Performance Management
Performance Management
According to Armstrong and Baron (1998),
performance management is a strategic, and an integrated approach to delivering
successful results in organizations by improving performance and developing the
capabilities of team and Individuals. Similarly, it is an on-going partnership
between supervisors and employees, working together to accomplish common goals.
Furthermore, Cardy (2004) indicates that performance
management is a critical and necessary component for individuals and organizational
effectiveness. Whether managing a group of workers, providing feed-back to the
division heads or peers, performance management is a process needed for
improvement to occur. Further,
by applying performance management companies can align their resources,
systems and employees which will help them attain their objectives and
priorities.
Once skills have been developed employees
need to maximize application of skills through: decision making, strategic
thinking and using tactics. Decision making can happen during performance. Appraisals can expose
demonstration or good decision-making skills. Performance Management has 4
elements. Select, Direct, Evaluate, Reward (Marshall 1999).
Figure 1.0: Performance management cycle
(Source: Armstrong,2009).
There are many versions of the performance
cycle interpreted by various authors. Although the most famous interpretation
and explanation is cited by Armstrong (2009) with a description of the
performance management cycle and its three constituents: performance agreement,
managing performance continuously, and reviewing and assessing performance and
is illustrated in figure 1.0 (Armstrong, 2009).
Under the XY Radio Network Pvt Ltd there
are 3 sub radio stations that cater to 3 different audiences. The most revenue
making station XY87 has more advantages. Example: the radio frequency is below
90. Every month the group target is fixed and divided amongst the Marketing
Executives. The Director plans the individual targets in order to achieve the
common overall target. Planning is done with the relevant managers as they will
be communicating and meeting clients with the executives. Every week managers
makes sure that a percentage is completed by every executive. By repeating the
trend before month end makes each and every individual develop personal
performances.
According to Wade & Recardo (2001)
planning develops either the business objectives or the performance measures
for which an individual or a team will be held for the upcoming performance year.
The Employee should understand expectations and that all necessary resources
will be available. Once the employee agrees to the company goals the manager
and director needs to be clear about the employee’s expectations for
completing. In XY87 FM if one employee fails to deliver the prearranged target,
there will be a downfall in the overall revenue and will affect the
corporation.
As Monitoring is an essential part of the
performance cycle, according to Armstrong and Baron (1998) checking on progress
in achieving objectives and responding to new demands are vital; treating
Performance Management as a continues process rather than an annual appraisal
event ought to be performed by the management. Busy employees often neglect objectives
and it is the respective managers responsibility to align them accordingly and keep
them focused on behalf of the company in order to maintain a steady revenue. Monitoring
the goals process ensures that there are no surprises when the employee
appraisals are appraised. The monitoring process provides information for the
employee assessment. The top management of the organization meets the Marketing
and the programming team every month, in order to discuss the market condition
and new revenue generating avenues which helps the employees to stay focused
and perform. To gain market sustainability such meetings takes place where the
employees are given new tasks in addition (which is compensated in terms of
bonus, incentives and other monetary ways). The end results of such tasks are
used in the performance appraisals. Therefore, the Managers should have clear aim of understanding about the market place
and measure success criteria, design and
implement with the involvement of the employees by being simple, reasonable and
similarly
focus on role clarity and performance improvement (Strebler et al cited in Armstrong, 2017).
In order to
explain the famous Armstrong’s Performance cycle, last but not least important
sub component is Performance Review and
Assessment. Performance Review plays a major role in organizations throughout. Performance
appraisals are often combined with employee performance ratings throughout a
period of time as mentioned in the appointment letter, traditionally companies
encompass an annual performance review. It is practiced where an employee and
manager discuss and evaluate the annual progression and competition, training
and development, performance issues and opportunities for advancement. The
major task of the review is to focus the energy and attention of the performer
and reviewer on a deeply reflective process that explains four fundamental
questions (Russell and Russell, 2009). The questions that Russell and Russell, (2009)
have raised are the following;
What went well? Looking back over the performance period what performance out comes
have she/he received? What is the good news about the employee’s performance?
