Performance And Reward Management is an important Human Resource Management specialization subject in AKTU MBA 3rd Semester. The subject focuses on how organisations set employee performance expectations, measure results, provide feedback, conduct appraisals, develop employees, and design fair reward systems that support both individual and organisational goals.
Practicing AKTU MBA 3rd Sem Performance And Reward Management PYQs helps students understand how performance appraisal, performance management systems, compensation, incentives, motivation, employee development, and reward-related concepts are framed in university examinations. Since the subject combines HR theory with managerial application, previous-year papers are useful for improving conceptual clarity and answer-writing structure.
Students can explore AKTU MBA previous-year question papers and related academic resources on NotesGallery. For official university notices, examination announcements, academic circulars, and authoritative information, students should refer to the AKTU Official Website.
AKTU MBA 3rd Semester Subject Details
The subject details are:
| Subject Code | Subject Name | Specialization |
|---|---|---|
| BMB HR 03 | Performance And Reward Management | Human Resource Management |
Performance And Reward Management is part of the Human Resource Management specialization in MBA Semester 3.
The other HR specialization subjects shown alongside it are:
| Code | Subject |
|---|---|
| BMB HR 01 | Talent Acquisition Management |
| BMB HR 02 | Employee Relations and Labour Laws |
MBA 3rd Semester also includes the core subject Strategic Management (BMB301) along with specialization electives from Marketing, Financial Management, Operation Management, International Business, Information Technology, and Cooperative Management.
About Performance Management
Performance Management is a continuous process of planning, monitoring, reviewing, and improving employee performance so that individual efforts contribute to organisational objectives.
It may include:
- goal setting
- performance standards
- regular feedback
- coaching
- performance appraisal
- development planning
- recognition
- corrective action
Performance management is broader than a yearly appraisal because it is an ongoing managerial process.
Importance of Performance Management
Performance management helps organisations:
- clarify expectations
- improve productivity
- align employee goals with organisational strategy
- identify training needs
- recognise strong performance
- support career development
- improve communication
- identify performance problems
An effective system helps employees understand what is expected and how their work contributes to broader goals.
Performance Management Process
A general performance-management process may include:
- Performance planning
- Goal setting
- Setting standards
- Monitoring performance
- Providing feedback
- Conducting performance reviews
- Identifying development needs
- Rewarding or improving performance
The process should be continuous rather than limited to one formal review.
Performance Planning
Performance planning involves defining what an employee is expected to achieve during a particular period.
It may include:
- goals
- responsibilities
- performance standards
- competencies
- timelines
- expected outcomes
Clear performance planning reduces ambiguity and supports fair evaluation.
Goal Setting
Goals provide direction to employees.
Effective goals should generally be:
- clear
- measurable where possible
- realistic
- relevant
- time-oriented
Good goals help both employees and managers evaluate progress.
Performance Standards
Performance standards describe the level of performance expected from an employee.
They may be based on:
- quantity
- quality
- cost
- time
- customer service
- behaviour
Standards should be relevant to the job and clearly communicated.
Key Performance Indicators
Key Performance Indicators (KPIs) are measurable indicators used to evaluate progress toward important objectives.
Examples may include:
- sales achieved
- production quality
- customer satisfaction
- employee retention
- project completion
- cost control
The KPI selected should reflect the actual responsibility of the employee or team.
Performance Appraisal
Performance Appraisal is the formal evaluation of an employee’s performance during a defined period.
It may be used for:
- feedback
- promotion decisions
- training identification
- compensation decisions
- career planning
- performance improvement
Performance appraisal is one component of the broader performance-management process.
Performance Management vs Performance Appraisal
| Performance Management | Performance Appraisal |
|---|---|
| Continuous process | Periodic evaluation |
| Focuses on improvement and alignment | Focuses on reviewing performance |
| Includes planning, feedback, development, and review | Primarily evaluates past performance |
| Strategic and developmental | More evaluative in nature |
| Involves regular communication | Often conducted at defined intervals |
Students should clearly understand this distinction.
Objectives of Performance Appraisal
Performance appraisal may help to:
- measure employee performance
- provide feedback
- identify development needs
- support promotion decisions
- recognise achievements
- improve employee effectiveness
- support reward decisions
Traditional Methods of Performance Appraisal
Performance appraisal can be conducted using different methods.
