Performance Management - Strategies, Interventions, Drivers - Essay Example

Student’s Name Professor’s Name Course Date Performance Management Introduction Performance management system is the procedure of making and implementing interventions, drivers and motivational strategies with an aim of transforming the human resource raw potential into performance. As a matter of fact, each and everybody have potential in him/herself in either one or several functional fields. However, using and converting that potential into feasible performances is most of the times not realised due to several reasons. Therefore, performance management serves as a mediator of changing the available potential into practical performance through eliminating the transitional obstacles as well as rejuvenating the human resource (HR). Actually, performance management makes sure that a shared comprehension of the desired achievements at each level of an organization prevails and offers management with equipment for guiding and developing employees to achieve the organization’s goals. Additionally, performance management is made to be tactical and incorporated into the policies, system and culture of an organization. It is targeted to be developmental instead of punitive naturally. Performance management system is a wide topic that covers its significance, advantages, challenges, and disadvantages among others as explained later in this research paper. This paper discusses the 360° performance management system and importance of performance management and its impact on organizational strategic planning and other HR functions. In reality, performance management possesses the full potential of fulfilling operational and strategic requirements of personal, organization as well as expertise requirements of staff in diverse ways as elucidated below in the following points. It helps businesses to thrive in competitive business environments. As a matter of fact as pointed out by Kandula, today’s organizations are reluctantly compelled to handle performance-related matters more tactically compared to the past as a result of rising competition plus the desire to achieve more with the little available resources (6). It is evident that organizations can only be made to succeed, exist and survive in unsure business environments by the human resource asset. Thus, more performance-based human resource management customs are chosen than those of collective bargaining and maintenance (Kandula, 6). The second significance of performance management is that it promotes business - HR partnership. Actually, there is an urgent need of human resource experts to ascertain the value of human resource functions chiefly in two types: first, its role in an organization’s bottom line in terms of earnings in every share, turnover, sales and profits (Kandula 6). The second is the HR function utility together with its practices that lead to efficient performance of corporations in terms of availability of HR skills and competencies, employees’ performance and work culture. Generally, value addition can only be achieved when performance management customs are offered the highest priority. The next significance of performance management is that it ensures human resource needs fulfilment. In motivational ladders, as Kandula cites, many workers in business corporations are put at levels of self-actualization and self-esteem (7). In such cases, they aim to (a) do tasks of higher levels and deal with expertise challenges with flexibility and freedom, (b) look for suitable returns as a result the efforts that are more of non-money value, (c) regular updating of aptitudes, (d) encourage positive work environment and teamwork and (e) seek transparency and open communication (Kandula 7). All become realized through application of performance-oriented HR practices. The other significance of performance management is that it is the hub of HR. It is evident that performance driven customs like performance measurement, leadership, competency development, culture, team building, career and reward lies centrally on human resource management (Kandula 7). Human resource role has succeeded in fulfilling the organizational and workers needs as a result of priority given to high-level human resource customs referred as performance propelling activities (Kandul 7). The other significance of performance management is that it acts as an incorporated motivational tool. In fact, performance management comprises of motivational tools which are able to get superior employees’ performance. The tools, as Kandula points out, also ease conversion of hidden potential that prevails inside people into contextual and tangible performances (7). Putting in place such performance-based practices also moves forward in similar pattern like that of motivational frameworks. Hence, performance management remains as the dominant factor in employees’ motivation. The other significance of performance management is that it facilities institutionalization of unique performance work culture (Kandula 7). Admittedly, performance management customs focus on manufacturing a discrete and valuable work culture. As such, it promotes empathy, proactivism, collaboration, trust and openness. All those imperative ingredients are necessary for helping people to produce the performance (Kandula 7). Performance management also offers long-lasting effect and sustainable outcomes. Long-time positive outcomes for both the organization and employees are only achievable via performance management plans implementation. The reason behind this, as Kandula asserts, is performance management system is capable of balancing both long-term and short-term demands of an organization and its employees (7). In addition, it is possible to attain a nice fit between higher-level and basic interventions. Personal and collective development is another significance of performance management. In