The strategy of Performance management

10th April 2023

What is performance management

Performance management is the process of setting goals, Providing positive and negative feedback and evaluating progress and development for the purpose of getting optimal return on the Employees of the organization. With the performance management, the organization is able to attract more benefits and adjust a way for achieving goals more easily. Performance management is not just a single tool for measuring employee performance and this also refer to a complex process that is combined with organization goals.

”It is seen as an integrated process in which managers work with their employees to set expectations, measure and review results, and reward performance, in order to improve employee performance, with the ultimate aim to positively affect organizational success” (e.g. Mond, Noe & Premeaux, 2002).

As per Baron and Armstrong (1998) “emphasize the strategic and integrated nature of Performance Management, which in their view focuses on ‘increasing the effectiveness of organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors”.

Methods of performance management

 Performance management is a portfolio of activities, design goals and requirement, Analyze the performance deviation among employees, Give feedback and guidelines, Evaluate performance and endorse development plans and so on.

There are different mechanism for performance management

1. Goal setting: This involves establishing clear and measurable goals and give them to employees  for achieving stipulated time schedule.

2. 360- Degree: In this process, Employee performance and feedbacks are getting from colleagues, subordinators and supervisors. This method is very common method and be a source for getting a clear picture of employee performance.

3. Performance appraisal: Measure the performance level of employees within a given period. This period mostly consider as a parallel time frame for all employees. In there, employees are allowed to rate their own performance and are also evaluated by superiors.  

4. Performance improvement plan: This method covers employees who are not reached to expectable improvement level. In this method support  them into correct direction.

5. Coaching and monitoring: This method involves offering a guide to employees from within their ongoing job. This can be executed by getting the support of supervisors or employees who are in parallel stage.

6. Performance-based admiring: Giving employees different rewards according to their succession at work. This can be offered various benefits such as identify and reward as “employee of the month”, increments, bonuses and so on.

Advantages relating to performance management

There is a direct relationship between performance management and human resource management. Human resource management refers to activities such as selecting, recruiting, training and ensuring compliance with labor laws and performance management process refers to the actions taken to aim that selected employee toward to achieve organization goals. In performance management process is doing sharp employees who are acquired through human resource management process.

There are several benefits can be spent through proper performance management,

1. Improve productivity: Through performance management, organizations are able to identify the strengths and weakness of employees. Then it will lead to invest strengths in the career development of the organization and avoiding weakness of employees. Hence organizations are able to maintain a top level of employee productivity.

2. Maintain an effective relationship between employee performance and organizational goals: This will lead to giving proper awareness of organization goals to employees and defining the requirements needed from employees for achieving those goals.

3. Improve better communication: performance management is promoting communication among superiors and employees. Hence they have a platform to communicate about their performance, expectation and development needed areas.

4. Setting succession training plan: Performance management can be identified as a data based gallery. This is giving lots of information on performance of employees. Hence organizations able to draft effective training plan by sourcing performance management.

5. Promote fairness and equity: When an organization is practicing mechanisms relating to performance management for assessing employees. They will be rated with same measurements and the same timeline for judging employees. Hence rewards that are giving to employees is getting fair and it leads to spread equity among organization.

Conclusion

At present all industries are getting competitive. Hence all organizations need quality human resource and also maximum output through them. Hence performance management is the path for identifying skill gaps and improvement areas for human resources, as a result of organizations get a proper space to identify strengths and weaknesses of human assets and invest on them effectively.

    Reference

• Baron, A., & Armstrong, M. (1998). ‘Out of the box’. People Management, 23, 38-41.

• Becker, B.E., Huselid, M.A., Pickus, P.S., & Spratt, M.F. (1997). HR as a source of shareholder value: research and recommendations. Human Resource Management, 36(1), 39-47.

• Mondy, R.W. Noe, R.M. & Premeaux, S.R. (2002). Human Resource Management (8thedn). Upper Saddle River, NJ: Prentice Hall.

• https://www.youtube.com/watch?v=BoyY1yPTLP4 (Access on 10^th April 2023).