“A [negative] dynamics exists when managers sit down to give employees their annual review and salary increase. The employees focus on the extrinsic reward – a raise, higher rating – and learning shuts down…. We have an embarrassingly simple solution. Never have the [pay and feedback] conversations at the same time. Annual reviews happen in November, and pay discussions happen a month later.” This conversations was held during a calibration meeting at Google. Google understands that a compensation-focused employee is no good a listener of feedback, whether compensation expectations were not met, met, or exceeded (de Mello, 2016).
According to Helm et al. (2007) performance management is vital to an organization’s performance for various reasons such as,
1. Performance management facilitates the organization to achieve its vision and business objective.
2. It is a prerequisite to develop a performance oriented culture within the organization.
3. Performance management aligns the employees’ performance goals with the organization’s strategic goals.
4. It ensures that the individual has clarity regarding performance expectations.
5. Performance management improves the employee performance and identifies talented individuals for promotion and it also reinforces linkage between pay and performance.
Most important thing is employees are the most crucial and valuable assets for an organization (Guest, 2001). If an organization expecting speedy growth in terms of financial and reputation, it has to manage the human resource in a proper manner. It is a challenging task to identify the gap between the actual competence of human resource working in the organization and the desired competence expected out of them and then bridge the gap (Bhattacharjee & Sengupta, 2011). Since the time an employee enters the organization till the time they leave the organization, it becomes essential to identify the entire cycle of what competency is expected and what do they actually possess so that their performance can be managed and strategic advantage can be achieved (Bhattacharjee & Sengupta, 2011).
Performance Management is a tool to ensure that the managers are managing effectively (Armstrong, 2006). It means that they ensure the people or teams they manage know and understand what is expected from them and their skills and ability to deliver on these expectations and also they are supported by the organization to develop the capacity to meet these expectations are given feedback on their performance and they have the opportunity to discuss and contribute to individual and team aims and objectives (Armstrong & Baron, 2004).
Roberts (2001) emphasized few key benefits of performance management for employees such as, implementation of training and development strategies, coaching, individual career development planning and developing appropriate reward strategies and schemes.
Video 1.0: B.Braun Medical Inc. Internship
Program
Source: B. Braun Medical Inc. 25 January 2018.
B.Braun’s Internship Program is designed to provide university - enrolled or recently graduated students with a meaningful experience within the medical device industry. The video has emphasized that B.Braun has identified the importance of performance management as a corporate responsibility. Organization has comprehended that investing on employees and developing their careers through learning and development, coaching, continuous feedback which ultimately transformed to the rewards for employees. Satisfied, skilled and enthusiastic employees drives the organization and make more revenue and growth continuously.
References
• Armstrong, M. (2006). A handbook of human resource management practice
• Armstrong, M. & Baron, A. (2004). Managing performance: performance management in action. CIPD, London
• B. Braun Medical Inc. (2018). Internship Program. YouTube
• Bhattacharjee, S., Sengupta S.,(2011) A study of performance Management System in a Corporate Firm, VSRD-IJBMR 1(8) (2011) 496-513
• De Mello, F.S.H.,(2016) The Ultimate Guide to Agile Performance Management: How to Create and Sustain a High-performance Culture in the 21st Century
• Guest, D. (2001). Voices from the boardroom. London, Chartered Institute of Personnel and Development.
• Helm, C., Holladay, C.L., & Tortorella, F.R.,(2007). The performance management system: applying and evaluating a pay-for-performance initiative. Healthcare Management.
• Roberts, I. (2001). Reward and performance management. In I. Beardwell & L. Holden (Eds.), Human resource management: A contemporary approach (3rd edn). Edinburgh, Pearson.
Agreed with you Loshitha. For the better understating through the employees it is important to pursue a performance management process. With this process there are more significant effects to the organization. Identifying the best performers, Fill the skill and knowledge gaps, employee motivation and their retention and reevaluation organization process and job design are the more affected area from the performance management process. That is because the performance management process is more important for all business process (Buckingham and Goodall 2015).
