Benefits of Performance management.
To get better outcomes organizations to require an effective performance management system to promote and develop the principles, values, and competencies. because the organization's success completely depends on the performance of the employee. According to Den and Verburg (2004), it is a whole work system that begins when a job is defined as needed and expectations are clearly communicated to the employee.
According to Sahoo and Mishra (2012), there are 7 aspects that need to be defined clearly in a good performance management system,
1. Clear job description.
2. An appropriate selection process.
3. Achievement-based performance standards, outcomes, and measures.
4. Effectual orientation, education, and training.
5. Coaching and feedback.
6. Periodic performance-development discussions.
7. An effective compensation and recognition system.
Performance management systems will be beneficial to both employers and employees. Based on the industry-level analysis by Martinez (2005), there are benefits and negative effects of the performance management system. it is a common scenario to have both pros and cons after implementing performance management in the organization.
· Focus employees’ attention on the organizational goals.
· Business improvement.
· Improve customer satisfaction.
· Increase productivity.
· Align operational performance with strategic objectives.
· Improve people’s satisfaction.
· Align people's behaviors toward continuous improvement.
· Improve company reputation.
· Employees get benefits based on their performance.
· Managers can assist employees.
Effective performance
management opens dialog between a company, management, and employees as a
whole. That helps to build trust and support each other to achieve goals. According
to Buchner (2007), The clearly defined objective and frequent assessment of
employees helps to identify ways to improve employee skills. A performance
management system is required to have in an organization, and there can be
positive and negative impacts because of it, with the effectively managed system can help to build employee skills and achieve the organizational goals.
References.
- Den, H., and Verburg. R., (2004) High-performance work systems, organizational culture, and firm effectiveness. Human Resource Management Journal, Vol 14.
- Sahoo, C., and Mishra, S. (2012) Performance management benefits organizations and their employees. India: Human Resource Management International Digest.
- Martinez, V., (2005) What is the Value of Using Performance Management Systems?
- Buchner, T., 2007. Performance management theory: A look from the performer's perspective with implications for HRD. Human Resource Development International.
Agreed Visitha. Performance appraisal is advantageous to both the organization and worker. The advantages of performance appraisal can be categorized into two as (Singh, 2015).
ReplyDeleteThanks for your comment. It has made
Deleteorganizations to cater to the expectations and needs of the employees and could expect the similar response. Motivation also positively influences performance at individual and group level ultimately affecting the organizational performance (Risambessy et al 2012).
I agree with your content Visithaa and I would like to add to your content that effective management of performance is a source of sustainable competitive advantage and for a firm to
ReplyDeleteachieve this, performance management system must be used not just as evaluation and documentation tool but also as a strategic tool so that there will be a holistic analysis of performance at organizational, process and individual levels for individual satisfaction, commitment and goal attainment (Sahoo& Mishra 2012).
Thanks for your idea. It has made
Deleteorganizations to cater to the expectations and needs of the employees and could expect the similar response. Motivation also positively influences performance at individual and group level ultimately affecting the organizational performance (Risambessy et al 2012).
Good Article Visitha and adding further, One key factor in employee motivation and retention is the opportunities for employees want to continue to grow and develop in job and career enhancing skills (Hartog and Verburg, 2004).
ReplyDeleteThat was a good explanation by Hartog.
DeleteAn interesting topic Visithag. Performance management is beneficial for organisations in terms of employee motivation and retention. However, Demartini (2013), identifies the lack of a holistic vision of both the design and the use of the new mechanisms within the wider performance management system as a shortcoming. And for this reason, Malmi and Brown (2008), have proposed principles and theoretical frameworks for comprehensive performance management.
ReplyDeleteYes, it will be beneficial to both the parties. An effective HRM system could be a great deal of assistance in keeping employee morale high (Kumar and Garg, 2011).
DeleteGood explanation Visitha. You have clearly mentioned the importance of the performance management. Adding further, By consistently monitoring and managing workplace performance, leaders can see potential future problems. Like with any type of issue, early detection is key. The earlier problems are confronted the less effect that they will likely have (White 2021).
ReplyDeleteThe manager's involvement is a must in managing the performance. Also, the managers' and the supervisors support towards encouraging employee participation, mutual commitment, and understanding of diversity issues play a significant role in motivating and enabling performance (Snyder et al, 2004).
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