Performance
Management is a hot topic in business today. Many companies now
understand that unless you develop goals and an associated Performance
Management process it is difficult to;
- succeed (as the entire company is
not aligned in what it is trying to accomplish) and
- provide the corporation with a
long-term focus that is achievable
In
today’s competitive business environment, achieving organisational goals is
highly challenging irrespective of the nature of the organisation be it
private, public or non-profit organisation. In meeting these challenges,
organisations are spending a considerable amount of time, energy and resources
in setting goals and objectives, developing strategic plans, formulating
strategies and devising strategic control mechanisms. The idea is to clarify
the organisation’s goals and objectives, prepare a road-map for achieving those
objectives, be able to monitor the organisation’s progress on a periodic basis,
compare the actual results with the planned targets and take any managerial
action if necessary. However, many organisations struggle with this process.
For example, developing an acceptable performance measurement system is not an
easy task as it gets confronted with a large number of intricacies from
different interest groups. Some of these issues include what to measure whether
inputs, outputs or income, how to measure, and the difficult of the
quantification of performance measures. (Julian & Sharma, 2005)
According
to (Dransfield, 2007), Performance management is an HRM
process which is designed and concerned with getting the best performance from
individuals, teams and the organisation as a whole. This is owned and driven by
line managers. Effective performance management therefore involves sharing an
understanding of what needs to be achieved and then managing and developing
people in a way that enables such shared objectives to be achieved.
A
well-developed performance management system should include the following:
i.
A statement containing
the organisation’s values
ii.
A statement of the
organisation’s objectives
iii.
Individual objectives
which are linked to the organisation’s objectives
iv.
Regular performance
reviews throughout the year
v.
Performance related pay
vi.
Training and counselling
With such a
system in place it becomes possible to establish for a period of time the key
result areas that an individual will be judged against. The results individuals
achieve can then be judged against expected standards. A reward system can then
be tailored to the way in which the individual enables the organisation to
achieve its results.
Performance
Evaluation is a multi-purpose tool which can be used to measure actual
performance against expected performance, Provide an opportunity for the
employee and the supervisor to discuss job performance, Identify employee
training and development needs, and plan for career growth, Identify skills and
abilities for purposes of promotion, transfer, and reduction in force, Support
alignment of organization and employee goals, Provide the basis for determining
eligibility for compensation adjustments based on merit and Provide legal
protection against lawsuits for wrongful termination. The primary purpose of
Performance Evaluation is to provide an opportunity for open communication
about performance expectations and feedback. Most employees want feedback to
understand the expectations of their employer and to improve their own
performance for personal satisfaction. Employees prefer feedback that is timely
and given in a manner that is not threatening. (Dossett &
Greenberg, 2015).
Why
Go For Performance Management?
You
may ask yourself, what benefits would I derive from employing performance
management in the work place? A few of them are listed below.
Performance Management
focuses on results, rather than behaviours and activities.
A common misconception among supervisors is that behaviours and activities
are the same as results. Thus, an employee may appear extremely busy, but not
be contributing at all toward the goals of the organization. An example is the
employee who manually reviews completion of every form and procedure, rather
than supporting automation of the review. The supervisor may conclude the
employee is very committed to the organization and works very hard, thus, deserving
a very high performance rating.
Aligns organizational activities
and processes to the goals of the organization.
PM identifies organizational goals, results needed to achieve those goals,
measures of effectiveness or efficiency (outcomes) toward the goals, and means
(drivers) to achieve the goals. This chain of measurements is examined to
ensure alignment with overall results of the organization.
Cultivates a system-wide,
long-term view of the organization.
Richard A. Swanson, in Performance Improvement Theory and Practice (Advances in
Developing Human Resources, 1, 1999), explains an effective performance
improvement process must follow a systems-based approach while looking at
outcomes and drivers. Otherwise, the effort produces a flawed picture. For
example, laying off people will likely produce short-term profits. However, the
organization may eventually experience reduced productivity, resulting in
long-term profit loss.
Produces meaningful measurements.
These measurements have a wide variety of useful
applications. They are useful in benchmarking, or setting standards for
comparison with best practices in other organizations. They provide consistent
basis for comparison during internal change efforts. They indicate results
during improvement efforts, such as employee training, management development,
quality programs, etc. They help ensure equitable and fair treatment to
employees based on performance.
Talk to us today and let us help get your organization focusing its energies towards the same goals.