What didn’t go well? where did the employee fail to meet expectations? In which areas is
there a need for improved performance?
What are the causes of success and failure? What are the forces that both support and undermine the
employee’s performance? What factors contribute to understanding why the
employee did or did not accomplish all that was set out to achieve?
What should stay the same and what should change?
But by evaluating XY Radio Networks Pvt Ltd
the mentioned annual performance reviews are typically observed as a dreaded
business activity and for good reason. When employee performance is evaluated
and discussed just once a year, many things can go wrong. However, the
performance review discussion can be a powerful tool in building the
employee-manager relationship when it is part of a continuous performance
management strategy, but unfortunately XY Radio Network is a ‘Family-Oriented’
company that does not follow the mechanisms of performance management. First and
foremost, the Job description given toward the employee does not tally with the
work task later given by the managers. Example: The marketing team seldomly
tries to bring sponsors out of their personal relationship with clients, but is
NOT considered important. The chairmen of the company refuse to admit the
channels ratings (LMRB) yet pressurizes the marketing team to deliver the targets
every month. In the atmospheres of family-oriented companies, it is tough to
make justifiable arguments, since the head of the company lacks the skill of
managing performances of his employees. Furthermore, a rightful appraisal can support
the injustice causes performed by the above company and how the company can transform
towards justice and equality are mentioned below.
Table 01.
Managers feedback on performance review process and systems
|
The worst system
|
The best system
|
|
Can’t
give the staff the rating they deserve and staff find the rating system
demotivating.
|
Have experienced performance feedback training and development to a
great extent.
|
|
Has
not helped managers to motivate the staff, and staff did not find the last
review motivating for them to work harder.
|
Does not cover too many purposes to be effective.
|
|
Rewards
highly visible staff, rather than quiet performers.
|
Has helped the organization become more open and communicative.
|
|
Has
not helped improve the performance of the team, and team members find it
difficult to co-operate.
|
Has increased quality of work and improved performance of the team.
|
(Strebler et al, 2001, 21)
Performance Management is important since
it can help improve the effectiveness of people. The literature of employee
performance is growing continuously. According to Warner, (2002) performance
management systems focus on two major goals: 01. To help individuals achieve
their specific objectives in order to be successful in their organizational
role. 02. To help individuals develop their skills and abilities at a
professional and/or personal level. This goal involves long term as well
short-term development – perhaps even over an individual’s entire career with
the organization. Performance management is to improve motivated employees who
is in line with the company mission and every organization requires to provide
feedback to all employees to support their goals and encourage them to do so.
One of the Components of Performance Management is ‘Planning for performance’. Performance
planning is a crucial part of an employee's growth in the organization. An
effective performance planning system will be easy to understand, as well as to
implement. It would also be accurate enough to provide the performance of an
employee throughout the year (India Times, 2018). There are more effective ways
and less effective ways for performance evaluation. Truth being said those who
are most successful find that success long before the actual conversation takes
place, those who achieve it do so because they are good at creating their own
performance plan. If a supervisor invests the time and energy required to have
a great performance plan and then spends the time throughout the year engaging
in an ongoing conversation with employees, by this method the evaluation goes
smoothly and strengthens the relationship and it requires very little effort.
The way
leaders should think about employees’ basic objectives of performance planning:
The first one is to communicate basic responsibilities that the individual has
to perform on a daily basis. XY87 marketing team has meetings twice a week, in these
meetings the objectives are the follow ups on debtors, potential sales,
competitor station monitoring, promotion follow ups, client feedback and a
weekly plan that should be submitted with client meetings. Normally, when
managers or directors make a specific format, it should be equal to all
individuals, this will let the subordinates know that there are no favours
involved. but it should have a set of parameters. The first is to list the
goals, the second is that it should contain various performance measures. The
third one is that the performance planning should enlist various measures or
action required to achieve desired goals, and the last one is that it should
have a given time period for all goals. According to Armstrong &
Baron (1998) performance planning is concerned with setting the direction and
concluding employees’ performances in the area that he or she works and
agreeing on personal development plans it should state clearly as to how it should
be done and what is to be achieved. It is also forward looking and focusing as
to what people have to do in order to achieve their potential. It is also
expected by the management to explore of what individuals are capable of.
