Performance management and its characteristics

Performance Management: 1.Objective 2.Advantages 3.Disadvantages
And its characteristics

1. BY: Ankush Saphiya ( CUHP16MBA10)

2. Performance management Performance management is a continuous process by which managers and employees work together to plan, monitor and review an employee’s work objectives and overall contribution to the organization . or Performance management is the continuous process of setting objectives , assessing progress and providing on-going coaching and feedback to ensure that employees are meeting their objectives and career goals .

3. To enable the employees towards achievement of superior standards of work performance. To help the employees in identifying the knowledge and skills required for performing the job efficiently as this would drive their focus towards performing the right task in the right way. Boosting the performance of the employees by motivation and implementation of an effective reward mechanism. Identifying the barriers to effective performance and resolving those barriers through constant monitoring, coaching and development interventions.

4. Creating a basis for several administrative decisions strategic planning, succession planning, promotions and performance based payment. Promoting personal growth and advancement in the career of the employees by helping them in acquiring the desired knowledge and skills. Motivation Development Boosting the performance Determining promotions Identify poor performers

5. A dvantages  Remunerations or bonus for successful employees The lazy and insincere workers are identified and removed Company has documented performance history of the employees Enhance the performance of both the individual and the organization Helps in successful career planning

6. Disadvantages Lengthy and complex Become a hindrance in the employee’s progress Employees may suffer from low self-esteem Contradictory and misleading opinions in the performance management file Partialities and favoritism

7. CHARACTERSTICS The following is a set of characteristics that is likely to allow a performance management system to be successful. 1. Strategic congruence The system should be congruent with the unit’s and organization’s strategy. In other words, individual goals must be aligned with unit and organizational goals .

8. 2. Thoroughness The system should be thorough regarding four dimensions. All employees should be evaluated; all major job responsibilities should be evaluated, the entire review period, and not just the few weeks/months before the review, on positive aspects as well as those in need of improvement

9. 3. Practicality Systems that are too expensive, time-consuming, and will obviously not be effective. On the other hand, good systems are available and easy to use (e.g., performance data are entered using user-friendly software), and are acceptable to those who want to use them for decisions.

10. 4. Meaningfulness The system must be meaningful in several ways. 1 st the standards and evaluations conducted for each job function must be considered important and relevant. 2 nd , performance assessment must emphasis only those functions under the control of the employee. 3 rd , evaluations must take place at regular intervals and at appropriate moments. 4 th , the system should provide for continuing skill development of evaluators. 5 th , the results should be used for important personnel decisions.

11. 6. Identification of effective and ineffective performance The performance management system should provide information allowing for the identification of effective and ineffective performance. That is, the system should allow for distinguishing between effective and ineffective behaviors and results, thereby also allowing for the identification of employees displaying various levels of performance effectiveness.

12. 7. Specificity A good system should be specific, meaning that it should provide detailed and concrete guidance to employees about what is expected of them and how they can meet these expectations.

13. 8.Reliability A good system should include measures of performance that are consistent and free of error. For example, if two supervisors provided ratings of the same employee and performance dimensions, ratings would be similar.

14. 9. Validity The measures of performance should also be valid. In this context, measures are relevant (i.e., include all critical performance facets), are not deficient (i.e., do not leave any important aspects out), and are not contaminated (i.e., do not include factors outside the control of the employee).

15. 10. Inclusiveness Good systems include input from multiple sources on an ongoing basis. First, the evaluation process must represent the concerns of all the people who will be affected by the outcome. Consequently, employees must participate in the process of creating the system by providing input regarding what behaviors and/or results will be measured and how. Second, employee input about their performance should be gathered from the employees themselves before the appraisal meeting. 11. Correct ability The process of assigning ratings should minimize subjective aspects. However, it is virtually impossible to create a completely objective system because human judgment is an important component of the evaluation process.

16. 12. Openness Good systems have no secrets. First, performance is evaluated frequently, and performance feedback is provided on an ongoing basis. So employees are continually informed of their performance. Second, the appraisal meeting consists of a two-way communication process, where information is exchanged and not just delivered from the supervisor to the employee. Third, standards should be clear and communicated on an ongoing basis. Finally, communications are factual, open and honest .

17. 13. Standardization Good systems are standardized. This means that performance is evaluated consistently across people and time. To achieve this goal, the ongoing training of the individuals in charge of appraisals, usually managers, is a must.

18. 14. Acceptability and fairness A good system is acceptable to and perceived as fair by all participants. Perceptions of fairness are subjective, and the only way to know whether a system is seen as fair is to ask the participants. 15. Ethicality Good systems comply with ethical standards. This means that the supervisor suppresses her personal self-interest in providing evaluations. In addition, the supervisor evaluates only performance dimensions for which she has sufficient information, while respecting the privacy of the employee.

19. Performance management  is the process of identifying, measuring, managing, and developing the performance of the human resources in an organization. Performance appraisal , on the other hand, is the ongoing process of evaluating employee performance . Future oriented for growth Retrospective for correction. Ongoing or continuous review Typically once or twice per year. Flexible process Rigid structure/system Conducted by manager & supervisors. Usually housed in HR department Linked to business needs Not linked to business needs

20. Reference's 1. Aguinis Herman, Performance Management, Third Edition, Pearson Publications, Delhi. 2. Google Images.