Organizations can achieve their goals and objectives only through the combined efforts of their employees and it is the task of management to get work done, employee performance management is fundamental to the effective operation of organizations further Performance management is an integral part of the employees and organizations relationship. It is essentially an integrating activity that permeates every fact of the operations of an organization (Laurir, 2007, p.410 cited in Muhammad, 2013, p.01)
Key Components of Performance
Management
Key Components of
performance management are illustrated in figure 1.0.
Figure
1.0: Key Components of performance management.
Source:
(Ferris State University Human Resources Department)
Planning
The performance planning stage has the
goal for employees to have a thorough knowledge of the performance management
system, at the beginning of each performance cycle, the supervisor and the
employee meet to discuss and agree on, what needs to be done and how it should
be done (James, 2009, p.14). The plan also deals with how their managers will
provide the support and guidance they
need. It is forward looking, although an analysis of performance in the
immediate past may provide guidance on areas for improvement or development
(Michael, 2006, p.65)
Monitoring
Performance monitoring
involves periodically measuring a project’s progress toward explicit short- and
long-term objectives and giving feedback on the results to decisionmakers who
can use the information in various ways to improve performance (Operations
policy department, World Bank, 1996,3). Regular performance monitoring requires
conducting progress reviews with employees where their performance is compared
against elements and standards. Ongoing monitoring provides the opportunity to
check how well employees are meeting predetermined standards and to adjust unattainable
ones (Mohamed, 2008, p.08).
Developing
Training and career
development are very vital in any company or organization that aims at
progressing. This includes decision making, thinking creatively and managing
people (Vinesh, 2014, p.215). While identifying developmental needs can be
easy with the right performance management tools, knowing exactly what to do to
address these needs effectively is not always so obvious (Elaine, 2004, p.21)
Evaluating
Performance appraisal is
the ongoing process of evaluating the employee performance. Performance
appraisals are reviews of employee performance over time (Muhammad, 2013, p.09) It is essential to find out how well it is operating so that communication,
training, coaching and guidance can be provided where necessary, but several
respondents warned against tinkering too much with the basic processes on the
grounds that this only serves to confuse people (Armstrong, 2006, p.46).
Rewarding
I am working for a
leading IT company in Sri Lanka and recently the company had a massive issue
with the commissioning of video door phone system. The experts from the
supplier were supposed to come to the site but due to the Covid -19 pandemic,
they were unable to fly to Sri Lanka. So, one of the senior engineers did
testing, research and development about the commissioning of the new device.
Finally, the senior engineer was able to bring the entire system into the
functional stage and my company has rewarded him as the employee of the month
in monthly town hall meeting.
Figure 2.0 describes how
Selco credit union archives their organizational goals by using employee performance
management.
Figure
2.0: Using EPM at Selco credit union.
Source:
(Aguinis, 2019, p.32)
Reference List
Aguinis, H. (2019)
Performance Management for Dummies- John Wiley and sons Inc. Hoboken, New
Jersey.
Designing Effective
Reward and Recognition Programs, (2014) Rev 04. Organizational and Professional
Development Division of Human Resources.
Elaine, D. (2004) Performance
Management - A roadmap for developing, implementing and evaluating performance
management systems. USA: SHRM Foundation.
International
Journal of Management and International Business Studies, (2014) Vol 04.
Research India Publications.
James, W. 2009 Performance
Management, John Wiley & Sons, Inc
Michael, A. (2006)
Performance Management - Key Strategies and Practical Guidelines (3rd
ed) London N1 9JN.
Mohamed, S. (2008)
Employee Performance Management Process: A case study of Postal Corporation of
kenya.
Muhammad, S. (2013) Key
factors in performance management, HAMK University of applied science, Forssa.
Operations policy
department, World Bank, (1996) Performance Monitoring Indicators. Washington,
D.C. Available from https://www.measureevaluation.org/resources/training/capacity-building-resources/basic-me-concepts-portuguese/indicators.pdf
[Accessed 8 November 2021].
Performance Management
Guidebook for Supervisors, Ferris State University Human Resources Department.
Selman, T. (2016) Talent
Management: A Review of Theoretical Perspectives and a Guideline for
Practitioners, Department of Management, Fatih University, Turkey.
Vinesh, M. (2014) Vol 04
Role of Training & Development in an Organizational Development. CCS University,
Meerut
I agree with all the above points as they are all valid. Effective performance management cycles align the efforts of managers or supervisors and workers with organisational goals (Russell and Russell, 2009). Many employers or managers now view performance management as an ongoing cycle of activities that links the organisation’s culture, business goals and strategies to individual performance and contributions (John Mattone,2013).
ReplyDeleteThank you Nirmika, Further, existence of an effective performance management system is often the major differentiator between organizations that produce adequate results and those that excel. Without a focus on performance management at all levels of an organization, it is difficult to see how an organization can find a competitive advantage that is based on its talent (WOYESSA, 2015)
Deletehi ganith, agree with you, adding to your points, Leadership style also will influence the decision making process in the appraisal activity. The appraisal turns out to be more judgmental in nature when an autocratic leader uses his position to control the overall process. democratic leaders will initiate a developmental approach in the appraisal activity. They always encourage involvement and good relationship practices in all the appraisal process. the system practice used is ineffective and unsuccessful. Therefore it is needed to identify best fit for the company (Ahmad and Bujang, 2013).
