3PRM Supporting Good Practice in Performance and Reward Management

Description of the 3PRM Module

Performance and reward management is an approach to delivering the best results in an organisation by enhancing performance and developing teamwork capabilities and the individual. This is the crucial component of an organisation’s approach to the Management of its workers. Performance management aims to: To enable individuals to understand his/her role and what is expected of them. e.g., appropriate behaviours; to enable an individual to attain his/her full potential and meet their personal development requirement; to enable the organisation to audit the skills and experience of its workers.

The whole purpose here is to achieve the overall business objectives and improve employees’ capabilities to have a solid and experienced workforce. This is done by ensuring there is a communication from the top level to the bottom level and then employees can be measured, monitored, rewarded, among others. The learners taking this unit should understand the importance of reward management in monitoring staff performance, the nature of reward (appraisal), and the compensation strategy to ensure that they stay motivated to achieve the organisational objectives. This unit’s information will help learners understand their roles as human resource experts and understand their involvement in ensuring a good working relationship between employers and employees.

Linking performance management, business objectives, and motivation

Performance management aims to create good communication in a workplace to ensure employees understand what is expected of them to achieve the organisational objectives. In this same way, learners taking this unit are advised to understand all aspects of the performance management system; they include reward packages, feedbacks, mentoring aspects that explain how well staff is motivated to achieve organisational objectives. To link performance and motivation, HR has the responsibility of ensuring workers are satisfied by motivating them. Therefore, learners need to understand theories like the McGregor Theory X and Y and Herzberg’s Two-Factor Theory. It’s essential for learners to understand these theories, how they are applied, and how they support overall organisational success performance. This unit will help learners gain the skills required in deciding to improve organisational performance.

Rewards and performance management

Nowadays, organisations show a high degree of commitment toward reward practices that comply with human resource practice and the firm’s goals for reducing employee turnover and improving employee retention. Reasonable compensation attracts more success as employees, or instead, workers will be motivated and give their best to ensure they achieve the organisational goals. This clearly shows that reward is a motivating factor if appropriately implemented. The effective reward system is linked with performance development; this focuses on performance-based pay and offers various opportunities and a friendly environment.

This unit focuses on establishing the natures of staff compensation in the organisation. The status of compensation may be financial or no-financially. Compensation determines employee satisfaction and how they are committed to the organisation. HR experts should know that rewarding employees is an essential function. In this perspective, learners should understand the importance of appreciating the staff involved in delivering their performance. In addition to this HR, experts should understand how appreciating employees impact the organisation’s overall performance and how this reward impacts the individual. This unit has given enough practices that learners have to understand before deciding on what reward is appropriate to the employees in a given organisation.

Data in reviewing performance management systems

Big data has become a concern to the organisation; this data is essential in tracing its overall performance for a certain period. HR experts need to use this data to ensure that an organisation’s proper performance is attained by making the best management decision. Data can be collected internally or externally, and leaders taking this unit should understand them to measure the given organisation’s performance and come up with the right decision to support the performance of the Management. Learners taking this unit should know how essential it is to understand how to collect and interpret this data to make an informed decision and develop the best strategies that should be implemented to ensure good management practices and usage of it for the success of the organisation.

Performance review

Once strategies determined by HR are implemented, there is a need to review the overall performance to find out whether this strategy has significance in achieving the organisation’s overall goals.  With the best review, the human resource experts can arrange for better rewards for their staff. This reward determines the status of motivation given to staff. More this, good reviews enable staff to identify areas of improvement so that they can meet the required objectives set by the firm.

Firm managers have to work to ensure they evaluate the performance to ensure correct information is obtained to help make the best decision that helps improve the organisational performance. Learners should identify the correct performance reviews to ensure they know how to carry out performance reviews for the organisation’s benefit.

This unit fit persons who:

  • Want to develop a career in HR/L&D
  • Are working in the field of human resource or L&D in support of the organisation and want to gain more knowledge and skills
  • Have responsibilities for HR activities
  • Want to gain knowledge in reward management

Learning outcomes:

On completion of this course, learners should:

  • Be able to explain the relationship between organisation success, performance management, and motivation.
  • Understand a link between performance management and motivation
  • Understand the aim of rewards in an organisation and also in performance management
  • Be able to explain the role of data in measuring the performance of the Management
  • Be able to notice and explain performance reviews


This unit is essential in supporting the line managers and the human resource experts in making a decision involving improved employee performance and good rewards. Learners who aspire to grow their careers in human resource management and those working in this field will benefit from this unit. This is because learners will learn how to assess the organisation’s performance and how to use data from evaluation to come up with the best strategies that will aid in the decision-making process. This will improve the performance of the organisation and improve worker retention and reduce staff turnover, hence developing a good workforce in an organisation.

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