Performance management can be defined as the development of
individuals with competencies and commitment, working towards the achievement
of shared meaningful objectives within an organization which supports and
encourages their achievement (Zaffron and Logan,2009).
According to Armstrong (2006), definition for performance
management is a “systematic process for improving organizational
performance by developing the performance of individuals and teams. It is a
mean of getting better results from the organization, teams and individuals by
understanding and managing performance within an agreed framework of planned
goals, standards and competence requirements”
Performance management includes
activities to ensure that goals are consistently being met in an effective and
efficient manner. Performance management can focus on performance of the
organization, a department, processes to build a product or service and
employees (Harris et al., 2003).
Performance management also can be
described as a strategic and integrated approach to deliver sustained success
to organizations by improving the performance of the people who work in them
and by developing the capabilities of teams and individual contributors
(Armstrong and Baron, 2004).
History
and the evaluation of performance management
Management by Objectives (MBO) is a scientific type approach with an emphasis on achieving results that were linked to set and promised targets and improves employees’ motivation to work and to achieve organizational goals (Cortes et al.,2019).
Management by Objectives (MBO) is a scientific type approach with an emphasis on achieving results that were linked to set and promised targets and improves employees’ motivation to work and to achieve organizational goals (Cortes et al.,2019).
This method was initially championed by Peter Drucker, a
management expert and commonly used in the 1960s. It involved management
focusing on achievable objectives to
produce the best possible results using
available resources instead of developing people. There are many similarities
between MBO and performance management, including the requirement
for distinguishable job based goals and development
objectives to be achieved (Fowler, 1990). However, performance
management has been evolved considerably in the interim. MBO is tended to be
only applied to management whereas performance management is applied to all
staff – it seeks to integrate all organizational actors in the pursuit of
improved performance. MBO is mainly focused on quantitative performance
measures, whereas performance management is included assortment of quantitative
and qualitative measures (Lloyd, K.,2009). This moved organizations away from
solely focusing on financial performance and in parallel, to ensure its
employees were being developed.
Video 1.0: The History of Performance
ManagementSource: The Josh Bersin Academy, 3 June 2019
Figure 1.0: Evolution of performance management
Sorce: (Cappelli & Tavis, 2016)
According to the figure 1.0 there was an era that the
focus was on which people to drop, which to keep, and whom to be rewarded. Then,
the traditional appraisals were the most suitable and simple method for that.
But it changed as it is now, when the talent was in shorter supply, it became a
greater concern that developing people accordingly. Therefore organizations had
to find new methods to overcome the said concern (Cappelli & Tavis, 2016).
References
- Armstrong, M. and Baron, A. (2004). Managing Performance: Performance management in action. London, CIPD.
- Armstrong, M. and Baron, A.(2005). Performance Management: The new realities, Institute of Personnel and Development, London.
- Armstrong, M. (2006). A handbook of human resource management practice
- Cappelli, P. and Tavis, A. (2016). The Performance Management Revolution (HBR)
- Cortes, A., Bright, D. and Hartmann, E. (2019). Principles of management.
- Fowler, A. (1990). Performance management: the MBO of the 90s
- Harris, H., Brewster, C. and Sparrow, P. (2003).International Human Resource Management. CIPD Publishing.
- Lloyd, K. (2009). Performance Appraisals and Phrases For Dummies
- McGregor, D. (1972). An Uneasy Look at Performance Appraisal (HBR)
- "Performance Management". U.S. Office of Personnel Management. Retrieved 2019-02-28
- Sparrow, P. and Hiltrop, J. (1994). European Human Resource Management in Transition
- Zaffron, S., Logan, D. (2009). Performance Management: The Three Laws of Performance. Rewriting the Future of Your Organization and Your Life.1st ed.
I agree with your view Loshitha. further, managers need to be able and willing to envisage a future where the strategies and performance of the organization are transformed by exploiting the performance management capabilities of the organization better than their competitors (Johnson, Scholes & Whittington 2005).
ReplyDeleteFully agreed Gayani. Performance management is an imperative and interracial method to favoring organizational success by developing the performance of staff in the organization and improving the capacities of the team and individual contributors (Armstrong, 2004).
DeleteAgree with your view. The process of performance management in organizations involves ensuring that organizational behavior and decisions are aligned with organizational key objectives and vision which includes supportive mechanisms for strategy development, implementation, and review, management by objectives, performance measures, and personnel appraisal (Ferreira and Otley, 2009).
ReplyDeleteYes Teshan, according to Aguinis (2005) Performance management is an ongoing process that identifies, measures, and develops the effectiveness of an organization by linking each individual's effectiveness and goals to the organization's overall mission and goals further, A well-designed and implemented performance management system can make a significant contribution to the organization.
DeleteAgree with you Loshitha. According to the study conducted by Hewitt Associates (1994), the impact of performance management on organizational success substantiates that performance management system can have a significant impact on financial performance and productivity of an organization. Armstrong and Baron (2004) emphasized that Performance Management is a tool to ensure that the managers are managing effectively.
ReplyDeleteAbsolutely Dilusha, performance Management supports in enhancing the operational performances of the organization that will ultimately lead in ensuring the achievement of organizational goals and objectives in an effective and efficient manner (Armstrong, 2014).
DeleteAgree with your view points. Almost all modern organizations have some form of goal setting operation. Such a program management by objectives (MBO), from management information systems (MIS) and high-performance work practices benchmark, a target mark, and systems thinking and strategic design which includes the development of the specific goals. (Lunenburg, 2011).
