MN718- MANAGING PERFORMANCE

Managing Performance

What is Performance?

Performance management is a set of processes and systems aimed at developing an employee so they perform their job to the best of their ability. Performance management is not aimed at improving all skills. In fact, good performance management focuses on improving the skills that help an employee do their job better. Because performance management is a process that aims to align individual goals with group and organizational goals, it is a strategic and formal process. (AIHR, 2019)

The benefits of performance management

In order to build an empowered and skilled workforce, companies need to do more than audit employee achievements. Organizations should move towards a leadership process where judgment isn't the sole focus — ongoing support and development should be just as critical.

Following performance management benefits,

·         Easy to Goal setting and revising

·         Management and coaching

·         Development planning

·         Rewards and recognition       (TechnologyAdvice, 2019)

Important of performance management

Effective management of results is important for organizations. Through both formal and informal processes, it helps them align their employees, resources, and systems to meet their strategic objectives. It also acts as a dashboard, providing an early warning of potential problems and allowing managers to know when they need to make adjustments to keep track of a company. (McKinsey & Company, 2019)

Components of Performance Management System

The following elements are included in every efficient performance management system:

Performance Planning

Quality planning is the first crucial component of any phase of performance management that forms the basis of performance evaluations. During this time, workers decide on the targets and key performance areas that can be met in the performance budget over a year, which is negotiated after a mutual agreement between the monitoring officer and the employee. (Management Study Guide Privacy Policy, 2019)

Performance Appraisal and Reviewing

The appraisals are normally performed twice in a year in an organization in the form of mid reviews and annual reviews which is held in the end of the financial year. After the self-appraisal, the final ratings are provided by the appraiser for the quantifiable and measurable achievements of the employee being appraised. The entire process of review seeks an active participation of both the employee and the appraiser for analyzing the causes of loopholes in the performance and how it can be overcome. (Management Study Guide Privacy Policy, 2019)

Feedback and counseling

Feedback and guidance are given a great deal of importance in the process of performance management. This is the stage in which the employee receives information from the evaluator about the areas of improvement as well as whether or not the employee contributes to the desired levels of performance. He employee receives an open and a very transparent feedback and along with this the training and development needs of the employee is also identified. The appraiser adopts all the possible steps to ensure that the employee meets the expected outcomes for an organization through effective personal counseling and guidance, mentoring and representing the employee in training programs which develop the competencies and improve the overall productivity. (Management Study Guide Privacy Policy, 2019)

Rewarding good performance

This is a very vital component as it will determine the work motivation of an employee. An employee is publicly recognized and compensated for good performance during this point. This stage is very important for an employee as it can have a direct influence on the attitude of self-esteem and achievement. Some efforts adequately recognized by an organization will help an employee better deal with the setbacks and satisfy the need for affection. (Management Study Guide Privacy Policy, 2019)

Performance Improvement Plans

In this stage, fresh set of goals are established for an employee and new deadline is provided for accomplishing those objectives. The employee is clearly communicated about the areas where the employee is expected to improve and is also given a stipulated deadline within which the employee will demonstrate this change. This plan is jointly developed by the appraise and the appraiser and is mutually approved. (Management Study Guide Privacy Policy, 2019)

Potential Appraisal

By implementing competency mapping and various assessment techniques, potential appraisal is performed. Potential appraisal provides crucial inputs for succession planning and job rotation. (Management Study Guide Privacy Policy, 2019)

Bibliography

AIHR, 2019. AIHR DIGITAL. [Online] Available at: https://www.digitalhrtech.com/what-is-performance-management/#What [Accessed 15 December 2019].

Management Study Guide Privacy Policy, 2019. Management Study Guide. [Online] Available at: https://www.managementstudyguide.com/components-of-performance-management-system.htm [Accessed 18 December 2019].

McKinsey & Company, 2019. McKinsey & Company. [Online] Available at: https://www.mckinsey.com/business-functions/operations/our-insights/performance-management-why-keeping-score-is-so-important-and-so-hard [Accessed 18 December 2019].

TechnologyAdvice, 2019. Technology Advice. [Online] Available at: https://technologyadvice.com/blog/human-resources/importance-of-performance-management/ [Accessed 15 December 2019].