PERFORMANCE MANAGEMENT

PERFORMANCE MANAGEMENT

INTRODUCTION
Performance management is ongoing. It involves a never ending process of setting goals and objectives, observing performance, and giving and receiving ongoing coaching and feedback. Performance management requires that managers ensure that employees’ activities and outputs are congruent with the organization’s goals and, consequently, help the organization gain a competitive business advantage. Performance management therefore creates a direct link between employee performance and organizational goals, and makes the employees’ contribution to the organization explicit.

https://www.youtube.com/watch?v=SyOZ_4rWWiY&t=100s
Armstrong and Baron (2004) emphasized that Performance Management is a tool to ensure that the managers are managing effectively. This means (1) that they ensure the people or teams they manage know and understand what is expected of them, (2) have the skills and ability to deliver on these expectations, (3) are supported by the organization to develop the capacity to meet these expectations are given feedback on their performance, and (4) have the opportunity to discuss and contribute to individual and team aims and objectives

http://www.performancedevelopment.com.au/performance-management/

Helm et al. (2007) have noted that PMS is vital to an organization’s performance for various reasons such as: it facilitates the organization to achieve its vision and business objective. It is a prerequisite to develop a performance oriented culture within the organization. It aligns the employees’ performance goals with the organization’s strategic goals. It ensures that the individual has clarity regarding performance expectations. It improves the employee performance and identifies talented individuals for promotion and it also reinforces linkage between pay and performance.

The post-liberalization period has observed significant changes in the structure and functions of the organizations. Arrival of foreign and multinational organizations has given a cause to existing organizations to be more effective, competitive, and innovative in their approach. There arises a need to introduce a system of performance management during the period when the traditional performance appraisal mechanism

started failing and its limitations were evolving up. The performance appraisal system which the organizations were using in the earlier time period was lacking in objectivity as the criteria for measuring performance were not clearly defined and the focus was on traits rather than on behaviors or measurable targets. Due to an absence of a transparent feedback mechanism and lack of employee involvement in the entire process of appraisal, the morale of employees decreases. A Performance Management System overcomes the faults of the traditional performance appraisal system by maintaining a revolutionary approach.

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HOW DOES PERFORMANCE MANAGEMENT WORK AT GOOGLE?



Performance reviews are customized to provide great results for Google’s smart creatives. Senior Vice President of People Operations Laszlo Bock provides great learnings about their performance management in his book titled Work Rules. Googlers first identify a group of peer reviewers for each employee, which also includes co-workers that are junior to them. Google has abolished numerical ratings in April 2014, so each Googler are now subjected to a five-point scale ranging from “needs improvement” to “superb”. Carried out semi-annually, peer reviewers are asked to state one thing the reviewee should do more of and one thing that they can do in a different way.

After the feedback cycle, managers come together to take a look at these peer reviews. The main aim is to prevent bias in feedback by asking each manager to justify their decisions to each other. Managers are informed about potential obstacles to objective feedback, one of which is the tendency to overemphasize an employee’s most recent performance.

By keeping these obstacles in mind, managers decide on the final evaluation of an employee. Summaries of these assessments are shared semi-annually and compared to a set of examples to justify the evaluation. Employees are then informed of their compensation, but compensation is decided separately from the evaluation taking place during the reviews. Google keeps pay discussions separate from and peer feedback with an aim to provide the right motivation to their employees, which is to grow and contribute to Google’s success.

https://www.youtube.com/watch?v=n_Cn8eFo7u8

WHY WE NEED PERFORMANCE MANAGEMENT
In the stage of globalization strategic HR practices required for every organization. Performance management helps to get through the competition within the organization and it is essential to align various organizational functions. When implemented correctly it will create progressive results in a drastic rate.

Following are some benefits to the employees and the organization
1.Improoved Communication – Employees and Managers will have continuous discussions more often to discuss company objectives and overall progress.
2.Established rules – Employees and managers will have a fare understanding on process and specifications that how the Appraisal performed.
3.Redused stress – Employees will not get stressed on impressing a manager for random task and Managers will get stressed about offending an employee on not achieving a specific target.
CONCLUSION                                                                                                                           It can be said that the Performance Management System is the vital key in Human Resource Management (HRM). In other words, PMS is a crucial business driver that helps to achieve business result. An efficient PMS can boost the firms to maximize the employee performance. An effective system should be such that it can encourage an organizational climate of trust, autonomy, collaboration, communication and teamwork etc. It is important for an organization to have such system that not only identify and recognize the top performers rather help the employees and organization to achieve sustainable growth. Most of the modern day organizations identify this need and are spending a huge amount of money to develop and implement an effective Performance Management System still a huge amount of variation can still be noticed in the employees’ performance. In order to gain the competitive advantage, the organization’s performance management system should be designed in such a way that it can connect the employees’ performance expectations to that of the organization’s goals. 
While concluding, it can be summarized that the performance management system is not only a mean of knowing that if the employee’s' behavior is consistent, but also an important and strategic organizational tool to link the employee activities with the goals of the organization

REFERANCES
Armstrong, M & Baron, A 2004, Managing performance: performance management in action, CIPD, London

https://www.businessnewsdaily.com/4748-performance-management.html

Performance management overview – Accipio available at https://www.accipio.com/eleadership/mod/wiki/view.php?id=1741
What is the need for Performance Management –HR help board available at

https://www.hrhelpboard.com/performance-management/articles/what-is-the-need-of-performance-management-19.htm

What is performance management on business new daily available at

https https://blog.impraise.com/360-feedback/performance-management-at-google-360-feedback
Helm, C.,Holladay, C.L.,&Tortorella, F.R. (2007). The performance management system: applying://www.businessnewsdaily.com/4748-performance-management.html




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Comments

  1. SamanthaJune 19, 2020 at 8:27 AM

    The managing performance is important aspect for the organization and author defined it. Further through below ways companies can improve managing performance,
    1. Set clear expectations and communicate them well, then continue to manage expectations.
    2. Train managers and give them the tools to help their employees.
    3. Utilize employee handbooks to keep everyone on the same page and help to ensure employees understanding of company policies.

    Thank you

    ReplyDelete
  2. ThusithaJune 19, 2020 at 2:16 PM

    Good article,When a performance management system is used for decision-making, the appraisal information is used as a basis for pay increases in force or other administrative HR actions. Nicely explained Manjula

    ReplyDelete
    Replies
    1. ManjulaJune 19, 2020 at 6:21 PM

      Thanks for your valuable comments Thusitha

      Delete

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