Performance Management
PERFORMANCE MANAGEMENT
Presently, organizations are faced with new competitive conditions, and have to cope with dynamic environments, which lead them to the era of continuous improvement, value-addedness, doing more with less, and productivity. These developments have brought performance management to center stage. Accordingly, organizations are beginning to implement performance management that reflects the new shape of the organization and its emphasis on integration of work, multidimensional influence, and flexible jobs.
Basic Framework of Performance Management System
Defining Employee Performance
Defining performance is considered
to be a critical part of performance management system and thus a number of
performance evaluation research studies have focused on defining performance
(Arvey, & Murphy, 1998). In the process of performance management,
identifying performance measures required for appraisal determines performance
standards as levels of performance that correspond to predesignated levels of
individual and organizational effectiveness
Evaluating Employee Performance
In general, as a critical part of a performance management system, performance evaluation is geared toward the attainment of performance information that can be used for administrative and development purposes. Organizations should realize that it is the employees’ perceptions of the performance evaluation purpose that affects their attitudes toward it. It is generally predicted that ratings obtained for administrative purposes, such as promotions, transfers, termination, and compensation, are likely to be more lenient and less accurate than those obtained for research, feedback, or employee development purposes (Jawahar & Williams, 1998). This is based on the premise that raters bias ratings obtained for some purposes versus others (Cleveland & Murphy, 1992). Raters may intentionally bias administrative ratings to avoid providing negative feedback to obtain positive consequences, or to motivate a poor performer. In contrast, ratings for the purpose of employee training and development are likely to encourage raters to honestly record their “true” evaluations of ratees’ work performance.
Providing Feedback on Employee Performance
Evaluations of performance are fed
back to the individual and relevant decision-makers. In a performance
management system, feedback plays an important role both for motivational and
informational purposes and for improved rater-ratee communications. For
example, supportive feedback can lead to greater work motivation for employees
and feedback discussions about pay and advancement can lead to greater employee
satisfaction with performance management processes. In effect, providing people
with feedback about their performance will have positive effects on their
future performance (Taylor & Pierce, 1999)
Reference
- R. D. Arvey and K. R. Murphy, (1998) PERFORMANCE EVALUATION IN WORK SETTINGS. [Online article] https://www.annualreviews.org/doi/10.1146/annurev.psych.49.1.141 [accessed on 1st December 2021].
J. Jawahar and Chuck R. Williams, (1998) "Where all the Children are Above Average: A Meta analysis of the Performance Appraisal Purpose Affect". [online article] https://digitalcommons.butler.edu/cgi/viewcontent.cgi?article=1001&context=cob_papers [accessed on 1st December 2021].
Cleveland, J.N. and Murphy, K.R. (1992) Analyzing Performance Appraisal as a Goal Directed Behavior.[online article] https://www.scirp.org/(S(czeh2tfqyw2orz553k1w0r45))/reference/ReferencesPapers.aspx?ReferenceID=1892378 [accessed on 2nd December 2021].
Paul J. Taylor, Jon L. Pierce (1999) Effects of introducing a performance management system on employees' subsequent attitudes and effort.[online article] https://experts.umn.edu/en/publications/effects-of-introducing-a-performance-management-system-on-employe [accessed on 3rd December 2021].
A very insightful article on performance management. Since proper communication plays a vital role in Performance Management, when providing feedback, it is always essential to make sure that the feedback is being provided in a constructive manner. Also, the feedback should be provided in both the ways; top to bottom as well as bottom to top. Because, in this way, it will be easy for the subordinate to understand where they actually stand through honest feedback. Further, the leader will also be able to receive feedback from the subordinate, to understand whether the leadership style which is being used by the leader is suitable for the said employee or not, in order to influence towards achieving organisational objectives.
ReplyDeletePerformance management is an interesting subject. It has become an indispensable tool in the hands of the corporates as it ensures that the people hold the corporate values and tread in the path of accomplishment of the ultimate corporate vision and mission. This is a forward-looking process as it involves both the supervisor and also the employee in a process of joint planning and goal setting at the beginning of the year.
ReplyDeleteIn order to be a successful organisation the employees performance must be monitored. This is considered to be an essential task of the hr department. Good positive performance must be encoraged and others should be corrected
ReplyDelete