Performance Management - Essay Example

Purposes of Performance Management in Relation to Business Objectives The first purpose of performance management as documented by Armstrong (215) would be concerned with performance improvement aimed at achieving individual, team and organizational effectiveness. This indicates the need for organizations to get the right things executed successfully. Its second purpose is in developing employees. Effective continuous development processes enhance the capabilities of individuals and teams so as to enhance organizational core competencies.

Communication and involvement encompass the last purpose of performance management which aims at encouraging dialogues between the managers and their respective teams so as to define expectations and share organizational mission, values and objectives. Components of Performance Management Processes Performance management describes a process where understanding on the targets and the achievements would be shared. The process involves planning where job accountabilities together with performance measures would be established.

It involves the understanding of behaviors and creation of development plans. Secondly, the coaching component of this process involves discussion based on the on-going feedback and an individual’s talents. The last component, review, encompasses formal review of behaviors, job accountabilities, overall rating and development plans. . Relationship between Motivation and Performance Management While most organizations have average workers, competitive organizations motivate their average workers.

While intrinsic motivation would cause one to be driven by the satisfactory feelings associated with executing a task well, extrinsic motivation emanates from the desire to achieve specific outcomes. Generally, motivation would take place if people expect that an action would lead to attainment of a particular goal. Considering Vroom’s expectancy theory of motivation, valence, instrumentality and expectancy comprise the three motivational forces. While valence describes the attractiveness of the outcome, instrumentality refers to the extent to which improved performance would result into the desired outcomes and expectancy refers to the perception of the extent to which increased effort would cause increased job performance.

Motivation would result when there is a perceived relationship between performance and outcome, and that outcome serves as a means to satisfy needs (Shields, 33). Secondly, the equity theory of motivation observes the tendency in people of making social comparisons with regard to their earnings (Shields, 34). An employee would compare his or her input at work against the outcome with consideration of his or her counterparts. The employee would then seek to correct any perceived inequality. Other than income:outcome ratio, the employee could also consider effort:reward and contribution:reward ratios.

Therefore, organizations need to carry out research to appropriately match performance management activities with motivators. Purposes of Reward in Performance Management Process