Purpose of Performance Management
Discuss about the Strategies For Development Of Performance Review.
Definition:
The performance review is a discussion about the employee’s working behaviour and development skills in the organization. As the name suggested the performance review gives a review about the performance held by the worker in the organization that might include the good and bad aspect of the worker in the organization. It includes appraisal, evaluation, remarks and development discussion about the worker in the organization. The employee performance review is a combination of written and verbal evaluation to the worker including the behaviour and development changes that has been seen in the worker from the last time performance review report to the present time review (Buckingham and Goodall 2015). The review includes ratings of the employees that will help the employees to earn more incentives and salary in the workplace. It includes a formal discussion about the employee and their development scopes, performance standard of the employee. The job performance is the testing of the employee whether they are performing as per the company requirements and whether they are meeting the company goal or not (Podgórski 2015). It is based on every individual performance and has to be discussed with the employee at the end of the term or on the meeting of the company.
The main purpose of the performance management is to create an awareness among the workers and the other people in the organization, informing them about their working condition, failures and success and scope for future prosper. It reminds the workers about their scope to develop their skills in the work place and how they can improve their production or service in the organization (Decramer, Smolders and Vanderstraeten 2013). The review also guides the workers to lead to the desired goal in an easy manner. The experts who has already gained much experience about the job role might help the workers by analysing their review result to achieve the desired goal and also to perform better in the future days.
How to prepare the performance appraisal:
- The information’s are gathered
- Reviewing the performance journals
- Preparing list
- Completing self-evaluation
- Preparing a list for highlighting the development areas
- Preparing a draft that planning the next plans
- Sharing the plan with the managers
The principle of performance review is to note down the behaviour, achievement, failure and success of a worker in an organization (Van Dooren, Bouckaert and Halligan 2015). It targets to highlights and discuss about the performance skills and development of the employee in the organization. The process includes the following steps:
- Evaluating the performance of the workers skills
- Getting a clear visibility and clarification related to the performance of the employee
- Creating documentation for improvement, legal purpose, decision making and supporting, reducing the disputes
- Focusing for skill development and improvement in the organization
- Distinguishing between the behaviours that are good and bad for the organization.
- It includes a regular deliver of feedback
- Setting clear performance expectation
- Providing appropriate learning and development chances
- Identifying the organizational career line for the workers
- Limited important feedback:
Sometimes the feedback is irrelevant and meaningless. The employees must have been performing well but due to some technical error or report on previous behaviour has resulted to a negative review. This often demoralizes the workers and they lack the interest from working efficiently from the worker (Laudon and Laudon 2016). The employees do not want to know what the company had thought about the worker a year back or six months back. They prefer to be judged on the basis of their present work and behaviour in the company. If the workers are not appreciated on the basis of their contribution to the company then they get demotivated and there are chances that they might leave the company (Fathabadi 2014). Thus the company must evolve their review from every year and should not judge any one on the basis of their previous performance.
- Generic feedback
How to Prepare the Performance Appraisal
There are many companies that uses the scoring system to judge the workers. However this might have a negative impact on the workers who might not prefer to be marked on the numbering basis. This might hurt the employee ego. Thus they should not be marked by numbers on the basis of their skills or working system. No one would prefer to be marked on the basis of numbering from one to five. Thus the company’s should remove such marking system and use other feedback systems to evaluate the performance of the workers (De Waal 2013).
- Meaningless goals
It is pointless to encourage the worker to set goal by using the review strategy as it would make no sense to motivate the workers to meet their goal once a year. Instead they can be encouraged to meet their goal on a daily basis. The regular try will be more effective instead of calling for a review meet and discussing about the drawbacks and targets of the workers. the workers need updated, meaningful, clear objective to improve their performance skills. The strategy of setting the goal once a year will not succeed as it is pointless to remind them only once a year about the target and let it be for the rest of the years (Guerrero, Maas and Hogland 2013). The main issues regarding this system is that the review report is set only once a year. The targets and goals are also set to the workers once a year. However, along with the change I environment and change the demand for the service or production might also change. But if the company and if workers still work on the basis of the targets set on the review date and does not change with the market demand then automatically the demand for the product and service will be decreased and the company will face loss (Galliers and Leidner, 2014). Thus the company should not set their goal in such meets instead they can meet on regular basis and discuss about the revised target of the company.
- Lack of communication
The performance meet might be help by the officials asking for reasons from the workers in get-together and meetings where the workers might not feel comfortable to share their problems with the officials. However, the company must get a chance to know about the reason for a drop in production and behaviour of the employees. The employees should also get chance to communicate properly about their grievance or reason for fall in the production or behaviour (Van Dooren, Bouckaert and Halligan 2015). Thus the company should organize for one to one session with the workers to enquire about the reason for their miss behaviour or fall in the production. They can organize for special conduct with the workers and ask them for a reason for their change in work pattern or behaviour.
