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Reward systems for organizations
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Performance Management
Part I
An effective and efficient performance management process requires the supervisor of any organization to master the procedure and apply it without fail. The supervisors have to remain competent in following the routine of the performance plan. Thus, to maintain a constant follow up of the procedure, the supervisor should understand the practices that involve performance management. Performance management process includes designing the expectations of employees, monitoring the progress of personnel, developing the capacity to improve performance at work, rating performance and reward good accomplishment of set expectations (Fischer and Wermers, 2013).
In planning, the supervisor will meet with all employees in an organization to discuss the expectations or performance goals. Targets set should align to the strategic and operational procedures of the organization (Tapamoy, 2008). Also, the supervisor should discuss the set goals with the employees and
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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.
The first requirement is that the employee’s actions should align with the business objectives. This is the first step in the performance process above where the expectations of the employees are discussed and set following organization goals. Secondly, the performance of employees should be documented for future use in determining compensations and areas where corrections are required (Holpp, 2012). This is also met in the second step where the supervisor will monitor employee progress and store reports in the organization's
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.
Marks and Spencer's Definition of Performance Management Performance management provides Marks and Spencers with needed information on their employees. The information helps Marks and Spencers develop the skills of the employees based on the information collected at the appraisal, it helps recognise when training is needed. Performance management helps M&S by improving their service by having able workers that work to their full abilityand by improving the relationship between workers and the company. Here is Marks and Spencer's definition of performance management: Performance management is a joint process that involves both the supervisor and the employee, who identify common goals, which are linked to the goals of the organisation. This process results with the establishment of written performance exceptions later used as measures for feed back and performance evaluation.’
Describe the performance management system that is currently in place. Explain the formal performance feedback process.
Contemporary, performance management rapidly become one of the most praised and most criticised human resources functions in organisations. According to a definition provided by Hutchinson (2013), performance management is a holistic work system which apply to process and contributes an effective management of individuals and business teams, it enabled business to plan, communicate, and achieve high level of organisational performance (Hutchinson, 2013). In particular, learning and develop every activity of the organisation and employee management including human resource, policies, culture, style and communications systems. The objective setting and performance appraisal are seem to be the heart of the approach (Greene, 2011). However, majority organisations tend to be failed by fairness and standardisation
In conclusion, each segment of the performance management process holds a vital link to the next. Not unlike knocking over one domino in a series, it has an effect on the next domino. If one portion in the process is dysfunctional, the next may be identical in its dysfunction – and on and on.
Nankervis, R. A., & Compton, R. L. (2006) ‘Performance management: theory in practice?’, Asia Pacific Journal of Human Resources, 44 (1), pp. 83–101.[Online]. Available from: http://apj.sagepub.com/content/44/1/83. (Accessed: 5 August 2010).
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.
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.
This is because a “full understanding of job performance depends on having some understanding of the organizational goals to which the individual is supposed to contribute” (Campbell et al., 1993). Therefore, it is important for individual goals to be in congruence with the higher goals of the organization, and line up with its strategic guidance and long-term vision. For instance, their objectives might be the increase in profits, the increase in productivity or the improvement of the quality of products, customer satisfaction, employee’s skills etc. Consequently, it is possible to establish individual objectives and the expected results of an employee in the course of their next evaluation period. By transposing higher goals into the form of concrete actions, these actions will lead to the success of the organization. These concrete actions should then be discussed between the employee and his manager to develop a plan of action that will serve as a reference throughout their work. In this perspective, performance evaluations are the key to ensure the quality and survival of the organization. As stated by many personnel managers, “measuring and evaluating is to progress”. Thus, almost all managers and human resources specialists agree on the need to assess the individual performance in order to become productive. This practice is a powerful tool to mobilize, retain and motivate
Hence, the feedback given by the managers to the employees need to be related with those goals. This means that the managers need to tell precisely to the employees that either they are achieving the established employee performance expectations and goals or not. Timing is also an important factor in order to have an effective performance feedback. Employees deserve to receive information about their performance as timely as possible. If improvements needed, they deserve to know it earlier hence they could improve themselves in to achieve the target. The most important value in giving performance feedback is manner. The managers need to give the feedback to the employees in a manner that will best help improve performance since human responds well to the information presented in a positive way. Thus, with these three factors in focus, an effective performance feedback can be obtained which can be designed into a performance management process. Through this initiative, employee and team performance will be increases and lead to an effective
Employee performance management is the process for establishing a shared workplace understanding of what is to be achieved at an organisational level. Employee Performance Measurement is the actual measurement of the performance of an individual or a group. It consists of Performance measurement and Performance appraisal which is the process by which an employee is evaluated by his/her work behaviours by measurement and comparison with previous established standards, documented results, and communication of results with employee.[1] An organisation’s performance management system plays an important role in determining the overall effectiveness of the workplace. The key elements of an effective performance management system consists of the timing and frequency of evaluations, determination of who appraises whom, measurement procedures, storage & distribution of information, and recording materials.[1] Performance measurement have been around for many years, and has been an essential part of an organization to determine the amount of wage an employee receives according to their work performance. It was used to drive specific behaviours from employees to obtain specific outcomes for the organisation.[2] So what would we do with the results from measuring employee performance? What does the organisation benefit from this? What is the sole purpose? Managers of organisations use this information to evaluate, control, budget, motivate, promote, celebrate, learn and improve. However the ultimate purpose, in which the above elem...
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 defined as “a process for establishing a shared understanding about what is to be achieved, and how it is to be achieved; an approach to managing people which increases the probability of achieving job-related success” (Weiss and Hartle 1997).
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 management sets expectations for employee performance and motivates employees to work hard in ways that is expected by the organization. Moreover, performance management system provides a completed and professional management process for organizations to assess the performance results of organization sand employees. Employee performance could be expected, assessed and encouraged. Macky and Johnson pressed that the importance of performance management system is on continuously improving organizational performance, and this is achieved by improved individual employee performance. Therefore, improving employee performance by using performance management system is a way to improve organizational performance. Hence this study investigates the employee performance management system in software companies.