Communicating with
subordinates identifying the capabilities and weaknesses is important.
Especially when the working environment is situated in such away where the
immediate mangers and the subordinates are seated in the same space. It is
challenging as a manager is to maintain a progressive and systematic interest
in the individual’s interest and corresponding and engaging with the employees’
general motivation and well-being. The manager should always focus on
communicating information about targets that the individuals have achieved or
failed to achieve. In addition, the employee’s duty is to involve them in the
performance management system in a positive and committed way. Likewise, to use
the progress and end of cycle performance development discussion is an
opportunity to share their information about their year of experience with
their manager. By this they support their efforts in order to achieve targets (Warner,
2002).
Weaknesses of poorly developed performance
appraisal system.
According to Winstanley and Stuart (1996),
Traditional approaches by companies to performance management fails because
they are flawed in implementation, demotivated staff and are often perceived as
forms of control that are inappropriately used to “police” performance. Because
pluralism is endemic in organizations, it should not only be the power holders
voice that is heard. ‘Where consensuses exist, it can be built in, but where it
does not, dissenters are not silenced.’
Conclusion
By considering all of the theories related
above Performance Management is a continual process, not something that occurs
only once a year. Effective performance management will be a key to ensuring
that design efforts in areas like compensation are successfully supported and implemented.
The Management should evaluate the employee’s performance, discipline,
dismissal and appeal rights. By assessing current employees KPI’s and
recommending the best options, the work team will ensure that the organization has
implemented the most effective performance management strategies. Also encourage staff members by stimulating them
intellectually to adopt creative thinking processes, and push them to
reconsider the solution of old problems through new techniques (Korkmaz,2007).
As such by implementing the right performance management strategies the
employee turnover will be less as the employees see the organization as a ‘Great
Place to work’.
List of References
Armstrong,
M. & Baron, A. (1998) Managing
Performance: Performance Management in action. London: Charted Institute of
Personnel and Development.
Armstrong,
M. (2009) Armsrong’s Handbook of Human
Resource Management Practice. London and Philadelphia.
Cardi,
R.L. (2004) Performance Management:
Concepts, Skills and Exercises. Armonk: M.E. Sharpe, Inc.
Kim,
B. Y. (2006). Managing workforce
diversity: Developing a learning organization. Journal of Human Resources
in Hospitality & Tourism. 5(2), 69-90.
Korkmaz,
M. (2007) The effects of leadership
styles on organizational health. Educational Research Quarterly, Gazi
university, turkey. 30.3 (1) 23-47.
Luecke,
R., Hall, B.J (2006) Performance
management: Measure and
Improve the Effectiveness of Your Employees. Boston, Mass. Harvard Business
School.
Richard,
B. (2004) What is Leadership. UK. Leadership
South West Research Report 1. https://ore.exeter.ac.uk/repository/bitstream/handle/10036/17493/what_is_leadership.pdf?sequence=1&isAllowed=y
Robertson,
I. T., & Smith, M., (2001). Personnel
selection. Journal of Occupational and Organizational Psychology, Vol. 74,
no. 4, pp. 441-472. [Online] <https://onlinelibrary.wiley.com/doi/abs/10.1348/096317901167479?systemMessage=Wiley+Online+Library+usage+report&>.
Accessed on 23rd September 2018.
Russell,
L. and Russell, J. (2009). ASTD's
ultimate performance management. USA: ASTD press.
Strebler,
M., Robinson, D., Bevan, S. (2001) Performance
Review: Balancing objectives and content. UK. The Institute for Employment
Studies.
Ward,
A. (2005) Whither Performance Management.
UK. Institute for employment studies.
