1. Performance management is the operation of evaluation of advancement, of an administration, towards a preferable goal. It is the measurement, research and optimization of resources to furnish a service to a level that has been agreed upon It concentrates on the delivery of service. “Organizations can achieve their goals and objectives only through the combined efforts of their employees and it is the task of management to get work done. Employee performance management is fundamental to the effective operation of organizations. Performance management is an integral part of the employees and organizations relationship. It is essentially an integrating activity that permeates every fact of the operations of an or-ganization” (Laurir J. Mullines, Management and Organizational behaviour 2007, 410.)
The basic idea behind performance management is a operation through which the management connects the individuals, systems and strategies, to increase both effectiveness and efficiency to be able to turn in the coveted effects. Simply put, the affirmation means, doing the right things and doing the things correctly. That is, an industrious establishment must include one scheme that contains leaders, and the other that insists on reaching excellent.
Performance management is very important to both employers and em-ployees. From the employers prospective, it is vital to understand how your employees contribute to the objectives of the organization. A good performance management system enables the organization to understand how its employees are currently performing. It allows organizations to undertake a thorough assessment of the training needs of its employees, set development plans and gives them the option of using the result of the performance management process to influence an individual remuneration.
From the employees prospective, the performance management process provides transparency over performance at workplace and can be used to assess future career development requirements
An efficient performance management in an organization can reach leaders skills that can be elevated aboard attitudes, interpersonal attainments and behaviors. This is a fundamental aspect of managing performance as it assists in holding and holding individuals who embody the basic human capital of the establishments. as they are the ones responsible for the implementation of the principal designs of the business concerns.
To increase the potential of an establishment, in order to achieve its strategy, it is principal that the organization grows and produces the potentialities of its employees. Effective people management is the only key to improve the businesses operation.
The most critical function of Performance Management is to grow the potency of the employees. This should be done, in order to improve the execution of the business concerns.
Managing Performance is linked up with paperwork, tricky conversations and bureaucracy, and is hence often put aside as a job no one wishes to do. Performance Management is a operation that affects people and directors, that use the procedure on a regular basis , to increase their strength towards the employer’s organisation.
2. What’s the secret to achieving greater organizational success? Strong Performance Management—the processes you put in place to measure and reward the abilities of your workforce to meet and exceed goals.
Improving morale, creating loyalty and increasing overall productivity in your employees through performance management is the key to your company outperforming the competition. An effective performance management system is at its best when it establishes a true pay-for-performance culture which, in turn, develops employee engagement. The process for linking a company’s compensation plan to individual or team performance includes setting, measuring and rewarding achievable performance expectations.
Here are the features and components your performance management software must have:
• Defining Goals-The first step in performance management is setting the stage correctly—defining individual goals and aligning them with the corporate strategy. The process of setting goals should be a collaborative process between a manager and his or her employees
• Learning and Development. Once goals are set, employees need to have the knowledge and skills to do the work. Companies that want high performance need to make investments in employee learning and development. It will allow employees to accomplish their goals – both now and in the future.
• Engagement Surveys- Conducting engagement surveys in your company is an effective way to gain an insight into what matters most to your employees. As the name suggests, the primary reason for carrying out engagement surveys is to uncover if your employees are engaged or disengaged
• Feedback and Coaching. Employees want to know how they are performing. Because they want to do a good job. Managers should regularly tell employees about their performance – what’s good, what could be improved, and even more importantly, how to evaluate their own work. When employees can evaluate their own performance well, they can set their own goals and begin to become self-learners.
3.How performance management can affect staff motivation?
In relation to individual employees, performance management is a key aspect of being managed well. For employees, among other things , effective performance management leads to clarity about their role and the expectations the organization has of them and where that role fits and contributes to the organisation. Performance management helps build a positive relationship with their manager, ensures they get feedback on how they are performing and highlights learning and development needs. All of this contributes to an employee who is more likely to be motivated, engaged, productive and committed to the company.
Reward is a broad concept and one in which there has been a lot of change in recent years. Traditionally, reward is thought of as pay and other contractual- type benefits such as holidays, sick pay and pensions, the aim of these being to attract, motivate and retain employees. For very many people reward is one of the most important aspects of working life. “The reward system in an organization is about rewarding people fairly and consistently for their individual contribution and value to the organisation and for their skill and performance. A good reward system will ensure that individual employees’ efforts are directed to those activities tht will help the organization to achieve its goals and objectives” ( domki strona 163)
5. In a fast-moving economy, successful businesses take an approach to people management that ensures their organisation is fully stocked with the best talent: that is, those employees who are willing to put their all in to support their employer and contribute to the success of the business.
