The Importance of Employee Performance in Modern Business
Employee performance has gained unprecedented prominence within the mould of the modern business world and it is seen that the diverse organizations utilize different strategies like total quality management, motivation and others for the enhancement of the same (Anitha 2014). Shields et al. (2015) hold the viewpoint that employee performance is important because of the fact that the sum total performance of a business enterprise is directly correlated with the aspect of the individual performance of all the employees of the organization. More importantly, Mone and London (2018) are of the viewpoint that with the increasing focus of the diverse organizations on the aspect of profitability and the net revenue generated by them this notion has become important. However, at the same time, it needs to be said that the concept of employee performance cannot be quantified just like the other aspects or the entities of an organization (Hodge 2018). There are various factors which determine the performance level of an individual like the kind of job role that they are performing, the kind of training which has been provided to them, the leadership style of the organization, organizational culture and others (Anitha 2014). In this light performance review gains special prominence and various arguments have been made for and against it. This reflective essay will discuss about performance reviews and the effect that they have on the organizations in the specific light of the arguments raised by Deming in his book “Out of the Crisis”.
The aspect of performance review is important within the context of the modern day business world because of the fact that it is directly related to the aspect of the individual performance of the employees (DeNisi and Smith 2014). Laforet (2016) is of the opinion that the construct of performance review helps the organizations to quantify the performance of the individual employees of their organization and measure it. I believe that this is important from the perspective of the organizations since apart from the financial report and other measures it gives an idea to the organization whether they are making progress or not. Furthermore, this at the same time provides them the opportunity to improve on the aspects on which the employees are not performing on par with the expectations of the organization (Adler et al. 2016). However, Van Dooren, Bouckaert and Halligan (2015) are of the opinion that the various performance reviews only take into effective consideration the data or the net performance of the employees and often fail to take into effective consideration the contributions that the employees have made towards the organization. I also believe that the organizations need to take into effective consideration the effort that an employee has made towards the improvement of the performance of his or her colleagues.
Performance Reviews and their Role in Measuring Employee Performance
Buchanan and McCalman (2018) have stated that the performance reviews are not taken in the right light by the various individuals and as a matter of fact it is often seen as a criticism of the work that they have done. I personally believe that the employees need to take the performance reviews which are being provided to them as a kind of positive criticism and also to work on the feedback that has been provided to them through the review in the right light so that they can further improve their performance. It is pertinent to note that in the latter part of the 20th century various kinds of researches have done on the concept of performance reviews and I personally believe that one of the most important works which has been done on the topic under discussion here was by W. Edwards Deming. In his famous work “Out of the Crisis” published in the year 1982 he argues that “Performance review nourishes short-term performance, annihilates long-term planning, builds fear, demolishes teamwork, and nourishes rivalry and politics” (Deming 2018). Furthermore, I found that the book can also be seen as a groundwork wherein he states the manner in which the organizations need to integrate the social as well as the economic factors to improve their performance. In addition to these, the book also lays bare the benefits as well as disadvantages of the use of the process of performance reviews.
I found that the ground breaking book of Deming clearly indicates the pitfalls of the use of the construct of performance reviews. The primary focus of Deming in the book under discussion here is on the long-term as well as short-term benefits of the effective usage of the construct of performance reviews (Deming 2018). Bradler et al. (2016) have stated that the construct of performance reviews to be a beneficial one and are of the viewpoint that the effective utilization of this particular construct not only helps the organizations to measure as well as the analyze the performance of the employees but also to improve the same. However, Deming (2018) is of the viewpoint that the long term usage of the construct of performance reviews can have disastrous results for an organization. For example, I found that the book states that the construct of performance reviews if utilized on a short-term basis can not only help the organization to improve the performance level of the individual employees of the organization but at the same time can help the concerned organization in a significant manner to attain a higher rate of growth as well. It is seen that the various business enterprises of the present times like Starbucks, Woolworths Limited, Wesfarmers and others are taking the help of the construct of performance review on a short time basis to improve the performance of the employees in a substantial manner (Kearney 2018). I believe that the effective usage of this particular construct is one of the major reasons for the unprecedented success that these organizations have been able to attain within a very short time.
Arguments Against Performance Reviews
The benefits of the effective usage of the construct of performance review, notwithstanding, Deming points out the various negative aspects of the long-term usage of the same(Deming 2018). In the book under discussion here, I found that Deming explicitly states that the long-term usage of the construct of performance reviews not only takes a toll on the culture which is being followed within a particular organization but at the same time affects the structure of the organization as well. For example, it is seen that the employees take the various performance reviews in a personal manner and this takes a toll on their productivity (Khanna and Sharma 2014). Furthermore, I believe that the construct of performance reviews is being used as a means of motivating the employees of the organization. For example, it is seen that if a particular employee has got a good performance review then this actually motivates him or her to perform in a much better manner (Khanna and Sharma 2014). However, at the same time, it is seen that if an employee has not got a positive performance review or is not performing as per the expectations of the organization then by looking at the appreciation or the benefits which are being given to the employees who are performing as per the expectations of the company they feel motivated to perform in a better manner (Buckingham and Goodall 2015). Thus, I would say that the tool of performance review if utilized in an effective manner can really contribute in a significant manner towards the growth of the organization. However, at the same time it is seen that the long-term use of this particular construct can even destroy the culture of the organization as well.