Wade,
B., Recardo, R. (2001) Corporate
Performance Management: How to Build a Better Organization through Measurement
- Driven Strategic Alignment. USA: Butterworth-Heinemann.
Warner,
J. (2002). The Janus performance
management system. Amherst, Mass.: HRD Press.
Winstanley,
D. Stuart-Smith, K. (1996) Policing
performance: the ethics of performance management, Personnel Review. Vol.25,
pp. 66-84
Wolf,
R., Issa, T., & Thiel, M. (2015) Empowering
Organizations through Corporate Social Responsibility. Pennsylvania,
Business Science Reference.
This comment has been removed by the author.
ReplyDeleteNo doubt Performance Management is one of the best practices for an organization to accomplish its objectives, however according to Haines and St-Onge (2012) it is essential to have more training for managers on performance management, cooperate culture should values employee engagement, performance management should be strategically integrated with the business plans, human resource should be valued in a positive relation climate within the organization. Without these aspects it is impossible to have a success on performance management.
ReplyDeleteYes Charith, I agree with you. Even Leaders and company heads should be taught in how to manage performances of employees. Relative Managers should understand their subordinates needs and wants in order to perform. Motivation should be driven by heads in Organizations. It should be understood by them from the outset that performance management is an important part of their responsibilities, that these are the skills that they should acquire and use, and there performance should be measured (Armstrong & Baron 2005)
DeletePerformance management should be in line with the company's long-term policies (Kandula, 2006). Performance management involves managing employee efforts based on measured performance outcomes. Hence determining what constitutes good performance and how the different aspects of high performance can be measured is foremost to the design of an effective performance management process.
ReplyDeletePerformance planning is concerned with setting the direction and concluding employees’ performances in the area that he or she works and agreeing on personal development plans that states clearly as to how it should be done and what is to be achieved, by relaying on this method good performance can grow in companies. communicate and agree expectations as part of the continuing dialogue that is implicit in good performance management practices. by adopting a policy of transparency on company policies and procedures and on management’s proposals and decisions as they affect people.
DeleteGenerally organizations must treat people as stakeholders, relying on consensus and cooperation rather than control and coercion (Armstrong 2009).
The topic of the blog is an essential component to an organisation for to measure employee engagement through effective performance management. According to Pulakos (2009: 3) emphasized that: ‘Performance management is the key process through which work gets done. It’s how organizations communicate expectations and drive behavior to achieve important goals; it’s also about how organizations identify ineffective performers for development programmes or other personnel actions.’
ReplyDeleteI agree with you Lasitha, Performance management is indeed the key process through which work gets done. Every human being needs to know how they are doing; in psychological terms they need to know whether or not they’re OK. If they know the boss and organization think they’re OK, they feel OK. In that position, the individual knows what they’re supposed to be doing. They get regular feedback that their bit of organizational work is OK and is fitting into the wider culture of the company (Simon 2013)
DeleteAndrea,while acknowledging and agreeing with the content that yo have put up in this blog, I feel that there are certain problems identified with the Performance management System implementation such as Conflicting objectives,Handling of feedback,Time Constraint,Low priority by management ,Flexibility of the system to name a few.Out of these, Priority by management is something very critical.A system like PMS should be the top priority especially in its implementation phase. If the management does not give sufficient importance to the implementation, the system would not achieve the required objectives. The attention of Management should be rooted in a bigger context of analysis that can inspect and evaluate how well all the important factors that affect employee performance are functioning (Clardy,2013).
ReplyDeleteAt one level it is easy to see good compared to bad performance management. But Akila, Obviously this requires developing of multi-source feed-back systems, such as 360-degree appraisals. Feedback needs to be given to employees on an ongoing basis. with the balance scorecard, nowadays it is possible to give real time performance feedback to employees (Dipak 2011). The first thing is to look hard at the priorities by management and see if they are fit for the purpose intended. Good performance management is predicated on good relationships, not on the quality of a particular Time Constraints.
