Different Approaches to Performance Management - Essay Example

Running Head: PERFORMANCE MANAGEMENT Performance Management [The [The of the Performance Management 1.0 Introduction The world is changing. Both individuals and organizations now compete in an international marketplace. Customers want quality goods and services at competitive prices. If the produce of an organization cannot compete, it will have not market. But an organization how to improve productivities and compete with other organizations Human resource management (HRM) be supposed to be used. HRM refer to the policies and perform desirable to carry out the people, or personal, feature of a management position, counting recruiting, training, rewarding as well as appraising (Raymond J. Stone, 1991). As the most important part in whole HRM, performance management must be highlight. Performance management is using by countries such GDP, organizations and individuals. Performance management is troubled to get the best performance from person, but goes extra in that it also aspire to get the best performance from the team and from the organization as an entire (R. Wayne Mondy). In this assignment, I should talk about what is performance management system, what problems are built-in in this system and how these troubles can be overcome. 2.0 Understanding Performance Management 2.1 Definition Performance management derives from the human resource management approach as a strategic and incorporated approach to the management and growth of people. The procedure of recognize, evaluating and mounting the work performance of employees in the organization, so that the organizational purpose and objectives are more efficiently achieved, while at the similar time benefiting employees in terms of credit, receiving feedback, catering for labor needs and offering career leadership. This definition emphasizes that performance management is a procedure. We can see the exemplify following: (Resource: Raymond J. Stone, 1991, Readings in Human Resource Management, p.91, John Wiley & Sons) From this definition, we can believe that performance management is worried by means of humanizing not only the performance of the individual, but also the performance of the team and the organization. As such, the majority significant thing of performance management is set up a system in which individuals and groups take blame for the continuous development of commerce processes, and of their own skills and contributions. 2.2 The Objectives of Performance Management System 2.2.1 Discrimination A manager must try to discriminate objectively between those who are contributing to the achievement of the organization's objectives and those who are not. In other word, a manager must be talented to appraisal an individual's past performance and assess strengths, level of effort and areas to reward and expand subordinates. Here the focal point is on what the employee has really done in the past, and an effort is made to build on the employee's strengths and make development in other areas so that the employee can carry out more efficiently in the future (Dessler, 1999). 2.2.2 Reward For performance to be encouraged, rewards are necessary. When a managers reward a part of subordinates for their past work, other subordinate will recognized they must work harder in the future. Reward is also a useful tool for motivate employees, suing a system like performance-related pay, to best performance at work. 2.2.3 Development The third objective of the performance management is growth. It includes expand person, term and organization. Performance management as a system concerns not only just for the past, but also for the future. When employees reach their full potential, the organization can also benefit fully from their abilities and contributions (Arthur Sherman, 1998, p.323). 2.2.4 Communication As a two ways system, performance management can also construct a kind of feedback flanked by employees and managers. Employee communiqu is a basic part in the system. It is because an effectual performance management system must be with common understanding among employees as well as managers, such as what performance will be reached and how to get it 2.3 Performance Management and Performance Appraisal Performance management as a procedure that is designed to get better organizational, team and person performance and which is owned in addition to driven by line managers. Performance appraisal is a one way of charitable employee's criticism concerning their performance at work. Performance management is a much broader idea than performance appraisal, which as we have seen has conventionally been concerned by means of judging the individual's performance, giving the person feedback about this performance and helping that individual to get better by methodically trying to motivate them to labor harder and more efficiently. Performance management is concerned with improving not only the performance of the individual, but also the performance of the team and the organization (Peter F. Drucker, 1954). 3.0 Common methods of measuring performance management Performance appraisal scheme as the most important technique is used in performance management system. There are a lot common methods can be chose for performance appraisal by managers. All of these methods are formal and predetermined, like one or more of those described in this section. 