Assignment 2
Introduction
Employee performance is the job related activities expected of a worker and how well those activities were carried out. (Johnsen, 2000)
Measurement involves ascertaining the size, amount, or degree of something by using an instrument or device. (Euske et al., 1993)
Therefore it can be concluded that employee performance measurement is how organizations, public and private, measure the quality of their activities and services. It involves the regular collection of data to assess whether the correct processes are being performed and desired results are being achieved.
The idea of performance
Performance measurement is usually used in corporate settings but can also be used in other environments. The idea is to cause an atmosphere of continuous improvement by setting goals and making plans to achieve success. (Kaplan and Norton, 1992, p.71) The process is to identify performance inadequacies, give feedback about those problems, take action to behave differently and measure the success of changed behaviors. Optimal performance is the main goal. (Powell, 2004)
Determining what you want to measure in your company before embarking on the task of setting performance targets is very important. Focusing on a section or department of your business makes the task more manageable. (Ghalayini et al., 1997) But if it's decided to enlist the entire operation, it's important to ask each department manager to write performance targets for their work group and then combine the indicators to find the most important for your business. Once established, the goals can be explained to the employees, how they will be affected and the role of each of them in meeting the targets.
Performance measurement, a good measurement?
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Stephenson, B. (2003) “Civil Service Reform in the UK” No. 2, [www], http://www.spa.msu.ru/e- journal/2/31_2.php. (Accessed 27 April 14).
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Herpen, M. V., Praag, M. V. and Cools, K. (2003) “The Effects of Performance Measurement and Compensation on Motivation”, Tinbergen Institute, Discussion Paper, No. 048/3.
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Neely, A., Mills, J.F., Gregory, M. J. and Platts, K (1995) “Performance measurement design – a literature review and research agenda” International Journal of Operations and Production Management,
Melnyk, S., Stewart, D., & Swink, M. (2004). Metrics and performance measurement in operations management; Dealing with the metrics maze. Journal of Operations Mangement, Retrieved 2 May 2011. http://mldc.whs.mil/download/documents/Readings/metrics%20maze.pdf
Managers can determine individual performance and evaluate the productivity of employees (Bohlander and Snell, 2010). Moreover, the managers can optimize productivity in their organizations through performance management process. To determine the effectiveness of the performance process, it has to meet the following requirements.
Life is all about setting goals and trying to achieve them. The same theory also applies in the managerial industry. The accomplishment of desired results in a business is called performance. One of the major concerns of the top managers of a firm is the actual performance of the firm so its measurement is unavoidable.
There is an array of key components and factors involved in making an organization a successful business. One of those elements consists on evaluating employee’s performance; this sole component is critical in determining how effective is the organization’s productivity and which are the necessary steps to ensure proper functioning. “The performance appraisal may be one of the few times during the year where an employee and the reviewer, typically the employee's supervisor, can sit down and have a lengthy face-to-face discussion about all aspects of the job” (Joseph, 2016). Employees’ performance assessment serves as an instrument to gather important information as to which areas of the job description are being performed according to standards
Tapinos, E., Dyson, R.G. & Meadows, M. (2005). The impact of performance measurement in strategic planning. International Journal of Productivity and Performance Management, 54(5/6), 370-384.
Performance management is a process that guarantees an organisation and all of its available resources are working collectively and effectively towards achieving the organisation’s mission or goal. Performance management affords an understanding of what drives an individuals, and even organisations, performance at all levels. An understanding of performance management allows for the identification and minimisation of unproductive areas of an organisation, as well as an ability to predict future performance. It is a powerful tool that can be used by managers at all levels of an organisation to help improve a company’s productivity.
When implementing a new performance management system in an organization there are both advantages and disadvantages that need to be taken into consideration by the design team. However, one of the best ways to know if a performance management system is effective is by implementing the system within the organization and then continuously monitor and reevaluate if the system is still relevant to the organizational
Performance management is a management tool used to value, monitor and measure a company’s strategies that ensure the efficiency and effectiveness of its product delivery. This management tool does not focus on the organisation and on its employees as well as stakeholders. It is a continuous process that entails that managers make sure that organisational and employee values are corresponding (Aguinis, 2005,p.1/2-1/5). Performance Management brings about the competencies in the employees, increases self-esteem by giving feedback to employees, there is a low number of lawsuits because it helps understand the company better (eThekwini Municipality, 2008,p.10-11). According to Pride, Hughes and Kapoor (2011, p.288) performance management creates motivation for employees; one theory of motivation is of Expectancy, which stipulates that employees satisfaction is driven by expectations of what an organisation will offer in return.
Employee performance defines the individual performance and behavior. It is essential to understand that performance is not merely a tasks and work need to be done to receive bonus or pay increase. Main objective is to enhance the skills set of an individual while helping the business performance (Baker, 1999).
Performance management is a great tool for both the employee as well as the organization. For the employee, it gives the employee a clear picture of his areas of improvement and helps him improve and grow. From the organization’s perspective, it lets them understand the potential they have in their employees and how to realize them. It helps them to analyze who are worthy of being held onto and whom to let go so that the organization grows. In all, an effective tool, if used in the correct manner by all the parties involved.
‘If you can’t measure it, you can’t management it’, [Dan vesset and Brian, M. 2009]. Performance management is concerned with the measurement of results and with studying progress to achieving objectives base on the results. Managing performance can tell you what you’re doing well in, and also reveal areas where you need to make adjustments. Measuring performance tells you how far you’ve gone achieving your ultimate
There are several reasons organizations initiate performance evaluations, however the standard purpose for performance evaluations is to discuss performance expectations; not only from the employers perspective but to engage in a formal collaboration where the employee and the manager are both able to provide feedback in a formal discourse. There are many different processes an organization should follow when developing its performance evaluation tool; in addition essential characteristics that must accompany an effective performance appraisal process. I will discuss in detail the intent of a performance evaluation, the process an organization should follow in using its performance evaluation tool, along with the characteristics of an effective
Performance Management is a critical component to organizational success. However, creating, developing, and maintaining a system that captures all the characteristics of an ideal performance management system should involve an ongoing collaboration between leadership and employees to achieve a successful outcome. After all, the performance and success of the organization is dependent upon the employees. Therefore, performance management should incorporate organizational goals, employee goals, and continuous feedback that reflect individual’s contribution (NorthCoast 99, 2012).
Performance management is a continuous process that creates a working culture to encourage employees to improve their work performance and reach their full potential during their stay of employment. Performance Management also provides strategic direction, develop competency in employees and instill organization value. This paper will identify methods and affects that performance management plan has on the organization and their employees.
performance appraisals and broader performance management interventions. Since the 1970s, goal-setting has been used as the core of management by objectives (MBO) programs. In the last two decades, many programs and systems similar to MBO have been developed and proven their effectiveness through the productivity measurement and enhancement system or programs based on the balanced scorecard approach. [2]