Performance management is a process in which higher authorities of an organization keeps an eye on working performance of employees. Many programs are organized in workplace to boost the morale of employees and it ultimately helps in enhancing the performance of employees. It is done in many ways such as taking feedbacks, awarding by cash prize, giving away gifts, giving additional incentives, promoting the employee and many more. A key feature for an organization is that if expected plan meets the actual plan then no any other factor can influence the growth of an organization. Its main aim is not to develop the overall skills but it focuses mainly on overall development of employees so as to achieve the goals of an organization. Managing the performance of an employee in an organization will assist in enhancing the overall efficiency and productivity. Let us discuss about performance management more in detail.
Performance management is the ongoing process of enhancing and improving performance of the employees by accumulating the individual and group goals and ultimately achieving a particular goal. Once it was rightly said that planning plays a very crucial role in performance management. It mainly aims at serving the strategic purpose of the organization, provides worth information for reward system, facilitate HR decisions. It enables the employees to learn about group performance. The basic elements for effectively managing the performance are - communication, ensures transparent collaboration among the employees, goal setting, recognizing the employee, honest and regular reviews & feedback, developing the skills of employee in the organization. Further we will be discussing about positive and negative approaches of performance management, management by objectives, 360 degree feedback, the balance scorecard approach, cohesive versus non cohesive team and performance management from the perspective of control theory.
- Positive And Negative Approaches Of Performance Management
- Positive Approaches Of Performance Management
- Identifying And Eliminating The Underperforming Employees
It is very significant for the organization to identify those employees who are not performing their work effectively and efficiently and thereby affecting the overall productivity of the organization. According to Bititci, Cocca and Ates, (2016), such kind of employee should be eliminated immediately and the Human resource department plays a very crucial role in every organization at the time of hiring the employees. Every employee must contribute its best to the organization and put in the extra efforts to ensure the smooth operations of the organization. A proper selection and screening must be done to differentiate among the well performing, multi talented, skilled employees as compared to those who are not performing as per the expectation of the organization and not able to fulfill the objectives and targets.
Helps in boosting the morale
Boosting the morale of the employee will tend to provide them motivation and satisfaction due to which the individuals will give their best to the organization and will perform excellent job thereby achieving the significant amount of profits for the firm and accomplishing the overall objectives and goals. The manager should boost the morale of the employee. Boosting the morale of each and every employee plays a very crucial role in the professional life of an employee. It helps in changing the thinking as well as the mindset of the employee towards the organization along with the peers or the people working in the firm. Various activities must be organized to keep the employee involved and that will also assist in boosting the morale and productivity of the employee in the workplace.
Enhancing the retention of the employees
More and more employee will retain in the organization when they will be getting the good and proper working conditions, healthy working environment and having good relations with their peers within the organization. In the words of Pulakos, et. al., (2015), if number of employee will tend to leave the organization then it will affect the image and performance of the organization. Providing the good quality equipments and proper working conditions will help in enhancing the chances of retaining the employee in an organization. the employees should establish and try to maintain cordial relations among each other and with their supervisor.
Rewarding the staff for good work
Appreciation and rewards should be given to the employee. Rewards could be intrinsic or extrinsic. Promotions, bonus, increase in the pay scale, perks and certificates could be provided to the employee to make them satisfied and boosting their morale which will help in increasing the level of working and enhance their productivity. Due to which employees will not tend to leave the organization and wanted to work for longer duration. Staff members must be appreciated and motivated for performing the good work as it will affect the overall efficiency of the organization and along with this also assists in motivating the other individuals in the organization.
Providing motivation to the employees
Employees should be appreciated or appraised by the managers along with their peers for performing the good job or work. It will assist in enhancing the motivation among the employee. Motivation could be intrinsic or extrinsic. Absence of motivation within the organization will not assist in accomplish the goals and objectives. Motivation is an internal feeling that helps the employees in fulfilling the targets of the firm or organization (Pulakos, et. al., 2015). The motivation in the organization is essential as it provide in the recognition of the employee, helps in promoting the personal growth, promoting the self esteem of the employee and assists in setting the realistic goals. All the organizations make use of both the types of motivation to provide maximum level of satisfaction to their employees. Providing proper motivation will enhance or increase the chances of retaining the employee in the organization.
Helps in increasing the career planning
Performance management assists both the employer and employee in taking the decisions regarding their career. It also provides insight to them and offers them more career opportunities. Performance management also aids in the overall development of the individuals. It is one of the significant management of performance management. It offers official training & progress or growth plans on the basis of the performance results of the employee in the firm or an organization. It is one of the significant that should be considered by each and every individual to perform well and could be able to recognize themselves at some position in their life. Planning the career will clear the path and helps in the proper determination of the goals and objectives.