ReplyDeleteDear Dineth, adding more points, performance appraisal as a process, typically performed/delivered by a supervisor to a subordinate, designed to help employees understand their roles, objectives, expectations, and performance success. Further he explains performance management is the process of creating a work environment in which people can perform to the best of their abilities (Snell and Bohlander, 2007)
DeleteAgreed with you Ganith. Performance management systems are defined by the interconnected and independent performance management elements stated above, which impact one another to improve employee and organizational performance and, as a result, improve organizational effectiveness. Several performance management aspects work together in a performance management system to achieve the common aim of improving organizational performance and effectiveness (Ricci, 2016).
ReplyDeleteHi Janakan, further the effectiveness of a performance appraisal system will depend on several factors, including how well documented and communicated the process is, training for managers and supervisors, the evaluation and analysis of results and ongoing improvement efforts (Matunge, 2013)
DeleteYes, Ganith, this is quite helpful. Effective performance management systems, according to Garvey (2017), typically involve three major elements: goal setting, performance review, and a performance improvement process. Employers can implement the performance management process in a variety of ways, but an effective system will include the three core parts in some form.
ReplyDeleteHi Isuru, aslo the results or goals to be achieved by employees should be tied to the organization’s strategy and goals. The employee’s development needs should also be considered in the goal setting process. Development goals can be targeted either to improving current job performance or preparing for career advancement (Pulakos, 2004)
DeleteEvery company uses performance management in some form or another. The problem is most employers address employee performance issues as they arise instead of creating an environment that motivates their teams to do outstanding work. They forget that the very purpose of employee performance monitoring is to prevent serious problems and promote positive workforce behaviors that drive productivity and success (Wermers and Fischer, 2012).
ReplyDeleteHi Eranda, also another highly effective way to increase motivation for work is to provide financial incentives for exceeding past performance. Some question whether offering people pay or gifts tied to exceptional performance actually motivates people (Clark, 2003).
DeleteAgreed with your comment Ganith. Organizations cannot let the difficulty of the task keep them from creating a successful performance management process. Not taking the time to define the process isn't fair to the employee, manager or the technology (Sharlyn Lauby,2017).
ReplyDeleteThank you Upeksha, further, As suggested by enterprise engineering theory and methods, a structured approach for problem identification and rendition of a theoretical plan into the exhaustive portrayal of a result and implementation is required for a successful PMS (Sousa, et al. 2005)
DeleteHi Ganith. Adding more to your points, Cravens et al. (2010) mentions that Performance Management is an important predictor of firm performance if it is effectively linked to strategic outcomes. The key criteria which used for determining the effectiveness of performance management are the achievement of financial targets, development of skills, development of competence, improved customer care and improved quality (Brown et al., 2018).
ReplyDeleteHi Gihan, adding some points, performance management as one of the most important processes that de fine the connection between human resource management and organizational performance. Therefore, this process becomes the main tool for running a business by significantly influencing the individual behavior and directing it towards achievement of the strategic organizational objectives (Stanciu, 2015)
DeleteCadbury introduces ‘720-degree’ feedback method. This method apply the 360 appraisal twice in which the employee is assessed from every aspect, the employee and the manager sit together following the appraisal and the manager provide timely feedback, tips and encourage the employee to achieve set targets. This appraisal is effective mainly for higher level staffs (George, 2016).
ReplyDeleteGeorge, J., 2016, March. 720 Degree performance appraisals: An effective tool to efficiency of modern employees. In 2016 International Conference on Electrical, Electronics, and Optimization Techniques (ICEEOT) (pp. 4816-4823). IEEE.Sing, R. and Vadivelu, S., 2018.
Hi Ravi, further,360-degree performance appraisal can be a far framed performance appraisal system observe in several organizations, recently in the modern management, 720-degree performance appraisal system is also gaining popularity. In 720-degree system, we provide a feedback after the original 360 degree appraisal (Patil & Dalvi, 2019)
DeleteHi Ganith, further to this, the performance elements can be categorized as critical elements, non critical elements and additional performance elements and would like to add the HR practices on employee performance as job autonomy, Organizational support, Training, Distributive justice and Procedural Justice (Sheri-lynne, Parbudyal 2007).
ReplyDeleteHi Deshani, Also performance management system is comprised of three key elements: the setting, evaluation, and feedback of performance. For the results of performance management to be maximized in the organizations, those key elements must have much attention paid to them by managers and HRD practitioners who would be eager to attain organizational goals (Bae, 2006).
DeleteHi Ganith , Agreed with your points further Shields(2007:24) described performance management system has fourfold purpose such as 1.Strategic communication 2. Relationship building 3.Employee development 4.Employee evaluation.
ReplyDeleteHi Manoj, further (Zavadsky, 2014) notes that “strategic communications are led and coordinated by top-level leadership who help devise the major elements that are conveyed within the messages and tailored for target audiences.
Delete