Adler et al. (2016) hold the viewpoint that the culture which is being followed within the mould of an organization directly affects the performance level of the employees. However, I am of the viewpoint that excessive focus on the aspect of employee performance can affect the culture of an organization in an adverse manner and this can take a toll on the overall productivity of an enterprise in the longer run. For example, it is seen that too much focus on the factor of employee productivity leads to the creation of a competitive culture within an organization where the internal competition among the employees is very high (Bradler et al. 2016). This not only affects the engagement level of the employees but also their ability to work in a collective as well as synchronous manner. I personally believe that the overall productivity of an organization not only depends on the individual performance of the employees of the organization but also on the ability of the employees to work in a cumulative as well as synchronous manner. However, with the long-term use of the construct of performance reviews and also reliance on the entity of performance review can hinder the future prospects of an organization in a substantial manner by adversely affecting its organizational culture (Shields et al. 2015). Furthermore, this not only gives rise to unnecessary rivalry among the employees of the organization but also it is seen that the employees end up taking the help of politics and perform unnecessary planning and plotting to gain a leverage over the other employees.
The Benefits and Pitfalls of Performance Reviews
Recent researches have shown that the long-term usage of the concept of performance reviews by adversely affecting the culture of the organization affects the structure of the concerned organization in an adverse manner as well (Hodge 2018). For example, the sole reliance on the concept of performance makes the individual’s focus on the quantification of their performance and they stop contributing towards the growth of the organization in an effective manner (Buchanan and McCalman 2018). I believe that it is the job role of a tenured employee to help the new employees or the employees who are not being able to perform on par with the expectation of the company to help them to perform in a better manner. However, with the sole focus on the quantification of performance the employees lose their inherent desire to help others and thereby contribute in a positive manner towards the growth of the organization and focus solely on their individual performance (Khanna and Sharma 2014). The net result of this particular aspect is that the employees fail to work in an effective manner as per the needs of the team and the organization that they are working for and this can have disastrous results for the organization in the longer run.
I would like to say that the construct of performance review as per Deming and the research works conducted by the other scholars has proved to a beneficial one for the various organizations if used in an effective manner on a short-term basis. Thus, the organizations need to use the construct of performance review in an effective manner so that they are being able to reap the benefits of the effective usage of this particular construct while mitigating the adverse effects of the same. It is precisely here that the book of Deming “Out of the Crisis” gains prominence since in this book he suggests the manner in which the various organizations need to use this construct. He says in the book “Long-term commitment to new learning and new philosophy is required of any management that seeks transformation. The timid and the fainthearted, and the people that expect quick results, are doomed to disappointment” (Deming 2018). Thus, it can be said that the focus of the organizations should be on the aspect of learning and satisfying the needs of the employees rather than solely on the entity of performance. The human resource management team of the organization needs to not only provides the required training to the employees but also to motivate them so that they are being able to perform in a better manner (Khanna and Sharma 2014).
To conclude, the construct of performance review has emerged as one of the most important ones within the mould of the business world of the present times by virtue of its association with the concept of employee performance. The effective usage of this particular construct no doubt provides various benefits to the organizations and often helps them to motivate the employees to enhance the level of their job products. However, at the same time, it is seen that the long-term usage of this particular construct can have disastrous results for the organizations and rather than providing benefits to the organizations often becomes the reason for their failure. Thus, it can be said that the organizations need to use the construct of performance review in an effect manner so as to mitigate the negative effects and take advantage of its positive aspects.
References
Adler, S., Campion, M., Colquitt, A., Grubb, A., Murphy, K., Ollander-Krane, R. and Pulakos, E.D., 2016. Getting rid of performance ratings: Genius or folly? A debate. Industrial and Organizational Psychology, 9(2), pp.219-252.
Anitha, J., 2014. Determinants of employee engagement and their impact on employee performance. International journal of productivity and performance management, 63(3), p.308.
Bradler, C., Dur, R., Neckermann, S. and Non, A., 2016. Employee recognition and performance: A field experiment. Management Science, 62(11), pp.3085-3099.
Buchanan, D.A. and McCalman, J., 2018. High performance work systems: The digital experience. Routledge.
Buckingham, M. and Goodall, A., 2015. Reinventing performance management. Harvard Business Review, 93(4), pp.40-50.
Deming, W.E., 2018. Out of the Crisis. MIT press.
DeNisi, A. and Smith, C.E., 2014. Performance appraisal, performance management, and firm-level performance: A review, a proposed model, and new directions for future research. The Academy of Management Annals, 8(1), pp.127-179.
Hodge, G., 2018. Privatization: An international review of performance. Routledge.
Kearney, R., 2018. Public sector performance: management, motivation, and measurement. Routledge.
Khanna, M. and Sharma, R.K., 2014. Employees performance appraisal and its techniques: a review. Asian Journal of Advanced Basic Sciences, 2(2), pp.51-58.
Laforet, S., 2016. Effects of organisational culture on organisational innovation performance in family firms. Journal of Small Business and Enterprise Development, 23(2), pp.379-407.
Mone, E.M. and London, M., 2018. Employee engagement through effective performance management: A practical guide for managers. Routledge.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., O’Leary, P., Robinson, J. and Plimmer, G., 2015. Managing employee performance & reward: Concepts, practices, strategies. Cambridge University Press.
Van Dooren, W., Bouckaert, G. and Halligan, J., 2015. Performance management in the public sector. Routledge.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
