Issues in Employee Performance - Essay Example

? Issues in Employee Performance Introduction Issues on employees performance are challenges that all managers face from time to time. Whether it is an employee’s personal conflict with a co-worker, repeated errors in financial reports, wrong delivery of instructions, unreconciled journal entries and other situations of which can highly affect the potential major deliverables of the accounting department and the entirety of the company. In times of confrontation with these issues, it is a must that your team would stay on track of their respective deliverables. Every organisation has its own set of objectives and goals that needs to be undertaken. These can be achieved through proper planning and implementation of strategies. However, having a sound output for the company depends on the quality of human capital one organisation has. In order to attain quality productivity, one must select competent personnel of which can deliver the expected output based on the set goals and objectives of the company. Moreover, on the other hand, those who have been employed in the company should be measured based on ones productivity and accomplishment, a process of which leads towards employees performance management. Primarily, employees’ performance management focuses on developing ones capabilities. Aguinis (2007) mentioned in one of his writings that performance management is “a continuous process of identifying, measuring and developing the performance of an individual.” Aguinis (2007) further added that this continuous capacity building needs clear objectives, observing and measuring performance and regular feedback. However, Cokins (2004) does not limit performance management to capacity building but rather “performance management helps managers to sense earlier and respond more quickly to uncertain changes.” Understanding the Nature of Employees According to Dan Hill (2008) employee management is the most emotional part of the business. It is a relationship that links the superior and the staff where interaction takes place and sometimes intense. Fast phased working environment mostly leads to misunderstanding or disagreement affecting office relationship. Emotionally confronted with reality cannot be avoided since it party dominate the relationship that shadows rationality and objectivity affecting company goals and specific work assignments. In some cases of which are highly damaging to the company’s reputation and as part of correcting the actions of which has negatively undertaken by an employee, immediate termination of employment should be considered and served to the employee. However, in less grievous cases, disciplinary action may take its place in order to help the employee improve their quality to meet work standards. It should always be kept in mind that majority of employees would like to succeed in their respective position in which in order for an employee to advance to their respective careers, constant guidance and coaching is expected from their superior. This would help them improved and be recognized once ability enabling them to integrate concretely to the company’s operations giving them a sense of belongingness and for them to be able to recognize their personal problem and being able to improve oneself. Performance Management Wilson (2005) conferred that performance management has its own set of process, concept of which its approach has a holistic philosophy that integrates employees motivation, awareness of expectation from the superiors, personnel development and training, monitoring and performance measurement for them to be able to know the key areas for improvement. According to Mathis and Jackson (2008) performance management should emanate from the organizations needs to meet its strategic objectives. Performance management serves as a strategy relating to every activity of organisation (Armstrong, 2005). Armstrong (2006) mentioned that installing a performance management system in the workplace creates an atmosphere that enables employees to performance in high standards that actively participates, making them responsible of their contribution towards the continuous development of the business and its processes. Performance Appraisals Performance appraisals as mentioned by various authors such as Keping (2000), Gabris (2001) and Aguinis (2007) considered that the problem with employees’ appraisal is that it is governed by the Human Resource department wherein it connects performance with compensation, de-motivating and allowing managers to be hesitant to give opinions affecting ones colleagues pay of which could lead to rating error and biases as well. Management’s Role towards Employees’ Performance Bascal (1999) stressed out that managers can bring out from their staff the desired output that they are expected. Managers has this way of delivering subject matters to employees to a language that can make it understandable by all, such as what is expected from the employees in terms of performance and how they can contribute in the organisational goals. On the other end employees can talk about how they should be managed, how they can give their best output. Positive relationship points out better understanding gearing towards better performance management and higher productivity. It advocates deeper a sense of shared vision for the company as it define expectations and reach a common consensus that motivates, leads towards personal development plans, allows people to monitor their own performance and of those who are responsible for this and encourage dialogue about various issues. (Aguinis, 2007) MacMillan (2006) mentioned that regardless of the approached used, managers must understand the intended outcome of performance management. Performance management is used to develop employees as resources. Armstrong (2005) mentioned that in setting performance management, a roadmap is needed