An efficient and good performance management system is always striving towards a comprehensive improvement in organizational performance (Cardy,2004). High-grade performance management helps assure that the overall goals of all goals are met (Ulrich and Chandler,2016). The benefits of a performance management system will contribute to all aspects, whether it is the benefits of the organization, the benefits of the employees, or the benefits of the manager. The performance management system has a positive impression on employee job satisfaction and loyalty. Performance goals require development goals and evaluation goals. Good and effective performance management requires clear objectives and regular assessment of each individual's performance, which helps determine the training and development plans that employees need (Buchner,2007).
A reliable performance management system, it should provide the culminate benefits for Employee and Employer both relating to each other's objectives. Once it met the align expectation it will lead to Organization success.
According to Russell and Russell (2009); Mattone (2013) the benefits to employees and employers are as follows.
Employee Benefits
- The performance management system provides a wealth of learning opportunities, provides leadership attitudes, and helps employees grow their careers.
- The performance management system ensures that each employee understands the employee's expectations and determines whether the employee has the skills and support needed to achieve the desired outcome.
- Performance management systems help employees self-assess, improve opportunities, define career paths, and help employees achieve job satisfaction.
- The performance management system includes a reward mechanism that, in the form of rewards or performance bonuses motivate employees to work better and achieve organizational goals.
Employer Benefits
- Performance appraisal helps to record payroll activities.
- They provide performance feedback to employees.
- Performance appraisal helps identify “good” and “bad” performers.
- They help document personnel decisions such as promotion and discipline.
- They assist management in making decisions to retain or terminate.
- Performance assessment helps determine training needs.
- They assist in staff planning, including staffing.
Upload on 01/09/2019
Impediments of Employee Performance Management
Waal and Kourtit (2013) provides the following impediments in performance management systems
Lengthy and complicated - Manager's advised to spend hours with each employee to assess their performance. The organization consists of a large number of people it will take a long time to evaluate Performance appraisals for the entire department. Once identified employee difficulties and errors, lengthy meeting hours will need to address the matters.
Employees may resign due to unfair results - If an employee performs well and then feels that he/she has been unfairly assessed, then his/her motivation to stay in the company is minimal. Even if the employee does not leave the company, he/she may become isolated.
Incorrect or misleading information may affect the review - Appraisal without involving Performance data will be difficult to correctly identify the state of the employee. The manager or co-worker may provide false or misleading performance information and make the assessment unfair.
Employees may lose self-confidence - If employees observe that they are being unfairly evaluated, they are likely to lose self-esteem and that will lead to resenting the management and the organization.
The poor standard will make the process unfair - If there are no accurate performance standards are aligned to employee objectives, an employee will be in a conflict position justifying excellent vs. poor performance
Insufficient management expertise - Although the company's management gave enough knowledge and time, they often have some weaknesses, and when the rules are implemented in reality, the negative aspects will arise. The main reason for this is due to a lack of management engagement and management knowledge.
Conclusion
Benefit and Impediments are had to be considered when designing an accurate employee performance assessment, lowering Impediments direct to decreasing the risk of employee disappointment. Successful Employee performance management will lead an organization to achieve its goals empowering with coworkers.
References
- Buchner, T. W. 2007. Performance management theory: A look from the performer's perspective with implications for HRD. Human Resource Development International.
- Cardy, R., 2004. Performance Management: Concepts Skills and Exercises. 1st ed. United Kingdom: Routledge.
- Mattone, J., 2013. Powerful Performance Management. 1st ed. New York: Amacom
- Russell, J. and Russell, L., 2009. Ultimate Performance Management: Training to Transform Performance Reviews into Performance Partnerships. 1st ed. USA: ASTD Press.
- Ulrich, D. and Chandler, T., 2016. How Performance Management Is Killing Performance—And What to Do About It. 1st ed. CA: Berrett-Koehler Publishers.
- Waal, A., Kourtit, K., 2013. Performance measurement and management in practice: Advantages, disadvantages and reasons for use. Int J Productivity & Perf Mgmt 62, 446–473
In addition to above stated benefits (Sahoo & Sukantha, 2012), describes that performance management provides a clean job description to the employee, selection process will be appropriate, periodic performance appraisal discussion and it helps to create an efficient compensation and recognition system.