Reward can be used as a conduit to signal to employees what the organisation is trying to achieve and what it needs from staff in terms of performance, skills, values and attitudes. Charles Cotton, performance and reward adviser at the Chartered Institute of Personnel and Development (CIPD), says: “Also, how it will reward and recognise employees who demonstrate those performances, behaviours and skills that are required by the organisation to be successful.”
Organizations need to be efficient in doing right things, in the optimum use of their resources and in the ratio of out puts to inputs. But organisations must also be effective in doing the right things and in their out puts related to some specific purpose, objectives. Performance should be relat-ed to such factors as increasing profitability, improved the results in important areas of organizational activities. Innovation as the key to long term success and what leaders of best practice organizations do that is different. They :
• ensure they have vision, mission and organizational strategy that are known and understood;
• oversee the setting of demanding but realistic targets;
• set examples in the generating an open, communicative manage-ment style;
• champion a culture conductive to learning and continuous improvement;
• distribute leadership responsibilities with the necessary authority, training and resources .
7. It is your responsibility to collect performance data from a variety of sources in order to provide yourself with an objective picture of the extent to which each team member has met their performance goals and displayed the competencies expected of their role. There are a wide variety of options available to you as a manager for collecting data on the performance of each of your team members. These can be broadly categorized into four areas as shown in the points below.
• Goal progress
• Generic Data
– significant incidents
• Third party feedback
– Customer reviews
These categories are not exclusive. For example, a ‘significant incident’ could demonstrate that a team member possessed a required competency as specified in the role description, but it could also have contributed to the attainment of a goal.
Making this data collection something that you do on an ongoing basis will increase your overall effectiveness for several reasons. Firstly, it will enable you to collate first-hand information about new developments, problems, and training needs, as well as any issues and concerns your team may have. Secondly, regular meetings with each of your team members provide you with the ideal opportunity to give clear and specific feedback regarding their performance. Finally, the data collection process encourages you to regularly engage with your team members, something which has a positive impact on their motivation and morale.
One of the greatest benefits you will achieve as part of this continual monitoring of your team’s performance is the ability to make better and more informed decisions as a result of using accurate and current data. This results in your decisions being more readily accepted and understood.
This is especially true for remuneration decisions, as they are based on factors that are fair, consistent, and tailored to individual performance. By providing a clear link between performance and remuneration, performance data allows remuneration decisions to be more transparent, equitable, and motivational. In contrast, this data also supports any disciplinary decisions you may need to make, since complete and objective performance data offers a robust defense against claims of wrongful dismissal.
8. Purpose and process of performance reviews.
“Performance appraisals, sometimes called performance reviews, are one of a number of performance management tools that aim to ensure employees’ performance contributes to business objectives, and should be used as part of a holistic approach to managing performance. The value of annual performance appraisals has increasingly been challenged in recent years in favour of more regular ‘performance conversations’. However, performance feedback or appraisal remains a crucial aspect of the performance management cycle”.- CIPD
This factsheet outlines the elements of performance appraisals, unpacking the role of line managers and the skills they require to carry out performance reviews. It looks at ways of measuring performance and the changing methods of gathering and giving feedback – a critical part of the performance discussion.
Traditionally most organizations recommend that performance appraisals be conducted every 6 to 12 months for employees. Interestingly, many employees report that their performance is evaluated much less frequently. In frequent performance appraisal are most often due to the manager’s negative view of the process. It can be stressful for both the employee and the manager, especially when employee performance has been below expectations. Thus, the manager may want to avoid this situation. In addition, the manager may view the performance appraisal process as extra work and. Thus, burden some. Regardless of the reasons, managers should encouraged (possible through training) to view the process as an opportunity to communicate with their employees and as a means to improve performance to develop employees.
Organisations use performance appraisals for evaluation and developmental purposes. A properly executed appraisal acts as a basis for hiring new employees, training and development of current employees, restructuring of workflow and employee motivation. Performance appraisals offer evidence for pay increases or for terminations. Well-designed performance appraisals can start dialogue between supervisors, direct reports and coworkers that may result in positive outcomes for the individuals and the business.
Performance evaluations can serve as effective tools for improving employee performance and productivity as well as determining employee developmental needs. Implemented properly, regular performance reviews can raise individual self-esteem and deepen the relationship between supervisor and subordinate. People often perform better when they have an idea how their supervisor views their work, knowledge and skill. They are more likely to initiate honest conversation regarding goals and job-related issues as well. A quality performance appraisal scheme has a set of clearly defined parameters. The documentation, whether electronic or written, includes ways to assess performance based on job-relevant skills and knowledge. Evaluations should not include assessment of employees’ personality of work style, but should include a review of communication techniques and behavior as it relates to interpersonal interaction.