Performance Management

 


Performance management is a continual process for raising performance through the establishment of individual and group objectives that are in line with the strategic objectives of the company. The development of employees' knowledge, skills, and capacities is also a part of this process, as is performance identification and planning to establish and attain goals (Pessl, 2016). Performance evaluation, training, and procedures like planning, sales, and service have been around for many years, and employees have been putting in long, arduous hours of labor for millennia (Mukherjee, 2012). But far too frequently, these tasks were performed in a random manner without following a set procedure. Activities under performance management include checks on how effectively and efficiently organizational goals and objectives are being achieved, it may concentrate on an organization's, departments, teams, or individual's performance (Mukherjee, 2012)

Organizations frequently utilize performance management to evaluate and coordinate the work of their personnel. Performance management as it is used now, refers to a group of systems that are more or less integrated for managing and accessing employees' performance (Tweedie, et al., 2019). Objective setting, performance evaluation, compensation and incentive methods, and career planning are all aspects of performance management that are intended to make sure that individuals are collaborating as effectively as possible to get the outcomes that businesses want (Tweedie, et al., 2019).

Figure 1 shows the basic components and phases of this cycle, It is possible for the cycle to occur annually, biannually, quarterly, or even monthly. All parties involved in this process, including line supervisors, coworkers, and employees themselves, are required to act professionally and accept responsibility for their contributions and assessments, the degree of senior management support, the system's resource allocation, and the clarity with which the system's objective is conveyed to all parties will all play a significant role in whether or not this really occurs (Tweedie, et al., 2019).


Figure 1: The Performance Management cycle 

Source: (Tweedie, et al., 2019)


It's crucial to go over performance expectations with employees at the start of the performance management cycle, including both the actions they should take and the outcomes they should attain in the forthcoming rating cycle. Behaviors are crucial because they show how an employee approaches a task, helps the team, communicates, mentors, and interacts with others (Pulakos, 2004).


According to Elaine D. Pulakos (2004) Possible Outcomes from Effective Performance Management as follows, 

·        Clarifying job responsibilities and expectations.

·        Enhancing individual and group productivity.

·        Developing employee capabilities to their fullest extent through effective feedback and   coaching.

·        Driving behavior to align with the organization’s core values, goals and strategy.

·        Providing a basis for making operational human capital decisions (e.g., pay).

·        Improving communication between employees and managers


References

Mukherjee, J., 2012. Designing Human Resource Management System. 1st ed. Delhi: SAGE Publications India Pvt Ltd.

Pessl, S., 2016. The Performance Management, Sweden: Linnaeus University.

Pulakos, E. D., 2004. Performance Management. 1st ed. Alexandria: SHRM Foundation.

Tweedie, D., Rhodes, C. & Wild, D., 2019. How Does Performance Management Affect Workers? Beyond Human Resource Management and Its Critique, Sydney: International Journal of Management Reviews.

 







Comments

  1. Good post and further, Perform management is an important part of HRM and it considers a main role to be performed by organisation heads, Leaders and managers. Perform management is a mix of strategy, Human resources, Planning, Managing and legal. Successful performance management is to find the suitable elements and put into best practice. Having a strong performance management will create environment for employee to perform well and it will lead the business to grow with a brand (Krishnan, 2013).

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    1. Thanks for your comment Sarasi Botejue, The development of employees' knowledge, skills, and capacities is also a part of this process, as is performance identification and planning to establish and attain goals (Pessl, 2016).

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  2. According to (Gunnigle, 2008)Performance management is the process of enabling employees to reach their full potential with the aim of meeting or exceeding established goals and standards that are directly related to the objectives of the organization.

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    1. Thanks Upul Samantha, As defined by Aguinis (2005: 2): ‘Performance management is a continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.’

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  3. Good post Zacky and adding furthermore, The performance improvement plan (PIP) is designed to facilitate constructive discussion between a staff member and his or her supervisor and to clarify the work performance to be improved. In all cases, it is recommended that the supervisor’s boss and the human resources department review the plan. This will ensure consistent and fair treatment of employees across the company (Heinen and O. Neill, 2004).

