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The value of assessing performance
Employee evaluation and compensation
Employee evaluation and compensation
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INTRODUCTION
The purpose of this essay is to determine whether measuring employee performance is all pros and no cons. Performance appraisal is considered as an important management tool in many countries (Milliman, Nason, Zhu & Ciery, 2002). According to Kazan and Gumus (2013), “Kaplan and Norton (2001) define the performance assessment as "a planned tool which is integrating the success of individual at a given task, his attitude and behaviors at work, his moral conditions and characteristics, and assessing employee's contributions to the success of the organization".” In other words, employee’s weak and strong points, trainings needed, future predictions can be recognized by performance appraisal (Milliman et al., 2002). There are a lot of different performance measurement systems. Lam and Schaubroeck (1999) stated that there are traditional performance appraisal and a more current one called TQM (Total Quality Management). From traditional perspective, appraisal is measuring individual results rather than the overall system. It is assumed that individual is capable and responsible to influence the way things are done in a company. On the other hand, TQM stressed the importance of system rather than individuals.
Organizational Behavior Human Resource Management (OBHRM) especially employee performance measurement has been research accordingly to organizational psychology and human resource management principles.
MEASURING PERFORMANCES
The objectives of measuring performance of employees are to motivate employees, provide feedback, fairness in structure of organization and equal opportunities, support employees and help them to improve themselves (Griffith (2003); Key (2003) as cited in Kazan and Gumus (2013)). According to...
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...t be the same with employee cutbacks. Managers who make decision should discuss with managers who measure the employee performance. In addition, Zatzick, Zhao and Tingling (2014) also stated that managers that will decide which employee will be dismissed must also discuss with managers responsible for recruiting because “to avoid mistakes such as “last in, first out,” hiring managers are in the best position to know whether the most recent hires have the cutting-edge skills companies need most and therefore are the ones most difficult to replace.”
“Employees are more satisfied with a system in which the supervisors, in addition to evaluating their results, involve them in seeking improvements to the work process” (Lam and Schaubroeck, 1999).
CONCLUSION
To sum up, measuring employee performance is not always advantageous. As stated above, performance measurement
The performance assessment and appraisal forms are crucial within the performance management system (Aguinis, 2014). However, the appraisal form within the case study provided is designed for the supervisor’s use thus missing one vital factor throughout the entire process, employee participation. Thus, questioning the validity and reliability of the process. This is especially concerning as the bottom 10 per cent of employees are being fired and the top 20 per cent are being rewarded with $5,000.00 based on what their supervisor records on the form without consultation with employees. Thus, supervisors may not provide accurate scores as they do not have to justify their responses (Aguinis,
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
Effectiveness could then be evaluated as out-comes achieved by carrying out the specified behaviors of the job (Campbell, McCloy, Oppler, &Sager, 1993).The changing nature of work and organizations has challenged traditional views of individual work performance (Ilgen & Pulakos, 1999) Performance effectiveness is a measure of what employees do, how well they do it, and find ways to improving their performance.
Human Resources Management (HRM) have been increasing aware by Business Studies and Organisation Management approaches because it closely related to organisational daily and organisational performances (Kalleberg & Moody, 1994). Human resources practices are suggested have influences on improving organisational performances in most organisations. Basically, oorganisational performances refer to the outcomes of employees performances and daily working which reflect the ability of one organisation fulfil its objectives and goals, such as employee’s performances, productivities, employee’s job satisfaction, financial outcomes (Huselid, 1995).
Performance appraisal is perceived by most as a tool to reward or penalize employees for their good or bad work respectively by the end of a year. This notion is a challenge in itself to deal with. The whole exercise becomes dull for both supervisors and their subordinates and they tend to look at it as an additional responsibility which they have to finish. In the end, there is little or no value addition for either the employee or the organization. There are, however, better ways of looking at and conducting performance appraisals. It can give much needed feedback to both performers and laggards to improve upon and if done properly can even boost their motivation. More importantly, they provide a chance to employees to have a say in their goal setting and thus aligning it with the departmental and organizational goals. Also, the process itself has a value in team making.
