Performance management in an HRM technique is concerned with obtaining the most effective performance from individuals in an organization, from the team, and also for the organization as an entire (Dransfield, 2000).
According to Leonard & Cardy (2011) Performance management may be crucial and necessary element for each individual and organizational effectiveness. Therefore, a real achievement in performance is needed a careful and committed process of evaluation and feedback.
Performance management is a successful method of communication between employer & employee that backing accomplish targets of the organization which includes setting objectives, clear up issues, spot goals, giving suitable feedbacks & appreciated employees properly.
What will Performance Management do?
- Promotion: Performance Appraisal helps the supervisors to draw the promotion programs for capable staff. and also, during this regard PM will help to identify inefficient employees.
- Compensation: Performance appraisal helps to streamline employee compensation packages. Rating is feasible through performance appraisal. Compensation packages that consist of bonuses, high wage rates, allowances and pre-requisites are enthusiastic about the performance appraisal. the factors should be an advantage instead of seniority.
- Employees Development: The systematic process of performance management guidelines for evaluating the effectiveness of training policies and programs. It helps to analyze the strengths and weaknesses of the staff. Help to build future development plans.
- Selection Validation: Management of performance appraisal guidelines to determine the validity and significance of employment procedures. The supervisors will understand the validity and thereby the strengths and weaknesses of the recruitment procedure. Future changes in recruitment strategies can be built in this regard.
- Motivation: Performance appraisal is a motivation tool. Through evaluating the performance of staff, a person’s capability will be determined if the targets are achieved. This motivates a person for a much better job and helps him to boost his performance in the future.
- Communication: For an organization, effective communication between staff and employers is crucial. Through performance appraisal, guarantee effective communication.
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| Figure 1 Source: https://astronsolutions.net/performance-management-system/ |
Performance Management in Practically inside Sri Lanka
In the Sri Lankan context, performance management is not happening everywhere. When it comes to the banking sector, performance management is well executed. Most banks introduced an online appraisal system to their employees however banks are commonly using the following performance evaluations,
- Daily review meetings – Branch managers and their staff members follow up on daily product targets.
- Weekly review – Regional Management weekly review on each branch's performance and knowledge-sharing.
- Monthly review – Manager review meeting held province-wise to understand their current status.
- Yearly Review – Budget review and each employee should submit their appraisal via online
The main reason for staff turnover in some Srilankan organizations is due to the poor performance review process. Listed below are some of the common lapses.
-Training is done just to fulfill the HR department’s yearly training calendar.
-External factors are not considered in reviewing the process.
-Performance reviews are done at the yearend without clarifying the expectation.
-Feedback sessions are done only to justify management decisions and not to ask employee opinions.
Conclusion
References
Dransfield,
R., (2000). Studies in Economic and Business-Human Resource Management, Bristol: Heinemann Educational Publishers.
Leonard,
B. & Cardy, R.L., (2011). Performance Management: Concepts, Skills and
Exercise, 2nd ed., New York: M.E. Sharpe.
Lloyd,
K., (2009). Performance appraisals & phrases for Dummies, Hoboken, NJ:
Wiley Publishing Inc.
Picture Figure 01: https://astronsolutions.net/performance-management-system/
Youtube: https://m.youtube.com/watch?v=RhAJkhIFFno
Leonard, B. & Cardy, R.L., (2011). Performance Management: Concepts, Skills and Exercise, 2nd ed., New York: M.E. Sharpe.
Lloyd, K., (2009). Performance appraisals & phrases for Dummies, Hoboken, NJ: Wiley Publishing Inc.
Interesting Topic.. Effective performance management is essential to businesses. Through both formal and informal processes, it helps them align their employees, resources, and systems to meet their strategic objectives...
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DeletePerformance management is a corporate management tool that helps managers monitor and evaluate employees' work. Performance management's goal is to create an environment where people can perform to the best of their abilities to produce the highest-quality work most efficiently and effectively. An effective performance management system ensures that individual and team goals are aligned with organizational goals so that performance at both the individual, team and organizational level are enhanced through effective implementation of human resource management practices.
ReplyDeletethanks for your feedback!
DeleteInteresting topic to talk.Performance management is considered as a corporate management tool that helps to monitor and evaluate employees' work. It helps is to create an environment where people can perform most efficiently and effectively. Also it helps to boost employee engagement and productivity.
ReplyDeletethanks for your feedback!
DeleteAs you mentioned here a great performance management system having various tracking mechanisms that give managers to continuously monitor the performance of their team. These tracking mechanisms can be both human and technological in nature. However performance management should be link with the promotion process also other wise employees get frustrated and may demotivate.
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DeleteHi Umesh. Good article. I like to add some a theory regarding Performance Management. As per Pollok, (2018) there are 6 Strategies for Effective Performance Management.
