An Investigation into Performance Management Improves the Productivity of a Firm - Research Proposal Example

An investigation into performance management improves the productivity of a firm Table of Contents Table of Contents 2 Background of the Research 3 Importance of the Research 4 Aims and Objectives of the Research 4 Literature Review 5 Research Methodology 10 Research Approach 11 Research Problem 12 Ethical Considerations 12 Limitation of the Study 13 Conclusion 13 References 14 Bibliography 16 Background of the Research In the current scenario, it is very essential to maintain high level of performance management practices within a firm or an organization. However, over a prolonged period of time, the consequences and the outcome of poor performance management practices has been a topic for debate among the academic scholars and managerial executives of the corporate houses (Advance Change Ltd., 2015). The role played by performance management practices within an organization is significantly and radically important because it ensures the understanding of the employees about the contribution expected from them in an organization, in order to achieve the objectives and goals of the organization as a whole unit (OPM.gov., 2015). The process which involves the creation of a working environment or platform which enables the workforce to perform efficiently using their inherent skills and abilities is known as performance management (About.com, 2015). Furthermore, in order to outperform the competitors’ of an organization, it is very essential to conduct performance management practices (UC Regents, 2015). Due to the increasing pressure in the global competitive market, companies and the management are being forced to put greater emphasis on improving the productivity of the company or firm (Armstrong and Baron, 2005). Importance of the Research In the current scenario, with the increase in competition in every sector of different industries it is highly important to assess the role of performance management in improving the efficiency and productivity of a firm (TechnologyAdvice, 2015). The research will be undertaken with the aim to establish the role of performance management as a tool for increasing productivity in an organization along with the aim of increasing employee engagement and compliance (Advance Change Ltd., 2015). Since the contribution of performance management towards improving and measuring the capabilities of the employees cannot be understated, the research work is aimed at determining the different process that has been implemented for managing performance of the employees and analyzing their effectiveness. Aims and Objectives of the Research The research work on performance management in improving the productivity of the firm has been undertaken with the aim of accomplishing different objectives through study that has been depicted henceforth: To provide an empirical assessment of performance management as a tool for improving the productivity and performance of the firm chosen for the research work. To identify and study the existing performance management methods and processes within the chosen firm. To study and analyze the different techniques of reviewing performance within the chosen firm and assess the performance of the employees in relation to the incentives provided on performance and morale of the employees. To identify and assess the effect of various techniques of reviewing performance of the employees of the chosen firm. Literature Review According to Axson (2010), performance management in business comprises of different processes, systems, data and information which is utilized by the executives and the managers of the company or firm towards establishing strategies, developing plans, monitoring and executing those plans and forecasting the performance of the workforce and the company along with reporting the results and efficient decision making. Performance management is a very broad and wide domain as it encompasses different functions according to the different levels within an organization (Cardy and Leonard, 2004). In order to ensure effective performance management within an organization, it is very important to understand the processes functioning within the environment of the organization. The performance management process has been enumerated hereafter in order to understand the role of performance management in an organization (Cardy and Leonard, 2004). Figure 1: The process of performance management (Source: Cardy and Leonard, 2004) According to Caldwell (2000), performance management has been described as a positive partnership between management and the employees of an organization which helps and encourages the employees to show their true potential and perform to the best of their abilities by aligning their personal contributions with the mission, goals and values of the organization. Performance management involves the process where employees are trained in such a manner that they are entrusted with the responsibility of managing and measuring their own performance against the standards set within an organization (Caldwell, 2000). According to Aguinis (2009), Performance management involves two components such as aligning the strategic goals of an organization with performance management and development of performance management as an ongoing or continuous process. Performance management has been identified as a continuous process because it encompasses a never ending procedure of goal setting, determination of the organizational aims and objectives, monitoring and examining the performance of the organization and imparting and recording feedback about the performance management mechanism implemented within the environment of an organization (Aguinis, 2009). Furthermore, the managers of the organization are entrusted with the responsibility of aligning the goals of an organization with the role and activities performed by the employees of an organization. Through the process of performance management, an unswerving link or connection is established between the employees and the goals of an organization (Aguinis, 2009). Through the performance management in a firm, the employees or the workforce are motivated to enhance their performance in the future (Aguinis, 2009). Performance management provides feedback and indicates how well an individual have been performing in the current scenario which also acts as a resource for guiding the