Performance Management Processes
The concept of performance management can be defined as the systematic process that the managers, owners, and employees use to cooperate in planning, monitoring, and reviewing the employee’s work goals and general contribution to the progress of an organization (Cokins, 2013). The process encompasses planning, daily coaching of employees, receiving feedback, periodic performance check-ins and performance reviews. All these processes are to be aligned with the vision and mission of the organization. The output of the whole organization depends on the management of employee performance. Performance management seeks to create a predictable and efficient framework by which the input of departments and individual employees is linked to attainment of the organization’s strategic goals. This paper will explore performance management, its processes, its advantages and disadvantages. Performance management is an important strategic human resource management tool for many organizations due to its numerous benefits for motivating employees and attaining organizational goals.
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Performance management is a long-term and continuous process that is undertaken to ensure that an organization has the effective labor force and quality production. It is a multifaceted issue that requires diverse strategies (Bourne & Bourne, 2011). Consequently, it is necessary to pay attention to the management of activities at various levels in the company. The targeted areas have influence on the performance of the employees and individual departments, thus controlling the performance of the entire organization.
Day-to-Day Coaching and Feedback
Performance management entails daily activities that the supervisory authority must undertake to ensure that the organization’s labor force is well-controlled. These activities include holding regular discussions with the staff on the performance of their duties and the set goals. The conversation with the employees ought to be appreciative, consistent, and two-way rather than one-way.
Moreover, the supervisor needs to offer an appreciative feedback framework that recognizes good performance of the staff. In this respect, the manager ought to talk personally with the employees working exemplary and thank them for good work. Subsequently, this raises the labor force morale and builds positive work relationship between the administration and the staff. The issues detected must be addressed by the manager to enhance good performance. The supervisor or manager ought to be social to enable the employees to express themselves freely so as to learn about their challenges and advise them accordingly (Pulakos, 2009).
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The Quarterly Performance Check-Ins
The management establishes practices that allow quarterly assessment of the progress in attainment of the set goals and targets. In this respect, the organization ought to achieve the goals established for a particular interval (Cokins, 2013). The management links the employee’s potential to their performance of duties that are in line with their job specifications. The targeted output guides the management in exploiting the employees’ potential. In this regard, the best practices are developed to ensure that the labor force potential is exploited to the maximum. Additionally, areas of weakness are identified and addressed to ensure quality performance (Van Dooren, Bouckaert, & Halligan, 2015). Consequently, the management of performance standards starts with assessing the work of the human resource department to ascertain detailed job description and good design; efficient and reliable supervision of the employees; stimulating workplace environment, and complete employee orientation and training plan. The factors mentioned above are critical to successful management of performance in the organization.
The supervisor or manager is required to introduce practices that allow annual review of each department and employee’s performance (Van Dooren et al., 2015). The process allows the organization to ascertain the growth of the worker, understand his or her needs, and formulate targets and duties for the following year. The employee’s goals and capabilities in the previous year are critical for this kind of review, thus the need to ensure that all requisite information is available for perusal. The effectiveness of the management system depends on how it promotes division of labor and creates a clear-cut job description for each employee and department (Cokins, 2013). Moreover, it offers a clear image of each employee’s performance, enhances collaborative relationship between the management and the employees, and allows monitoring of each employee’s and department’s output. It is a two-way system of communication that is easy to understand and put in practice.
Advantages of Performance Management
Performance management has some advantages that encourage its implementation in organizations. First, it promotes timely intervention to solve arising challenges in the labor force. Thus, issues such as strikes are avoided through proper handling of the employees (Cokins, 2013). Second, good management enhances satisfaction of the employees with their workplace environment, thus boosting their morale and motivating to work better.
Additionally, a good performance management system promotes employee retention, thus avoiding losing quality workers. Moreover, it enhances the organizational performance. Thus, the labor force is more effective and efficient when it is content with how it is treated and thus performs better. The organization is also able to overcome communication barriers, accountabilities issues, and reduce the cost of management.
Cokins (2013) affirms that performance management helps to reduce the cost of administration and production. The workforce is more empowered and engaged through performance management systems that promote the skills of the employees and the capacity to perform better in their positions. Finally, well-outlined job description allows each employee to use his or her time effectively. Consequently, it gives the workers a clear picture of what is expected of them at any given time.
According to De Waal (2013), positive work relationships are promoted in the organization through performance management. The programs for managing the labor force enhance employee development through networking of the management and the employees. Moreover, the retraining program enhances sharing of experience and skills between the employees, which ultimately contributes to the creation of positive work relationships in the company. By providing opportunities for the labourers to develop their skills and learn new ones, the management boosts their work morale and attitude towards each other, hence promoting healthy working relationships at the workplace (Pulakos, 2009).
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The performance management system enhances the employees focus on the results so that the whole system works in line with the organization’s objectives. Each employee and department is aligned with each other to achieve the core goals of the organization. The management of the firm sets ambitious targets, and the labor force works on attaining the set goals (Cokins, 2013). However, the objectives of the organization cannot be achieved without proper control and use of the human resources.
The performance management improves the employee capabilities through a clear definition of their duties, retraining of the employees, and support of the labor force to perform various functions. Moreover, in the modern world, technology is incorporated into the labor force to boost performance. The creativity of employees is enhanced to maintain quality production and service delivery by offering a conductive environment for the labor force to realize its full potential. According to Gruman and Saks (2011), a rewarding system is developed to ensure that those who perform excellently are rewarded. As a result, each employee and department strives for perfection of their performance in the company.
According to Gruman and Saks (2011), the performance management system ought to fit in with the human resources software used to facilitate sharing of knowledge and collaboration. Consequently, it also allows the management to access metrics and analysis of the employee performance. A well-run performance management framework gives the organization a competitive advantage through promoting high-quality skills in the labor force.
Performance management improves the effectiveness of the labor force. The balancing of employee engagement, training, retention, and culture allows the organization to achieve a considerable progress. The administration establishes programs for retraining the employees to update their skills and knowledge on various issues as well as to help them remember key competencies (Gruman & Saks, 2011). Moreover, this allows inexperienced workers to learn from the experienced ones, thus improving their performance.
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Disadvantages of Management Performance
Discourages the Employees
The process of performance management is not always positive to employees. The management can cause discontent in the labor force, especially when it is too demanding and stressing. Skewed rewarding of the best performers can lead to discouragement of the majority of employees. The nature of one’s job and the department can hinder outstanding performance, thus reducing the worker’s chance to win rewards (Aguinis, Joo, & Gottfredson, 2011). Moreover, if the group input contributes to the excellence of individual workers, in particular those in the leadership positions, failure to recognize the contribution of each employee can create a silent protest.
Management of performance requires the administration to develop appraisal plans and execute them on a regular basis (Gruman & Saks, 2011). Planning, day-to-day instruction and feedbacks, quarterly assessment and check-ins, and review of the performance are time-consuming. In this respect, the management has to devote time to oversee the performance of the employees, which could otherwise be spent on other important processes.
Performance management is a complicated process that is applied by the management to streamline the human resource towards attaining the objectives of the organization in the most effective manner. It allows the employees to fully realize their potential, facilitates establishment of good working relationships and improvement of the work environment. Performance management has some advantages, which include improvement of employee performance, retention, and satisfaction; enhanced management control; and reduced cost of management. Performance management also has some disadvantages, which encompass discouragement of the employees and its time-consuming character. However, performance management is generally a good strategy for promoting effective use of labor resources in an organizatio