Negative approaches of performance management
Gerrish, (2016), stated that managing and measuring the performance of each and every employee is difficult and very time consuming process. As each individual in the organization works differently. So it enables the manager to spend a lot of time to access the performance of the employee working within the organization. Concentrating on each and every employee becomes difficult for the managers and giving them the proper direction to achieve the desired goals. Managing the performance is quite a time consuming procedure. The manager of every organization should formulate different strategies and techniques to save the time and could be able to focus on each an every employee working in the organization.
Wrong information or inconsistent messages should not be communicated to any of the employee in the organization. Only the true and fair information should be provided so that it should not mislead the employee working within the workplace thereby affecting the productivity and overall effectiveness and efficiency of the organization (Gerrish, 2016). Giving false information to the employee will disrupt the functioning of the organization and productivity if both the employee as well as the organization. A proper flow of communication must be ensured among the employee in the workplace and subordinates should take help from their superiors to take the proper decisions and solving the problems effectively and efficiently.
According to Cappelli and Tavis, (2016), there should not be any unfair treatment or discrimination among the employees as it will tend to create dissatisfaction. All the employees should be treated fairly and managers must make use of same techniques and methods to motivate them. If differentiation will exist then some of the employee will be willing to leave an organization and due to which the organization will not be able to meet the desired goals and objectives. The individuals in the organization tend to come from different backgrounds and religion so they should understand each other and the manager should treat them fairly and should not discriminate among the employee concerned to the caste, creed, gender, age, race and educational qualification.
Complex & lengthy process
Performance management is a very complex & lengthy process. The manager has to put in extra efforts to check the efficiency and records of the employee for measuring and managing the performance in the organization. It is not an easy task to evaluate the performance of the employee in the firm or workplace so it becomes quite complicated. This requires certain steps that need to be followed by the organization in an effective and efficient way. Every organization tends to have different policies and strategies and is formulated in a different way. The rules, policies and strategies that are being formulated by the organization must be properly understood by the employees and must be flexible and therefore helps in achieving the growth of an organization.
Management by objectives
MBO is a process which normally begins at the top level of the organization with the establishment or formation of organizational or specific objectives. In the words of Drucker, (2019), the goals of an organization to be SMART - specific, measureable, achievable, realistic and time bound. MBO is integral in the organization because it helps in communicating the goals, objectives and mission of the organization to the lower levels. It also allows the employees to participate in planning and controlling their own work. Process of management by objective is define the objectives of the organization, focusing on the goals of each section, fixing the important areas of results, setting the objectives of the subordinates or targets, matching resources of the objective, periodically reviewing the meetings, appraisal of the activities and finally reappraisal of the objectives. So this is the process of MBO which is followed by the organization.
There are various benefits of MBO like - setting both the long term & short term objective, it emphasizes proper utilization & development of the human resources, assists in identifying the problems of management which includes practices, structures and strategies, enhances the accountability and it is a vehicle for delegation of authority (Sull and Sull, 2018). Limitations of Management by objectives are - difficulty in setting the objectives, very time consuming process, lack of inflexibility, and there could be a lack of coordination between the superior & subordinate and it could arise because the opinions differ while setting these objectives.
Challenges of management by objectives are - lack of support help by the top management, resentful and negative attitude of the subordinates, difficulty in quantifying the goals and objectives, costly, complex and time consuming process, emphasize on short term goals and lack of adequate skills and training, poor integration, limited application accepted by an organization, lack of follow up, unable to achieve the goals of the group, inflexibility and longer gestation period.
360 degree Feedback
It could be defined as the appraisal process which could be used to enhance the effectiveness & efficiency of the organization assisting the manager by providing him the complete assessment regarding the effectiveness of an employee, his performance and development needs. Mohapatra, (2015), stated that the other name of 360 degree feedback is multi rater and source feedback, group performance review and full circle appraisal. There are several benefits of this 360 degree feedback such as - helps in building the teams, organization or strategic developments, builds leadership, assists in developing the culture of continuous performance improvement and promotes constructive feedback and open communication. Sometimes this system also tends to fail due to not able to get the proper commitment by the top management and human resources along with the time and financial resources properly planned and implemented. For example - The Maruti Suzuki makes use of 360 degree appraisal approach and is following it appropriately.
