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Performance Management, as the name suggests, is often referred to as the ongoing activity of managing, and hopefully improving the performance of staff. It consists of regular meetings where performance is discussed, objectives are set, action plans are formulated and development needs identified. Performance management involves many roles. An individual must be a communicator, leader, role-model and a collaborator. Each of the members of the team must understand exactly what their responsibilities and expectation are. There is an important link between performance and rewards at all levels. Raytheon’s compensation system, which is designed to offer pay that is competitive and reflective of performance, includes tools to reward at the company, program, team and individual levels. Rewards and incentives in the workplace have benefits for both employees and employers. When recognized for stellar performance and productivity, employees have increased morale, job satisfaction and involvement in organizational functions. As a result, employers experience greater efficiency and an increase in sales and productivity. Through workplace rewards and incentives, employers and workers enjoy a positive and productive work environment. Like any other institution or offices rewards and incentives play an important role in an organization. All organization, regardless of sector, size, or industry require motivated employee to function effectively. The outcome of motivated employee or workforce includes employee retention, loyalty and harmony; these are the factors that contribute significantly to the growth and development of the organization. Consequently, one of the most compelling challenges facing today’s organizations is how to make sure that employees are highly

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