Traditional approaches may include:
- ranking
- rating scales
- checklist
- forced distribution
- confidential reports
Each method has advantages and limitations.
Ranking Method
Employees are ranked from higher to lower performance.
Advantages
- simple
- easy to understand
Limitations
- may be subjective
- difficult when employees perform different jobs
- does not explain detailed performance differences
Graphic Rating Scale
A graphic rating scale evaluates employees on selected performance factors.
These may include:
- quality of work
- cooperation
- punctuality
- initiative
- communication
The evaluator assigns ratings for each factor.
Checklist Method
The evaluator responds to a list of statements related to employee behaviour or performance.
It can provide standardisation but depends heavily on the quality of the checklist.
Forced Distribution
Employees may be placed into predetermined performance categories.
This can support differentiation but may create dissatisfaction if categories are applied rigidly.
Modern Performance Appraisal Methods
Modern approaches may include:
- Management by Objectives
- 360-degree feedback
- Behaviourally Anchored Rating Scales
- assessment centres
These methods attempt to improve the quality and relevance of performance evaluation.
Management by Objectives
Management by Objectives (MBO) evaluates performance on the basis of mutually agreed objectives.
A general process includes:
- Set objectives
- Agree on expected results
- Monitor progress
- Review actual results
- Discuss improvement
MBO links employee performance with organisational objectives.
360-Degree Feedback
360-Degree Feedback collects performance-related feedback from multiple sources.
These may include:
- manager
- peers
- subordinates
- customers
- self-assessment
It provides a broader view of behaviour and performance.
Advantages of 360-Degree Feedback
It may help:
- provide multiple perspectives
- improve self-awareness
- identify development needs
- strengthen leadership development
Limitations of 360-Degree Feedback
Possible limitations include:
- conflicting feedback
- bias
- confidentiality concerns
- complexity
- poor implementation
The system should be designed carefully.
Behaviourally Anchored Rating Scales
Behaviourally Anchored Rating Scales (BARS) connect performance ratings with specific behavioural examples.
This can make evaluation more job-related and easier to interpret.
BARS may reduce ambiguity because ratings are linked with observable behaviour.
Assessment Centres
Assessment centres may be used to evaluate employees through:
- group exercises
- role plays
- presentations
- simulations
- case analysis
They can be useful for assessing managerial potential and development needs.
Self-Appraisal
Self-appraisal allows employees to evaluate their own performance.
It may encourage:
- reflection
- participation
- discussion
- ownership of development
However, self-ratings may differ from managerial ratings.
Performance Feedback
Feedback helps employees understand:
- what they are doing well
- where improvement is needed
- how performance can be improved
Effective feedback should be:
- specific
- timely
- constructive
- job-related
- respectful
Regular feedback can prevent performance issues from becoming serious.
Performance Review Discussion
A performance review discussion allows managers and employees to discuss:
- results
- strengths
- weaknesses
- challenges
- development needs
- future goals
The discussion should focus on improvement rather than only criticism.
Performance Coaching
Performance coaching is a developmental approach where managers help employees improve through:
- guidance
- feedback
- problem-solving
- skill development
- regular support
Coaching supports continuous performance improvement.
Performance Improvement Plan
A Performance Improvement Plan (PIP) may be used when employee performance does not meet expected standards.
It may include:
- identified performance gaps
- expected standards
- improvement actions
- support required
- review timeline
The purpose should be to provide a structured opportunity for improvement.
Errors in Performance Appraisal
Performance appraisal can be affected by rating errors.
Common errors may include:
- halo effect
- horn effect
- leniency
- strictness
- central tendency
- recency effect
- personal bias
Students should understand how these errors can reduce appraisal fairness.
Halo Effect
The halo effect occurs when one positive characteristic influences the evaluator’s overall judgement.
For example, excellent communication skills may cause the manager to rate all performance areas highly.
Horn Effect
The horn effect occurs when one negative characteristic leads to overly negative overall evaluation.
Recency Effect
The recency effect occurs when recent events influence the evaluation more strongly than performance across the entire review period.
Central Tendency
Central tendency occurs when the evaluator avoids extreme ratings and gives most employees average scores.
Leniency and Strictness
Some evaluators may consistently rate employees too highly or too harshly.
These rating tendencies can reduce fairness and reliability.
Meaning of Reward Management
Reward Management involves designing and managing financial and non-financial rewards provided to employees in return for their contribution.