reality, performance management plays a role of making both collective and individual development possible in an organization (Kandula 8). For instance, a worker as a person and as team member possesses all the accessibilities of performance propelled interventions. This stipulates that a worker possesses the chance of performing and growing with a discreet individuality and again as certain team player whenever job execution entails interdependence. Kandula stipulates that in today’s organizations, working requires both collective and individual type of performances where harmony must prevail between them (8). Performance management together with its incorporated and inclusive approach to persons’ management effectively fills that opening. Performance management provides measurable management. Often, many people agree that immeasurable thing is unmanageable (Kandula 8). Actually, it is next to impossible to gain benefit from an unmanageable thing. However, interventions, strategies, and performance management propellers are highly demonstrable, quantifiable and measurable in results (Kandula 8). Performance management enhances human capital optimization. Generally, organizations possess human potential in large quantities. However, the major challenges are: optimizing the potentials, taking them towards a particular aim, transforming them into important competencies and skills and utilising them appropriately for business benefits (Kandula 8). Such challenges make the hub of performance management deeds. A variety of drivers, interventions and strategies put in the scope of performance management analytically ensure human capital optimization. Actually, human resource gets encouraged to invent the internal capabilities and corporations are armed with soft aptitudes to attain the set goals (Kandula 8). Performance management provides steady and constant renewal of competencies and skills. Kandula asserts that as a result of the daily altering technological faces, reducing life cycle of products and variable market demands calls for human skills renewal on a consistent basis (8). Operational and organizational-level aptitudes also require an urgent need to be improved in cycle with dynamic business realities. Such competency and skill renewals can only be achieved by an organization that wholly focuses its attention to performance-oriented drivers, interventions and strategies. In simple terms, those performance-oriented customs are capable of making organizations competitive and current even in the middle of fast market and technological changes (Kandula 8). The next significance of performance management is that it helps to determine the intensity of business performance in comparison to employee’s performance. It is well known both theoretically and practically that an organization’s business performance level is equal to employees’ snowballing performance level (Kandula 8). However, that might be false in regard to other resources such as technology, infrastructure and capital. Kandula puts it that organizations that possess best of the resources might still lose their business to competitors’ due to less utilization of the physical resources (9). Such scenarios occur as a result of incapability of human resource to rightly exploit the company’s strategic advantage. A lot of evidence support the opinion that employees’ competencies are the first priorities to an organizational effectiveness prevails (Kandula, 9). Performance management ensures even-handedness in management. According to Kandula, performance management possesses the potential of ensuring equity in each and every sphere of organizational administration (Kandula, 9). The equity conception might possess philosophical tenor and has large material advantage specifically to people and generally to an organization. In the real sense, the moment people become certain that equality exists in terms of growth and opportunities, it inculcates huge organizational devotion and creates a nice social fabric. Performance Manage Challenges Performance management has its challenges that require to be overcome in various ways. In this case, implementation and design of performance management drivers’, interventions and strategies are easier said than they are done. As such, they involve both micro and macro level challenges. With regard to rationalistic approach, performance management demands totally rationalistic and objective in adoption of a variety of human resource processes and practices. A superodinate theme and purpose should prevail that runs the entire performance management system (Kandula, 9). All human resource practices ought to undertake a logical framework with well-defined deliverables in all stages. Frequently, such a rationalistic management requires process re-engineering and organization-wide revolution (Kandula 10). On the other hand, any piecemeal, subjective or substandard attempt of installing performance management in any organization can bring about counterproductive results. Second challenge is engineering alignment. Performance management gains purpose, firm platform and direction when its drivers, interventions and various strategies get sharply joined together with the organization’s business strategy. This stipulates that, as Kandula points out, performance management must play the catalyst role in attaining long-, medium- and short-term aims of the organization (10). Such a move entails three major aspects: a thorough study of business dynamics and strategies, resolving alignment methodology that implies methods of achieving linkages between human resource procedure and business, and building up suitable content like, performance management strategies, drivers and interventions corresponding the structure and pattern of business strategies (Kandula 10). Melding culture is another challenge of performance management. Performance management success is hugely