As described by Fatemeh (2019) The performance management approach utilizes meticulous and systematic evaluations, provides specific performance feedback to improve employee performance, identifies the training requirements needed for employee development and promotion, and facilitates individual and organizational development.
High-performing
organizations require effective performance-management systems to promote and
develop the values, principles and competencies needed to sustain optimal
outcomes (Sahoo C. and Sukanta, 2012, p.03)
Fatemeh (2019) further
mentioned, the disadvantages performance management systems are seen as a cost
source that not only increases productivity but also improves productivity if
it does not improve the performance of the organization and does not improve
the performance of the organization.
Outcomes from Effective
Performance Management
Performance incorporates
the resulting outcomes of the performed actions of employees based on their
expertise and skills. In organizational settings, employees’ performance is the
accumulates result of the skills, efforts and abilities of all the employees
contributed to organizational improved productivity leading towards its goal
achievement (Zuheir, 2018, p.12)
According to Elaine (2009) the Outcomes from Effective Performance Management are as follows.
· Clarifies
performance expectations and standards
· Improves
productivity at all organizational levels
· Motivates
employees to do their best organization’s values, goals, and strategy
· Provides
a basis for making operational human capital decisions
· Ensures
employees have the skills and capabilities to contribute maximally
· Aligns
performance between units and levels with the
· Improves
relationships, understanding, and insight between employees and managers
Advantages of Performance
Management
As mentioned by Veronica and Mike (2006) the advantages of the performance management as follows.
· Focuses
employees’ attention on what’s important to the company.
· Drives
improvements to the business.
· Improves
customer satisfaction.
· Increases
productivity.
· Aligns
operational performance with strategic objectives.
· Increases
employee satisfaction.
· Encourages
people to focus on continuous improvement.
· Improves
the company’s reputation.
Disadvantages of
Performance Management
As mentioned by Piyush (2014) the disadvantages of the performance management as follows.
· If
not done right, they can create a negative experience.
· Performance
appraisals are very time consuming and can be overwhelming to managers with
many employees.
· They are based on human assessment and are
subject to errors and biases.
· Can
be a waste of time if not done appropriately.
· They can create a very stressful environment
for everyone involved.
Reference
list
Fatemeh, A. (2019) Advantages and disadvantages of performance management. Islamic Azad
University Islamshahr Branch, Iran
Sahoo, C. and Sukanta M. (2012) Human Resource Management International Digest Vol 20.
Emerald Group Publishing Limited.
Elaine, D. (2009) A New Approach for Driving Business Results. West Sussex, PO19 8SQ, United
Kingdom.
Zuheir, M. (2018) Journal of Economics, Finance and Accounting Vol 05. Al-Qassim
University
Piyush, R. (2014) Performance Appraisal in HRM. Department
of Applied economics and commerce, Patna University
Veronica, M. and Mike, K. (2006) Performance management. CIMA Technical Information Service
I agree with the above. I would like to add further, According to Chan and Lynn (1991), the organisational performance criteria should include profitability, productivity, marketing effectiveness, customer satisfaction, and employee morale. In this perspective, employee performance is tightly related to organisational performance; effective and efficient performance will positively influence organisational performance. Armstrong (2009) has stated that performance management is a systematic process for improving organisational performance via developing the performance of individuals and teams.
ReplyDeleteHi Nirmika, further to your points Performance management is a way of facilitating communication and understanding between staff and supervisors, leading to a more favorable work environment and greater commitment to service quality. Performance management can be seen as a set of measures and information that is used to increase the level of optimal utilization of facilities and resources to achieve goals in an economically efficient and effective way (Rostam, 2019).
DeleteHi Ganith, In addition to above stated benefits (Sahoo & Sukantha, 2012), describes that performance management provides a clean job description to the employee, selection process will be appropriate, periodic performance appraisal discussion and it helps to create an efficient compensation and recognition system.
ReplyDeleteHi Amila, In the organization, there is a need of open style of communication as well as communication means should be smoother so that employees can be encouraged to discuss their problems and opportunities with their supervisors, as well as performance feedback can be provided where weaknesses are identified and recognition for good performance can be given (Shahjehan, 2010).
DeleteHi ganith, agree with you, adding to your points, The systematic procedure of a performance appraisal help the immediate supervisor to set training, policies and program and helps to analyze the strength and weaknesses of the employees the organization can design the job efficiently to the employees. also It will also be helping in framing future development programs to gain a developed and productive employee where an organization must carry out a fair and good performance appraisal (Creamer and Winston,1999).
ReplyDeleteHi Dineth, Performance management can be defined as a systematic process for improving organizational performance by developing the performance of individuals and teams, also it means of getting better results by understanding and managing performance within an agreed framework of planned goals, standards and competency requirements (Rameshbabu, 2017).
DeleteAgreed with you Ganith. An effective performance management system ensures that individual and team goals are linked with organizational goals, resulting in improved performance at the individual, team, and organizational levels through the successful implementation of human resource management methods (Towler, 2019). According to Pulakos et al. (2015), successful performance management includes the following critical components. Enabling people to grow and develop their abilities, enhancing communication between employees and supervisors, aligning individual work to meet the organization's goals, and enabling individuals and teams to perform to their full potential.
