PERFORMANCE MANAGEMENT AS TOOL TO CONTROL AND DEVELOP

PERFORMANCE MANAGEMENT AS TOOL TO CONTROL AND DEVELOP

Introduction

Human capital plays a significant role in running a business organization.  This explains why reputable business firms are putting extra efforts to hire qualified and skilled human resources (Simmonds, Porter & Bingham, 2008). A useful human resource is significant in maintaining the right image and reputation for a business organization. However, choosing the best team for human resources is not an easy task.

For this reason, most of the reputable business firms have separate human resource departments.  Human resource management plays various roles in the success of an organization like training of employees, recruitment of employees, rewarding, and performance management (Simmonds, Porter & Bingham, 2008).  The paper will focus on performance management and its negative and positive impacts on the performance of employees in a business.

Performance Management

Performance management has gained popularity as a critical feature for labor management in both private and public organizations (Marther & Seifert, 2011).  It is an integrated and strategic approach to assessing the performance of a team or individuals towards achieving the objectives of an organization (Sewell, Barker & Nyberg, 2012).  It is the most preferred approach in most organizations because it can cause improvements in labor performance at lower costs (Marther & Seifert, 2011). Performance management is a crucial factor in the success of a business.  Employees should be aware of their goals and objectives from the beginning of the year. The awareness will help them to direct their energy in the right direction to achieve the set goals.  Employees should be aware that their performance will be analyzed by comparing the desired results with the actual results.  Performance characterizes employees as over-performed, satisfactory, and underperformed (Sewell, Barker & Nyberg, 2012). This characterization makes employees have varying attitudes towards performance management.  Some employees may view performance management as a tool used to promote an organization and individual effectiveness. However, some employees view the whole process as a way of oppressing and having unnecessary control over the employees.

Performance management also involves the creation of a working environment that empowers and motivates employees to work to the best of their capabilities (Marther & Seifert, 2011). The process used by employees to achieve the highest productivity or performance varies across businesses. However, despite the differences, the performance management process mainly involves the setting of goals, performance appraisal, and reward. Furthermore, training is provided to the employees through the whole process (Kinle, 2016).   Employee productivity is a significant issue in business because most organizations have difficulties in recruiting qualified staff and retaining them and employee development.  However, these issues can be resolved through performance appraisal, training, and the use of reward systems.    Besides, the process of performance management also affects employee productivity.  Employee productivity is a significant threat to the success of a business; thus, companies should adopt performance management systems that will favor the employees. The process can involve motivation techniques that can improve the morale of the employees (Kinley, 2016).   Employee productivity is characterized by several factors such as the reduction in complaints among customers, improved quality of the services offered and increased sales. Thus, performance management evaluates if the employees were committed enough to achieving the objectives of the business. Performance appraisal is a commonly used method of assessing employees.

Most organizations in the world use performance appraisal to evaluate their employees.  Performance appraisal is the systematic evaluation of individuals or employees about their performance in their particular obligations in a business (Fletcher, 2004).  Its main aim to examine how employees are working and the probability of future development of the organization.  Performance appraisals are devised by business managers who are responsible for particular employees.  They are used by managers to evaluate and determine the behavior and accomplishments of employees within a specific period (Fletcher, 2004). If the performance appraisals are designed and implemented correctly, they can be advantageous to a business.  However, there are critiques of both performance appraisal and management. Notably, performance management and appraisal can develop the workforce of a business organization by rewarding and motivating employees (CIPD, 2016). Nevertheless, if poor performance management systems are used, they may have negative impacts on employees, such as exercising unnecessary control and discouraging them (CIPD, 2018).  Primarily, performance appraisals can be tools for developing the workforce and controlling the employees.

Performance Management in developing the workforce

The role of performance appraisals is used to enhance desired behavior and competency among employees. It is a powerful tool used by organizations to improve the performance of their employees and achieve their strategic goals.

Performance Management on Employee Productivity 

A practical and useful performance management system should develop an excellent approach for successful performance evaluation (CIPD, 2015). The system should also create a reward system that is equal and favors all employees within an organization. Performance management should complement the goals and objectives of the employees. The system should use methods that are measurable and specific to ensure there is no bias.  However, the enhancement of performance among employees should be dependent on several things, such as the strategies used by the human resource department to recruit and hire employees.

