Components of Performance Management Process - Coursework Example

Components of Performance Management Process Definition Performance management as defined by Dale Yoder is a systematic process of evaluating personality and performance of employees, either by supervisor or some trained person in the organization. It is a continuous process of information gathering about potentials and contributions of employees to correctly decide on human resource practices (Griffin & Moorhead 145). Purpose of Performance Management The basic purpose of performance management is to provide a base to judge the current performance of employees and developing future actions and strategies on the feedbacks and results achieved. It helps not only in the elimination of shortcomings and reasons creating gaps between desired and expected, but also fosters training and development opportunities for employees on the basis of individual requirements. Elaborating further, purposes of performance management can be divided into administrative and individual objectives which subsequently link it to overall business objectives. An effectively managed performance management system defines the job responsibilities and duties expected from its employees. As such, it also helps in the determination of the right mix of people which are competent to lead the organization to the path of success. Performance management system facilitates the strategic decision of promotions and transfers which are needed to align the goals with the right set of people and pursue the expansion or diversification moves of the organization. Also, wage administration, designing training and development session and overall personnel management come under the purview of performance management which is an integral component of human resources strategy. Individually, it provides opportunities to employees to identify their strengths and weaknesses; compare them against their duties and improve upon the existing performance. Standards allow them to move in the right direction and answer the ‘what’, ‘why’ and ‘how’ of his job expectations. Components of performance management process (3) Just like any procedural programme, the performance management process also entails three major components of planning, coaching and reviewing (Performance Management Process Handbook 1999) (Appendix 1). Explanation of these three components goes as: Planning The planning component is about assessing the feasibility of the process, laying down objectives and defining roles and responsibilities after open discussion between managers and employees. It seeks to clarify everything to the entities involved and ensures that employees understand the purpose, functioning and expectation from this process. It sets a time frame for them to develop skills which can be monitored and reviewed. The planning process majorly concentrates on defining employees’ accountability and their expected contribution towards the organization, both qualitatively and quantitatively. This phase also sets the factors which will decide the criteria for analyzing behaviors and differentiate them on the basis of exceeding standards, meeting standards and below standards. Coaching Coaching involves periodic reviews on performance and accounting for the development and training of employees to overcome the gaps in the required level of skills and competencies. Comparing employee behavior against job accountabilities and objectives help develop proper training programmes which meet customized requirements. Reviewing While coaching was done on an informal basis, reviewing takes a more formalized approach where data is collected about the performance of employees and predicts future behaviour and objectives. Data is collected through various techniques and signed and commented upon by a number of supervisors and managers to provide an overall rating to the process. Relationship between motivation and performance management Put in simple terms, motivation directs a person to act for a specific outcome. As such, level of motivation also determines the level of performance displayed by individuals. Higher motivation results in better performance and vice versa. In this regard, eminent researchers have propounded various theories which establish a link between motivation and performance. First and the most talked about is the Maslow’ Need Hierarchy theory which states that an individual is first motivated by physiological needs and climbs up the ladder successively where he demands social network, self esteem and self-actualization (George & Jones 191). Thus, motivators for an employee follow a hierarchy, starting from basic needs of food, clothing and shelter and successively reaching status, position and self-sufficiency. After one level is achieved, employees tend to look for provision of next level motivators by the organization which will induce the required motivation in them. As such, in performance management process, it is very essential for an organization to devise its monetary and non-monetary benefits in a way which supply the requisite motivational factors at different levels of hierarchy needs. Fulfilment of needs leads to higher motivation and consequently enhanced performance. Another important theory is the Equity theory which explains the reasons behind grievances and dissatisfaction from job. The theory asserts that individuals tend to compare the outputs received with the inputs given. Also, they tend to compare their own benefit and others’ benefits for the same level of input. If there is a misbalance in any of the case, the employee feels dissatisfied and thus the performance deteriorates. Feeling of inequity and discrimination start creeping in which infects the performance management process. As such, it is essential for organizations to devise equitable pay plans and incentives policy for same category of jobs. This fosters an environment of trust, confidence and supportive relationship building between employees, teams and departments. Purposes