ReplyDeleteHi Janakan, also staffs are the critical factor in performance management system, where well designed model of system will result strong management commitment and better employees’ performance which lead to organization’s success. With to proper use, performance management system will remarkably beneficial to an organization, particularly in the management practices in public organization in the developing countries (Zulystiawati, 2014).
DeleteYes Ganith I agree with you. competent performance management system, according to Gil-Garcia (2007), works toward improving overall organizational performance by managing the performances of teams and individuals in order to ensure the achievement of the overall organizational ambitions and goals. By ensuring that employees understand the value of their contributions to the business's goals and objectives, an effective performance management system can play a critical role in controlling performance in an organization.
ReplyDeleteHi Isuru, In order to create a sustainable high-performance organization (HPO), managers and employees alike must behave in such a way that the objectives and goals of the organization are achieved on a high level. In practice, this implies that the organization’s performance management systems must be designed in such a way that they provide constructive information and feedback so that organization members can behave in a performance-driven manner (Waal, 2015).
DeleteHi Ganith, agreed with your points, adding to that benefit of effective employee performance management Improved some factors as productivity, improved employee morale, retention of top performers, increased profitability, recruitment of talented people all the time and right job for right person(Mustafa,2013).
ReplyDeleteThank You Lakshan, further, performance management systems have various benefits for organizations, including increased organizational performance and effectiveness, organizations to put successful performance management systems in place, organizations must understand which system characteristics are most influential in producing positive organizational outcomes (Ricci, 2016).
DeleteThis comment has been removed by the author.
ReplyDeleteAgreed with your blog Ganith. I would like to add more points. More benefits and impediments to be considered when designing an accurate worker's performance assessment. Lowering impediments direct to decreasing the risk of employee disappointment. Strong and successful employee performance management will lead a company to achieve its goals empowering employees (Buchner, 2007).
ReplyDeleteHi Eranda, further, employee engagement, a byproduct of leadership, is improved when the leader has a direct relationship with employees (Lowe, 2012). Ensuring work engagement and empowerment plays a significant role in employee involvement, also Effective leadership provides vision and direction for employee development (Souba, 2011). The ability for leadership to effectively communicate is a basis for employee engagement.
DeleteHi Ganith. Agreed with your comment. The selection of employees for promotion, employee transfers or other actions should be more consistent. The right person should be matched with the right job more often (Me Aadmin, 2021).
ReplyDeleteDear Upeksha, adding some points, Appraisal is an important instrument in the manpower management, if it is performed correctly and logically, it can conduct the organizations to their goal and the personnel will achieve their interests. Since the job promotion is one of the appraisals uses, the managers should take this factor in consideration (Najafi, 2010).
DeleteHi Ganith. Well explained. Armstrong & Taylor (2020) mentioned that performance management at organizational, team and individual level defines what high performance is and how managers and their teams should achieve it. Jones et al. (1995) states that effective performance management ensures that individual goals are aligned with organizational goals, so that key performance indicators for employees are linked to those of the organization, and the contribution people can make to organizational performance is therefore defined.
ReplyDeleteHi Gihan, organizational goals need to be translated and cascaded into more refined goals and expectations at the unit, team and individual levels. This typically requires a series of meetings where, for example, the highest-level executives first develop division goals that align with the organizational goals (Pulakos, 2004)
DeleteVery informative blog. Despite many benefits, Disadvantages performance management systems are seen as a cost source that not only increases productivity but also improves productivity if it does not improve the organisation's performance and does not improve the performance of the organization. It has also caused some damage (Rostam,2019)
ReplyDeleteHi Surangi, also Performance management can provide many benefits for employees, supervisors, and organizations. The performance management approach utilizes meticulous and systematic evaluations, provides specific performance feedback to improve employee performance, identifies the training requirements needed for employee development and promotion, and facilitates individual and organizational development (Rostam, 2019).
DeleteAgreed with you, Most important purpose of performance management is to connect employee behavior and result with the organization strategic goals,(Herman, A.).
ReplyDeleteHi,A well-designed performance management process stimulates managers to develop high-quality strategic plans, set ambitious targets, and track performance closely-all activities which help to achieve strategic objectives and consequently sustained value creation (Radu, 2009)
DeleteHi Ganith. Would like to add the challenges of the performance management as such, wrong design, lack of leadership commitment, incompetence, favoritism can be define (de Waal and Kourtit, 2013). However this will provide false positives, not only that but also this can effect on rater bias, sampling error, primary and regency error (Otley, 1999).
ReplyDeleteHi Deshani, further, Strictness or leniency, central tendency, halo effect, and recency of events all result in inaccurate performance appraisals of employees. The absolute standards and results-oriented approaches to performance appraisal, particularly BARS and goal setting, attempt to minimize such rating errors (Lunenburg, 2012)
DeleteHi Ganith, agreed with you there are benefits on performance management.Effective performance management ensures that individual goals are aligned with organizational goals , so that key performance indicators for employees are linked to those of the organization(Armstrong,2014)
ReplyDeleteAgreed Manoj, also feedback process must be a critical part of performance management system that influences individual and organizational goals. It is thus important to establish and implement a feedback process that provides clear, specific, and descriptive feedback, gives feedback in a non-threatening and supportive manner, involves employees in discussions about their career development opportunities and decisions, and offers reinforcement for good performance (Bae, 2006)
Delete