Introduction:
In modern business world, any organization can strategically use; pay, compensation, benefits and other rewards as effective performance management instruments to increase operational efficiency and enhance performance. It is very important for the organisation to attract, motivate and retain the best people who will be a key influence on its future success. Furthermore, in recent times, most members of the community believe that skilled people are an essential part of sustaining an organization's long-term competitive advantage. So, successful pay, rewards, compensation and benefits strategies are the main components that can ensure people are paid equitably, recognise and reward excellent performance, and aid the
Performance management is a whole work system that begins when a job is defined as needed and expectations are clearly communicated to the employee. It ends when an employee leaves the organization.
A performance culture is based on discipline. This discipline promotes decisiveness and standards of excellence and ensures direct accountability. Such discipline is a main reason why commitments and expectations are always clear. On the other hand, a lack of resolve and sanctions in a culture usually characterizes a culture in which there is little or no accountability. In a performance culture, proactive performance management blocks obstructive behaviors and supports, reinforces and rewards constructive ones. In such a culture, people are truly engaged in the business of the organization. (Joanne Reid & Victoria Hubbell 2005)

At the crux of business success is the performance of individuals, teams and the total organization. The ability to bring about desired behavior change drives any attempt to create a performance culture, and below, I describe a core process for effecting such change. The tools we use in organizations – performance management, performance planning and development, performance appraisals - are all theoretically good. But in reality, they focus too much on the report card. They lack clear expectations, involve insufficient feedback and coaching, focus too much on weaknesses and gaps, provide little