which will serve as a ground basis for evaluation. It is also important that the duties and functions of every employees must be defined as this will make the job holder understand what is the expected output from him, detailing the key result areas based on the agree objectives, main output areas and the sole basis for performance standards. Performance Contracts, Agreements and Evaluation Performance contracts, as Armstrong (2005) regarded should be based on objectives and performance standards. Whereas objective should be Specific, Measurable, Achievable, Relevant and Time framed or most commonly known as “SMART”. SMART aims to direct the individuals’ objectives towards attaining those of the organisation, integrating everyone accountable to fully achieve organisational goals. In some cases, however, during the time of evaluating the situation, a private meeting should be scheduled with the concerned to review arising concerns particularly with regards to the performance of the employee. It is a must that one must not wait for the formal performance review since there are times wherein it is important to be able to take immediate action responding to a behaviour shown by an employee. Since this must be corrected without delay otherwise, a wrong notion might signal an impression in general that poor conduct unbecoming is acceptable. At times which calls the discussion of arising issues, it is best that specifics be given and not taken in general. An example for this is that, should an employee neglects to meet his deliverables in a specific time, such as budget proposal which was submitted beyond the time frame. This mistake must be stressed out to the concerned employee as it is and not to include other unrelated concerns. At times of confrontation with the employee concerning poor performance, it is best to allow the employee to respond to the arising issues for there might be issues which are not elevated to the higher level that would provide a good explanation of poor performance. Common Problems Encountered and Strategy Formulation Based on the review of selected literature, some of the major problems encountered by organisations in terms of effectively managing employees performance are as follows: 1. Some companies does not have an outlined or detailed organisational objectives of which could serve employees as their guide towards work performance. 2. There are high job dissatisfaction of employees in some organisation since there are other companies of which belong to the same industry where they currently work that can provide better employee appraisal. 3. Poor employees’ appraisal lead to delays in project delivery since some employees expects much during the middle year to be appraised given with a productive output. However, during the turmoil of some companies, appraisal system are not being able to take place or is being constrained since it requires the companies financial resources to be diverted to wages. According to Messmer (2003) in order to be able to develop a collaborative strategy providing opportunities for the employees to take personal responsibility for their behaviour should involve a development plan for improvement wherein possible solutions to correct performance are solicited. If it is suspected that an individual may not be challenged enough to work, it is best to look for means as to counterattack this so called boredom. Ask the employee about career goals and try to outline ways to achieve these objectives. At the same time, try to be careful not to be accommodating as it may appears and sounds like rewarding the underperforming employee putting you at risk alienating other employees in the department that meet expectations but do not received special treatment. In order to fulfil a collaborative strategy of which could provide employees a better opportunity and avoid issues such as biases on the measurement of employees performance, according to Walters (1995) companies should design their desired objectives basing on the following three key elements: 1. In providing quality service to your internal and external clients, “reliability” should be given with top most priority. Being reliable means delivering reports on time and as needed when requested. An example of this is to provide customers, either internal or external clients, with financial report to support project proposals. 2. High level of “productivity” and “cost-efficiency” should be considered and ensured in all business activities. A clear direction should be set up in order to attain productivity while cost efficiency is meeting the demands on time using the available resources without having to spend on items which are not needed. 3. “Customer service” is an integral part of the company of which should not be taken for granted nor ignored as can be one of the channels that the company can use to pave way for progress. A high form of customer service should be established as this will be the company’s frontline of defence dealing with the market being catered by the company. Walters (1995) points out that it is important for companies to maintain focus as it helps to come up with a desired results over a period of time. As such, as the finance manager, whose role is securing the company’s resources and maintaining a balanced cash flow for the company, would entail a bias decision in terms of giving a call to appraise an employee since promotion, and appraisal would results additional salary cost for the company. Thus, being a finance manager, it requires a detailed presentation and justification of employee performance and achievement prior to the approval of elevation and granting of additional incentive wages. Fletcher (2004) regarded that “performance management is supposed to be owned by line management, and not by Human Resource Department or one or two directors.” It is best look upon that an effective performance management that manager should