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    1. Thanks for your valuable comment Malshani, Cappelli (2008: 196) wrote that: ‘When employees fail in their jobs, part of the organization also fails.’ Performance management aims to eliminate or at least significantly reduce this possibility. Pulakos
      (2009: 3) emphasized that: ‘Performance management is the key process through which work gets done. It’s how organizations communicate expectations and drive behavior to achieve important goals; it’s also about how organizations identify ineffective
      performers for development programmes or other personnel actions.’

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  4. Thanks for your feedback Manomi, The best way to improve performance is to face real obstacles and experiences while working, guided by superiors who can provide constructive criticism. Merit rating, which started in the early 20th century and was influenced by the scientific management movement, gave rise to performance management. Performance evaluation and management by objectives came next (Armstrong, 2014).

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  5. Agreed to the content. Performance management is the process of improving the performance of a business through a strategic approach which will results in meeting the goals of a business. Performance management includes proper discussion between the colleagues for the innovative and relevant ideas, appraisal of the current results, making plans on how the results can be improved in the future and so on. Performance management team is basically a review based team which has to analyse the present market system and make plans according to that.

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    1. Thank you for your comment. Performance management is a means of getting better results by providing the means for individuals to perform well within an agreed framework of planned goals, standards and competency requirements. It involves developing a shared understanding about what is to be achieved and how it is to be achieved (Armstrong, 2014)

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  6. Agreed your article. Given the competitive global environment in which organizations operate, the need to develop (and retain) highly skilled employees is paramount for prosperity and survival (Crawshaw, Van Dick, & Brodbeck, 2012). Performance management (PM) is widely advocated as a way to develop employees (Aguinis, 2013; Cascio, 2014). Broadly speaking, PM can be defined as “identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization” (Aguinis, 2013, )

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    1. Thank you for your comment Pushpa, Performance management provides the basis for self-development but, importantly, it is also about ensuring that the support and guidance people need to develop and improve are readily available (Armstrong, 2014)

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  8. Good article. The approach of that vindicates the organization’s effectiveness (Cardy, 2004). This umbrella term highlights how work is accomplished, citing the “Achilles Heel” of managing human capital (Pulakos, 2009), concentrating the top priority of managers (Lowel,2009). Moreover, performance management encircles all organizational strategies, and practices and strengthens the organization’s HR architecture pillar to deliver desired performance (pfeffer, 1997).

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    1. Thank you for your valuable comment Thilini, One of the most important aspects of performance management is that it is a continuous process that reflects standard good management practices such as setting goals, monitoring and measuring performance, and taking appropriate action. Managers should not be forced to perform performance management as a ‘special' task. It should instead be regarded as a natural function performed by all good managers (Armstrong, 2014).

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  9. Good post Zacky and adding furthermore, Performance management has evolved from being mostly operational to being more strategically oriented, playing a crucial part in the creation and execution of strategy (Scott-Lennon, 1995). It differs from performance appraisal due to its strategic motivation. Performance management aims to match various procedures with business goals, such as performance-related pay systems (McKenna and Beech, 2008). Theoretically, it entails a shared process wherein managers, people, and teams come to an agreement on goals and then collectively evaluate them. Additionally, it is important to integrate the goals of the corporate, divisional, departmental, team, and individual levels.

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    1. Thank you for your valuable comment. Performance management explicitly refers to the supervisor-employee interview, in which employees are typically evaluated once a year using a set of dimensions and assigned a score. Furthermore, performance appraisal has a long history of being associated with control, hierarchical management, and, more recently, complex information technology processes, all of which have resulted in mounting dissatisfaction among both supervisors and employees (Maley, et al., 2020)

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  10. Well written Zacky, adding to the above, in all organizations new approaches to recruitment are being used. In many territories the strategies are manual but, as automated methods become more pervasive, those mechanisms that support its use will assume greater popularity. Whatever the strategies selected for use, the objective is to recruit the most qualified, committed individuals into the organizations and ensure that the performance is met (Richardson, 2009).

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  11. Good Post Zacky, Understanding human nature is crucial for comprehending motivation, yet due to individual differences among people, it is not always easy to grasp. Organizations adopt a variety of human resource strategies and procedures to inspire their workforce (Manzoor et al., 2019a).

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  12. It can be understood that performance management is important as it assists to improve employee productivity and engagement (Anwar, et al, 2014). further, two main types of performance management that can be identified are Continuous Performance Management and Traditional Annual Appraisal.

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