ReplyDeleteAccording to Kumar and Pansari (2015), performance management is an ongoing process that manages the performance of employee to achieve desired results. High-performance organizations need effective performance management systems to promote and develop the values, principles, and capabilities needed to maintain optimal results.
DeleteAgreed to the above said.
ReplyDeletePerformance has been the main focus of an achiever, but in this competitive scenario, competitive advantage has become more serious for any Organization. This has forced them to review and revise their old strategies and develop new and unique ways and means to enhance employee’s performance. Many companies rely on performance management system to remain ahead in the race. Under the global economic crisis, continuously improved performance has become a major challenge for every organization, in one way or the other (Jain, 2014).
Wilde (2015) has different assumption as after the company devised and executed a systematic performance appraisal system and provided sufficient feedback to employees, the next step was to consider how to link existing company rewards with the results of the appraisal. Because behavioral studies consistently show that performance levels are highest when rewards depend on performance which undoubtedly overcome the financial crises in any organization.
DeleteIf any of the organization done the performance management correctly, it can result in numerous important outcomes for an organization, its managers and employees. Some of them are clarifying job responsibilities and expectations, enhancing individual and group productivity, developing employee capabilities to their fullest extent through effective feedback and coaching, driving behavior to align with the organization’s core values, goals and strategy, providing a basis for making operational human capital decisions, improving communication between employees and managers (Locke & Latham, 1990).
ReplyDeleteAs an employee in a multinational company, I know the importance of truthful performances management process. In my organization there is a philosophy behind the performance management process. The organization can maintain the trust and transparency by using suitable and balanced performance management process for each and every employee including top and middle management which can be identified and enhanced the employees’ core competencies ultimately turns the end results to a reward.
DeleteAgree with your comment.People work in organizations for monetary and nonmonetary reasons. While monetarily, employees look forward to increasing pay and perks, they also look for job satisfaction and fulfillment in their jobs. Thus, the motivators that determine whether a particular employee would stick to the job or leave the organization are based on the monetary and nonmonetary incentives (Prachi Juneja,)
ReplyDeleteThat’s the top most expectation from employee perspective. But some managers do not effectively and honestly carry out the evaluations due to various reasons such as demotivation and personal relationships even the performance management helps the organizations to improve themselves regularly as a common practice worldwide (Pulakos, 2004).
DeleteAgree on your view. Moreover, Performance Management (PM) can be described as a continuous process in identifying, measuring and improving the performance of individuals, teams and organization to combine employee performances with organizational strategic goals (World Health Organization, cited in Madlabana, Thompson and Petersen, 2020). Hence, PM creates a direct link between employee performance and organizational goals organizations should carefully asses and select most suitable PM model to maximize employee performances to succeed the organizational milestones (Aguinis, 2005).
ReplyDeleteValid point Teshan. Successful performance management is multifaceted and tailored to each employee and his or her job role. Performance management includes planning of individual goals, implementation of these goals, tracking progress to ensure clear steps to achieve these goals, and using periodic performance reviews to assess progress (Horstman, 2016).
DeleteVery much agree with the content Loshitha. Boxall and Purcell (2011) assert that HRM potentially contributes to employee work performance in the organization. The quality of employee work performance is reliant on a function of ability, motivation and opportunity. This means HR managers intervene to develop employee ability, motivation and opportunity in order to maximize work performance in the organization.
ReplyDeleteYes Manuja, it is vital to HR managers to consider on key elements of Effective Employee Performance Management Review such as preparation, collaboration, positive and action plan in order to grab the maximum benefit of applying the principals of performance management for the success of the organization (Poole, 2013).
DeleteAgreed with your views. Performance management system must fit with the organization's culture. Developing and planning performance management system should reflect the employee ability, organizational asset and performance. The system should be suitable for the real ability and organization’s situation. Conversely, the three stages: developing and planning performance, managing and reviewing performance and rewarding performance should be coherent with each other when establishing and executing the system (ying, 2004).
ReplyDeleteAbsolutely. It will not resolve or directly enhanced any employee related performance gaps by applying a performance management system (PMS) unless the organization invest in resource to ensure that managers and other employees have the system responsible for the PMS (Coleman, 2009).
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