individual during future performances (Aguinis, 2009). According to Aswathappa (2010), Performance management has become an essential and crucial component of the corporate culture and strategies as it helps in serving numerous problems, issues and goals of an organization. Along with increasing the standards of performance within an organization, performance management plays a remarkably important role in identifying the employees possessing higher amount of potential and facilitates in designing the structure of the reward system within an organization (Aswathappa, 2010). Performance management also plays a major role in identifying the needs and problem of employees which ensures further development in their performance. The role of performance management vastly influences the strategic decision taken and implemented within an organization (Aswathappa, 2010). The concept of performance management was introduced about 60 years ago in order to determine the wages or remuneration of the employees on the basis of their performance and justify or recognize the different sources of income within an organization (PeopleStreme Pty. Ltd., 2013). With the purpose or aim of deriving specific outcome or results from the employees, the concept of performance management was introduced and implemented in different organizations. However, in the practical scenario, the concept of performance management was well accepted by the employees of an organization who were driven by financial rewards (PeopleStreme Pty. Ltd., 2013). Performance management provides several outcomes explained hereafter. It helps in improving the communication between the manager and the employees in an organization as it has been identified as a collaborative continuous process (PeopleStreme Pty. Ltd., 2013). Performance management ensures that both the employees and the management are well versed with the rules and regulations existing within an organization. It provides an improved structure for assessing the performance of the employees and focus equally on achievement of the business as well as personal objectives of the organization (PeopleStreme Pty. Ltd., 2013). Since performance management involves various development strategies, the employees are provided with a real and genuine experience of personal development which helps the employees to be more involved and connected with the organization (PeopleStreme Pty. Ltd., 2013). A report published by Harvard Business School in the year 2015 states that a survey was recently conducted by Deloitte on the executives of different companies, shows that around 58% of the respondents believe that the current performance management approach followed within the organization failed to drive high performance among the employees and it has also failed to increase the pace of employee engagement (Harvard Business School Publishing., 2015). According to the Harvard Business Review (2015), Deloitte has been successful in establishing a performance management mechanism which involves three stages such as, first, recognizing individual performance, secondly, viewing the overall performance of an individual through performance snapshot and lastly, adding fuel to the performance which means providing facilities to the employees that will increase their performance standards (Harvard Business School Publishing., 2015). Deloitte has successfully implemented an efficient performance management framework since the company believes that the core strength of an individual helps in delivering the highest performance in the current situation and further prepares the individual for a better performance in future (Harvard Business School Publishing., 2015). According to Tata Consultancy Services Limited (2015), in order to survive in the dynamic and competitive business environment, it is very important for the organizations to respond swiftly and smartly during decision making circumstances. Business Intelligence coupled with performance management provides effective and efficient outcomes for an organization. According to the University of Washington (2015), performance management has immense importance among employees as it helps them in understanding their role within an organization and what is expected from them by an organization. Performance management definitely increases or improves the productivity of a firm as it helps the management to perform an in-depth analysis of the performance of the employees and design the retention and reward structure along with talent management (Execution is the Difference, 2015). Research Methodology In the methodology section of the paper, the detailed process through which the research work will be carried out will be established. The research work on this paper will be primarily based on secondary data and little of primary data will be used for assessing the role of performance management in enhancing the productivity of the firm. Secondary sources of data in the form of books, newspapers, journal, internet and magazines will be used for obtaining data for the research work that covers different aspects of performance management which influences the productivity of a firm (Kumar, 2008). Furthermore, in order to establish a concrete conclusion about the role of performance management in improving the productivity of a firm, a particular firm will be chosen in order to develop the answers to the questions established in the research problem. The research methodology of the paper will be executed following the aims and objectives of the research work. Qualitative and quantitative research methods will be used for obtaining and analyzing both primary and secondary data (Kumar, 2008). Qualitative research methods will be used to analyze the data and information received from the secondary sources. More importance will be given on qualitative analysis as it is easier to access secondary sources of data than primary data. Secondary data also provides better understanding and clarity of the research questions (Kumar, 2008). Research Approach Deduction, induction and abduction are the three different types of approaches in a research (Kumar, 2008). A separate research pattern and standard is followed in each approach. For accomplishing the research work of this paper, deductive method will be chosen for establishing the hypothesis of the research work. By using wide range of primary and secondary data on performance management and productivity of the chosen firm, the