Performance management has its focus on achieving the best results within the organization, department, team, or individual through understanding and performance management, orienting our efforts towards efficiency within a framework of planned goals, standards, and skills required (Fadil and Gelina, 2012, p.435). When employees fail in their jobs, part of the organization also fails (Cappelli, 2008, p.196 cited in Armstrong 2014, p.334).
Study conducted for
Mercer (2019), a global
diversified consulting company, revealed that the 1,200 workers surveyed stated
that they could improve their productivity by an average of 26% if they were
not held back by a lack of “direction, support, training, and equipment.
“Successfully implementing a performance management system can give workers the
direction and support that they need to improve their productivity (Aguinis, 2013, p.23).
The performance management
system is the meticulous approach to compute the productivity and achievement
of employees. It works as a process, where an organization regulates its target,
design, goals, vision, mission, and objectives with accessible resources. (Farhat, 2020, p.922).
In the early 1990s performance appraisals have started to practice in several organizations and gradually it was developed to an employee performance management in 1980s. During 1980s, several new metrics were developed, including employee core competencies communication, teamwork, initiative, self-awareness and emotional intelligence to assess employee performance (Mruthyanjaya, Prasad, Rajesh and Budumuru, 2020, p.936).
Overview of the
Performance Management Process
Effective
performance management systems have a well-articulated process for
accomplishing evaluation activities, with defined roles and timelines for both
managers and employee (Elaine, 2004 p.03), refer the below example in figure
1.0 (Aguinis, 2019, p.25) for assessing performance by Google Inc.
Figure 1.0: Performance Assessment at IBM
Especially in organizations that use performance management as a basis for pay and other HR decisions, it is important to ensure that all employees are treated in a fair and equitable manner, the performance appraisal process is illustrated in figure 1.1 (Elaine, 2004, p.03).
Figure
1.1: Typical Performance Management Process
Source:
(Elaine, 2004, p.04)
According to Aguinis (2013), Performance management systems usually include measures of both behaviors (what an employee does) and results (the outcomes of an employee’s behavior). The definition of performance does not include the results of an employee’s behaviors but only the behaviors themselves. Performance is about behavior or what employees do, not about what employees produce or the outcomes of their work.
Reference List
Aguinis, H. (2013)
Performance Management 3rd ed - New Jersey: Pearson.
Aguinis, H. (2019)
Performance Management for Dummies- John Wiley and sons Inc. Hoboken, New
Jersey.
Armstrong, M. (2014)
Handbook of Human Resource Management Practice (13th ed) London EC1V
3RS.
Elaine, D. (2004)
Performance Management - A roadmap for developing, implementing and evaluating
performance management systems. USA: SHRM Foundation.
Fadil, O. and Gelina, M.
(2012) Procedia - Social and Behavioral Sciences 41. Finance Department,
Faculty of Business Administration, “Kristal” University, Tirana, Albania.
Farhat, M. (2020) Current
practices and challenges of performance management system in higher education
institutions Vol 07 - Advance Scientific Research.
Mruthyanjaya, R., Prasad,
K., Rajesh, W. and Budumuru, M. (2020) Evaluation of performance management
systems and the impact on organization’s approach (Volume 11, Issue 5) IAEME
Publication.
Well-written article Ganith, According to Baird (1986), performance is a directed action (in the sense that a verb should express it); some consider that the performance would be perceived as an event. However, most times, the word “performance” refers either to action (obtaining performance) or event (results), or in many cases, it refers to both cases. The Employee Performance appraisal is critical when maintaining employees aligned with individual goals and the company’s overall goals (Harvard Business School Press, 2009). According to Coleman (2009), Implementing a Performance management system will not resolve or directly enhance any employee-related performance issues. The organisation must invest in resources to ensure that managers and other employees have the system responsible for the PMS.
ReplyDeleteThank You for your comment Nirmika, also when a performance management system is used for development, the appraisal information is used to guide the training, job experiences, mentoring and other developmental activities that employees will engage in to develop their capabilities, although it is theoretically possible to have a performance management system that serves both decision-making and development purposes well, this can be difficult to achieve in practice (Elaine D. 2004)
DeleteHi ganith, agree with you, adding to your points, the organizational performance criteria include profitability, productivity, marketing effectiveness, customer satisfaction, but also employee morale. In this perspective, employee performance is tightly related to organizational performance, effective and efficient employee performance will positively influence organizational performance. (Chan and Lynn 1991).