3.1 Graphic Rating Scale Method If we analyzed then we come to know that the graphic score scale method is the simplest and the majority popular method for assess performance. It rates employees according to distinct factors. The characteristic factors comprise two types: job-related and individual characteristics. Job-related factors are entity factors that include excellence and quantity of work. Personal characteristics are slanted factors such as proposal, reliability, originality and management. Characteristically, the manager will split a scale into five to seven categories such as exceptional, above expectations, meets prospect, below expectations and needs development. Through appraiser make a decision these categories, performance can be described. The rating form also ought to provide enough space for comments on the behavior linked with each scale. These comments get better the correctness of the appraisal (Dorrine Turecamo, 1994, 89-92). 3.2 Forced Distribution Method The forced distribution method is alike to grading on a curvature. With this method, prearranged percentages of rates are located in performance group. This forced distribution method is chiefly helpful when managers try to reward their secondary who with great contribution. There are two clear complexities in using such a system. Primary one is if there are just five or six employees, and second one is if all employees are exceptional. 3.3 Management by Objectives (MBO) If we analyzed then we come to know that management by objective (MBO) is a philosophy of management that has employees set up objectives throughout consultation with their superiors and then uses these objectives as a foundation for evaluation. MBO is a well-liked procedure to performance appraisal together employees and managers. It is since it involves the employees in the assessment procedure and is objective (George Thornton, 1980, p.265). An additional ordinary performance appraisal method such as forced distribution method, labor standards method, and paired contrast method are helpful for appraisal procedure. But I must highlight any method has own disadvantages. Before we use these methods, we ought to choose one that is the majority comfortable. 4.0 The players in the appraisal system 4.1 Managers/Supervisors Manager and/or supervisor assessment has been the customary approach to assess and an employee's performance. It is still the heart of the majority appraisal systems. Busy manager have to use performance records to assess an employee's performance. Dependable and valid contents can offer right gauge to manager. 4.2 Self Employee's self-rating of performance is also useful tool. Sometimes they are asked to evaluate themselves on a self-appraisal form. Self-appraisal can get employee thinking about his or her strengths and weaknesses and may lead to discussions about barriers to effective performance. Through use self-appraisal, organizational communication should be improved. At the similar time, this approach also helps manager and employees to set up prospect performance goals or employee growth plans. But on the other hand, the basic difficulty by means of these is that employees typically rate themselves higher than they are rated by supervisors or peers. We can overcome this problem through train appraisers and improve understanding (Kenneth Teel, 1980, pp.297-8). 4.3 Subordinates More firms today let subordinates anonymously evaluate their supervisors' performance. The reason is subordinates are in an excellent position to view their superior's managerial effectiveness. The process also assist top managers diagnose management style, recognize possible problems and take corrective action with individual managers as necessary. 4.4 Peers Peer appraisal is performance assessment done by one's go after employees, usually on forms that are amass into a single profile for use in the performance meeting conducted by the employee's manager. One benefit of peer appraisals is the faith that they furnish more precise and valid information than appraisals by better. It is since that they work intimately with the evaluated employee and almost certainly have a factual perspective on characteristic performance, particularly in team assignments (R. Wayne Mondy, 2002). 4.5 Customers Customers comprise external and internal customers. Outside customers are buyers of the organization's goods and services. Internal customers comprise anyone within the organization who depends upon an employee's work production. Customer appraisal procedure can help an organization get better its quality of products and services, and get better feedback among staffs. 5.0 Common Errors in The Appraisal Process 5.1 Leniency/ Strictness Bias Giving unwarranted high rating is referred to as leniency. On the other hand, being excessively dangerous of an employee's labor performance is referred to as severity. This severity/leniency difficulty is particularly serious with graphic rating scales since supervisors aren't unavoidably required to avoid giving every their employees high or low ratings. In fact, there is a good idea to suppose an allocation of performances. 