ReplyDelete1. Describe and communicate organizational Goals and Performance Objectives
2. Make use of Performance Management Software
3. Offer continual Performance Feedback
4. Use Peer Reviews
5. Preemptive Management and Recognition
6. Set Regular Meetings to Discuss Results and Effects.
thanks for your feedback!
DeleteA well written article Umesh. By identifying the importance modern organizations are spending a huge amount of money to develop and implement an effective Performance Management System. But still a huge amount of variation can be noticed in the employees’ performance.In order to gain the competitive advantage, the organization’s performance management system should be designed in such a way that it can connect the employees’ performance expectations to that of the organization’s goals. Thankyou for sharing.
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DeletePerformance management is a must do thing in present ,it helps to create a effective employees.as well as it support to organization to achieved their targets. Clearly explained umesh.Thanks for sharing.
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Deleteperformance management benefits both employee and employer. Employee can develop their capabilities to achieve their carrier goals whilst delivering best service to organization to achieve their business goals. Every organization should prioritize and concentrate more to find out better approaches in terms of performance management .
ReplyDeletethanks for your feedback!
DeletePerformance management system is curtail when Measuring of efficiency and Knowledge is to identify the training needs of employees. Therefore implementing accurate HR strategies on performance management will be a win win situation to both Organization and Employee.
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DeleteAs you describe Umesh, Performance management is a successful method of communication between employer & employee and an effective performance management system can play a very crucial role in an organization and can have a positive influence on the job satisfaction and employee loyalty. This help employee to understands what is expected from them and whether the employees fulfilling such expectations to improve organizational performance.
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DeleteThere are many ways to conduct performance management. There are two approaches when it comes to performance evaluation.
ReplyDelete• Behavioral approach: Employees are evaluated based on their behaviors and effort made. Behaviors are identified and evaluated. This approach is suitable for giving detailed feedback on behaviors and by mapping desirable future behaviors. This approach is suitable when individual results are hard to measure. Examples include individual players in a team, support staff, and HR professionals.
• Result-oriented approach: In this approach, employees are evaluated based on objective criteria. The focus is not on input but output, both in terms of quality and quantity. This approach is suitable when there are multiple ways to do the job. The end-result is key, not how it has been done. Examples include call center employees who have specific success metrics, as well as sales professionals. The evaluation of lawyers and accountants is also highly result-oriented, as they keep track of their billable hours.
thanks for your feedback!
DeleteEvery organization conducts a performance evaluation every year, but only a few do it well. The ultimate goal should be to encourage your employees to develop and advance through performance management. Your advice can assist certain businesses in looking back and getting things back on track. It is a well-defined and constructed article.
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DeleteBoth the employee and the employer benefit from performance management. Employee who are highly committed give their all to achieve the organization's goals and objectives. This gives the employees a sense of accomplishment, which motivates them to do their best. Thus, the organization must develop employee commitment by adopting the best methods. To achieve this, organizational management must use various techniques to foster positive employee attitudes. These methods increase employee engagement and job satisfaction. Employees who are motivated, involved, and committed become an asset to the organization, increasing productivity and performance.
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DeleteWell written article Umesh.The reward and recognition of the employees can be of great benefit to the organization.Dedicated employees stay longer, are actively involved in the workplace and achieve better results. Improving employee engagement is essential to increase productivity and maximize return on investment.
ReplyDeletePerformance management, when done well, is an important tool for having dedicated employees.
thanks for your feedback!
DeletePerformance management is a continuous communication process between a supervisor and an employee throughout the year to support the organization's strategic goals.
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Deleteinteresting topic umesh.Performance management is a business management tool that helps managers monitor and measure employee performance. The goal of performance management is to create an environment in which everyone can work to the best of their ability to do the highest quality work in the most efficient and effective way. here is the fundamentals of performance management.
ReplyDelete1. Planning and Expectation Setting
2. Monitoring
3. Development and Improvement
4. Periodic Rating
5. Rewards and Compensation
thanks for your feedback!
DeleteAs explained, PM is a tool to evaluate the employees performance in difference context to motivate them and to increase their productivity. Every company should carefully select the suitable method to make this process ease and success which will result in achieving organizational and personal goals of company and employee. it is HR responsibility to make aware the workers that they are being monitored and evaluated but which is not to punish but to motivate and encourage them.
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DeletePM is a very importance management tool in every organization. A proper PM consists of regular feedback and interaction secession between managers and team member which allow managers from all level to identify the performance gaps and how to solve as quickly as well as to keep everyone motivated in order improve employee engagement increase productivity and profitability. Well explained
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DeleteGreat Read Umesh, as explained performance management is an extremely important tool for any organization as it will give all of the stakeholders of the business a very comprehensive idea on the organizational performance & proper intervention & management in this regard could directly influence the organizational productivity also.
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