dependent on its ability to merge culture with a variety of practices. Kandula asserts that all corporations undertake a form of work tradition that is historical, identifiable and cherished for a long period by spontaneity or design (10). The challenge is that that work culture ought to possess total compatibility with the kind of performance management which is either getting implemented or planned. The reason for this is that performance management application entails change in procedures, policies and systems. Such a physical change would not simply bring the expected progress but call for people change, also referred as transition, which is probably achievable through management of the cultural features (Kandula 10). Frequently as cited by Kandula, transition is harder than change as it is centrally found in the inside portion of people (10). The other challenge of human performance system is perseverance. Different from other management systems, scheduling and implementation of performance management system demands a lot of effort and occasionally several years’ hard work (Kandula 10). Unfortunately, many organizations dilute or back off their efforts due to expectation of spectacular results overnight (Kandula 10). It is evident that performance management benefits are only realised through constant endeavour. In simple terms, performance management success is primarily achieved through perseverance. The other challenge of performance management system is HR competencies. HR leadership plays a critical role of efficient practice of performance management. Human resource managers ought to sharpen their business expertise as their soft individual skills. Therefore, they should be capable of utilising qualitative methods as well as quantitative techniques and require adequate knowledge on information technology (Kandula 10). However, human resource managers possessing the skills might not perfectly go with this profession’s demands. The prerequisite for the profession is twin knowledge foundation of human resource science and technology. Shockingly, there is shortage of such experts who have skills in the two areas. The other challenge of human resource management system is accountability. The essential function of performance management system is creating pertinent performance indicators, that is grounded on which individuals can observe their individual levels of performance. Kandula says that this assists them to schedule their activities, kick off remedial measures and practise appropriate procedures for maximising their performances (11). In simple terms, performance management system assists in identifying areas of accountability in terms of business gains or value addition. Thus, performance management system ought to display per se as an appropriate instance through espousing a wonderful scheme of accountability (Kandula 11). Such accountability should be in the name of what is delivered to the progress and people’s welfare as well as to an organization. Coming up with an accountability framework is surely one of the formidable challenges that face several performance managers. Ensuring interior performance is another challenge that faces performance management. Kandula points that one of the major challenges of performance management is that of ensuring tighter incorporation among all drivers, interventions and strategies (11). Empirical evidence shows that the higher the interior coherence among different performance management interventions and strategies the huge the consequences of those functions (Kandula 11). Generally, in order to be successful in arriving at the best performance, performance management requires incorporation of all its deeds which poses a big challenge. Implementation Process of Performance Management System (PMS) Successful implementation steps of PMS demands executive sponsorship, significant adjustment and commitment by the people involved. Importantly, before being in a hurry to initiate the first step of implementation, certain items require consideration for the process to be successful. The items include: Evaluation of the present environment: Before thinking of scoping out reporting and analytical requirements of a certain corporation, it is imperative to look carefully at the present environment. Otherwise, an organization might make a mistake of executing analytical tools which merely generate what is presently being utilised, Familiarising users and comprehend the user needs: In this scenario, it would imperative to talk to major people in an organization who would be relying on or using the new equipment in making the business decisions. As such, such conversations require creative approach in a manner that would open the door in order to be intricate in development and design. Additionally, fulfilling the requirements of Finance is imperative to be born in mind; however, the chief goal is offering a tool which possesses the power of directly impacting profitability of the business. Moreover, a strong executive supporter would be required for propelling the project plus promoting it in the entire company’s executive team, Identifying the Key Performance Indicators (KPI’s): KPI’s are meaningful in measuring the business performance. The second step of implementing PMS is creating a Statement of Work (SOW) - which is a project’s fully described road map. During drafting of the SOW, definition of the following ought to be clearly done: Project Scope Threats, recognized timelines and any extra project’s terms. It is also important to plan weekly update gatherings and track a project’s movement for the purposes of ensuring chief deliverables are being realised. Such meetings would assist in maintaining the project according to the timelines and goals stipulated in the Statement of Work. Implementation of PMS also requires involvement of workers as persons and members of a particular group of an organization