DeletePerformance management is a crucial factor which directly connects with the efficiency of the organization. I really accept your statement about, that the performance management needs to be a continual process. According to DeNisi and Murphy (2017), they have mentioned that there should be better link between individual performance improvement and firm performance improvement. The performance management provides the data which collects from a systematic performance appraisal process. The performance management needs to be a continual process, since then only the management of the organization can identify the exact competency levels of each individual which directly affects the overall performance of the organization.
ReplyDeleteAs a leader, you can create environments conducive to learning by acting in ways that promote psychological safety. At the negative end of the spectrum, autocratic behavior, inaccessibility, or a failure to acknowledge vulnerability can all contribute to team members’ reluctance to incur personal risk. Performance management is a planned process of which the five primary elements are agreement, measurement, feedback, positive reinforcement and dialogue. It is concerned with measuring outcomes in the shape of delivered performance compared with expectations expressed (Amstrong 2009).
Deleteimplementation of Performance management is indeed has become a vital component in every sustaining organization in this never ending competitive markets and industries, the blog surely states a comprehensive argument of the title.
ReplyDeleteFurther, as per (Egan, 1995 cited in Armstrong,2006,p.500) " Most employees want direction, freedom to get their work done, and encouragement not control. The performance management system should be a control system only by exception. The solution is to make it a collaborative development system, in two ways. First, the entire performance management process – coaching, counselling, feedback, tracking, recognition, and so forth – should encourage development. Ideally, team members grow and develop through these interactions. Second, when managers and team members ask what they need to be able to do to do bigger and better things, they move to strategic development".
Yes Chaminda, I agree that performance management is vital. According to Armstrong (2009) In contrast performance management is a continuous and much wider, more comprehensive and more natural process of management that clarifies mutual expectations, emphasizes the support role of managers who are expected to act as coaches rather than judges and focuses on the future.
DeleteAdrea,based on journal articles and other information you have clearly buildup a structural Blog of "Performance Management". This area is very vital in present organizational culture and we have observed many institutes follow very obsolete theories even in the highly developed modern environment.With your demonstration also yo have mentioned such weak areas of performance management systems that lead to many ineffective outcomes.
ReplyDeleteSo as you further explained performance management should not be a annual event and should be a continuous process when evaluating and recognize the employee performance.
Absolutely Shiran, As you mentioned, unfortunately some organizations in Sri Lanka have weak performance management systems. And yes, It is Important to have a steady structure that could guide people in their career growth. In Companies Performance improvement plans are developed, the employees assumes the lead role in developing plans. The partnership for performance between the coach and the employee is strengthened. If these performance coaching goes well with the employee, great performance will happen (Linda 2009).
DeleteDear Andrea, it’s a good evaluation done by you on Performance Evaluation.
ReplyDeleteAnyhow (UK Essays, 2017), mentions that Performance management should be regarded as a flexible process, not as a ‘system’. Performance management should be flexible and an evolutionary process that is applied by managers working with their teams in accordance with the circumstances in which they operate. As such, it involves managers. Performance management is a top-down affair and it has to be congruent which has to replace the type of appraisal system that only fits a hierarchical and bureaucratic organization (UK Essays, 2017).
Ruwani, that's a good point. To manage people, organizations should be flexible. This task is pointed at all leaders, managers. For performance management to work efficiently, it is critical that everyone agrees to what specifically would be measured, and how it would be measured (David 2001).
DeleteUndoubtedly, Performance management is an important key factor in an organization. On the other view, Millar (2007) built a framework of talent management which consists of planning, recruiting, performance, learning, career development, succession planning, compensation, and measuring and reporting. In order to organize a company effectively, companies must rethink how they hire, train and reward their employees; therefore the employees could be able to encourage and they should be competitive.
ReplyDeleteInteresting outlook Gayanee. By providing the necessary support people can achieve career development. By motivating staff by recognizing good performance also can lead to success.As per Armstrong and Baron (1998) it show that a results orientation has
Deletecome to be the dominant approach for expressing performance requirements.
