Why is reward communication important? for this case, a company could be wasting the money spent on salaries and benefits by leaving employees when they listn the true value of the total package. Without employee understanding, reward programs won't motivate employee effort reward achieving business objectives. So, effective reward communication can let candidates existing staff appreciate or understand the value of the retirement scheme or other benefits, such as subsidised meals, life insurance and critical illness insurance. However, if rewards are used to motivate employees, or to encourage higher performance aims, it is essential to have an effective communicating information about pay scales, the provision of benefits and allowances, grading systems, job evaluation, performance-related pay schemes and how pay decisions and made for different individuals or groups of employees.In conclusion, performance management is not an annual appraisal meeting. It is not preparing for that appraisal meeting nor is it a self-evaluation. It's not a form nor is it a measuring tool although many organizations may use tools and forms to track goals and improvements, they are not the process of performance management. Note: Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities.Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization.Performance management defines your interaction with an employee at every step of the way in between these major life cycle occurrences. Performance management makes every interaction opportunity with an employee into a learning occasion.Performance management aims at building a high performance culture for both the individuals and the teams so that they jointly take the responsibility of improving the business processes on a continuous basis and at the same time raise the competence bar by upgrading their own skills within a leadership framework. Its focus is on enabling goal clarity for making people do the right things in the right time. It may be said that the main objective of a performance management system is to achieve the capacity of the employees to the full potential in favor of both the employee and the organization, by defining the expectations in terms of roles, responsibilities and accountabilities, required competencies and the expected behaviors.The main goal of performance management is to ensure that the organization as a system and its subsystems work together in an integrated fashion for accomplishing optimum results or outcomes.The major objectives of performance management are discussed below: ◾To enable the employees towards achievement of superior standards of work performance.◾To help the employees in identifying the knowledge and skills required for performing the job efficiently as this would drive their focus towards performing the right task in the right way.◾Boosting the performance of the employees by encouraging employee empowerment, motivation and implementation of an effective reward mechanism.◾Promoting a two way system of communication between the supervisors and the employees for clarifying expectations about the roles and accountabilities, communicating the functional and organizational goals, providing a regular and a transparent feedback for improving employee performance and continuous coaching.◾Identifying the barriers to effective performance and resolving those barriers through constant monitoring, coaching and development interventions.◾Creating a basis for several administrative decisions strategic planning, succession planning, promotions and performance based payment.◾Promoting personal growth and advancement in the career of the employees by helping them in acquiring the desired knowledge and skills.