"Measuring employee performance is widely used in management practice, but is performance measurement all pros and no cons? Discuss both the benefits and the possible downside of employee performance measurement."
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...
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...n future discussions to achieve better outcomes. By conducting more frequent performance reviews, it increases the probability that objectives are relevant and can be improved during these reviews, hence visibility of problems increases dramatically and more focus and attention can be acted upon towards them. Employees will experience a real personal development and become more engaged with the organisation and start to feel that they are interdependent with the organisation. In return, employees will recognise real planning and set meaningful objectives that will benefit both them and the company. This relates to the Expectancy and Equity theories that were mentioned above. Goal-setting motivates employees with real targets and objectives and they will recognise that their input-to-outcome ratios of the objectives will surely be rewarding for organisation and them.
In addition to feedback, goals have been found to be more effective when they are tied to employee evaluations. The results of employee evaluations typically carry great weight when it comes to raises, bonuses, and potential advancement. Tying these types of rewards to successful goal completion also improves performance and increases goal commitment among employees (House, 1971). Incorporating deadlines to specific goals is also attributed to elevated performance levels. The motivation levels of the employee increase to meet goals within set deadlines and receive positive feedback (Lunenburg, 2011). As organizations focus on employee satisfaction and motivation, goal setting will remain an important aspect of management practices. In today’s economy, organizations are competing for top talent and ensuring employee satisfaction among job tasks is an important piece of talent retention.
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
Performance management aims to manage and improve individual performance with a vision to improving performance across the entire business. [Walter. M, 1995] defines performance management as the process of ‘Directing and supporting employees to work as effectively and efficiently as possible in line with the needs of the organisation’. It is very important to direct and support employees to work efficiently, and this can only be successful if a well-structured performance management system is put in place. But, nonetheless some organisations don’t get it
Performance reviews have historically helped companies learn about their staff. They discovered which members of their staff employees were doing their job and which were not. In the past, one-sided evaluations were not really designed to help employees learn how to improve their performance or reach their goals. Instead, companies benefit from them rather than employees. Fortunately, all that is changing.
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.
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 measures have been a widely accepted managerial practice that has become a central and indispensible part of human resources management for many organisations, (Cole 2010). The overall goal of performance measurement is to ensure that all of the subsystems within the entity are working to optimum efficiency to achieve the goals outlined by the organisation (Castka, Bamher & Sharp 2003). Performance measures have been widely implemented and there is a commonly held belief amongst organisations that view performance measurement as an accurate and efficient way of linking rewards to organizationally desirable values. Additionally there is a perception amongst organisations that see performance measurement as an effective way of increasing efficiency and the human capital of the entity, (Cravens 2010). For this reason interest surrounding the use of performance measures has increased considerably over recent years and research has revealed that while measuring performance accurately, is vital and has played its part in the success of many organisations, it also suffers form significant drawbacks. These drawbacks include the biased nature of obtaining the data, reducing employee motivation and creating a stressful work environment where employees are driven to fulfill only qualitative goals.
Our book defines performing management as what leader do. It is the systematic integration of inorganization’s efforts to achieve its objectives. (Shafritz, 298). In other words, Performance management is an approach to measure and judge the performance of employees in any organization. performance management concept is used to measure both individual and group performance. The importance of performance management for any business is that it will help in monitoring the employees and also helps in improving their efficiency at work. It fills the gap between incapability of employees at work place and expected outcome from those employees. An organization with effective performance management will gain more employee satisfaction and growth.
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 management: changing behavior that drives organizational effectiveness (4th ed.). Atlanta, GA: Performance Management Publications. Larry L. Axline., (1996). The ethics of performance appraisal.
Finally, the timing of appraisals could be rectified by implementing quarterly performance appraisal instead of annual ones. Having managers meet with employees more frequently may enhance individual performance by giving employees the feedback they need to improve. Also, increased appraisal may result in more accurate evaluations because it is easier to recall specific performance indicators after 3 months versus after 12
...organizational annual pay and grading reviews, Performance appraisals generally review each individual's performance against objectives and standards for the trading year, agreed at the previous appraisal meeting. Performance appraisals are also essential for career and succession planning - for individuals, crucial jobs, and for the organization as a whole. Performance appraisals are important for staff motivation, attitude and behavior development, communicating and aligning individual and organizational aims, and fostering positive relationships between management and staff. Performance appraisals provide a formal, recorded, regular review of an individual's performance, and a plan for future development.
Performance management is used for the basis of promotion, reduction in force purposes (talent management), gives transparency of what an organization is looking for, merit increases, and lastly it provides protection against lawsuits for unlawful termination by keeping written documentation. Performance evaluations are advantageous to both the organization and the employee. A leading advantage of performance evaluations is it gives the employee an opportunity to create and achieve smart goals. Although performance evaluations primary function is to measure whether an employee is a good fit or a bad fit for the organization, its function is so much a broader. Performance management is tool purposely used to motivate employees to examine themselves and determine if they have selected the profession that is best for them; consequently the feedback an employee receives from their superior supports them with increase their knowledge and
By 1980s, the use of traditional performance measurement was perceived insufficient to help the managers maintain the company ...
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.