ReplyDeleteThank you for your valuable comment Dineth, further to amplify employee’s performance on being positive effect on organizational hierarchy, employee morale acts as a psychological factor which results in positive behavior of the employees which totally results in overall effective performance, to drive their organizations to Next Level (Arvind M., Lakshmi M and Keerthi D 2019)
DeleteAgreed with you Ganith. Performance management is a systematic approach to enhancing organizational performance through enhancing the performance of individuals and teams. It produces better results by comprehending and controlling performance within a set of agreed-upon objectives, standards, and competency requirements (Tahiri et al, 2020).
ReplyDeleteThank you Janakan for adding valuable comment, further each concept of performance management has its importance as a system for managing organizational performance, managing employee performance, and for integrating the management of organizational and employee performance. Performance management involves many stages of scrutiny, and is clearly linked to the evaluation of Human Resources as well as performance of organizations (Pankaj K. 2015)
DeleteHi Ganith, agreed and adding to your points Performance management also as a rewarding process can reward people by recognition through feedback, the provision of opportunities to achieve, the scope to develop skills, and guidance on career paths. All these are non-financial rewards that can encourage job and organizational engagement and make a longer-lasting and more powerful impact than financial rewards such as performance-related pay (Armstrong & Taylor ,2014).
ReplyDeleteThank you lakshan, employees will only perform efficiently if their managers are motivating them effectively. Manager’s responsibility thus includes combining good motivational practices with meaningful work, the setting of performance goals, and use of an effective reward system…to establish the kind of atmosphere and culture that is needed to excel’ (Cynthia E. and Frank K. 2011)
DeleteHi Ganith. Nicely written article. According to Gesme (2011) the performance appraisal is the mediator between what the employer wants to be done and motivating the employees to do it. Also, Randell (1994) argues that Performance Appraisal is the systematic evaluation of individual performance linked to workplace behavior.
ReplyDeleteThank you Gihan, further employee performance management focuses employees on their goals (Aguinis, 2011) context of many jobs demands, by providing clear guidance, support and feedback in a employee can channel their efforts. Employees are thus motivated to persist in innovative behavior that includes not only idea generate implementation (Parker, 2010)
DeletePerformance management comprises several levels of analysis and is evidently linked to the fields of strategic personnel management (HRM) and performance assessment with the principle of maintaining the sustainability growth of corporate performance through employee performance management Performance management addresses the challenge organizations face in defining, measuring, and stimulating employee performance with the final goal of enhancing business performance (Hartog 2004).
ReplyDeleteDen Hartog, D.N., Boselie, P. and Paauwe, J., 2004. Performance management: A model and research agenda. Applied psychology, 53(4), pp.556-569.
Thank you Ravi, further more Human resource management researchers and practitioners have increasingly stressed the utility of HRM in meeting the strategic goals of the organization. Organizations that invest in "best" HRM practices often increase firm productivity and profitability (Hafsa S., Namrah A. and Shahzad G. 2015)
DeleteHi Ganith, Well explained, Further this can be simply define as employee performance alignment of the organizational goals with the employees skills, requirements and results (Armstrong and Baron, 2005). However this can be managed through setting clear expectations and clearly communicating them to the employees will help to manage the performance (Artawijaya and Darma, 2015).
ReplyDeleteHi,Thank you for your reply, further When a performance management system is used for decision-making, the appraisal information is used as a basis for pay increases, promotions, transfers, assignments, reductions in force or other administrative HR actions also, when a performance management system is used for development, the appraisal information is used to guide the training, job experiences, mentoring and other developmental activities that employees will engage in to develop their capabilities (Elaine, 2004)
DeleteHi Ganith Agreed with your comments Armstrong further explained Performance management is a process of getting better results by providing the methods for individuals to perform well within an agreed framework of planned goals , standards and competency requirements(Armstrong,2014)
ReplyDeleteHi Manoj, further Organizational performance is directly associated with performances at the individual level, and therefore must be managed effectively, also it is necessary to examine how organizations manage individual performances and to establish a ‘best practice’ approach to this issue that can be adopted by the business sector (Boyle, 2013)
Delete