1. DO YOU THINK PERFORMANCE APPRAISAL IS ESSENTIAL?
NECESSITY OF PERFORMANCE APPRAISAL
OPINION NO. OF RESPONDENTS PERCENTAGE YES 45 90NO 5
10TOTAL 50 100INTERPRETATION
FROM THE ABOVE DATA, IT’S EVIDENT THAT MAXIMUM OF
RESPONDENTS FEEL THAT PERFORMANCE APPRAISAL IS
ESSENTIAL IN THE ORGANIZATION.
DO YOU AGREE THAT THE OBJECTIVES OF THE
APPRAISAL SYSTEM ARE CLEAR TO ALL EMPLOYEES?

20
 DATA ANALYSIS AND FINDING
1. Do you think performance Appraisal is essential?

Necessity of Performance Appraisal

Opinion No. of Percentage
Respondents
Yes 45 90
No 5 10
Total 50 100

yes No

21
2. Do you agree that the objectives of the appraisal
system are clear to all employees?
Opinion No.of respondents 100
Yes 50 100
No 0 0
Total 50 100

No. of responses

Yes No

22
3. Are you satisfied with existing system in Dr. Reddy, s
Laboratories?
Satisfaction with the system
Opinion No. of Respondents Percentage
Satisfied 39 78
Dissatisfied 11 22
Total 50 100

No. of respondents

satisfied dissatisfied

23
4. Does the present performance appraisal of Dr. Reddy’s
distinguish performers & non-performers?
Distinguishes Performers & non-performers
Opinion No. of respondents Percentage
Yes 50 100
No 0 0
Total 50 100

No. of response

Yes No

24
5. Performance Appraisal system really assesses the
performance of an employee. Do you agree?
Assessment of Performance Appraisal
Opinion No. of Percentage
respondents
Strongly Agree 32 60
Agree 10 20
Disagree 6 12
Strongly Disagree 2 4
Total 50 100

Chart Title
70
60
50
40
30
20
10
0
Strongly Agree Agree Disagree Strongly Agree

No. of respondents Percentage

Interpretation: - Form the above data it’s evident that most of the
employees feel that performance appraisal system really
assesses the performance of employees.

25
6. On what basis periodicity of performance appraisal should
be?
Periodicity of Performance Appraisal
Opinion No. of respondents Percentage
Monthly 8 16
Quarterly 12 24
Annually 30 60
Total 50 100

Chart Title

60
50
40
30
20 Percentage
10
No of respondents
0
Monthly Quarterly Annually

No of respondents Percentage

Interpretation: - Form the above data it’s evident that most of the
employees feel that Performance Appraisal should be done on
annual basis.

26
7. Are the stands on the basis of which the performance
appraisal is carried out communicated to the employees before
hand?
Opinion No. of respondents Percentage
Yes 33 66
No 17 34
Total 50 100

Percentage
34

66

1st Qtr 2nd Qtr

Interpretation: - Form the above data it’s evident that 66% of

employees gave a positive look towards the communication
which they get before hand and 34% responded negatively that
they do not get the communication beforehand.

27
8. Is there any scope for basis in the evaluation process due to
personal acquaintances between the appraisers and appraise?
Opinion No. of respondents Percentage
Yes 36 72
No 14 28
Total 50 100

Chart Title
80
70
60
50
40
30
20
10
0
Yes No

no. of respondent Percentage

Interpretation: - Form the above information it’s evident that

72% think that there is a scope of business during the evaluation
process due to personal acquaintances.

28
9. Does the Management inform you the performance appraisal
at the beginning of the appraisal period?
Opinion No. of respondent Percentage
Yes 19 38
No 31 62
Total 50 100

Chart Title

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes Yes

No. of respondent Percentage

Interpretation: - Form the above information it’s evident that

only 38% of the employee are informed about the performance
appraisal at beginning of the appraisal period and about 62% are
not informed about this at the beginning of the appraisal period.

10. Performance Appraisal is useful contribution to encourage

people to perform better on their jobs?

29
 Opinion No. of respondent Percentage
Strongly Agree 9 18
Agree 26 56
Disagree 11 22
Strongly Disagree 2 4
Total 50 100

Chart Title
60

50

40

30

20

10

0
SA A DA SDA

No. of respondent Perrcentage

Interpretation: - Form the above information it’s evident that

56% of the employees agree with the statement that
“performance management is useful contribution to the
employees for the encouragement towards the work” and 22%
disagree with that.

30
 SUGGESTION
Constantly identifying areas for improvement is an
effective way for a company to grow and increase its
stability. In a competitive market, it's also important to
continue improving performance levels in order to remain
ahead of competitors who will similarly make efforts to
raise their quality. Creating an atmosphere within a
company where staff feel empowered to share suggestions
for improvement allows you to identify innovative ideas
and put them into action for the benefit of the company.
An effective way to improve employee retention is to
make use of internal promotions for successful
employees. By changing your approach to filling senior
positions with internal employees, you can show that
team members have a path to career advancement
remaining with the company. This can help to keep
ambitious but effective employees interested in their work
with your company and reduce your exposure to
employee turnover

31
 CONCLUSION
To summarise, reward management systems are of vital
importance for employee productivity, satisfaction, morale and
loyalty. Effective reward management systems also contribute to
improve organizational.
Productivity and competitiveness. Based on this essay, the best
practices, such as performance-based pay and
Total reward, both have their strengths and limitations. Besides,
by reviewing the reward power and
Transformational leadership approach, the drawbacks of
managerial or leadership power can be found. The use of
Both benchmarking and 360-degree feedback should be adopted
with greater attention paid to ethical corporate
Culture, effective leadership and flexible reward management
systems to maximize the positive outcomes of best practices in
reward management systems.

32
 QUESTIONNAIRS
1. Does your organization operate a formal performance
management system?
A) Yes b) No
2. If yes, which of the following groups of employees do
these process apply to?
a. Senior manager
b. Technical/Clerical
c. Manual/Blue Collar
d. Other manager/team leaders
3. How do the performance management processes you
operate differ between the above groups?
a. Adoption of different methods of appraisal for
different groups
b. Extensive use of self-appraisal for certain bands of
employees
c. Adopting different time spans of appraisal for the
different groups
4. What are the techniques that are used in your
organization for assessing performance?
a. Observation
b. Assesment and development centers
c. Others please specify…………….
5. Please indicatewhich of the following methods of
performance appraisal from a part of your system?
a. Writen essay method
b. Graphic rating scales
c. Ranking method
d. 360 degree appraisal

6. Are the following process a part of your performance

33
 management system?
a. Coaching
b. Training and development
c. Career management & development plan
d. Succession planning
7. Who sets the performance goals/reguirements for
individuals?
a. HR professionals
b. Senior Manager
c. Line manager/Team leader
d. Others
8. Why do you have performance management system in
your organisation?
a. Retention strategy
b. Reward allocation
c. Identification of training and development needs
d. Facilitates
9. How are individual, team and organizational objectives
linked?
a. Cascading of goals
b. By enabling employees to see how their job
contributes of the oyerall
c. Comparing employee performance with work
groups

10. What are the determinants for job performance in

34
 your organisation?
a. Organizational culture
b. Technology
c. Competency of the employee
d. Intelligence

11.

35
 BIBLIOGRAPHY
• WWW.GOOGLE.COM
• WWW.WIKIPEDIA.IN
• Https://www.squadeasy.com

36
THANK
YOU

37