ReplyDeleteAccording to Ramya, (2016) Most of the previous studies provides the evidence that there is a strong positive relationship between human resource management practices and organizational performance. Next, According to Falola et.al, (2014) Training and development is indispensable strategic tool for enhancing employee performance and organizations keep increasing training budget on yearly basis with believe that it will earn them competitive edge and the results show that strong relationship exists between training and development, employees’ performance.
Yes Sahan, employee development has a key interconnection with employee performance, and focusing on correct behaviors to promote and develop within employees is an essential part of employee performance management (Awasthi & Kumar, 2016).
DeleteEven though performance management emphasized the requirement of learning and development still performance management system is most frequently used for salary administration, performance feedback and the identification of employee strengths and weaknesses. But in general, performance management systems can serve the purposes of strategic, administrative, information, developmental, organizational maintenance, and documentation. (Gabris & Ihrke, 2001).
Agreed to the above said.
ReplyDeletePerformance management is fundamentally about aligning individual effort to support organizational priorities. It includes setting individual expectations tied to organizational goals, providing coaching and feedback that helps employees improve, and measuring and evaluating employee performance to inform talent decisions (Dorsey, Hanson, 2017). With performance appraisal in the organization, the employee is in a position to know his strengths and weaknesses and can consolidate his strong areas and improve his weaknesses (Qureshi, Hassan, 2013).
Acknowledged your views Arunika. It was proven that more than 1/3 of companies are reconsidering the way they do performance management, laying more weight on driving future performance rather than rating past performances (Dresner & Howardlt, 2007).
DeleteAgreed with the above information. And in addition to those, McCarthy and Garavan (2001) suggest employees must receive constant support and feedback on their own performance and have opportunities to gain more expertise in their roles through learning and development programs. And also the employee involvement is a critical component of any successful performance management system. The individual employee must play a prominent role in the design phase of any performance management system, as they are most aware of what measures must be taken in order to ensure the alignment of the system with the organization’s strategic goals (Greasley et al, 2005).
ReplyDeleteAgreed with your point Salinda. According to Swan (2012) feedback plays a major role in any and every employee in an organization which motivates a person to work better and drive towards the right track and it is through proper performance appraisal that feedback is shared based on their past performance and future improvements.
DeleteIn addition to your views, Gruman and Saks (2010), say, the core of the performance management relies on the evaluation of performance, however, they further point out that involvement of practices, policies and the procedural approaches to enhance and evaluate the performance of employees play an equally vital role.
ReplyDeleteAccording to the Harvard Business Review (2017) performance management provides a new multi-step, cyclical process to help you keep track of your employees' work, identify where they need to improve, and ensure they're growing with the organization.
DeleteInteresting post Loshitha, performance management can be further defined as the process of making a work atmosphere in which employee can perform to the best of their capabilities. It is an entire work system that begins when a job is deļ¬ned as needed and expectations are clearly communicated to the employee (Hartog et al., 2004).
ReplyDeleteWhile agreeing to your points I would like to emphasize that the performance management as the approach to helping each employee of a company understand and recognize their part in contributing to the shared vision and mission of the organization, and in doing so enhance the performance of both the individual and the organization (Fletcher, 2001)
DeleteGreat introduction to the topic Loshitha. Performance Management is an ongoing cycle of activities including planning, developing, monitoring, reviewing and rewarding that builds a relationship among organizational culture, corporate goals and the strategies use for ensuring individual performances (John ,2013).
ReplyDeleteAgreed Manuja. If I elaborate your statement, effective performance management cycles align the efforts of managers or supervisors and workers with organizational goals and also promote consistency in performance appraisal and encourage all workers to perform at their best (Russell & Russell, 2009).
DeletePerformance management is an important relationship with HR decisions in the current context as based on the performance of people directly affecting on the business goals. Successful performance management may bring in a motivated work culture with lots of efficiency (BHATTACHARYYA, 2011).
ReplyDeleteNo argument on that Priyanka. Throughout measuring employee performance helps to continually improve skills and outcomes is an essential part of the performance management review process which include productivity, quality of work, adherence to company values and teamwork (Powers, 2018).
DeleteAgreed with your views. Performance management seeks to manage human resources through the establishment of specific objectives for individuals, teams, departments and divisions that tie in with achieving the overall strategic objectives of the firm. It draws together HR policies and practices to form an overall coordinated system in which to manage performance (Patrick Gunnigle and Anthony Mcdonnell, 2008).
ReplyDeleteThanks Madu. As you mentioned in order to manage performance in systematic way and ensure achieving overall goals, it’s essential to have a good performance management system within the organization (Ulrich & Chandler, 2016).
DeleteLoshitha I agreed with your views. Employee performance is important. Having engagement is not enough. Engagement should happen with knowledge and skills perform the work through the realization of their objectives effectively. Performance evaluation also another important task which will happen yearly, six a moths or quarterly according to the organization policies (Osamani & Maliqi, 2012).
ReplyDeleteThanks for your views Arshana. Performance management can result in number of important outcomes for the employers, employees and organization as a whole and the concept has to be paid attention to on continuous basis (Pulakos, 2004)
DeleteI Agrre with your views as effective performance management is essential to businesses. Furthermore through both formal and informal procedures, it encourages them adjust their workers, assets, and frameworks to meet their key goals. It functions as a dashboard as well, giving an early admonition of expected issues and permitting administrators to know when they should make changes in accordance with keep a business on target.
ReplyDelete