Lecture 06: People & Organisations London Metropolitan University MBA Programme || Module Number: MN7181 || Lecturer: Mr Laleen Katagodage || E-Soft batch-14 - Managing Performamce

What is "Performance Management"

Performance management is defined by Armstrong, (2017) a systematic process for improving both individual, team and organizational performance. the employee (the person being supervised) has a chance to determine the shared goals that relates to the overall goals of the employer by looking into employee performance. 

In words of Jones et al., (1995) Individual goals can be aligned with organizational goals and specifically based on following criteria

• Build a shared vision
• Avoid ambiguity by clearly defined roles of all employee
• Provide an unambiguous framework for teams
• Provide an unambiguous framework of rewards

Why performance management is important

In words of Henderson, (2010) "The personal development plans are the key components of Performance Management".Which establishes an outline for employees and their performance managers to assess and to come to an agreement on certain concerns and aims that are in accordance with the overall structure of the company. This enables both parties to have clear objectives that would help them in their work and their professional growth.

A good development plan assist employee to 

 - do better in the future

 - avoid past performance problems

Who conducts Performance Management

(Merkel et al., 2006)  are using the term “performance management” as a substitution for the traditional appraisal system. I encourage you to think of the term in this broader work system context. A performance management system includes the following actions.

Performance Management is carried out by those who oversee the performance of other people - work/team leaders, supervisors, managers, directors, or department chairs.

·        Develop clear job descriptions.

·        Select appropriate people with an appropriate selection process.

·        Negotiate requirements and accomplishment-based performance standards, outcomes, and measures.

·        Provide effective orientation, education, and training.

·        Provide on-going training and feedback.

·        Conduct quarterly performance development discussions.

·        Design effective compensation and recognition systems that reward people for their contributions.

·        Provide promotional/career development opportunities for staff.

·        Assist with exit interviews to understand WHY valued employees leave the organization.

·        We have worked with some of the most advanced organizations in terms of Performance Management 

    Performance Management vs Performance Appraisal (Henderson,2010)

Performance appraisal	Performance management
Top-down assessment	Joint process through dialogue
Annual appraisal meeting	Continuous review with one or more formal reviews
Use of ratings	Ratings less common
Monolithic system	Flexible process
Focus on quantified objectives	Focus on values and behaviors as well as objectives
Often linked to pay	Less likely to be directly linked to pay
Bureaucratic - complex paperwork	Documentation kept to a minimum
Owned by the HR department	Owned by line managers

Strategies for People and Performance Management

According to Herzberg, (1966) there are some performance strategies that you might try in service to the employee. Ultimately, they are res

ponsible for their actions, but they also need you to:

1. Assess performance, identify competency gaps, and then define performance objectives in precise and demonstrable terms.

2. Communicate expectations, roles, and responsibilities through performance discussions that simultaneously build relationships, improve performance, commitment and accountability.

3. Coach employees in a way that corrects performance deficiencies, reinforces appropriate behaviors, teaches new skills, and inspires them to higher levels of performance.

4. Diagnose performance problems early and remove any barriers that may impede employee performance.

5. Collaborate with employees and others to identify performance goals, support systems, and improvement strategies that will improve both today's performance results and the skills needed for tomorrow's challenges.

6. Document all performance-related discussions, quickly, confidently and legally.

7. Retain your most talented performers, recognize all employees for their efforts, and reward great performance.

Benefits of Performance Management

According to Mayo, (1933) performance management is implemented correctly with specific objectives associated with the strategic and operational plan, organizational performance results must be increased, the goal will be assigned to each department, team and individual, which may affect earnings growth. Those who achieve this goal will receive a positive review, which will not be able to get an unfavorable review in the absence of mitigating circumstances.

The performance management process results in organizational performance results. Employees who meet organizational objectives are rewarded with favorable assessments and rewards, in accordance with their performance and contribution to the Organization.

Reference 

Armstrong, M and Taylor, S. (2017) Armstrong's Handbook of Human Resources Management practice: Kogen Page

Gennard J and Judge G (2002), Employee Relations. London: CIPD.

Handerson, I. (2010) Human Resources Management for MBA Student. London: CIPD

Herzberg F (1966), Work and the Nature of Man.

Jones et al., (1995) Structured on-the-job training: Unleashing expertise in the work-place. San Francisco: Berrett-Koehler. 

Merkel J, Jackson P. and Pick D.(2006) ,New Challenges in Retail Human Resource Management in Retailing in the 21st Century.

Mayo. Elton (1933), The Human Problems of an Industrial Civilization.