Managing Performance (Blog 6)

Introduction to Managing Performance

Performance management is an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. It involves a never ending process of setting goals and objectives, observing performance, and giving and receiving ongoing coaching and feedback (DeNisi and Kluger, 2000).

Armstrong (2006) defined Performance Management as a systematic process for improving organizational performance by developing the performance of individuals and teams. It is a means of getting better results by understanding and managing performance within an agreed framework of planned goals, standards and competency requirements. Processes exist for establishing shared understanding about what is to be achieved, and for managing and developing people in a way that increases the probability that it will be achieved in the short and longer term. It focuses people on doing the right things by clarifying their goals. It is owned and driven by line management.

(Video 1: Process Performance Management)

Performance Appraisal Process

‘Performance appraisal has a reputation as a punitive, top-down control device, an unloved system. Performance Management is a holistic, total approach to engaging everyone in the organisation in a continuous process, to improve everyone and their performance, and thereby the performance of the whole organisation’ (Armstrong and Baron, 2005).

(Figure 1: Performance Appraisal process)

Wilson et al. (2000) research provides recommendations for conducting appraisals including training and development discussions should be held separately from assessment, promotion or pay discussions. Advance warning of an appraisal should be given to staff to allow sufficient time for preparation by both appraiser and appraisee.  Organisation and department business plans should be consulted when identifying training and development needs and plans should be reviewed regularly. Appraisal checklists should be provided and followed by appraiser and appraisee to ensure no areas of the appraisal are neglected.

Advantages and Disadvantages  of Performance Management System as explained by Herman (2005).

Advantages

• Self-insight, development are enhanced and motivation to perform and self-esteem increased.
• The job definition and criteria are clarified.
• Organisational goals are made clear.
• Employees become more competent and managers gain insight about subordinates.
• There is better differentiation between good and poor performers.
• Supervisors’ views of performance are communicated more clearly.

Disadvantages

• Self-esteem and motivation to perform decreased and employees may quit due to results.
• False or misleading information may be used.
• Time and money are wasted.
• Relationships are damaged and increased risk of litigation.
• Employees suffer from job burnout and job dissatisfaction.
• Managers are required to use an unjustified amount of resources.

There are many more advantages and disadvantages associated with the implementation of a performance management system which influencing the performance of organisations.

References

• Armstrong, M. (2006) ‘A Handbook of Human Resource Management Practice’, 10th edn., London, Kogan Page, p. 495

• Armstrong, M. and Baron, A. (2005) ‘Managing Performance’, London, CIPD

• Wilson, J. P. and Western, S. (2000) ‘Performance appraisal: an obstacle to training and development?’, Career Development International, 6(2).

• DeNisi, A. S. and Kluger, A. N. (2000) ‘Feedback effectiveness: can 360-degree appraisals be improved?’ Academy of Management Executive, 14, pp. 129–139.

• freemanagementbooks (2003) [Online] Available at: http://www.free-management-ebooks.com/faqap/perfman-07.htm [Accessed on: 05 September 2018].

• Herman, A. (2005) ‘performance Management’, Edinburgh Business School, Heriot-Watt University, UK, pp. 6-18

• Figure 1:  LeraBlog (2018) Performance Appraisal process: [Online] available at: https://lerablog.org/wp-content/uploads/2017/09/gertgrtg.jpg [Accessed on: 05 September 2018].

• Video 1: softwareAG (2018): [Online] Available at: https://www.youtube.com/watch?v=1TY0ePoKZus [Accessed on: 05 September 2018].