Reward management aims to:
- attract employees
- motivate performance
- retain talent
- recognise contribution
- support organisational objectives
Rewards should be perceived as fair and relevant.
Components of Employee Rewards
Employee rewards may include:
- basic salary
- incentives
- bonuses
- benefits
- recognition
- career opportunities
- learning opportunities
- flexible work arrangements
Rewards are therefore not limited to salary.
Financial Rewards
Financial rewards involve monetary benefits.
Examples include:
- salary
- wages
- bonus
- commission
- performance incentives
- allowances
These rewards have direct financial value to employees.
Non-Financial Rewards
Non-financial rewards may include:
- recognition
- praise
- career growth
- responsibility
- development opportunities
- flexible working
- meaningful work
Non-financial rewards can strongly influence motivation and engagement.
Intrinsic and Extrinsic Rewards
Intrinsic Rewards
Intrinsic rewards arise from the work itself.
Examples include:
- achievement
- responsibility
- learning
- personal growth
- satisfaction
Extrinsic Rewards
Extrinsic rewards are provided by the organisation.
Examples include:
- salary
- bonus
- promotion
- benefits
- recognition
A balanced reward system may include both.
Compensation
Compensation refers to the financial and other benefits employees receive in return for their work.
It may include:
- direct compensation
- indirect compensation
Direct Compensation
Direct compensation may include:
- basic salary
- wages
- incentives
- bonuses
- commissions
Indirect Compensation
Indirect compensation may include benefits such as:
- insurance
- leave benefits
- retirement-related benefits
- welfare benefits
The exact structure depends on organisational policy and applicable requirements.
Compensation Management
Compensation management involves designing and administering pay structures.
It aims to achieve:
- internal fairness
- external competitiveness
- employee motivation
- cost control
- legal compliance
Compensation should support both employee expectations and organisational sustainability.
Wage and Salary Administration
Wage and salary administration includes decisions about:
- pay levels
- pay structure
- increments
- allowances
- salary ranges
A well-designed system supports fairness and consistency.
Job Evaluation
Job Evaluation is the systematic process of determining the relative value of different jobs within an organisation.
It helps establish an internally consistent pay structure.
Job evaluation considers the job rather than the performance of the individual employee.
Job Evaluation vs Performance Appraisal
| Job Evaluation | Performance Appraisal |
|---|---|
| Evaluates the job | Evaluates the employee |
| Used for pay structure | Used for performance review |
| Focuses on relative job value | Focuses on individual performance |
| Supports compensation design | Supports feedback and development |
Incentives
Incentives are rewards linked to desired performance or results.
Examples may include:
- individual incentives
- team incentives
- sales commission
- performance bonus
Incentive plans should encourage desired behaviour without promoting unhealthy competition.
Individual Incentives
Individual incentives reward an employee based on personal performance.
They may motivate high performers but can reduce cooperation if poorly designed.
Team Incentives
Team incentives reward collective performance.
They can encourage:
- collaboration
- shared responsibility
- group problem-solving
However, managers should ensure that individual contributions are not ignored.
Performance-Related Pay
Performance-related pay links part of employee compensation to performance.
Its success depends on:
- clear measures
- fair evaluation
- transparent rules
- achievable expectations
If employees do not trust the performance system, performance-linked rewards may lose effectiveness.
Bonus
A bonus is an additional financial reward given based on performance, organisational results, or other defined criteria.
Bonus plans may be:
- individual
- team-based
- organisation-wide
Employee Benefits
Benefits are additional rewards provided beyond direct pay.
They may support:
- employee welfare
- retention
- financial security
- work-life balance
Benefits form an important part of the total reward package.
Total Rewards
A Total Rewards approach considers the complete set of financial and non-financial benefits provided to employees.
It may include:
- compensation
- benefits
- recognition
- learning
- career growth
- work environment
- well-being
This approach recognises that employees value different types of rewards.
Recognition
Recognition involves acknowledging an employee’s contribution or achievement.
Recognition can be:
- formal
- informal
- monetary
- non-monetary
Timely recognition can improve motivation and engagement.
Reward and Motivation
Rewards can influence employee motivation when employees believe that:
- effort leads to performance
- performance is recognised
- rewards are valuable
- the system is fair
Reward systems should therefore be linked clearly with expected performance.