It is a vital area in HRM you have chosen Andrea as in many instances employees complain that performance management systems are cumbersome, bureaucratic and too time consuming for the value being added by the process. This eventually leads both managers and employees to indulge performance management as an evil of work life that should be eliminated rather than a key component in achieving both employee & organizational objectives (Pulakos, 2004).
ReplyDeleteYes Amal, Good points. Managing people in the workplace is an increasingly difficult job. It is a challenge everyday just to hold down a leader/manager role, simply because of the demands the employer will be making of somebody in a job like that. Poor performance is best seen as a problem, in which the employee and management are both accountable. In fact, one can argue that it is unlikely to emerge if people are effectively managed (Howard 2003).
DeleteGood job Andrea, you have managed to cover the important aspects of performance management. However according to Mishra (2015) the major initiatives taken by most of the Companies towards effective performance management system are identified as Vision/Strategy, Organization size, Resources, Self Assessment/Continuous improvement, Leadership style, Employee involvement, Empowerment, Communication / Feedback / Knowledge sharing and finally Reward/Recognition.
ReplyDeleteAbsolutely Bernadine, Additionally, Heath (2003) at Stanford
DeleteUniversity reports that managers are generally poor at judging what motivates people and tend to have an ‘extrinsic incentive bias’ (which may provide clues al
so to why so many managers are keen on performance-related pay but are so often uncomfortable with forms of non-financial recognition). The corollary of this,
though, is that the opportunity to make a significant performance difference here is massive.
Hi Andrea, you have well elaborated the subject of performance management which is important for any organization. However, when the performance appraisals are done, most of the times, managers are reluctant to provide straightforward feedback on the performance and have a honest discussion with employees or subordinates due to the fear of retaliation or damaging relationships. Meanwhile, employees feel that their managers or superiors are not skilled at discussing their performance with them and ineffective at coaching them on developing their skills.Eventhough, performance management is an important process which is beneficial to the employees and organization, performance management systems are considered as cumbersome, bureaucratic and time consuming.Accordingly,this can lead both managers and employees to consider performance management as a necessary evil of work life (Pulakos,2004).
ReplyDeleteYes Dinuka, Unfortunately this happens to some people. Some managers can not have honest discussions due to budget issues in companies. Maybe some leaders are scared to tell the truth because they cant loose another employee, even if they lose that employee, maybe they do not have the budget to get someone for the same rate. These are issues with the management of companies. But i do not agree that Performance Management is a waste of time. If done right performance management systems can develop organizations as well as employees. Feedback needs to be given to employees on an ongoing basis. with the balance scorecard, nowadays it is possible to give real time performance feedback to employees (Dipak 2011).
DeleteHi, at present this topic is very popular in organizations because all are running behind the KPIs and you have nicely explained about Performance management. But practical difficulty of Performance management system is, it must serve both organizational decision making and development purposes of the employees at the same time. But practically achieving this is very difficult because ratings were affected due human compassion. Ratings used for decision-making tend to be lenient, with most employees receiving ratings on the high end of the scale. Ratings for developmental purposes tend to be more variable, reflecting both employee strengths and development needs (Greguras et al, (2003)
ReplyDeleteHi Suresh, I believe that PM DOES serve both organizational and development of the employees. Ratings can be genuine. If the employee strives to achieve the mission of the company and gets results end of the day, I would say that it is not very hard in practical terms. It goes both ways. If you do not perform or if you do, the ratings should be correct.The performance management system should be a control system only by exception. The solution is to make it a collaborative development system (Egan, 1995).
DeleteHi Andrea , You have well communicated the importance of performance management to the company . Organization's human resources are of great importance to its success. Without effective employees, organizations would work so ineffective and would risk failing to enforce claims of its objectives and mission. Therefore, every organization within the strategy that has, it applies the most appropriate system of performance management, a process that helps in the commitment of all employees towards achieving the objectives of the organization (McNamara ,2008)
ReplyDeleteUndoubtedly. Without a Human Resource system any organization would fail eventually. That is why it is vital that a company should know its basic needs. According to Townley (1993) Management is Instructionally empowered to determine and/or regulate certain aspects of the actions of others.
