Discussion
Discuss about the Role of Performance Management Process in Organizations.
In the modern globalized era, it is considerably undemanding to achieve accessibility to the competition’s technological, expertise, knowledge and products. With regards to internet and technological advances as well as product differentiation is no longer considered as a fundamental competitive improvement in most business sectors. As a result, certain significant question has been arising related to the efforts businesses are making in order to become more successful than the others. Organizations with enthusiastic, motivated and expertise employees serving exceptional service to their clients have the possibility to surpass in the competitive industry and further become competitively advantageous (Rummler & Brache, 2012). It has been noted that only individuals can execute things effectively and produce a sustainable competitive benefit and gains. Performance management systems are regarded as the essential tools in order to transform the talent as well as the level of expertise of employees and motivation into the domain of strategic business development. The concept of performance management is known as an enduring process of recognizing, categorizing, evaluating and enhancing the level of performance in organizations by associating the rate of performance of each individual as well as objectives to the overall missions and objectives of the organization (Gruman & Saks, 2011). The report aims to evaluate the performance management process and further provide an understanding of the way performance management process acknowledges and supports employees. In addition to this, the paper will shed light on three significant performances appraisal methods namely self-evaluation forms, psychological ability and 360 degree feedback by analysing the role and importance of rating scale within an organization.
The concept of performance management is regarded as a communication process by which mangers, supervisors and employees perform together in order to strategize, plan, administer and review the performance objectives as well as overall contribution of an employee to the organization. The role of performance management can further be defined as an essential and fundamental part of any transformation procedures as it aims to evaluate the way effective plans and strategies are executed within the business process of an organization (Trkman, 2010). As a result, an appropriate review of what comprises good performance and the way various dimensions of high and improved performance level can be evaluated and is critical to precise framework of an effective performance management process. A well-structured efficient concept of performance management process entails six significant components namely organizational goals as well as objectives that is regarded as way of strategic planning, individual employees performance and development, employee performance evaluation, performance assessment, enduring review and induction along with recognition and rewards system (Walker, Damanpour & Devece, 2010). However, it is significant to note that few organizations have been implementing their existing performance methods in effective ways. In several business enterprises, performance management refers that managers and supervisors must conform to the HR departments appeal and fill the gaps of tedious, ineffective review forms.
The Relationship between Performance Management System and Employee Performance
In order to execute the performance management process in a more proficient and effective, managers must learn to excel the procedures and further apply it consistently. For example, the Federal Competency Assessment Tool Management (FCAT-M) evaluates whether and to the degree to which managers in an organization possess specific expertise and competencies (Bouskila-Yam & Kluger, 2011). However, one of these proficiencies is known as the Understanding Performance Management Process and Practices. It has been noted that a manager equipped with such proficiencies will have the ability to focus on employee performance and efforts on attaining organizational as well as individual goals and objectives. An effective Performance Management process functions as a systematic process of:
- Planning work and establishing expectations
- Persistently administering performance
- Enhancing the performance aptitude
- Periodically rating or evaluating performance
- Recognizing and rewarding good performance
- Planning work and establishing expectations- Manager must aim to meet and organize discussion with employees in order to create the organizational performance aims and objectives. Supervisors or managers should effectively establish evaluative purposes that support the enterprise’s tactical and operational plans and further confer with the workforce while establishing these goals (Dusterhoff, Cunningham & MacGregor, 2014). However, it is in this stage, the manager obtains an opportunity in order to provide explanation to employees the way performance has a direct influence the way business and operations will attain goals.
- Persistently administering performance- Supervisors must focus on examining the development and progress not only when there has been a development appraisal due but on an enduring basis throughout the timeframe of the appraisal (Thurston Jr & McNall, 2010). Effective supervision provides managers with an opportunity to make a course correction or make modifications to the timeline so that employees will generate the anticipated consequence of successfully accomplishing the organizational goal and performance. Effective performance monitoring provides avenues to raise the level of awareness and knowledge of the employees (Pichler, 2012).
- Enhancing the performance aptitude- Through proper examination and monitoring supervisors would obtain the understanding of whether employees would require additional improvement or development to achieve the consigned roles and accountabilities of the organization (Salleh et al., 2013). Types of development must incorporate such as formal induction, informal training, lessons and mentoring.
- Periodically rating or evaluating performance- Managers will utilize the understanding attained from employee performance supervision during appraisal period in order to compare the level of performance against the employee’s standards and further assign a rating of record system (Mone et al., 2011).
- Recognizing and rewarding good performance- This stage explicitly reveals the approaches supervisors will implement in order to make constructive characteristics and peculiarities while recognizing the abilities of employees. Rewards and recognition must be unambiguous between various performance levels which are considered as successful and achievable (Crawford, LePine & Rich, 2010).
The fundamental objective of performance management is intend to increase the level of performance which can further be regarded a distal consequence of the process. One significant variable which has been obtaining growing rate of recognition as a fundamental determinant of performance is employee engagement. It has been noted that creating effective performance management process aids to promote effective employee engagement system which will further increase the levels of performance (Mone et al., 2011). In order to enhance performance, several organizations have been focusing on the performance of the organization on an unambiguous, challenging and realistic objectives and goals. The idea of motivation is to drive that leads one to function as human behaviour is administered towards certain organizational goals (Prowse & Prowse, 2010). Organization establishes individual performance management process which is associated with both functioning unit along with the wide range of organizational purposes. It must be noted that motivated or enthusiastic employees are recognized as more self-driven and possess more autonomy-centric in comparison to the ones who reveal low level motivation (Wickens et al., 2015). However, on the other hand, motivated employees are considered to be intensively involved and engaged with individualistic roles and responsibilities (Rummler & Brache, 2012) . The most important factor of developing and planning performance is establishing mission and goals of the organization. Effective mission and goals could foster could enhance the level of employee motivation towards the acts of directions and develop organizational performance (Pichler, 2012).