Equity and Fairness in Rewards
Employees often compare their rewards with:
- colleagues
- similar jobs
- market rates
- their own contribution
Perceived unfairness can lead to dissatisfaction and reduced motivation.
Fairness is therefore a key principle of reward management.
Internal Equity
Internal equity refers to fairness among jobs and employees within the same organisation.
It can be supported through:
- job evaluation
- consistent pay structures
- clear criteria
External Equity
External equity refers to competitiveness of pay compared with similar jobs in the external labour market.
Market salary data can help organisations evaluate external competitiveness.
Reward Strategy
A reward strategy explains how the organisation will use compensation and recognition to support business and HR objectives.
It may consider:
- employee attraction
- retention
- performance
- motivation
- affordability
- fairness
Reward strategy should align with organisational strategy.
Performance and Reward Linkage
Performance and reward systems are closely connected.
A well-designed system may follow a sequence such as:
Goals → Performance → Measurement → Feedback → Reward
However, performance should be measured fairly before rewards are linked to results.
Strategic Performance Management
Strategic performance management ensures that employee goals contribute to broader organisational objectives.
It connects:
- business strategy
- departmental goals
- team goals
- individual objectives
This alignment helps employees understand the strategic importance of their work.
Strategic Reward Management
Strategic reward management aligns reward systems with organisational priorities.
For example, an organisation focused on innovation may reward:
- creative ideas
- collaboration
- successful new products
A sales-focused organisation may emphasise performance incentives.
Employee Engagement and Rewards
Appropriate rewards can support employee engagement through:
- recognition
- growth opportunities
- fair compensation
- meaningful work
- development
Financial rewards alone may not create long-term engagement.
Rewards and Employee Retention
Reward systems can influence retention.
Employees may be more likely to remain when they perceive:
- fair compensation
- career opportunities
- recognition
- development
- appropriate benefits
Retention decisions are usually influenced by a combination of financial and non-financial factors.
Performance Management Technology
Technology can support performance management through:
- goal tracking
- feedback systems
- performance dashboards
- appraisal records
- analytics
Digital tools can make monitoring easier, but managerial judgement and communication remain important.
Performance Analytics
Performance analytics uses employee-performance data to identify:
- high performers
- performance gaps
- training requirements
- productivity trends
- development needs
Data should be interpreted carefully and used responsibly.
Ethical Issues in Performance Management
Performance systems should avoid:
- discrimination
- manipulation
- hidden criteria
- unfair ratings
- misuse of employee data
Employees should understand how their performance is evaluated.
Ethical Issues in Reward Management
Reward systems should be:
- transparent
- fair
- consistent
- non-discriminatory
Unfair reward decisions can damage trust and employee relations.
Relationship With Talent Acquisition Management
Performance And Reward Management connects directly with Talent Acquisition Management (BMB HR 01).
Talent acquisition brings employees into the organisation, while performance and reward systems help:
- evaluate contribution
- develop employees
- recognise performance
- retain talent
Compensation and reward packages can also influence recruitment.
Relationship With Employee Relations and Labour Laws
It also connects with Employee Relations and Labour Laws (BMB HR 02).
Performance and reward decisions can affect:
- employee satisfaction
- grievances
- fairness perceptions
- industrial relations
HR managers should ensure that performance and reward systems are consistent with organisational policy and applicable employment requirements.
Relationship With Strategic Management
The core subject Strategic Management (BMB301) connects with Performance And Reward Management because organisations need employee behaviour and performance to support strategic priorities.
Performance goals and reward systems can be designed around:
- growth
- quality
- customer service
- innovation
- efficiency
Why Solve AKTU MBA Performance And Reward Management PYQs?
