Performance
management Introduction
A performance management system is a tool for monitoring employees' effectiveness regularly and quantitatively (Varma, 2010). It enables the firm to guarantee that workers and divisions from all levels of the company are trying to accomplish the company's strategic objectives (Sahu, 2007).
This
method also identifies capability, ability, and gaps in knowledge, which may be
addressed by offering advice, education, counselling, and mentorship to people
or teams at multiple levels and classifications (Al-Baidhani, 2013). It improves
performance by reducing disagreements and complaints among groups or workers
via a roper channel and procedure. Every individual understands what is
expected of them and works hard to satisfy those objectives (Varma, 2010).
Performance
Management system at Zappos
Zappos
is an online clothing retail-based in America. Zappos views its basic principles
as a manner of living, which has resulted in the development of a strong
tradition. Its main goal is to wow the clients. The firm appreciates the
employees' founding principles through productivity management methods.
Therefore, staff are informed of what the management expects of them, what they
have been expected to perform, and how to respond in various situations in
culturally varying cases (Wanderley and Soeiro, 2016).
The
critical component of the Zappos performance management system is that it prioritizes
valuing cultural values (VIOLET and JOSIAH, 2011). The most intriguing feature
is that such fundamental principles were developed with employee involvement.
Zappos' HR and recruiter select candidates who are an excellent fit for the organization’s
growth. Why? So, they want every worker to be a brand ambassador and work
together to satisfy consumers. They recruit people who share Zappos' philosophy
(Wanderley and Soeiro, 2016). As a result, they can preserve a close-knit
family-like culture that promotes fun, honesty, devotion, excellence, work and
effort, trust, a development attitude, and a dash of insanity.
The
cultural value is highly influenced in the performance management system (Sahu,
2007). Employees are rated as culturally fit for the organization and how they affect
the employee perception. Individuals within the Zappos will no longer be
evaluated based on their ability to do activities such as meeting deadlines or
arriving on time. Instead, workers' performance would be measured by how
effectively they embodied Zappos' ten core principles, such as providing
"Wow" service or demonstrating modesty (Linder and Torp, 2017).
Limitation in Zappos performance management system
- The only concern on the employee match for the organizational culture.
- The employee contribution for achieving the business goals is ignored in performance appraisal measured.
- Similarity errors
Improvement
suggestion of Zappos Performance appraisal
Zappos
is not a typical company. Before starting their actual employment, all new
Zappos workers get intense training on working on getting them matched with
their unique culture (Linder and Torp, 2017). With the design of a highly
unique and original training approach, Zappos received international
prominence. Zappos's first step can be defined as expanding their performance
appraisal framework with a variety of categories rather than limiting to the
employee match for the organizational culture.
The
second is the implementation of various management tools such as a balanced
scorecard will open the opportunity for more application of the different
method of performance application methods with a broader scope.
In conclusion, this article analyses the use of the performance application method and the existing limitation of the Zappos performance application method. It identifies the strategies to overcome existing limitations.
Reference
Al-Baidhani, A.M. (2013). The Use of Balanced Scorecard as a Tool for Performance Management and Planning. SSRN Electronic Journal.
Linder, S. and
Torp, S.S. (2017). Middle Managers’ Engagement in Autonomous Strategic Actions:
Does It Really Matter How Top Managers Use Budgets? IEEE Transactions on
Engineering Management, 64(4), pp.450–463.
Sahu, R.K. (2007).
Performance management system. New Delhi: Excel Books.
Varma, A. (2010). Performance
management systems: a global perspective. London: Routledge.
Violet J. and Josiah
H. (2011). Performance Management Using Balanced Scorecard. Indian Journal of
Applied Research, 4(4), pp.1–3.
Wanderley, C. and Soeiro, T. (2016). Institutional contradiction and the balanced scorecard: a case study of unsuccessful change. Revista universe contabil , pp 45-65
Biron, et al (2019) proposes four performance management system facilitators, (1) taking a broad view of performance management that includes both strategic and tactical elements; (2) involving senior managers in the process; (3) clearly communicating performance expectations and (4) formally training performance appraisers. The last point is crucial to ensure that all appraisers understand the process clearly. In my organization there is a training toolkit for managers on the method of performance appraisal in the organization on the intranet.
ReplyDeleteBiron, M., Farndale, E. and Paauwe, J., 2011. Performance management effectiveness: lessons from world-leading firms. The International Journal of Human Resource Management, 22(06), pp.1294-1311.
Hi Ravi, Further, The purpose of the Toolkit is to help you understand and be successful in carrying out the new Performance Management process. It explains the College’s Performance Management process and its key steps, components, competencies, and objectives (Nadan, 2004)
DeleteAgreed with you, Performance management is the continues process of identify, measuring, and developing, the performance of individuals and teams, and aligning their performance with the strategic goals of the organization,(Herman, A.).
ReplyDeleteAlso, The balanced scorecard is a strategic planning and management system used to align business activities to the organization’s vision and strategy, improve internal and external communications, as well as monitor organizational performance against strategic goals (Gunnigle, 2008)
DeleteHi Ganith, Performance management can be defined as a systematic process to improve organizational performance by developing the performance of individuals and teams working with an organization. It is a means of getting better results from the organization, teams and individuals by understanding and managing their performance within a framework of planned goals, standards and competence requirements. In other words, performance management is the process of managing an organization’s management strategy. This is how plans are converted into desired outcomes in organizations. (Allen 2007)
ReplyDeleteHi Purnima, adding further details, By understanding what type of output is expected of them and what fundamental roles do they play in achieving the vision, mission and strategy, the employees’ contribution can be maximized (Jain, 2014).
Delete