Blog 07 - Managing Employee Performance

 Managing Employee Performance 

Figure 01: (Goled, 2021)

Human resources should focus on evaluating and managing employee performance, the efficiency of manager-employee interactions, whether performance targets are being met, and employee engagement and satisfaction level. As a result of the global economic crisis, almost every corporate and public institution is dealing with some sort of performance issue. The term “performance management” has become a buzzword in the business and management world. An organization’s most valuable asset is a high-performing employee. As a result, in order to contribute value to the organization, employee performance should be monitored and managed on a regular basis. As a result, it has become critical for businesses to implement an effective performance management system.

Performance management is: ‘The development of competent and committed individuals who work together to achieve shared, meaningful goals within an organization that promotes and encourages their accomplishment’ (Lockett, 1992). Performance management is: the process of “directing and helping people to work as effectively and efficiently as possible in line with the needs of the organization” is known as “performance management” (Walters, 1995).

Components of the performance management system cycle

1. Setting of objectives

2. Measuring the performance

3. Feedback on performance results

4. Reward system based on performance outcomes

5. Amendments to objectives and activities

 



Figure 1 1: Performance Management Cycle (Source: Mabey, Salaman, & Storey, 1999)

Disadvantages of Ineffective Performance Management System

If a performance management system isn’t working properly, it won’t be able to fulfill one of its primary functions; evaluating employee performance. Because the results of an evaluation or assessment are used to make judgments about promotions, and soon, an inappropriate appraisal resulting from a poor performance management system will lead to management making improper or incorrect decisions.

An Effective Performance Management System Add Value to the Organization

Because it focuses attention on defined and quantifiable growth goals, having a performance management program adds value to your organization. The majority of performance management systems are designed to rate employees in order to determine promotions, merit raises, and incentives awards. Performance evaluations can also be used to determine whether or not someone should be fired. However, you should integrate employee development goals with your strategic objectives, provide succession planning, incentivize people to pursue career growth, and enhance productivity to better manage performance.

References

Goled, S., 2021. How can HR Analytics Improve Employee Performance Evalution?. [Online]
Available at: http://www.analyticsindiamag.com
[Accessed 23 03 2022].

Lockett, J., 1992. Effective Performance Management. London: Kogan Page.

Walters, M., 1995. The Performance Management Handbook. London: Insitute of Personnel and Development .

 

 

Comments

  1. SureshMay 8, 2022 at 1:11 AM

    Managing Employee performance is well-explained. Excellent article.best of luck!

    ReplyDelete
  2. Venushka BandaranayakeMay 8, 2022 at 9:29 AM

    Employee performance is directly affecting the organizational performance. You have clearly explained the importance. All the best

    ReplyDelete

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