in the improvement of organizational successfulness in the completion of its goals and missions. Workers’ performance management comprises of arranging tasks and setting anticipations, consistent monitoring of performance, rewarding performers, instituting the ability to perform and regularly rating performance in a summary mode. PMS can also be implemented by monitoring projects and assignments continually. In this case, monitoring implies continuously measuring performance and offering feedback to workgroups and workers regarding their advancement towards attaining specific goals. Regulatory needs for monitoring performance comprise of carrying out advancement reviews with workers where comparison of their performance against their standards and elements is done. Continuous monitoring offers a chance of checking how well workers are achieving predetermined values and necessary changes are made to problematic and unrealistic standards. Importantly, it is in this step where workers developmental requirements are assessed and addressed. On the other hand, developing stipulates adding the capability to perform via training and providing assignments which introduces upper levels of responsibility or new skills and improves work procedures. During monitoring and planning of work, insufficiencies in performance are identified and get addressed. In addition, areas that require improvement for good performance also become apparent where action is taken to assist successful workers improve more. PMS involves summarizing performance. Summary of performance is vital in viewing and comparing employee’s performance for a certain time as many organizations require knowing the best performing employees. In this case, a group’s or employee’s performance is rated against the standards and elements in a worker’s performance arrangement and allocated a record of summary rating. Rating of record is only assigned to one person and not the entire group. It is in this step where rewards are given. Rewarding involves identifying workers individual performance together with group performance and commending them for their great performance and involvement to the organization’s mission. The essential principle in this stage prescribes that various kinds of behaviour are controlled by their consequences. Such behaviours ought to be both negative and positive and informal and formal. Award regulations offers come in wide forms that include time off, non-monetary items, cash, and promotions among others. Criteria and Standards of Performance Measurement Performance measurement is the tool that assists managers to exercise control over their organizations’ outcomes. As such, they become drivers instead of passengers in their organizational voyage. The worth of performance measurement can be summarized as something that is immeasurable is unmanageable, what is measured is watched and something that gets watched also gets done. The criteria and standards for performance management identify the abilities that the successful management control structures ought to have and institute rules for execution. The criteria and standards are as explained in the following order. The first criterion is that all considerable work activity ought to be measured. In this scenario, (i) work which is not assessed or measured is impossible to manage as no credible information exists that can determine its worth. Thus, an assumption is made that such work is of little value in spite of its results, (ii) unmeasured work ought to be eliminated or minimized and (iii) work measurement ought to comprise of the resources (investment, expenses and manpower). The second criterion is that, needed performance results ought to be recognized for the entire measured task. As such, outcomes offer the foundation for recognizing accountability for outcomes instead of just demanding certain effort levels, sought outcomes are important for work assessment and purposeful performance appraisal, and identifying performance as needed outcomes is indicates how supervisors and managers run their work assignments. The other criterion of performance management is that, a well-timed performance baseline ought to be built up to assess overall organizational performance. Such a baseline should first integrate overall organizational activity that includes operating performance results that identify the needed outcomes from functions and the prevailing operational resources (assemblies, material, and manpower among others) demanded to attain the results Secondly, financial performance results that identify the anticipated expense and revenue results and investment needed for supporting the operating activities. Third, a plan that identify when those investment and result are anticipated to take place. The fourth criterion and standard of performance management is that; financial and operating performance reporting ought to be harmonized with similar reporting time and same reporting frequency. The last criterion and standard of performance measurement is that, performance reporting as well as discrepancy analyses ought to be completed repeatedly. In this case, time and reporting enables well-timed remedial action and well-timed remedial action is required for efficient control of management. Advantages of Performance Management System Performance management system enhances performance oriented conversations. Often, managers become busy with their daily responsibilities and therefore, ignore the important interactions with employees that offer the chance to teach and provide performance feedback. Thus, performance management process compels managers to deliberate issues of performance with workers. Importantly, continuous coaching affects altered behaviours of workers to development. It also aims at staff development. When performance management is done appropriately, it identifies developmental chances and can be a vital