Performance Management to Business - Assignment Example

Part A 1. Describe at least two purposes of performance management and their relationship to business Performance management serves business with different objectives and helps to improve the performance of the business. It also helps in building direct relationship with the business and creates the required framework which will help business to succeed. Some of the purposes served through performance management and their relationship with business is as follows Achieving the goals of the organization by proper plan and execution of the same: Performance management helps the business to achieve the goals as the plans provides directions to the employees. Also having targets which are achievable motivates the employees and creates an atmosphere which facilitates proper planning and execution of the same. Defining the execution plan and setting objectives in a SMART way. Clearly stating the manner in which the objectives will be achieved helps the organization to ensure that the interactions between the line and the managers improve. This facilitates better process and improves the thinking process. This also makes the entire management to concentrate on the work in hand and develops the employees for tougher responsibilities. 2. Explain at least three components of performance management system Answer: Performance management system has various components some of which are as follows Induction: This is one of the most important components of performance management system as it helps the employees to familiarize with the organization. It helps the employees to understand the manner of working and the present environment in the organization. It also helps to develop relationship and creates a first impression about the overall outlook of the organization. This thereby helps the employees to feel comfortable and helps him to socialize with the organization. Counseling: This is another component of the performance management system which helps to develop the employees. This process facilitates transfer of ideas and opinions between the managers and the employees. This thereby creates clarity in the process and helps the employees to understand new ideas and work as a team towards the achievable objectives. Performance appraisal: This component helps to check the performance of the employees against set standards and devise mechanism which will help to improve it in the future. This motivates the employees and makes him understand the areas he need to work on so that this performance improves and he is able to achieve his own and organizational objectives. 3. Explain the relationship between motivation and performance management. You should include at least two motivational theories Answer: Motivation has a direct link with performance management. An employee who is able to perform well gets motivated as the external and internal rewards makes the employees satisfied. This makes the employees work on task which are difficult and gives the required motivation to achieve the task in hand. The same has been highlighted in different motivational theory as seen below Maslow Hierarchy of Needs: which shows that a person has a basic desire for food and shelter and when then need is satisfied he craves for security and social recognition. This theory shows that performance management is directly linked to motivation and makes the employee to crave for more through his hard work and dedication. Herzberg Theory: concentrated on different hygiene factors which motivates the employees and helps him to work harder to achieve the goals. Some of these factors are recognition, development, and so on. This theory further propagated the fact that the factors help the employees to be motivated both intrinsically and extrinsically. On the intrinsic front recognition makes the person achieve social recognition. The mere fact that the employee will earn respect in the society and will be able to achieve the different task makes him motivated. The rewards and development that the employee receives motivates him extrinsically as the employee is able to satisfy his most needs through the incentive he receives. Thus the different theory also highlights the positive relation between performance management and motivation and the manner it leads towards development of the organization and helps the organization to achieve the goals. 4. Identify and explain the factors that need to be considered while managing performance. Answer: Organizations need to consider both the good and the poor factors so that the performance of organization improves. The factors are as follows Good Factors: Ensuring effective communication between the employee and the management so that the employees are clear of their duties and responsibilities. Also, ensuring two way communication so that the employees feel a part of the organization and are able to provide their valuable inputs. Having regular appraisal so that the performance of the employees can be gauged and areas which they need to improve can be worked upon. Bad Factors: Unable to communicate with the employees clearly which creates ambiguity and results in lack of motivation for the employees. Not allowing the employees to communicate their problems and being unheard de-motivates the employees and creates an atmosphere which is tense. Also being unable to solve the problems of the employees leads towards unclear goals and loss of energy and resources for the organization. 5. Describe the data required by individuals involved in performance and reward management process. Answer: An individual involved in the performance and reward management process needs to consider both the internal and external data while finding the rewards that accrue to an employees. The factors that needs to be considered are as follows External Data: Using cues and benchmarking pattern that is used by the industry helps to creates clarity and makes the employees understand the parameters on which their performance will be evaluated. This makes the employees clear of the process and the manner and areas they need to work on to move higher up in the career and have better job opportunities. Internal Data: The promotion and manner in which the employee’s performance is evaluated and helps the employees to move higher up in the hierarchy is discussed among the employees. This message gets transmitted to the outside world and has an effect on the reputation of the organization Part B 1. Explain the frequency, purpose and process of a performance review Answer: Frequency of performance appraisal helps the employees to understand the different parameters on which they will be evaluated and helps them to work on those areas. Frequency of performance appraisal varies from organization to organization. Some organization prefers it yearly, some quarterly and some half yearly. The frequency is determined by the organization based on its needs. Purpose: Organization carries out performance appraisal due to various reasons. Some of them are to find the areas that employees need to improve, succession planning, motivating employees, promotions and so on. The overall reason that makes organization to conduct performance appraisal is to improve the working condition of the organization. Process: The process followed in performance appraisal is a one to one process. In this process the line managers directly communicates with the staff and highlights the performance and areas they need to work upon. This is a process which is followed out in most organization and helps the organization to ensure uniformity. 2. Reflect on the performance review which you have conducted. This may be a performance review which you have carried out as a part of your role play in the workshop Answer: The employee performance review which was carried out in 2011 by the name Sharing Employees Service highlighted the following The process followed by me was a one to one communication between the employees and me. The overall analysis showed that 70% of the review was based on SMART objectives and the rest were based on technical competencies. Having a one to one communication helped me understand the problems faced by the employees and based on it certain altercations were made to the objectives of the individual employees. Each employee concentrated on their own objectives and brought forward different ideas which will help to improve their objectives help the organization to achieve goals. Read More