Performance Management


“Performance management is systemic and continuous process for improving individual, team and organizational performance” (Armstrong, 2014).
There are three components of performance management;

1.     Planning for performance

2.     Supporting performance

3.     Assessing performance
According to Armstrong, 2017 performance is behavior that accomplishes results. It is outcome of three determinants; Facts and things, how to thing s are done, and motivation to do them. Planning performance is linked with job and work designing. 


By a good performance management systems employees are motivated and their self-esteem is increased. Employees can identify their poor performance and be able to more competent on their work. This will result employee satisfaction and ultimately be helpful for achieve organisation goals in accordance with its strategic objectives. Supervisors are able to understanding and communicate subordinates performance and it allows to them to make remedial actions beforehand (Henderson,2011). Finally, this kind of platform leads towards the organizational goals.

It is required to identify knowledge, skills and abilities to perform job competently in planning performance. Then employee’s performance should continuously monitored and giving feedback is done mainly in informal way. If it is required initial objectives, standards and key accountabilities can be changed. Personal development plans of employees can be supported in order to assist organizational objectives.

A performance management system includes a number of elements such as training of workers, evaluation and monitoring of worker's performance, setting of goals of individual workers, taking appropriate follow-up activities after performance evaluation of workers (Lawler, 2003). Performance appraisal is a way of assessing individual performance. However it would be beneficial for employee needs, manager needs and organizational needs.

Employee needs
Manager needs
Organizational needs
Monetary Compensation
Communication of Expectations
Employee Productivity
Job Security
Motivation of Employees
Profitability or Financial Viability
Feedback for Performance Improvement
Accountability
Quality of Products
New Skills and Skill Enhancement
Meeting Own Performance Objectives
Service to Customers
Career Development and Planning
Problem-Solving and Decision-Making
Competitive Advantage
Identification and Bonding with Team
Organization Development
Growth of the Organization
Self-Actualization Goals
Execution of Organizational Policies
Enhancement of Corporate Reputation

Implementation of Strategic and Operational Plans:
Process Integration

Documenting Successes and Legal Protection
Human Resource Planning


Management Succession Planning
Table 01: Needs of various parties fulfill by performance appraisals,  adapted from Waring, C. (1996)
Personal development plan is a sequence of activities that improve performance of workers. It provide a room for development in all levels of organisation and highlights employee’s strengths and areas need to improve. After that it provide an action plan to improve an areas of weakness and further develop areas of strengths (Aguinis, 2013).
Therefore objectives of personal development plan are; improve and sustain performance in current job, prepare employees for advancement, and enrich the employee’s work experience. On-the-job training, in house or outside courses, self-guided reading, mentoring, attending a conference, getting a degree, job rotation, temporary assignments, and membership or leadership role in professional or trade organizations (Aguinis, 2013).
7 Ways to Improve Employee Development Programs , https://hbr.org/2015/07/7-ways-to-improve-employee-development-programs.
When considering all facts, a good performance management plan can attract and lead  individual employee in order to achieve organizational objectives while they are satisfied.  Employees may like to be treated them and value then as individual not as a group. Therefore nonunionized organisations are able to capture this advantage.

Reference
Armstrong, M. and Tylor, S. (2014) Armstrong’s Handbook of Human resource management practice.  14th edn. Kogan page limited: New Delhi.
Armstrong, M.(2017) Armstrong’s Handbook of Human resource management practice.  14th edn. Kogan page limited: New Delhi.
Henderson,L (2011) Human Resource Management for MBA Students 2nd Edition. United Kingdom:CIPD
Lawler, E.E. (2003) Reward practices and performance management system effectiveness. Organizational Dynamics, 32(4) pp.396-404.
Waring, C. (1996) Union Workers Embrace a New Concept: Performance Appraisals in a Union Shop — Why Not?. Association for Manufacturing Excellence. Illinois :USA.  Available at : http://www.ame.org/sites/default/files/documents/96Q4A2.pdf (Accessed : 3rd  March 2018)

Comments

  1. Neel BogahawaththaJuly 15, 2018 at 9:40 AM

    Dear Shanali
    In future what would be the most important, is it qualifications or is it performance?
    How ever according to my knowledge by taking certificate knowledge can be taken which will help for the performance.

    ReplyDelete
    Replies
    1. OCUSL.modelJuly 15, 2018 at 8:27 PM

      You've point out a good idea t be discussed. Actually performance can not be narrowed into a piece of paper. Certificates are only one evidence and skill is a necessary factor in order to evaluate performance. Thank you for your ideas.

      Delete
  2. Heshanga AmarasiriJuly 15, 2018 at 12:20 PM

    Hi Shanali,
    valuable article describing performance management. According to managementstudyguide.com, it says Performance Management aims to create a high-performance culture for individuals and teams to share the responsibility of continually improving business processes while raising the skill barrier by updating their own capabilities in a leadership setting. The goal is to allow clarity so that people can do the right things at the right time. It can be said that the primary goal of a performance management system is to maximize employee performance for the employee and the organization by setting expectations in terms of roles, responsibilities and responsibilities as well as skills and expectations required behavior.

    ReplyDelete
    Replies
    1. OCUSL.modelJuly 15, 2018 at 11:57 PM

      It's true. Managing performance in right way leads employee satisfaction and ultimate impact is achieving personal and organisational objectives as well as minimising conflicts. Therefore it will help nonunionized culture.

      Delete

Post a Comment

Popular posts from this blog

Employee relations

Image
Employee relations is forming a mutual bond between employees and employers by fulfilling needs and expectations of both parties through communicating and understanding for the betterment of the organisation. Employees expect their personal needs like better pay, sufficient leave, safe working environment, promotions, job security, work life balance etc., social and cultural needs as well as acceptance of their ideas and suggestions related to work. There are several approaches to employee relations policy and level of employees’ involvement in decision making is vary as follows. Employee relations focus on individually or collectively. Today it is more focused on employee relations individually. However collective employee relations based on adding value to the organization being both parties are motivated. These relationships are based on success of the organization, employee’s work satisfaction, building employee trust, feeling on fairness and greater commitment, he...
Read more

Path ahead to Human Resource Management via globalisation and ethics

Image
Organizations that seek better competitive advantage today, pay more attention to its people and treat them as resource. Human Resource management is a kind of philosophy which is supported by theories, focusing behavior of people and organization. Institutional theory, Human capital theory, Motivation, The resource based view, contingency theory etc. (Amstronge, 2006) Golobalisation and ethics play key role in path ahead of human resource management. Welfare Movement In early years, in the industrial revolution of 18 th century, organizations consider their workforce as same as the other factors of production process and viewed as a cost to the business. Therefore people in the organizations had to work hard with prolonged working hours. At that time some large manufacturing companies like Cadbury, Rowntree, and Liver which valued their workers paid more concern about welfare of their employees therefore in that era personnel had a welfare role by provi...
Read more

Psychological implication in Work Design & Job Design

Image
“Work design deals with the ways in which things are done in the work system of a business by teams and individuals. Job design is about establishing what people in individual jobs or roles are there to do” (Armstrong and Tylor, 2014).These two processed can be done simultaneously. Workforce requirement in large scale manufacturing industry is declining and work force requirement in service sector is increasing. Professional services, new product development, customize production are the areas that need employee emotional satisfaction in order to get the work done. Therefore work designing and job designing in an organisation should be done considering psychological impact, cost of production or service and quality of the product or service. Cost and quality of production or service Early years work and job designing had been done in cost and quality perspective. After the industrial revolution production was done in large volumes and labor force requirement increased. There...
Read more