DeleteI agreed. With the effects of proper training and development employee manage to perform well in their tasks. Therefore performance is what an organization hires one to do, and to do well (Campbell, Gasser & Oswald, 1996, 258.) Performance states that if you cannot define performance you cannot measure or manage it. It distinguishes an organization from its competitors; it provides an organization with positive economic benefits; and it is something that is not readily duplicated by other organization (Pfeffer, J. 1995, 55.)
ReplyDeleteI agree with you Mohan, Yes a company hires people who have the talent to do justice to the organization. According to Paul, Abeguki, Hezekiah and JoyIfiavor (2014) the performance appraisal will be helpful to identify the areas where the employees need to be trained and well as their strength lies. The competency levels can be decided of each and every employee that is to be hired to the organization.
DeleteVery interesting topic and you have cleared gathered vital theory on Performance Management.
ReplyDeletePerformance appraisal as a process of assessing the performance and progress of an employee or of a group of employees on a given job and his potential for future development. Author further argues that performance appraisal consists of all formal procedures used in work organizations to evaluate personalities, contributions and potentials of employees (Gupta 2006).
Individual goals and departmental targets were aligned to business goals in 2017, all confirmed officers of the Seylan Bank were evaluated by this method and ranked according to performance (Annual Report, Seylan Bank, 2017).
Performance appraisal of any organization varies between organizations and covers personality, behaviors or job performance of the employees. That is not just about rating employees and identified that organizations carry out performance appraisal as a basic for administrative decisions such as promotions, allocation of financial rewards, employee development and identification of training needs.
Interesting outlook Udeni, Performance appraisals are vital for organizations. As per Walsh and Fisher (2005), Nothing should be a surprise in a performance appraisal, as all issues are best handled when they occur. By this method Managers will get a clear view to handle as well as share their expectations that the employees need to provide.
DeletePerformance management is an integral part of any organization, especially when the economy is in a crisis it becomes even more important in stay on course and critically be looked at. Performance management is a strategic and integrated approach to bringing continual success to organizations by refining the performance of the workforce by developing the competencies of teams and individual contributors (Armstrong and Baron, 1998).
ReplyDeleteAbsolutely Saliya, With the current economy situation it is very important that organizations looks after their staff, as it is their duty and order to conduct and manage performances of employees. The performance improvements of the organization and the individual employees are very critical in gaining a competitive advantage in the market (Samuel, 2013).
DeleteThis comment has been removed by the author.
ReplyDeleteHi, This is a nice read however I found that in a study that shows as most Multinational Enterprises are based in the U.S., and performance may be difficult to evaluate appropriately outside the U.S. context by adopting U.S.-based models (Murphy and Cleveland, 1995).
ReplyDeleteI disagree Sheriff, Multi national or NOT, still evaluating performance is based on the employees job role. And i do not agree managing performance is only based in the U.S. Performance management is a strategic and integrated approach to bringing continual success to organizations by refining the performance of the workforce by developing the competencies of teams and individual contributors (Armstrong and Baron, 1998).
DeleteHi ,Crystal , . Well explained Blog on Performance Management [PM] and its Impact to the Employees and the Organization . Most of the time Performance Appraisals do not provide a balance assessment of the particular employee relating to the individual performances and organizational performances ,which justifies with the weakness of Performance Appraisals[PA] such as PA Can be Bias , PA Compares with others and Recent errors may consider instead of performance related to the entire period . According to Townley (1989) , Performance Appraisal is solely a means of exercising managerial control. However Performance management is a continuous and much wider, more comprehensive and more natural process of management that clarifies mutual expectations, emphasizes the support role of managers who are expected to act as coaches rather than judges, and focuses on the future.
ReplyDeleteYes Kasun, I agree with you. Performance appraisal is a must in any organization. By appraisals employees can develop themselves. Recruitment and selection refers to the chain and sequence of activities pertaining to recruitment and selection of employable candidates and job seekers for an organization(Pallab,D,2017).
DeleteThis comment has been removed by the author.