‘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
Thereby, it is imperative to find out from our employees how do they feel and view the organization just as much as it is important to find out how the customers feel and view the organization. Furthermore, if organizations take into account what is meaningful to the employees such as their family, balancing personal and business activities, time, and their health and well-being it will help sustain more loyalty, longevity, and happiness which will bring forth better productivity and increased profits. Chip Conley’s ideas in this talk will definitely fit into the measurement aspects of a performance management system because he discusses and talks about some very valid points on measuring things that are of key and significant importance. The things he discussed are what brings value and loyalty into our organizations from our employees and customers. His points are valid and just because his talk centers around implementing aspects into the organizations that truly matter and count such as intangibles like family happiness, incentives, rewards, recognition, and overall
Throughout its short history, Organizational Theory has provided a way for management to measure and improve efficiency and production and effectively manage their workforce. Efficiency and employee satisfaction sometimes presents a dichotomy that is difficult to reconcile. To varying degrees of success, early Organizational Theorists generally focused on one aspect over another. Frederick W. Taylor took the first leap into measuring organizational achievement and, with technology, his Theory of Scientific Management has morphed into a more exacting approach to measurement. For ill or well and until a more comprehensive theory is found, organizations and scientists will continue to vacillate between efficiency and employee satisfaction to meet changing company values.
“A performance objective is a specific end result that contributes to the success of the unit or organization and that an employee is expected to accomplish or produce. It provide focus to an employee’s work to ensure that his or her actions are directed towards achieving important mission-related outcomes.” (Anon, 2009)
It is important to develop a methodology that carries feedback to all levels (employees, teams and departments). The communication of this feedback needs to be done at a regular basis and at a much more constructive manner. This helps the employee to measure the performance and adjusts where ever is necessary.
An organizational human resources department utilizes the hiring and firing process to meet the organization’s personnel needs. Organizational human resource departments are charged with the oversight of an organizations administration department. The practice of hiring and firing people is a process employer’s conducts on a daily basis. This process has to be done in a proper manner and not in haste. The implication that can occur from the improper hiring and firing process could and can have a positive or negative impact on an organization. Therefore, employers must carefully evaluate their decision to hire/fire individuals and its impact on the organizations’ workplace environment and others employees. Human Resource Management is important for an effective organization. In today’s organization, HRM is valuable to the organization because of increase legal complexities and its known for improvement in productivity. However, management should realize that poor human resource management could result in an outburst of hiring process followed by firing or layoffs. According to (Satterlee 2013, p. 194), “Hiring the best candidate who is also a good fit for the organization is crucial for the success of an organization, because a poor hiring decision will have repercussions across the entire organization”. Satterlee made a valid point because poor hiring could have an impact on the bottom line performance of the firm. In other words, HRM is the contributing factor to the success of the organization including motivating and maintain the staffs. The purpose to the motivation is to ensure that all employees grow to a full potential. According to (Sims 2006, p. 5), “HRM efforts are planned, systematic approaches to increasing organizati...
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
Organization is a group of people brought to gather to achieve specific goals. Goals can be achieved if team member are performing well. Performance is the results of activities given to the employees in an organization to be achieved within specific period of time. Evaluating the current performance of employees against past performances and organizational standards is known as Performance Appraisal (Dessler, 2005). Furthermore performance appraisal helps the company know how individual employees are performing and how to improve their performance thus improving the performance of the company (Grubb, 2007). A performance appraisal is propose in which the performance management system in an organizations set work goals, determine performance standards, provide performance feedback, determine training and development needs and distribute rewards as well as evaluating an employee’s job performance during a period of time. The performance of team member is much more than appraising individuals’ works, it is managing the business, so the performance of an employee is influences by the performance of an organization. It is target to achieve the best results for the planned strategic by managing activities of employees. There are many different opinions on the performance appraisals, some organizations do performance appraisals without any aim just follow others., where some organizations do performance appraisals to make sure they have a record of a piece of paper in the employee’s file – they are careless about do corrective action. But successful organizations understand the importance of combining performance appraisals into their performance management process and strategy plan as the success of any organizatio...
Performance management forms a bridge that connects between the employees and the organization. Organization considered performance management as insurance for the both company that employees will attempt to give their best performance at the work site. In return, the organization will fill their obligation to the employees by providing all the necessary tools, resources, training materials, feedback, motivation, appraisals, and rewards systems to assist the employees with being fully successful. Kazlauskaite, Buciuniene, & Turauskas (2012), indicated, “Organizations empowerment was positively related to job satisfaction, and affective commitment” (p.138).