People Development and Performance Management - Essay Example

Performance Management System: A Look Forward I. Introduction Performance management is defined as a “strategic and integrated approach of 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,” (Armstrong 2001: 214) and can be viewed further as “a continuous process involving reviews that focus on the future rather than the past…” (Armstrong 2000: 203). It is important to remember that performance management is not just the evaluation of employee performance; it is a well-thought-out and uninterrupted process that expands, communicates and facilitates the prospective path, core competencies and principles of an organization, and assists to construct a perspective of understanding. Performance management attempts to find out who or what provides valuable performance with regard to organizational strategy and goals, and guarantees that performance is effectively and efficiently accomplished. Thus, performance management is an integrated scheme that guarantees that the following are instigated and performed: (a) goal-setting of the organization, team and individuals; (b) performance evaluation system; (c) incentive policies and designs; (d) training and development policies and schemes; (e) communication, performance feedback and mentoring; (f) individual planning for career advancement; (g) systems for monitoring the value of performance management mechanism and processes (Tovey & Uren 2006). Even though the critiques of performance management do hold reliable proof as to the loopholes of the system, other experts assert that the constructive features of performance management considerably overshadow flawed features. Alternatively, an investigation of the constructive features as suggested by pioneers of performance management system is indispensable. The following are the claimed advantages of an efficiently monitored and executed performance management system: (a) enhanced employee job performance; (b) prospective employees for development are classified; (c) planning for potential human resource needs is expanded; (d) organizational goals are attained; (e) boosted morale; (f) superior customer satisfaction; (g) an unambiguous connection between performance and compensation is realized; (h) a competitive leverage is acquired; (i) enhanced quality of management (Armstrong 2000). II. Maximizing Performance through Performance Management The knack for managing and leading employees and encouraging them to perform at their best does not arise effortlessly, nor is it stagnant. A superior performance management system is a dynamic entity, a developing system that requires complete attention and constant modification and that should by no means be considered as inclusive. Factors impinging on general employee performance in organizations could be classified into two, internal and external. Job descriptions and morale concerns are two examples of internal factors which the organization has control; on the contrary, organizations have insignificant or no control over external factors. Some examples of external factors are job classifications, subsidy for salaries, etc. The three primary components of performance management system, which aim to maximize employee performance, are performance planning, performance mentoring and performance review (London 2003). Determining favorable and feasible performance expectations is necessary in establishing the groundwork for improved employee performance. It is the task of the manager to recognize the objectives and needs of the employees and to formulate a strategic scheme that integrates the elements of fiscal management, employee involvement and customer service. Moreover, job expectations should be recognized and understood (Neely 2002). Employees should cooperate with the manager in order to identify these expectations and discuss on the techniques to be used in performance evaluation. As soon as performance is determined, employees will anticipate feedback. Throughout the performance phase, the manager and employee talk about and document performance on a continuing manner to guarantee the success of the employee in fulfilling performance expectations. Employees have to be updated or informed if they are meeting the expectations of their work plans (Armstrong 2001). If they are fulfilling the expectations, they must be given recognition for their achievements; otherwise, they warrant immediate supervision and guidance to improve their performance. At the finale of the performance phase, the manager and employee review, in writing, past discussions regarding performance accomplishments as they measure up to the performance plan. The performance review integrates an overall evaluation of the accomplishments of an employee and a commendation for a performance incentive, if valid. Any areas for improvement are pinpointed, and suggestions are given for improvement (Dean 2002). III. Managing of Unsatisfactory Performance The attainment of organizational objectives is dependent upon the capabilities and dedication of the people in an organization. In most instances, employees carry out their tasks compliant with the mandated code of conduct and performance plan. Definitely, numerous employees remarkably surpassed the anticipated level of performance. Nevertheless, in any organization, there will always be those who will fail to effectively and adequately contribute to the meeting of organizational goals. This is commonly termed as ‘under-performance’; though, the concept does not visibly distinguish between employees who could be performing at low levels or those who do not have any purpose of performing. The concept unsatisfactory performance is a more comprehensive depiction initially and to afterwards advance to classifying whether the circumstance is either a case of under-performance or non-performance (Tovey & Uren 2006: 26). Addressing the problem of unsatisfactory performance is considered one of the most challenging tasks of a manager. Nonetheless, improving the performance of a poorly performing employee or department can be regarded as one of the most worthwhile and gratifying achievements of a manager. Detection of unsatisfactory performance normally takes place unceremoniously through everyday supervision of job performance. Yet, it is commonly overlooked or taken for granted until the setback either remedies itself logically or until it develops to be a critical problem (Bassett 1993). Superior performance is reliant on the dedication and enthusiasm of managers to dynamically and enthusiastically manage the performance of the employees and critically deal with difficulties as they come up. Early identification and guidance can lead to immediate and easily handled enhancements in performance (Dean 2002). IV. Conclusions Performance management must not be viewed as an evaluation or appraisal process. It must be an endeavor of communication between employees and managers. The manager has to take on a great deal of the effort if the performance management system is to function effectively. A well-implemented performance management system is a means for employees and managers to construct an agreement of what level of performance the organization needs, how this level of performance should be realized, and to what extent is has been achieved. Managers must have the capability to empower and motivate their people and provide guidance without taking out obligation. Furthermore, the performance management system must generate and encourage an exchange of thoughts between employees and managers. References Armstrong, M. (2000), Performance Management. Armstrong, M. (2001), Strategic Human Resources Management: A Guide to Action, Kogan Page. Bassett, G. (1993), The Evolution and Future of High Performance Management Systems, Westport, CT: Quorum Books. Bilgin, K. U. (2007), Performance Management for Public Personnel: Multi-Analysis Approach Toward Personnel, Public Personnel Management , 93+. Dean, J. (2002), Implementing Performance Management: A Handbook for Schools, London: RoutledgeFalmer. London, M. (2003), Job Feedback: Giving, Seeking and Using Feddback for Performance Improvement, Mahwah, NJ: Lawrence Erlbaum Associates. Neely, A. (2002), Business Performance Measurement: Theory and Practice, Cambridge, England: Cambridge University Press. Tovey, M. & Uren, M. (2006), Managing Performance Improvement. Read More