of reward within performance management system When performance of employees are monitored, reviewed and commented upon, they expect some sort of appreciation for the fulfilment of objectives and their contribution towards the organizational mission. It is known as reward in the context of performance management and involves tangibles (salary and wages) and intangibles (learning environment, flexible schedules, leaves, perks and benefits). It is an important tool in the hands of management to attract prospective candidates and retain better performing employees. When employees perceive some rewards linked to performance, they automatically feel motivated and try to achieve the performance management goals within the stipulated time frame and according to the set guidelines. However, with increased business complexities and higher employee expectations, rewards have also undergone a tectonic shift in their perception and total rewards management has been included in the performance management process which includes components that provide a plethora of intangible benefits in addition to tangibles. Components of total reward system are numerous. One such emerging form is awards for recognition of contribution of employees (Griffin & Moorhead 154). It is granted both as a result of seniority or quality work produced or delivered. Awards make an employee feel special and appreciate his performance periodically. Another component of total reward system is indirect compensation which is in the form of paid leaves, gratuity plans, pension plans, disability benefits, health and insurance and other benefits. These benefits try to address the social, family and welfare needs of employees which are considered as ethical duty of organizations. It can be termed as value addition pay back to the employees for the value invested by them in the organization. Third component is the perquisites which are granted to top level managers granted as special privileges. They accrue by nature, term of service and job responsibility of employee. It includes vacation home, use of company assets, car, driver facility, etc. Performance appraisal briefing guide for Line Managers To understand the practicality of performance appraisal process, a briefing guide for new managers in a college is being presented which serves as a helpful tool in assessing and managing the performance of employees. It not only establishes management goals for employees, but also compares and contrasts them against set standards and rewards them. Purpose The objectives of the performance appraisal process being implemented at the college include establishment of personal employee development objectives that align with the corporate objectives, supplying modes and means for discussions over employee performance based on those objectives, evaluating performances against that uniform factor set, providing constructive feedback and improving the gap and finally administering the wages and salary administration on the basis of feedback delivered and improvements observed. Process The performance appraisal process will comprise of the following steps: Defining objectives and role responsibilities for each and every category of job. Measuring performance and the level of goal accomplishment on the basis of previously set standards. Performance reviews on the basis of regular factors. Assessing the level of personal and professional development achieved and the employee’s contribution to organizational mission. Setting fresh goals for year ahead on the basis of current feedback and performance results. Factors In conducting the performance appraisal at the college, there are three prime factors that are to be considered- who is appraising, how often the appraisal is being done and what methods are used for the purpose (Griffin & Moorhead 147). Here multiple-rater appraisal system is to be used which takes into accounts peers, colleagues, supervisors and all those who are related to the job responsibilities of the employee. Better known as 360 degree appraisal, it will help assess the interpersonal, managerial and other skills of employees for their overall development. Frequency in this case will be semi-annually as it involves more of paper work and making it convenient for administrative tasks. Next factor is the method of measuring performance like use of BARS (behaviourally anchored rating scales), checklists or graphic scales. However, individual methods are found more reliable than comparative methods. As such, performance appraisal process in the college will make use of performance appraisal form, job responsibility guide and appraisal interviews. Description of two data items The two data items available to both the appraiser and appraise and which help in the process are the performance appraisal form and the job responsibility guide. The performance appraisal form will further comprise of the following components: Job objectives (examples and comments) Goal achievement (personal, professional) Factors for performance (specific to each position) Mission (ways in which employee has helped promote the mission of the college) Overall rating (based on previous sections details) Goal setting for next period Any other comments The job responsibility guide will supply the framework of meaningful tasks that define the position and job. It will encompass assignments, goals and tasks which can be measured and changed according to requirements. Use of SMART (specific, measurable, agreed upon, realistic and time bound) objectives will be done to define the job responsibilities. Appendix Components of Performance Management Process Works Cited George, Jennifer. M. & Jones, Gareth. R. Understanding and Managing Organizational Behavior, 3rd Edition, 2002. Griffin, Ricky. W & Moorhead, Gregory. Organizational Behavior: Managing people and organizations. USA: South-Western Cengage Learning, 2010 Performance management process handbook. Office of Personnel Management, State of Oklahoma, 1999 Read More