There is a strong relationship between performance management and compensation because of important link between performance and rewards. Performance management provides key information for compensation planning on the basis of performance assessment outcome. Decisions related to compensation and rewards are likely to be logical in the presence of performance management system within the organization. Performance management and compensation both are important functions of human resource management that are used to improve motivation and productivity of the employees . Along with this our assignment help experts says that, compensation decisions are mainly based on the outcomes of performance appraisal process that is also a part of performance management system. Both are important elements of performance based pay system that is used by the modern firms to motivate their workforce for better performance with higher productivity. Additionally, the presence of sound performance management system within the organization rewards better performers with increased compensation and promotions.

It indicates that how performance management and compensation are closely related due to dependence of compensation decisions on the outcomes of performance management proces. There are various factors that must be considered by the management when implement performance management system within the organization to ensure success and effectiveness. Enthusiasm and Commitment: Enthusiasm and commitment of top leadership in terms of active support is one of the most important factors for the successful implementation of performance management within an organization. Before implementation, it is important to consider that top management is actively committed towards the successful implementation of performance management or not. Skilled Staff: Knowledge and skills level of existing staff is also critical for the successful implementation and sustainability of performance management within an organization. So, it is important for the firm to consider that the selected staff for execution process has required skills, knowledge and experience or not. Flexibility and Simplicity: It is also essential to consider that the proposed performance management system has the flexibility to adopt changes or not. Along with this, the successful execution also requires that performance management process should be clear and simple.

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Communication between staff and IT then becomes much more complicated, because the balance of power between the two groups based on the dependence of staff on IT for help and support breaks down. While there is certainly nothing wrong with knowledge about technology it can lead to mixed messages, confused goals, feelings of lack of appreciation and lack of support, and generally less than effective maintenance of IT across-the-board. We certainly don’t want to discourage our staff from acquiring technical knowledge, but we also don’t want them to use that knowledge as a political weapon against IT’s control of IT. Maybe it’s a good thing to have a level of stress between staff and IT if it serves to keep both groups on their toes and trying to outdo each other. At any rate, user support isn’t just looking after the least technological staff; increasingly, it’s also providing for the power users, and those who would be power users. Have you had any experience with this knowledge-based tension between staff and IT? Even if you haven’t, can you see how it could be a problem? What should we be doing about it? We’ll be interested in your ideas here. Note: Students are STRONGLY encouraged to respond to each others posts and to ask each other questions based on their posts. Obviously, the earliest posters will have to respond to the “seed” question to get the discussion started.

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