- Lack of purpose and clarity
Performance Review Principle and Processes
One of the main reason for the failure of the review approach was that the people did not understand the point of them. It is often seen that the companies lack the proper conversation skill and are unable to make the workers understand about the target of the company. The company must make sure that their message is conveyed to the workers effectively so that they understand to need to meet the target of take the measures that is required by them. The company should also maintain a clear communication system with the employees. It is not necessary that the conversation has to be help by conducting a report review they can also target for one to one meet or normal meetings where the company is able to clearly explain them about the requirement from the workers and thus improve the condition of the company. Instead the companies are arranging for review meet that is becoming a complete failure as they are only highlighting the failures of the workers and not suggesting those measures to come out of it (Laudon and Laudon 2016). The workers are getting demotivated by this process. This method is actually leading to a downfall in the employee management and the employees are leaving the company due to this behaviour from the companies’ side. The meetings include an open insult or complain about the workers that can be really embarrassing and humiliating for the workers. Instead of encouraging the workers to perform better and explaining them about the reason for development and meeting the target the company is demotivating them and discouraging them. This can be real threat to the company as the workers might leave the company or work with a very less interest in the company.
- Irrelevant information
Sometimes it is seen that the information shared about the workers are not relevant or the higher officials have purposely stated a negative remark about the worker just for some personal problems. The workers might feel discouraged and leave the job.
- Linking the performance management to goals that support the strategic plan
The companies are rating their workers on the basis of their punctuality, dress code, behaviour with co-workers. This should be changed and they should be rated on accordance to their strategic thinking, skills, dedication, customer service etc. The work efficiency can be judged accurately only by considering these strategies and not he irrelevant and mundane issues like dressing and punctuality.
- Defining the rating scale
The performance scale should be measured not only by numbering but with the labelling in the marks. This will increase interest in the workers and they will get an idea about the marks and standards they are getting in their work area and thus they can make the necessary changes.
- Align with the organizational goals
Reasons for the Failure of the Annual Performance Review Failure
The organization will move towards the desired direction if they are aligning the tools like performance review with the organizational goals. The HR can help the manager to develop the performance management skills and improve the condition of the organization.
- Effectively engage
The organizational appraisal increases the interest of the workers and enhances the scope for them to work efficiently. This also supports the employee engagement and in turn engage workforce gives a positive impact to the company and the work area.
- Be practical
The practical system and process that includes the training of the workers reduces the chances for litigation. This would reduce the cost of the company where as they might had to pay a huge cost for terminating the employee due to mishandling.
Conclusion and recommendation:
The study can be concluded with the thought that performance management on a general basis can be a risk to the organization. Whereas if the company is maintaining the strategies in a well skilled manner then they would succeed in the though process. The companies can use few steps that would improve the performance review system of the company. The review can be presented in a unique way so that the company is benefitted from the steps. The steps can be:
The company can use the vital project or competency achievement to managers who does not know the employee and they can judge the worker with a neutral thought. A self-review also provides the workers to understand the areas that they must improve. The manager and the workers must provide valid and justified example while giving their reviews about anyone in the organization. This will help the organization to judge the reality of the review and there will be no biased result in the organization. The managers and the workers must be provide with proper trainings to understand the performance management process. The managers should be specially trained how to conduct effective review. There should be a continuous learning process in the company. Thus the workers will get a chance to review their learning areas when their flaws and areas to be developed will be mentioned in the performance management system. The manager should focus on skills like on which the workers can develop.
References:
Buckingham, M. and Goodall, A., 2015. Reinventing performance management. Harvard Business Review, 93(4), pp.40-50.
Podgórski, D., 2015. Measuring operational performance of OSH management system–A demonstration of AHP-based selection of leading key performance indicators. Safety science, 73, pp.146-166.
Decramer, A., Smolders, C. and Vanderstraeten, A., 2013. Employee performance management culture and system features in higher education: relationship with employee performance management satisfaction. The International Journal of Human Resource Management, 24(2), pp.352-371.
Van Dooren, W., Bouckaert, G. and Halligan, J., 2015. Performance management in the public sector. Routledge.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.
Fathabadi, H., 2014. High thermal performance lithium-ion battery pack including hybrid active–passive thermal management system for using in hybrid/electric vehicles. Energy, 70, pp.529-538.
De Waal, A., 2013. Strategic Performance Management: A managerial and behavioral approach. Palgrave Macmillan.
Heras?Saizarbitoria, I. and Boiral, O., 2013. ISO 9001 and ISO 14001: towards a research agenda on management system standards. International Journal of Management Reviews, 15(1), pp.47-65.
Guerrero, L.A., Maas, G. and Hogland, W., 2013. Solid waste management challenges for cities in developing countries. Waste management, 33(1), pp.220-232.
Galliers, R.D. and Leidner, D.E. eds., 2014. Strategic information management: challenges and strategies in managing information systems. Routledge.
Van Dooren, W., Bouckaert, G. and Halligan, J., 2015. Performance management in the public sector. Routledge.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.
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