Making performance management work

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The main objective of a company is growing revenue. Organizations used to focus on age-old command and control models to achieve the desired level of performance from the employees (Bhattacharyya, 2011). However, contemporary organizations have altered the percepts and consider people as assets and, like any other assets, employees have the potential to add future value (Bhattacharyya, 2011).

 

An effective performance management system relies on both formal and informal processes (Gifford, 2020). will allow management and employees to work towards the goal and developing a high-performance culture in an organization, its vital to focus on continuous learning (Armstrong, 2017).

The Performance Management cycle

                       

Figure 1.1 – Source: (Armstrong, 2017)

The above chart resembles how a continuous learning organization’s performance management.

·       Plan: Identifying the behaviors, objections and competences required by the organization and personal development plans to enhance skills and knowledge (Amstrong, 2005).

·       Act: Initiating the plan to meet the objectives of the organization (Amstrong, 2005).

·       Monitor: Checking on the progress and responding to new demands, treating performance management as a continuous process (Amstrong, 2005).

·       Review: Assessing the progress and achievements and taking necessary actions when required (Amstrong, 2005).

 

In order for performance management to work, organizations have to communicate the vision to all employees, translating vision to mission and converting mission to objectives of the organization (Bhattacharyya, 2011). Organizational objectives should be measurable, setting departmental and individual performance targets that are related to overall objectives (Bhattacharyya, 2011).

 

Managers are the bridge between organization and individual objectives. The managers should be motivative and give constructive feedback and should be held accountable (Gifford, 2020). The HR team should do an acute screening on recruitment and selecting process to identify people with high IQ and self-motivation (Gifford, 2020) and to be trained on EQ.

 

A performance management system is a key factor used in determining whether an organization can manage the employees' intellectuals effectively (Agnus,2013). Performance management provides insight about who and what should be trained, and which employee is to be rewarded, furthermore it gives a clear cut on what type of employees to be hired (Agnus,2013).

 

The globalized and hyper competitive nature of business in the 21st Century, the challenge is to align individual and organizational goals. However, the implementation of these processes is influenced by both organizational and societal contextual issues (Agnus,2013). The performance in one country can be different in another country (Agnus,2013). Although the company’s objective remains the same. The way the system is implemented and delivered must take contextual considerations into account (Agnus,2013).

 

 

 

List of References

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

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

Armstrong, M. (2017). Handbook of Human Resource Management Practice. London: Kogan Page.

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

Gifford, J. (2020). Performance management: an introduction. CIPD.

Harvard. (2017). Harvard Business Review Guide to Performance Management. Harvard Business Review.

 

 

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