researcher proposes to check and establish the validity of the research hypotheses. Research Problem The important questions that will be answered through the research work have been depicted henceforth: To what extent performance management is important for the growth of an organization and the firm chosen for the research work? What are the advantages or benefits derived from effective performance management within an organization and the firm chosen in the research work and how it affects the overall development or growth of the organization and the firm that has been chosen for the paper? What is the relationship between performance management and organizational productivity of the firm chosen? Ethical Considerations The study and the analysis to be conducted on the research work will be carried out after considering the ethical and moral norms (Miller, Mauther, Birch and Jessop, 2012). The foundation of the literature review will be based on the actual objectives of the research work. Furthermore, important conclusions will be drawn from the literature review in order to establish the idea through the research work (Miller, Mauther, Birch and Jessop, 2012). Since the research work will be primarily based on secondary data which has already been presented for the access of common public therefore, the proportion of ethical dilemma will be comparatively less (Miller, Mauther, Birch and Jessop, 2012). As internet, published journals on the particular topic and books will be used for the research work, therefore further analysis and use of the secondary sources is implicit. Lastly, during the presentation of research work, acknowledgement of the original data will be provided (Miller, Mauther, Birch and Jessop, 2012). Limitation of the Study Even though several moral and ethical standards will be considered during the research work, however, it is expected that the research work will be subjected to certain limitations. The accuracy of the answers provided by the respondents will be assumed to be appropriate (Rubin and Babbie, 2009). In case of primary data analysis, there are chances that the results derived from the data may not be accurate as it depends on the response of the chosen respondents (Rubin and Babbie, 2009). Furthermore, there are chances that the performance management mechanism established in the firm chosen for the research work may not be highly efficient when compared to its competitors’ or peers within the same industry. Conclusion The research work on performance management in improving the productivity of the firm chosen will help in determining the importance of the performance management and increase the level of understanding of the researcher as the research work of the paper is conducted. Qualitative and quantitative methods to be adopted for the research work will provide conclusive information and knowledge about the topic undertaken for the research. References About.com, 2015. Performance Management. [online] Available at: [Accessed 14 August 2015]. Advance Change Ltd., 2015. Why Performance Management – Why Actus™? [online] Available at: < http://actus.co.uk/why-performance-management/ > [Accessed 14 August 2015] Aguinis, H., 2009 . Performance Management. 2/e (New Edition). New Delhi: Dorling Kindersley (India) Pvt. Ltd Armstrong, M and Baron, A., 2005. Managing Performance: Performance Management in Action. London: Chartered Institute of Personnel and Development Aswathappa, K., 2010. International Business 4E. New Delhi: Tata McGraw Hill Axson, J. D., 2010. Best Practices in Planning and Performance Management: Radically Rethinking Management for a Volatile World. New Jersey: John Wiley and Sons Caldwell, C., 2000. Performance Management. New York: American Management Association Cardy, R and Leonard B., 2004. Performance Management: Concepts, Skills, and Exercises. New York: M.E. Sharpe, Inc. Execution is the Difference, 2015. SuccessFactors Performance & Goals. [online] Available at: < http://www.successfactors.com/en_us/solutions/talent/performance-goals.html > [Accessed 14 August 2015] Harvard Business School Publishing, 2015. Reinventing Performance Management. [online] Available at: < https://hbr.org/2015/04/reinventing-performance-management > [Accessed 14 August 2015]. Kumar, R. C., 2008. Research Methodology. New Delhi: APH Publishing Corporation Miller, T., Mauther, M., Birch, M. and Jessop, J., 2012. Ethics in Qualitative Research. London: SAGE Publications Ltd. OPM.gov., 2015. Performance Management. [online] Available at: < https://www.opm.gov/policy-data-oversight/performance-management/overview-history/ > [Accessed 14 August 2015]. PeopleStreme Pty. Ltd., 2013. What is Employee Performance Management ?. [online] Available at: < http://www.peoplestreme.com/what-is-performance-management.shtml > [Accessed 14 August 2015]. Rubin, A. and Babbie, E., 2009. Essential Research Methods for Social Work. Belmont: Cengage Learning Tata Consultancy Services Limited, 2015. Business Intelligence & Performance Management. [online] Available at: < http://www.tcs.com/offerings/business-intelligence-performance-management/Pages/default.aspx > [Accessed 14 August 2015] TechnologyAdvice, 2015. The Importance of Performance Management. [online] Available at: < http://technologyadvice.com/human-resources-software/blog/importance-of-performance-management/ > [Accessed 14 August 2015] UC Regents, 2015. Performance Management – Definition. [online] Available at: [Accessed 14 August 2015]. University of Washington, 2015. Managers Guide to Performance Management. [online] Available at: < http://www.washington.edu/admin/hr/roles/mgr/ee-performance/perfmgmt/ > [Accessed 14 August 2015] Bibliography Armstrong, M and Baron, A., 2000. Performance management. Human resource management, pp. 69-84. Guest, D. E.,1997. Human resource management and performance: a review and research agenda. International journal of human resource management,8(3), pp. 263-276. Huselid, M. A.,1995. The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of management journal, 38(3), pp. 635-672. Kaplan, R. S and Norton, D. P., 2001. The strategy-focused organization.Strategy and Leadership, 29(3), pp. 41-42. Ostroff, C., 1992. The relationship between satisfaction, attitudes, and performance: An organizational level analysis. Journal of applied psychology,77(6), pp. 963. Wood, S.,1999. Human resource management and performance. International journal of management reviews, 1(4), pp. 367-413. Read More