It also consists of the following components like - self and superior's appraisal, subordinates appraisal and peer appraisal. In the words of Jones, et. al., (2016), process of 360 degree feedback is divided into the following steps: setup, orientation, assessment, scoring and reporting, interpretation and planning, reassessment and development. Every organization must follow these steps sequentially to implement it. The 360 degree also tends to fail due to as there is no clear purpose that is being defined, it is a substitute for managing the poor performance, not making use of the pilot research, not having the proper involvement of the various stakeholders (investors, government and employee), not ensuring the effective communication or interaction among the employee in the organization, not giving the proper feedback, no user friendly scoring and administration, consider it to be an event instead of an ongoing process, not evaluating and measuring the effectiveness of the individuals in the workplace and compromising the confidentiality.
Strengths and weaknesses of cohesive versus non cohesive teams
The cohesiveness of team could be defined as the connections or relations among the members of the group. According to Lavy, Bareli and Ein-Dor, (2015), strengths and weaknesses of cohesive versus non cohesive teams have been discussed below.
Strengths of cohesive teams are - the members of the group are having the similar interest, dignity is maintained among the group members, commitment, saves the time, ensures the proper cooperation and coordination, ensures satisfaction and also enhances the communication (Katzenbach and Smith, 2015). On the other hand cohesive team is also having some of the weaknesses- level of productivity is low, domination lack of creativity and innovation.
In the words of Neil, et. al., (2016), the strengths of the non cohesive teams are - very time consuming, not ensure proper coordination and cooperation among the members of the team, individuals work differently and does not have similar interest, does not ensure any commitment.
Fonseca, Lukosch and Brazier, (2019), stated that weaknesses of non cohesive teams are - does not ensure the motivation, members are not able to communicate properly, decision making process is not effective and they does not focus on the group thinking.
Balance scorecard approach
Balance scorecard refers to the strategic and effective planning & management system that is being used to align business activities to achieve the vision, mission and strategy of the organization by monitoring the performance against strategic goals. In the words of Madsen and Stenheim, (2015), it is majorly used to provide appropriate balance to the financial perspective. Balance scorecard also assists in prioritizing the initiatives. It helps in improving the performance of the organization. Balance scorecard consists of certain pitfalls and criticisms like it make use of generic metrics, save the managers who are serving or helping, emphasize more on the lagging measures. It is one of the important approach that must be adopted by the organization for maintain the proper balance within the organization.
According to Asiaei and Bontis, (2019), balance score card is also very useful in managing the corporate social responsibility as it can help in recruiting and retaining the employees, also assists in removing the waste from the manufacturing process, enhancing the financial results and increases the reputation and brand. It also enables the organizations in appropriately managing the alignment of cause and effect relationship concerned with the external forces of the market affecting the values, behavior and internal drivers.
Performance management from the perspective of control theory
Control theory of performance management is concerned with controlling the mechanism which must be applied at all the levels of the organization. In the words of Ivanov, et. al., (2018), there are various kinds of control that are being used by the organization to achieve the desired results - structure of an organization, mechanisms for managing the performance and behavioral control such as policies, norms and rules framed by the organization.
This theory mainly comprises of three kinds of control systems - behavior control, output control and input control. Let us discuss these systems in detail.
This control system mainly used by the employers in evaluating and monitoring the actions being performed by the employee in the organization daily or on the regular basis depending upon the standards formed by the organization and then appraising or rewarding the employees (Lee, 2019).
The performance of the employee or individual within the organization is being controlled on the basis of rewards and later on evaluating the results based on the standards of the organization. It is one of the significant control systems of the control theory.
It is an integral control system of the control theory of performance management. It focuses on controlling and process of training and selection of the employee. Moreover, it is significant to ensure that the employee should have the required skills and capabilities as per the requirement of the organization to ensure the overall efficiency, growth and development of an organization.
Performance management is a tool that helps managers and senior executives to keep a check on performance of employees in an organization. It mainly focuses on enhancing the performance of the employees so they can give their best and in return ultimately helps in achieving the organizations goals and help in flourishing day by day. Employees must be motivated time to time for their performance so that they can work effectively and efficiently. Senior executives must guide their subordinate in such a way so that they focus on group goals rather than individual goals. Mostly in an organization it is seen that sometimes disputes occur and it will lead to minimize the performance of the employees so this must be solve at a very early stage to keep the performance at a same or increasing pace. One cannot consider performance management and performance appraisal similar as both of them completely differ from each other. So it is very essential to manage the performance of the employee within an organization.
Know about Performance measurement in Industry?
- Improving Underperforming Employees - How Your Values Can Help?
- Performance Measurement and Its Approaches
- Positive Approach for performance measurement
- Negative Approach for performance measurement
- Identifying And Eliminating The Underperforming Employees
- Boosting the morale of Employees
- Enhancing the retention of the employees
- Process of Rewarding the staff for good work
- How to Hel in increasing the career planning
- 10 Ways to Deal With Underperforming Employees!