Understand the Examination Pattern
Previous-year papers can help students identify whether topics are asked as:
- definitions
- short notes
- comparisons
- process-based questions
- appraisal methods
- reward-system questions
- HR applications
Improve Comparison Questions
Important comparisons may include:
- performance management vs performance appraisal
- financial vs non-financial rewards
- intrinsic vs extrinsic rewards
- job evaluation vs performance appraisal
- individual vs team incentives
Improve Process-Based Answers
Students should clearly understand processes such as:
- performance management cycle
- appraisal process
- MBO
- feedback
- reward design
Improve Application-Based Thinking
Students should connect concepts with HR situations such as:
- poor employee performance
- unfair appraisals
- designing incentives
- employee retention
- rewarding team performance
Important Topics for Exam Preparation
While practicing AKTU MBA 3rd Sem Performance And Reward Management PYQs, students should pay particular attention to:
- performance management
- performance management process
- performance planning
- goal setting
- KPIs
- performance appraisal
- performance management vs appraisal
- appraisal objectives
- traditional appraisal methods
- MBO
- 360-degree feedback
- BARS
- assessment centres
- self-appraisal
- feedback
- coaching
- performance improvement plan
- appraisal errors
- halo effect
- recency effect
- reward management
- financial rewards
- non-financial rewards
- intrinsic and extrinsic rewards
- compensation
- wage and salary administration
- job evaluation
- incentives
- performance-related pay
- bonus
- employee benefits
- total rewards
- recognition
- equity and fairness
- reward strategy
- performance and reward linkage
- employee engagement
- employee retention
- performance analytics
Students should still prepare the complete prescribed syllabus rather than relying only on repeated PYQ topics.
How to Practice Performance And Reward Management PYQs
Step 1: Complete One Topic
Study the concept from your regular notes or prescribed material.
Step 2: Understand the Process
For appraisal and performance-management topics, understand the sequence clearly.
Step 3: Attempt Related PYQs
Write the answer without referring to notes.
Step 4: Structure the Answer
A useful format is:
- Definition
- Objectives
- Process or method
- Advantages
- Limitations
- HR application
Step 5: Prepare Comparison Tables
Prepare short tables for concepts that are commonly confused.
Step 6: Maintain a Weak-Topic List
Record methods, appraisal errors, and reward concepts that are difficult to remember.
Step 7: Solve a Complete Paper
After syllabus revision, attempt a complete previous-year paper within a fixed time.
This improves:
- recall
- answer structure
- HR terminology
- application of concepts
- time management
Quick Revision Strategy
For final revision, divide the subject into four broad areas.
Performance Management
Revise:
- meaning
- objectives
- process
- planning
- goals
- KPIs
Performance Appraisal
Revise:
- traditional methods
- modern methods
- MBO
- 360-degree feedback
- BARS
- feedback
- appraisal errors
Reward Management
Revise:
- financial rewards
- non-financial rewards
- compensation
- incentives
- bonus
- benefits
- recognition
- total rewards
Strategic and Fair Reward Systems
Revise:
- job evaluation
- equity
- performance-related pay
- reward strategy
- engagement
- retention
- performance analytics
After revision, attempt selected PYQs without looking at your notes.
Useful Resources for AKTU MBA Students
Students can explore AKTU MBA previous-year question papers, notes, and related academic resources through NotesGallery.
For official university notices, examination announcements, academic circulars, and authoritative information, students should refer to the AKTU Official Website.
NotesGallery is an independent educational resource platform and should not be considered the official website of Dr. A.P.J. Abdul Kalam Technical University.
| Year | Odd Semester |
|---|---|
| 2020-21 | N/A |
| 2021-22 | N/A |
| 2022-23 | N/A |
| 2023-24 | N/A |
| 2024-25 | N/A |
| 2025-26 | Download PDF |
Frequently Asked Questions
What is Performance And Reward Management?
Performance And Reward Management is an MBA Human Resource Management specialization subject that focuses on employee performance planning, appraisal, feedback, development, compensation, incentives, recognition, and reward systems.
What is the subject code of Performance And Reward Management?
The subject code shown for Performance And Reward Management is BMB HR 03.
Where can I find AKTU MBA 3rd Sem Performance And Reward Management PYQs?
Students can explore AKTU MBA previous-year papers and related academic resources through NotesGallery and use them alongside regular semester preparation.
What is the official website of AKTU?
Students should refer to the AKTU Official Website for official university notices, examination announcements, academic circulars, and authoritative information.
What are the other HR specialization subjects in AKTU MBA 3rd Semester?
The other Human Resource Management specialization subjects shown are Talent Acquisition Management (BMB HR 01) and Employee Relations and Labour Laws (BMB HR 02).
What is the difference between performance management and performance appraisal?
Performance management is a continuous process covering planning, feedback, development, and review, while performance appraisal is a periodic formal evaluation of employee performance.
How should I prepare Performance And Reward Management using PYQs?
Understand the performance-management cycle, learn major appraisal methods, prepare important comparisons, study reward and compensation concepts, and solve previous-year questions without notes after completing each major topic.