work at as a leader should be more of a transformative, wherein it converts what drives the employees, like aspirations in life such as promotions, into a reality. A well designed performance management for employees would not succeed due to those line managers does not know how to properly implement these programs. Related Research In a recent study conducted by Bradley (2010) it revealed that fifty-seven percent of respondents felt that the reviews are effective in helping them and their co-workers to grow professionally. On the other hand, sixty-two percent believes that this provides them with a better understanding of their role to meet the organisational goals while forty-six percent believe that their organisation does not follows a pay-for-performance culture. However, sixty-nine percent believes rewards are given for those who are deserving. For many respondents, when asked what words came to mind when giving or receiving a performance review, they said: "time consuming," "frustration," "dread," "burden," "headache," and "pain." Some positive responses included "beneficial," "important," and "opportunity." Recommendations In accordance with the recommendation of Bradley (2010) and aligning it with what is expected as finance manager, in order to positively affect morale which will eliminate issues on employees performances, the following should be conducted: 1. Employees should be well-oriented of delivering the expectation of the company and complying with the timelines set by the management. Management should brindge to the employees in a manner that the employee will understand that non-compliance would impend other department’s deliverables thus a need to comply with deadlines is highly solicited from them. 2. Placing proper tool for managers to journal employees’ performance and activity throughout the review period as this will help ensure accurate and relevant reviews of employees during times when there is a need to create and complete the actual review. 3. Effectively train managers to be able to conduct proper review assessment that would lead to a more meaningful employees review and assessment. 4. The company should come up with a performance culture in which will serve as an integral part of providing employee’s advancement. 5. To allow employees to conduct a self-assessment review and peer-to-peer review which will help employees counter misinformation with regards to one performance. 6. To come up with an automated review system in order to help the company have a user-friendly approach in completing the evaluation of the employees and holds managers accountable for the completion of the evaluation reviews on time. Conclusion In conclusion, according to Farr (1993) human beings are by their very nature an insecure lot. We must have feedback. The employee performance process is one of your most important feedback functions. The secret of successful performance reviews is two main disciplines: 1. Pre-evaluation scheduled should be designed in a way that it will be more interactive with the employees. 2. Regular documentation of performance highs and lows should be done and included in the 201 files of the employees. Documentation may not be formal and can be done in simple notes and emails. And then there is "approachability." People want clarity on what they are to do. They need to feel that they can talk to you about anything without being insulted or belittled. In the absence of approachability, employees will merely keep making the same mistakes, have the same mis-perceptions about what is expected of them, and will seek the path of least resistance. What you want is restaurant employees who feel open enough to try new ideas and feel free enough to give spontaneous levels of customer satisfaction. That will not happen if they work for "Atilla the Hun." (Farr, 1993) In addition, Farr (1993) mentioned that do not over manage. Generation X workers are used to being independent. This means that you should train your new employees well and then delegate. And re member to continue developing your veterans. However, beware. There can be a fine line between training and over-managing that can send the message that you do not trust your people. And, if there are employees you can not truly trust, they should not continue to be employees. Good rule of thumb, fault in the direction of over-training how to please the customer. In the final tally of motivational techniques, a happy customer smiling back and saying thank you may be one of the most motivating secrets of all. References Aguinis, H. (2007). Performance management. Prentice Hall, London. Armstrong, M. (2006). Key strategies and Practical Guidelines (3rd edn), Kogan Page, London. Armstrong, M. (2005). Managing Performance: Performance management in action. CIPD, London. Bascal, R. (1999). Performance management. McGraw-Hill, New York. Bradley, A. (2011). "Taking the formality out of performance reviews: managers need to step up their communications with employees on performance issues." T+D, vol. 64, no. 6, p. 18. Cokins, G. (2004). Performance management: Finding the missing pieces and closing the intelligence gap. John Wiley and Sons, Australia. Hill, D. (2008). "Employee Management." Emotionomics revised edition, pp. 289-321, Kogan Page, London. Farr, J. (1993). "Motivator or ogre?" Restaurant Hospitality, vol. 82, no. 4, p. 36.  Gabris, G. T. (2001). Does performance appraisal contributes to heightened levels of employees burnout? The results of one study. Public Personal management , vol. no. 30, pp. 157-172. Keping, L. M. (2000). Performance appraisal reactions: Measurement, modelling and method biases. Journal of Applied Psychology , vol. 85, no. 5, pp. 708-723. MacMillan A. (2006). Raising the Bar on Performance Management Practices to Optimize Performance Reviews and Goal Management. Mathis, L. And Jackson, J. (2008). 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