ReplyDeleteThank you for the comments.In the phase of setting individual performance standards, expectations and goals. Each employee must know what their roles & responsibilities are and what performance standards they must meet, as part review job description expectations with employees includes reviewing an employee’s job description to confirm roles, responsibilities and expectations for the position(Falcon, 2017).
DeleteWhile agreeing with your drawbacks of performance management, I would also like to add the fact that since employees will compete for pay and job status, it would inevitably lead to backstabbing and a breakdown in effective communication among team members, which would ultimately result in failure to achieve performance standards (Nirupama, 2017).
ReplyDeleteAgreed on the comment.To be productive, communication should be a two-way method. Rather than letting employees know about the latest business developments, communication should be a step-by-step process that involves exchanging information between two or more parts at all organizational levels. Besides, it should include behavioral patterns, including body expression and facial affects, rather than simple text communication(Hall, 2017).
DeleteAgreed but you haven't mentioned disadvantages of performance management. Idea that,it Can reduce self-esteem,employees leave the organization ,time and money wasted,less motivation,less efficiency and finally jobs dissatisfaction (Aguinis, 2005).
ReplyDeleteHi, thank you for the comments. I have discussed the Impediments of Employee Performance Management. Adding more to the comments Dekker (2016) Discussed Performance appraisals are always based on specific criteria, however, when a person is rated without considering the criteria, a comparison error occurs. This can also happen if the evaluator evaluates the employee's current performance based on past performance.
DeleteFurthermore, Jain and Gautam (2014)stated employee performance management system help employees to understand what organization is expected from them and that will help workers to improve their performance.Also organization can plan their strategies according to employees behavior and performance.
ReplyDeleteAgreed, furthermore to your comment, As states by Battacharyya (2011) Performance management system includes a variety of important HR functions such as goal setting, feedback, rewards and performance appraisal. An efficient PMS can help HR managers to build clear performance expectations, throughout which employees can easily understand their expectations for work. It allows managers to strengthen their knowledge of personal responsibility to accomplish their goals and to assess their performance for their employees.
DeleteHi,Sahan
ReplyDeleteThe performance management program is not only a means of knowing that if the conduct of the employee is appropriate, it is also an essential and strategic organizational mechanism to relate the actions of the employee to the objectives of the company(Jain and Gautam,2014).
Hi Moraes,As discussed by Bhattacharyya (2011),Aligning strategy with staff in the organization may be the best way to link processes, systems, and relationships to your organization's PMS. This strategy-aligned PMS not only helps the organization to transform the people who are connected with the strategic goals but also contributes to the effective use of the company's strategy and gains more from the people in the process. To do this effectively, the top management of the organization must commit to and participate in the process, including understanding the organization's vision, mission, strategy, values, and life cycle. Using a balanced scorecard, organizations can pursue their strategy to gain a unique competitive market advantage.
DeleteI agreed with the statements. Employers as well as employees are benefited through implementing a better performance management system within the organization. Not only that, as per Waal and Kourtit (2013), much more attention needs to be given for drawbacks too. In addition to that it is ideal to add some major corporations who have introduced performance management approaches such as Amazon, Deloitte and Google.
ReplyDeleteHi Yohan, Effective performance management is more than just creating an effective work environment: effective performance management involves leadership, interpersonal relationships, constructive feedback, and teamwork. Even when it comes to managing human resources that don't care about or discover value, managing paper processes, summarizing data, and motivating other managers to provide useful feedback to employees, there are strategies to make these tasks more feasible(Aguinis, 2019).
DeleteAgreed on the statements you made on benefits and drawbacks of having Employee performance Management sahan, while adding some more to the article, The systematic procedure of a performance appraisal help the immediate supervisor to set training, policies and program and It helps to analyse the strength and weaknesses of the employees since the organization can design the job efficiently to the employees. It will also be helping in framing future development programs to gain a developed and productive employee where an organization must carry out a fair and good performance appraisal (Creamer and Winston,1999).