The mangers evaluating the employees should focus on the behaviors of individuals without comparing them to others. Comparing employees may result in conflicts within the organization, and this may lead to reduced productivity and performance. The capabilities of the employees should be rewarded accordingly to motivate them to keep on improving their performance (Forrester, 2011).  They can be rewarded through bonuses, pay raises, and promotions, which will ensure the improved and consistent performance of a business.  The managers should provide feedback about the productivity of the employees. The feedback should be used to rectify the mistakes of the employees. They can initiate strategies that will take the organization to the next level.  It should also form a basis for communication between the employees and human resources (Forrester, 2011). Communication will help the two parties to have agreements on how they can collaborate to improve productivity and performance. Moreover, performance management provides feedback on the overall performance of an organization.  The responses can be used to facilitate improvements and positive changes.

Performance management also increases productivity by identifying inappropriate work practices (CIPD, 2016). Subsequently, they identify any potential problems that can negatively affect employees.  Inefficient or inappropriate practices can restrict the progress of an organization if they are not properly handled (Johnson, 2004).  Performance management also benefits organizations by identifying high performers and poor performers within the organization.  The strengths and weaknesses of the workers can also be identified through performance management. Thus, they will initiate strategies of helping workers improve their weaknesses and maintain their strengths.

Performance Management and Identification of Training Needs of Employees

Through performance management, managers can identify gaps in the practices and skills of employees (Randell, 1994).  Training is essential in helping employees to gain a better understanding of the business goals and objectives.  It is a crucial element of human resource management as it can improve individual performances and organizational levels.  The human resource department should ensure that people who train employees can handle all types of employees. They should not discriminate against the employees based on their knowledge or levels of education (Forrester, 2011).  The training programs should be customized to match the abilities of the employees undergoing training.  The training should focus on building and improving the capabilities of the employees so that they can achieve the goals of the organization. Training the employees makes them appreciate their jobs and do it to their level best.

Training educates the workers on how to effectively conduct their present and future responsibilities in an organization (Randell, 1994). Gaps in knowledge and expertise are critical issues for most organizations that desire to penetrate the market. The gaps are fundamental in jeopardizing the competitiveness and productivity of an organization (Forrester, 2011). Productivity can be affected at both operational and organizational levels. Thus, human resource departments should begin nurturing the staff at an early stage. Primarily, companies can prepare their employees to handle a competitive and dynamic business environment. They can acquire skills and expertise that will help to offer unique and quality services to customers. Training is a way for the company to invest its in-house employees and improving their competencies.  Improved competency among employees translates to high productivity and performance from the workforce.

References

CIPD., 2018. Challenges to Traditional Performance Management Practices (https://www.cipd.co.uk/knowledge/fundamentals/people/performance/factsheet#26120)

CIPD., 2016. What Works in Performance Appraisal [https://www.cipd.co.uk/news-views/news-articles/what-works-in-performance-management-news]

CIPD., 2015. Performance management Factsheet

Fletcher, C., 2004. Appraisal and feedback: Making performance review work. CIPD Publishing.

Forrester, G., 2011. Performance management in education: milestone or millstone?. Management in education, 25(1), pp.5-9.

Johnson, M., 2004. The new rules of engagement: Life-work balance and employee commitment. CIPD Publishing.

Kinley, N., 2016. The end of performance management: sorting the facts from the hype. Strategic HR Review.

Mather, K., and Seifert, R., 2011. Teacher, lecturer, or laborer? Performance management issues in education. Management in education, 25(1), pp.26-31.

Randell, G.,1994. ”Performance appraisal”, Personnel Management: A Comprehensive Guide to Theory & Practice in Britain, Blackwell. Sisson, K. (Ed.),

Sewell, G., Barker, J.R., and Nyberg, D., 2012. Working under intensive surveillance: When does ‘measuring everything that moves’ become intolerable?. Human Relations, 65(2), pp.189-215.

Simmonds, D.A., Porter, C., and Bingham, C., 2008. Exploring human resource management. McGraw-Hill.