Elements of performance management

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                                    Elements of performance management

Božić(2022) says that a systematic process in which the organization involves the employees in improving efficiency and relating to the organization’s goals is performance management. Based on the above introductory, we can summarize the essential features of a performance management system as follows (Bhattacharyya, 2011).

·       Planning

·       Monitoring

·       Developing

·       Evaluation

·       Rewarding


Planning

The performance planning is about identifying the gap and agreeing upon what needs to be done (Aguinis, 2013).The planning element should explain the employee what is required and how to achieve the desired level of performance (Bhattacharyya, 2011).The planning process is effective only if the employees are involved in the planning process by doing so will give a mental preparation for the employees (Božić, 2022). Amstrong (2002) suggest that the planning should include role definition, objectives, competencies. Furthermore, the objectives must be SMART (Amstrong, 2005). (E.g.: We can’t set a trainee customer care agent to have 80% customer satisfaction on the 1st week, rather we can start with 50% and train him till he archives 80% gradually).


Monitoring

A business process must be continuously monitored, consistently measuring performance, and informing employees of the progress towards achieving goals (Božić, 2022). Importantly comparing the performance with the set targets at the time of planning at individual level (Bhattacharyya, 2011). The biggest advantage of constant monitoring is the ability to react quickly in case of a detected error and by doing so we can avoid waste of unproductive time  (Božić, 2022).

 

Developing

Developing is an important aspect of performance (Bhattacharyya, 2011). The organization should effectively assess and record employee development (Božić, 2022).Focusing on employee development can enhance the employee’s capacity to perform, The organization can train, job rotation, creating assistant for positions and work processes to develop employees (Bhattacharyya, 2011).

 

Evaluation

An efficient employee evaluation process is recognized as crucial in the institutional development of the organization and the personal development of employees (Fogoroș, 2020). Although the employee’s primary responsibilities are to perform, the supervisor needs to do his or her share of work evaluating (Aguinis, 2013). There are other reasons for doing an evaluation, for promotion, salary improvement or fire. Common types of evaluations are supervisory rating of subordinates, employee rating of managers and 360-degree rating (Fogoroș, 2020).

 

Rewarding

Rewarding is recognition of employees and an important segment in achieving the efficiency of an organization. A thank you for the contribution to achieving the organization’s goals (Božić, 2022). Rewarding should be a natural part of everyday work and good performance should be recognized without waiting for nomination for a formal award (Fogoroș, 2020). Aguinis (2013) says about 59% of fortune 1000 companies had reward systems in 1990 and it had risen to 80% by 1999. Reward systems can be financial and non-financial. The organizations must critically understand what types of rewards system can motivate the employees (Noorazem, 2021). Over the last 25 years, elements of compensation have evolved to provide employers with a broad scope of rewards like salary, bonuses, incentives, perks, appreciation, medical benefits (Noorazem, 2021). A study from Latham(2022) says the employees’ motivation is an essential part of human resources and management. Rewarding systems have a high impact on organizations to retain and motivate the employees and organizations must develop such rewards systems to fulfill employee’s need and motivate them to work (Matolo,2019).

 

List of References

Aguinis, H. (2013). Performance Management 3rd Ed. New Jersey: Pearson.

Amstrong, M. (2005). Managing Performance in Action. London: CIPD.

Bhattacharyya, D. K. (2011). Performance Management Systems and Strategies 1st Ed. India: Pearson.

Božić, V. (2022). The essays of management - Performance management.

Fogoroș, T. E. (2020). Study on methods for evaluating employees performance in the context of digitization.

Latham, G. P. (2012). Work Motivation: History, Theory, Research, and Practice. London: SAGE.

Noorazem, N. A. (2021). The Effects of Reward System on Employee Performance.

Rose Syombua Matolo. (2019). RELATIONSHIP BETWEEN REWARD MANAGEMENT AND EMPLOYEE PERFORMANCE IN TECHNICAL TRAINING INSTITUTES IN KENYA. IPRJB.

 

 

 

 

Comments

  1. Shanaz SamseerAugust 20, 2022 at 10:51 AM

    Additionally, regarding Rewards I would like to add that organizational rewards should be structured in recognizes, enhances performance and efforts of each individual. Generally, it is recommended that any reward and recognition program should be a part of an integrative and comprehensive performance management system that is strategically aligned with the organization’s mission and vision statements (Mujtaba & Shuaib, 2010)

    ReplyDelete
    Replies
    1. Zainul FahadSeptember 15, 2022 at 9:58 AM

      Thanks for the comment Shanaz, further reward means anything the company gives its employees in exchange for their contributions.They are given to employees for their good performance.(Chiang & Birtch, 2010). If rewards are not given then an uneasy environment is created. So rewards are extremely important in an organization(Mossbarger & Eddington, 2003).

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