This stage explicitly reveals the improvement of communication process within the organization, in order to increase the level of understanding and awareness of organizational objectives and strategies which can further provide contribution to the formulation of the system. Several reports have demonstrated that employees are more inclined towards direct interpersonal communication process in order to mediate communication when employees require detailed information on the continuing issues and complexities of their enterprises (Pichler, 2012). Furthermore, quantitative and qualitative standards for evaluating individual as well as organizational performance, individual employees would obtain awareness of the principles and standards that would facilitate in increasing the level of acknowledgment and appraisal (Crawford, LePine & Rich, 2010).
Developing and Planning
Recognizing employee performance and further offering a reward at the end of the performance period has been considered as a significant factor of enhancing the level of employee motivation. However, it aims to evaluate the productivity of the overall procedures and its contributions to the organizational performance in order to promote transformations and developments and further provide the review to the business organization as well as to individual employee regarding their actual job performance (Maxwell, 2011). Furthermore, the financial appraisal tool is considered to be effective in provide incentives to the employee’s passion and motivation to perform. Rewards and recognition fosters motivation to the positive and constructive emotion of employees such as sense of job satisfaction and commitment. As a result, the efficacy of pay-for-performance has a direct influence on increased levels of efficiency and productivity along with other desirable work behaviours.
Eli Lilly Australia, one of the leading pharmaceutical enterprises comprises a unique performance management process. The company being well-recognized for its well-established concepts on HR practices, have been sustaining their mission of utilizing development benefits and perks by further involving the idea of trust, loyalty and commitment among its employees (Maxwell, 2011). This particular process has been effectively empowering employees to be opinionated and take initiatives thus reinforcing the employer-employee relationships.
- Employee Self Appraisal Form- Employee self-evaluation method within the performance review method entails employees to evaluate their own performance level (Crawford, LePine & Rich, 2010). Self-evaluation process initiates following to the discussion of the performance between the supervisor and the employees regarding self-appraisal results and further negotiate the final generated assessment based on the perceptions of the manager and the employee. It helps an individual to judge his or her own level of competencies against predetermined criteria (Prowse & Prowse, 2010). However, this process can be considered as immensely subjective as employees may give themselves extensively high or low ratings however the level of inconsistency between employee and supervisor or employer can be insightful.
- Psychological Ability- The newly developed method of evaluating employees’ intellectual aptitude, analytical skills, emotional and mental stability and other psychological traits can aid the organization in developing induction methods and further for positioning employees on suitable teams (Wickens et al., 2015).
- 360-degree feedback procedure-Another form of performance appraisal method is the 360- degree feedback process that aims to review a comprehensive understanding at the performance of the employer by extracting feedback from external sources (Crawford, LePine & Rich, 2010). Furthermore, 360 degree feedback evaluation can incorporate an assessment of the characteristic and leadership competencies of employees (Bracken & Rose, 2011).
360 degree feedback method varies significantly from the conventional method of performance evaluation systems as it aims to obtain a greater level of comprehensive feedback and review from several sources such as the ones positioned in managerial level, workplace peers, stakeholders, investors as well as supervisors (Crawford, LePine & Rich, 2010). It provides an immensely rounded appraisal of the performance and employee behaviour of the employees by further providing accurate insights and understanding while promoting certain areas for enhancement. 360 degree review methods provide beneficiary factors to leadership, team building and also develops the whole organization in an effective manner (Maxwell, 2011). This type of appraisal methods further provides the leaders and supervisors of the company with well-established knowledge and understanding of the organizational performance and gaps the company requires to fill. However, while implementing these review data in an appropriate manner, business enterprises can execute rapid actions by providing assistance to its employees for improvement and further instil better leadership skills into the employees and effective contributor to the organization (Crawford, LePine & Rich, 2010).
With the elevating rate of recognition of 360 degree feedback method, specialized survey software is designed and further developed by the psychological specialists to execute performance assessment in the business enterprise. Several companies like Tesco in UK or Woolworths, the leading Australian retail enterprise have been effectively using 360 degree feedback method to evaluate their business as well as employee performance (Bracken & Rose, 2011). Furthermore, it is essentially important for business enterprises to efficiently design and implement feedback questionnaire that incorporates open-ended questions in order to aid sincere feedbacks and reviews and must further incorporate close ended questions for generating quantitative ratings (Maxwell, 2011). Thus it can be stated that 360 degree feedback survey method can effectively be designed and customized by organizations who wish to utilize them. 360 degree feedback method is more of a reliable development and progress appraisal method which permits employees to gain the understanding about their strengths and weaknesses and further distinguish ways to approach them (Crawford, LePine & Rich, 2010). Furthermore, such performance appraisal methods aid organizations to promote effective induction for enhancing the needs and demands of employees.
Managing and assessing performance
Conclusion
Therefore, from the above discussion it can be stated that performance appraisal methods primarily facilitates business enterprises to develop the understanding of the competencies of the resources for prospective organizational growth and progress. The report has explicitly evaluated the role and importance of performance appraisal systems and the way it has been benefitting the workforce of the organizations. Furthermore, it has explained the three significant performance appraisal methods which modern organizations have been effectively using. Lastly, the paper has highlighted the importance of 360 degree feedback appraisal methods and the way it has been benefitting the organizations.
References
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