5.2 Prejudice Individual differences among employees in characteristics like age, race, sex and habits can affect their ratings. In general, these kinds of differences come from appraisers' attitude. For instance, smoker conventional lower performance evaluations than nonsmoker. It is since his manager hates smoking. If he discontinues smoking, he would get a senior rating. 6.0 Developing an Effective Appraisal Program The basic purpose of a performance appraisal system is to get better performance of individuals, teams, and the whole organization. As a human resource manager, we have the main blame for overseeing and organize the appraisal program. The operating section managers and employees ought to also be involved, chiefly in helping to set up the objectives for the program. 6.1 Establishing Performance Standards Previous to any appraisal is behavior, the standards by which performance is to be assessed should be obviously defined and converse to the employee. When performance standards are correctly established, they help interpret organizational goals and objectives into job supplies that convey satisfactory and unacceptable levels of performance to employees. Managerial strategy reproduces its strategic objectives. But organizational strategies have to significance. These objectives are interpreted into performance standards for their employees. Too elevated or low objectives equally bad for set up performance standards (William H. Bommer, 1995, 587-605). 6.2 Improving the Appraisal Interview The appraisal dialogue is perhaps the mainly significant part of the whole performance appraisal procedure. It gives a manager the chance to discuss a subordinate's performance evidence and to travel around areas of likely improvement and enlargement. It also provides an chance to individuality the subordinate's approach and feelings more methodically and thus to get better communication (Arthur Sherman, 1998). In general, appraisal interview highlight three topics: the employee's performance, location employee's objectives and individual growth plans, and help employee to attain recognized objectives. Next the three topics, manager be supposed to get ready for the appraisal interview. There are three things have to be prepared: collect the data, get ready the employee, and decide time and place. Collect data means learn the job description, contrast the employee's performance by means of the standards and so on. Prepare the employee means provide your employee's time to evaluation their work, analyze troubles, and gather their questions and comments (William Hubbartt, 1995, 166, 168). 7.0 Conclusion Performance management shape fraction of the human resource management approach to organization people, and performance is on the whole a shared procedure between managers, individuals and teams in which objectives are decided and together reviewed and which aim to put together business, individual and team objectives. In general, performance management from side to side discriminates, reward, communicate and get better employees to get organizational and person objectives. As a manager, we have to get better performance appraisal process, and then those troubles should be conquering. First, an organization must set up performance assessment standards. Base on these standards, second, information ought to be collected. 360-degree feedback is a helpful method. Next, training evaluators have to be highlight that will decrease appraisers' slanted errors. Fourth, assessment interview should also be better. Finally, when we assess employees, we have to avoid some dilemma that comes from legal (David J. Woehr, 1994, 525-534). Reference Raymond J. Stone, 1991, Readings in Human Resource Management, 2nd,p.92, John Wiley & Sons. R. Wayne Mondy, Robert M. Noe, Shane R. Premeaux, 8th, 2002, Human Resource management p.289, Pearson Education, Inc. Dessler, John Griggiths, Beverley Lioyd-Walker, and Andrew Williams, 1999, Human Resource Management p.459, Prentice Hall Australia. Arthur Sherman, George Bohlander, and Scott Snell, 1998, Managing Human Resources 11th, p.323, South-Western College Publishing. Peter F. Drucker, 1954, The Practice of Management New York: Harper & brothers, Reissued by Haper-Collins in 1993. Dorrine Turecamo, "Looking Inward," Successful Meetings 43, no.5 (April 1994): 89-92. George Thornton ²V, 'psychometric properties of self-appraisal of job performance', Personnel Psychology, Vol.33(summer 1980), p.265. Kenneth Teel, 'Performance appraisal: Current trends, persistent progress', personnel Journal, (April 1980), pp.297-8. R. Wayne Mondy, Robert M. Noe, Shane R. Premeaux, 8th, 2002, Human Resource management p.296, Pearson Education, Inc. R. Wayne Mondy, Robert M. Noe, Shane R. Premeaux, 8th, 2002, Human Resource management p.296, Pearson Education, Inc. William H. Bommer, Jonathan L. Johnson, Gregory A. Rich, Philip M. Podsakoff, and Scott B. Mackenzie, "On the Interchangeability of Objective and Subjective Measures of Employee Performance: A Meta-Analysis," Personnel Psychology 48, no.3 (Autumn 1995): 587-605. Arthur Sherman, George Bohlander, and Scott Snell, 1998, Managing Human Resources 11th, p.323, South-Western College Publishing. William Hubbartt, "Bring performance Appraisal Training to Life," HRMagazine 40, no.5 (May 1995): 166, 168. David J. Woehr, "Understanding Frame-of-Reference Training: The Impact of Training on the Recall of Performance Information," Journal of Applied Psychology 79, no.4 (August 1994): 525-534 Read More