portion of a certain succession planning procedure. Generally, all workers live on advancement voyage and thus it is the responsibility of the organization to be preparing them for augmented responsibility. Performance management strategy also encourages to employees. Employees celebrate performance appraisals during a year and thus get encouraged. On the other hand, there must be no worries during addressing issues as soon as they are noticed and not waited till the yearly review. Performance management stimulates rewarding of employees for their good work. In cases where bonuses and /or incomes depend on the performance appraisal procedures, employees are capable of seeing a direct association between financial rewards and performance. Such moves encourage and motivate workers to more quality work and have more returns. Performance management enables organizations to recognize and eliminate underperformers. Efficient performance appraisal procedures assist in the identification and documentation of underperformers thus permitting even transition in case the relationship requires termination. Performance management also encourages keeping of clean records of work performance. In this regard, all corporations keep performance records for all of their employees. Such documents are used for future purposes and ought to be kept inside the worker’s file. Performance management allows employees to grow. Motivated workers value development, structure and growth plan. An efficient performance management system assists workers in reaching their full potential, a factor that is imperative to both the manger and the employee. Importantly, a good manager enjoys watching a worker growing and developing professionally. Disadvantages of Performance Management System Performance management system consumes a lot of time. Owing to the recommendation that a manager ought to use roughly an hour with every worker’s writing performance appraisal (PA), it takes several hours or days to handle big number of employees. For instance, a manager who has more than a hundred employees would take a number of days to write performance appraisal all the employees. Performance management system also discourages. In cases where the performance management process does not offer pleasant experience to the employees, the employees become discouraged. However, the process should be one of the employees’ positive reinforcement, encouragement and whole year’s celebration of various accomplishments. It is crucial that managers not only document issues that require correction but also positive things that a worker does for the entire year, where both ought to be addressed during performance appraisal. Another disadvantage of performance management is inconsistent messaging. In the cases where managers never keep accurate records and notes of workers’ behaviours, they are not victorious in sending a constant message to the worker. Since every human being struggles with the issue of memory due to busy schedules, it is imperative to file issues when they are still fresh in mind in order to have easy time of reviewing them during PA time. Performance management also creates biases as errors committed during performance appraisal cause managers to be seen as biased to some employees. In this case, managers who evaluate performance should have an understanding that natural biases are vital to fair assessments. Example of an organization Using Performance Management System An example of an organization that uses performance management system is the Palliative Care. Palliative Care’s programmes are obliged to gather and evaluate data on three or more performance mechanisms. Minimum of two data are clinical measures identified in or related to practice regulations for the program. Measures chosen from service or program are always reliable, valid, relevant and evidence-based. Conclusions and Recommendations Performance management system (PMS) is the procedure of making and implementing interventions, drivers and motivational strategies with an aim of transforming the human resource raw potential into performance. In addition, performance management serves as a mediator of changing the available potential into practical performance through eliminating the transitional obstacles as well as rejuvenating the human resource (HR). As a result of making use of the unused but available potential, organizations experience growth while individuals increase income. It is evident that immeasurable thing is unmanageable. Admittedly, performance management systems possesses a lot of significance that one of them include ensuring equity in each and every sphere of an organization, an element that employees take pride in. On the other hand, performance management faces several challenges including lack of professionals who have good knowledge of both information technology and business. In the real sense, for an organization to successfully implement performance management system, all people should be involved in the process. Performance management criteria and standards enable managers to set the limits by which to measure the employees’ performance. Performance management has many advantages. It offers encouragement to the employees. In this case, the employees become motivated to work more. However, employees who feel discontent with the performance management procedures normally get discouraged thus lowering the overall performance of an organization. PMS calls for the participation of all employees in an organization during its implementation. All employees should be informed before hand to give them enough time of thinking more about the plan. Once PMS process implemented, regular checks should be conducted in all areas to ensure achievement of the desired goals at the end. Works Cited Kandula, S. R. Performance management: strategies, interventions, drivers. New Delhi: PHI Learning, 2006. Print. Read More