ReplyDelete@Crystal De Zilva: Aguinis (2013,p. 5) denoted that “ A sound Performance management system lead to improved interpersonal relationships and enhanced supervisor–subordinate trust.” Which is a major contributor for people engagement and suitable to benchmark merit & rewards, promotions and for more transparent administrative actions.
DeleteI agree with you Kasun, performance management can indeed help organizations to engage more and be transparent and work together with employees. Cardy (2004) indicates that performance management is a critical and necessary component for individuals and organizational effectiveness. Whether managing a group of workers, providing feed-back to the division heads or peers, performance management is a process needed for improvement to occur.
Delete
ReplyDeletePerformance management includes tasks which ensure that the organizational goals are consistently being met in an effective and efficient manner. Throughout your work you have clearly reflects the importance of performance management tool and how it should undertaken and finally the impact of weak performance management techniques .Performance management creates the context for and the measures of performance. Performance is defined as the potential for future successful implementation of actions in order to reach the objectives and targets. Performance management precedes performance measurement and gives it meanin(Robert,1995).
Indeed. Performance management creates the context for and the measures of performance. In present organizational context employee plays a vital role and contemporary organizations should consider them as an asset instead of direct cost (Beer et al, 1984).
DeletePerformance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. It is the main vehicle by which managers communicate what is required from employees and give feedback on how well they are achieving job goals (CIPD,2009). It brings together many of the elements that make up the practice of people management, including in particular learning and development.
ReplyDeletePerformance management of an organization is directly connected with performance of employees. Achievement of high level employee’s per- formance is a big need to achieve organizations goals all the time. A high level organization management could not be without high level of em- ployee’s performance management in this age of competition(Muhammad S,2013)
ReplyDeleteMore than just an annual performance review, performance management is the continuous process of setting objectives, assessing progress and providing on-going coaching and feedback to ensure that employees are meeting their objectives and career goals.
ReplyDeleteWhen developing a new performance management process, an organization can strike up a committee made up of employees, managers and board members to increase buy-in, understanding and support for the process.Performance management is a process by which managers and employees work together to plan, monitor and review an employee’s work objectives and overall contribution to the organization.The establishment of an effective performance management system requires time and resources and therefore, the support of the board, the executive director and other senior managers.Issues in the area of performance management and management control systems are typically complex and intertwined, but research tends to be based on simplified and partial settings. Simplification has made the work easier to carry out, but it has come at the price of increased ambiguity and conflicting findings from different studies. To help mitigate these issues, this paper puts forward the performance management systems framework as a research tool for describing the structure and operation of performance management systems (PMSs) in a more holistic manner (Ferreira and Otley,2009).
Yes Ruwanga, As i have explained above performance management is indeed a continuous process. Monitoring and review is indeed an important aspect of PM. The performance improvements of the organization and the individual employees are very critical in gaining a competitive advantage in the market (Samuel, 2013).
DeleteFlexibility is one of the key factors for managing people in an organisation .Performance management to work efficiently, it is critical that everyone agrees to what specifically would be measured, and how it would be measured (David 2001).
ReplyDeleteperformance appraisal consists of all formal procedures used in work organizations to evaluate personalities, contributions and potentials of employees (Gupta 2006).
DeleteAs you are mentioning, implementing the right performance management strategies the employee turnover will be less as the employees see the organization as a ‘Great Place to work’. the organization in to a great place its important to giving staff regular feedback on their performance is the number one driver of satisfactory performance. Regular feedback helps staff understand their progress at meeting expectations, provides recognition for their accomplishments and enhances staff productivity and engagement (University of Pennsylvania, 2017).
ReplyDeleteHi Crystal , if I add about PM , Implementation of a well-designed performance management (PM) system can strengthen an organization in numerous ways. Through the alignment of individual and organizational goals, PM systems advance strategic organizational objectives. High-quality PM systems also improve work contributions of employees by offering increased opportunity and guidance for growth and development (Aguinis & Kraiger, 2009).
ReplyDelete