Question

- Compare and contrast performance management within a specific organization to your text’s description of an ideal process.

- Identify two ways that Human Resources can ensure effective performance management occurs.

- Discuss two tactics managers can use to make performance appraisals relevant, valuable and accepted by employees illustrating your response with an example.

Answer 1

Performance Management process is a systematic process of managing and monitoring the employee’s performance against their key performance parameters or goals. It is regarded as a process for driving the individual and organizational performance management.

Performance management may be used on an individual, department or organisation-wide basis. The main goal of performance management is to improve performance. According to the US office of Personnel Management, performance management consists of several elements, including performance measurement. Performance management begins with the planning of work, followed by monitoring performance and developing employees to ensure they maintain the abilities needed to perform at desired levels. Finally, a performance appraisal or similar rating system is used to rate employee performance and justify rewards for those who meet or exceed expectations.

Performance Appraisal

It is a performance measurement tool that measures individual employee performance inn a variety of activities. The performance appraisal may measure such aspects of performance as units produced and quality of an individual’s overall work. Performance appraisals are also commonly used to document performance issues including excessive absenteeism or the inability of an individual employee to adhere to policies and procedures. This type of documentation May be used to justify disciplinary action and eventual discharge of problem employee. Additionally individual employee pay rates and bonuses are commonly tied to performance appraisal scores.

Similarity between Performance management and Performance appraisal

Performance measurement is essential to the overall performance management process. It would e virtually impossible to improve performance without the use of effective measures for identifying performance gaps. Measurement tools like the performance appraisal are vital benchmarking tools that help managers and workers identify potential barriers to success. The performance barriers, as well as planning for the development of employees, in order to maintain the skills necessary for the organisation to compete long-term.

Ideal process followed in an Organisation

1. Ranking method
2. Rating scale
3. Checklist method
4. Critical incidents method
5. Essay method
6. Behaviourally anchored rating scales

1. 1.Ranking Method

The ranking system requires the rater to rank his subordinates on overall performance. This consists in simply putting a man in a rank order. Under this method, the ranking of an employee in a work group is done against that of another employee. The relative positions of each employee are tested in terms of his numerical rank. It may also be one y ranking a person on his job performance against another member of the competitive group.

Advantages of Ranking Method

Employees are ranked according to their performance levels.

It is easier to rank the best and worst employee

Limitations of Ranking Methods

The whole man is compared with another whole man in this method. In proactive, it is very difficult to compare individuals processing various individual traits. This method speaks only of the position where an employee stands in group. It does not test anything about how much better or how much worse an employee is when compared to another employee

When a large number of employees are working, ranking of individuals become a difficult issues

There is no systematic procedure for ranking individuals in the organisation. The ranking system does not eliminate the possibility of snap judgements.

2. Rating scale

Rating scales consists of several numerical scales representing job related performance criterions such as dependability, initiative, output, attendance, attitude etc. Each scales ranges from excellent to poor. The total numerical scores are computed and final conclusions re derived. Advantages adaptability, easy to use, low cost, every type of job can be evaluated, large number of employees covered, no formal training required. Disadvantages -ratter’s biases

3. Checklist method

Under this method, checklist of statements of traits of employee in the form of Yes or No based questions is prepared. Here the rate only does the reporting or checking and HR department does the actual evaluation. Advantages – economy, ease of administration, limited training required, standardization. Disadvantages – raters biases, use of improper weighs by HR does not allow rater to give relative ratings

Components of Performance Appraisals

• Define expectations
• Measure Evaluate
• Provide Feedback
• Record Performance

4. Critical incidents method

The approach is focused on certain critical behaviours of employee that makes all the difference in the performance. Supervisors as and when they occur record such incidents. Advantages -- evaluations are based on actual job behaviours, ratings are supported by descriptions, feedback is easy, reduces recency biases chances of subordinate improvement are high.

Disadvantages – negative incidents can be prioritized, forgetting incidents overly close supervision, feedback may be too much and may appear to be punishment.

5. Essay Method

In this method the rater writes down the employee description in detail within a number of board categories like, overall impression of performance, promoteability of performing jobs, strengths and weakness and training needs of the employee. Advantage - it is extremely useful in filing information gaps about the employees that often occur in a better structured checklist. Disadvantages – its highly dependent upon the writing skills of rater and most of them are not good writers. They may get confused success depends on the memory power of raters.

6. Behaviourally Anchored rating scales

Statements of effective and ineffective behaviours determine the points. They are said to be behaviourally anchored. The rater is supposed to say which behaviour describes the employee performance. Advantages –helps overcome rating errors.

Disadvantages - suffers from distortions inherent in most rating techniques

A large part of working in Human Resources (HR) is regulating performance management. Creating a space where you and your employees can produce excellent work and perform to the best of your abilities is no easy task, but with the right strategies, you can make it work.