ReplyDeleteAgreed Nayani.As i mention in my post Employee self-assessment encourages employees to think and plan for their future with the organization. They can target the next opportunity, possible promotion opportunities, different jobs they want to try, and cross-training they want to get. Self-assessment is also an opportunity for employees to think about their careers at your company or other employers(Graber, 2011).
DeleteAgreed on your points, moreover, adequate training should be provided by all organisations so the employees are kept up to date and they could strive towards the goal. Specially with the modern world, employees should be aware of the latest updates so it would reduce timely shock with the changing environment on a daily basis(Chen and Lou, 2004).
ReplyDeleteAgreed Shakir,There is a clear link between training and performance management. Training helps improve performance management in the workplace. Training provides a framework for employees to complete their job responsibilities and tasks, and most importantly, a framework for their managers. It focuses on knowledge in the workplace (Kirkpatrick, 2016).
DeleteI agree with all the above points discussed and would like to bring to your attention about Disadvantages/Dangers of Poorly Implemented Performance Management Systems. Aguinis (2005), Provides a list of drawbacks and negative consequences arising from reckless design of a performance management system and its implementation. He has listed below points,
ReplyDelete• Employees may quit due to results
• False or misleading information may be used
• Self-esteem may be lowered
• Time and money are wasted
• Relationships are damaged
• Motivation to perform is decreased
• Employees suffer from job burnout and job dissatisfaction
• There is increased risk of litigation
• Managers are required to use an unjustified amount of resources
• Standards and ratings vary and are unfair
• Biases can replace standards
• Mystery surrounds how ratings were derived
Adding more to the comment, As discussed by Grote (2011), Effective Performance Management incense of, having all of the elements of the performance management cycle in place is very important, but this will not necessarily lead to effective performance management for your organisational. There are many other factor's in play, such as
Delete• Buying power from leadership and senior management to performance management.
• Ensuring that the performance management cycle is continuous, not an annual process
• Make sure that performance appraisals and evaluations are meaningful, not “checkbox” exercises
• Has easy-to-use performance management software, supports effective performance management, and
provides you with performance management activities.
• Skills and willingness of employees to provide effective performance management in daily work.
Addition to the benefits mentioned Performance management is also beneficial factor for all organizations, hence during the start of the year Subordinates are clearly given the desired goals of the organization, therefore focus and effort can be set by the subordinate according to the organization objective and getting rewarded by achieving it and know by achieving this will be they are well aware of the end year as per Kureshi and Hassan (2013).
ReplyDeleteAs Discussed by Kumar and Pansari (2015), Performance management is an ongoing process that manages the performance of personnel to achieve desired results. High-performance organizations need effective performance management systems to promote and develop the values, principles, and capabilities needed to maintain optimal results.
DeleteHi Sahan, Great post! Adding to the Impediments of Employee Performance Management discussed on your article, Meyer, Kay and French (1965) argues that when rewards are a part of the performance management systems (specifically, on performance discussions), the employees often tend to only absorb the rewards related part of the message. Hence, it's critical that the organization comes up with strategies to ensure that the feedback is effectively communicated.
ReplyDeleteHi Nadiranga,Thanks for the comment.Wilde (2015), have come up with different assumption as after the company devised and executed a systematic performance appraisal system and provided sufficient feedback to employees, the next step was to consider how to link existing company rewards with the results of the appraisal. Behavioral studies consistently show that performance levels are highest when rewards depend on performance.
DeleteGood read Sahan, effective performance management depend on the continuous assessment of each individual's performances. According to the assessment required training & development proceeds are lined (Buchner,2007).identifying employees with high potential abilities create an empowered and engaged workforce.
ReplyDeleteHi Sahan adding up further, comprehensively Bacal (1999) defines performance management as an ongoing communication process, undertaken in partnership, between an employee and his or her immediate supervisor that involves establishing clear expectations and understanding about: the essential job functions of employee are expected to do;how the employee's job contributes to the goals of the organization;what doing the work well means in concrete terms;how employee and supervisor will work together to sustain, improve, or build on existing employee performance;how performance management will be measured, and identifying barriers to performance and removing them.
ReplyDelete