A Wide Scope of Resources

Setting expectations for work performance and planning ways to meet these expectations

Monitoring employee performance with check-ins and meetings

Offering rewards and praise for good performance and addressing poor performance

Regularly rating performance through summaries and reviews

Continually developing a capacity for optimal performance

6 Performance Management Strategies

1. Define and Communicate Company Goals and Performance Objectives

Your employees cannot meet your performance expectations or company goals if they are not clearly outlined, making this our first step toward effective performance management. Sometimes employers are not as clear as they could be when outlining their goals or company objectives, and often, employees do not come forward to ask follow-up questions when they are confused or unclear about something. Preempt this pitfall by being as clear and communicative as you can possibly be.

You can define and outline goals by using a goal-tracking software, creating a chart within the office, by sending out an e-mail, distributing a flyer throughout the office, holding meetings, or doing each of these things in turn. When you are outlining goals and objectives, repeat the message so that it sinks in, offer visuals (such as an office chart and e-mail) so that employees have a reference, and most importantly, hold meetings to check in on progress.

2. Utilize Performance Management Software

If you are not already using a performance management software, it may be time to consider trying it out. If you do already use one and it’s not saving you any time, your team complains about it, or it has low employee engagement, it may be obsolete and in need of an upgrade. Performance management software can really streamline your performance management strategies, making it imperative that you either begin using one or at least begin looking to upgrade.

A good performance management software system is one that both offers traditional reviews and 360s, is employee-friendly, has an easy-to-use dashboard interface, allows for quick and actionable reporting and, of course, fosters employee development. The software will help both you and your employees stay on top of things so that your company is running smoothly and efficiently at all times. Some useful examples of more modern performance management software can be found here.

3. Offer Frequent Performance Feedback

While clearly communicating company and individual goals is an essential step for any business, communication alone is not going to get you all that far. Your managers will also need to check in with teams and employees periodically not only to gauge progress but also to provide feedback.

Good performance feedback reinforces strong skill sets and positive behaviors while showing opportunity areas with a clear path for improvement. This type of feedback cannot wait until HR kicks off an annual review cycle. Instead, it should be given in real time and integrated into company culture (it should also start during the interview process, but that is another post for another time).

Timely performance feedback is the best way to affirm your employees and their work while also shaping their work effectively. If you have a performance software now, it should be able to help you collect frequent feedback. If not, free tools like Google forms, survey monkey, or even just a basic e-mail request will get you pretty far.

4. Use Peer Reviews

Another great way to foster effective performance management is to utilize peer reviews, also known as 360-degree reviews. Again, this is a feature that can be found on most performance management software programs. Peer reviews are useful because they allow coworkers to praise other coworkers and highlight positive aspects of their performance, as well as point out where improvements can be made.

This exercise helps employees to work together, build better communication, and assess where they can improve themselves while watching their colleagues. There does need to be some manager or HR oversight into this process, and all peer reviews should be read to ensure that no claims, concerns, praises, or other comments go unnoticed or unaddressed.

5. Preemptive Management and Recognition

One way to guarantee results in the workplace is to implement rewards and practice preemptive management. This simply means that your employees always know what is expected of them so there is never any guesswork or need for consequences in the workplace.

This starts everyone on the same footing, making a fair playing field where expectations are set and goals are known. Rewards, or incentives, are also an effective way to show employees that you care, that you see their efforts and are pleased with their performance, and that you want them to keep up the good work.

In the same way, having a strong “HR Toolbox” in play that helps managers catch slipping employees early on and provide appropriate feedback helps to catch a problem before it even starts. In this way, “Preemptive Management” is all about communicating with your employees and letting them know what is expected, what is not, and how to meet the goals that have been set.

6. Set Regular Meetings to Discuss Outcomes and Results

Also known as progress reports or progress meetings, setting aside time to meet with your team and seeing how things are going with your set goals and objectives are important for meeting those goals and objectives.

These meetings can be held weekly, monthly, or as often as you see fit. Ensure that your team knows that attendance is mandatory. This makes the progress feedback more accurate and allows you to make plans for moving forward.

When holding these meetings, be sure to have a clear idea of what you want to cover. Some objectives should include:

• Following Up on Peer Reviews
• Discussing Praises and Areas that Need Work with the Team
• Recognizing Those Team Members Actively Meeting their Goals and Objectives with Rewards or Incentives
• Discussing Plans for The Next Phase of Projects
• Discussing Company Data: Revenue, Customer Involvement, Marketing and Campaign Success, Etc.

You should never meet just for meeting’s sake. You want to have something relevant to address and something worthwhile to talk about. If you feel things are going smoothly, employees are receiving performance feedback and acting accordingly, and the company overall is on a positive road, meetings may be held less frequently and treated as checkpoints throughout the year.

If there are issues, concerns, questions, or ideas you want to discuss, have meetings sooner rather than later. Keeping your team involved, up to date, and in the loop are important for ensuring the machine that is your organization runs smoothly.

These six strategies for effective performance management may seem simple, but they can work wonders when implemented into your company’s day-to-day life. Companies should be about the people involved. Making the most of their abilities, recognizing where they shine, encouraging them where they need work, and seeing them as full employees, not just cogs, are really how you can create the right work environment for success.

Productive discussions with employees by Managers by following the below

• Stop having "appraisals" and start having discussions.
• Make performance discussions more regular.
• Focus on strengths over weaknesses.
• Prioritize transparency and give context.
• Discuss what can be done to improve performance and achieve goals.