Saturday, 16 March 2019
Performance Management in an Organization
Human Resource (HR) management in organizations deals with both strategic and comprehensive methods of managing people. Here the HR professional plays the role of nourishing, supporting the human capital through management programme, policies and procedures by ensuring an effective employee-employer relationship. In addition, one of the main part of HR is Performance Management (PfM) of employees.
The definition for Performance Management (PfM) is, extensive, diffuse and not clear cut (Houldsworth et al 2011). But this does not implies that the term is no less important.
PfM is a crucial process which asses and deals with the organizations effectiveness (Cardy,2004). In study conducted in Puakos et al in 2012, found that an organization with better PfM system experience 50% less staff turnover, 10 to 30 % higher customer satisfaction ratings, 40 % percent higher employee commitment ratings and double the net profits. According to Pulakos, (2009) it is the most difficult Human Resource (HR) system to implement in organizations.
The PfM process consist of performance evaluation and all the other processes which overlaps the organizational policies, practices, and design features that interact to produce employee performance (Cardy,2004). At present many organizations emphasis on their PfM to increase their job performance. This tedious task of implementing and maintaining PfM in an organization falls to the HR Department.
In typical organizations, for the question “How well does performance management work to achieve its purpose?” managers and employees all agree: Not that very well (Pulakos et al,2012). This scenario is evident globally and can be caused by many factors.
The motive of this thread is to dive deep into the PfM area and explore the PfM in contemporary organizations. This study also aims at finding how PfM can influence the human capital into yield the desired results.
References
Cardy, R. L. (2004). Performance management: Concepts, skills, and exercises. Armonk, NY: M. E. Sharpe.
Pulakos, E.D., Mueller-Hanson, R.A., O’Leary, R.S. and Meyrowitz, M.M. (2012). Building a high-performance culture: A fresh look at performance management. Effective Practices Guidelines Alexandria, VA: SHRM Foundation.
Pulakos, E. D. (2009).Performance management: A new approach for driving business results.Malden, MA: Wiley-Blackwell.
Houldsworth, E. and Brewster, C. (2011). How context impacts the management of performance. [online] The Royal Holloway, University of London. Available at: http://www.rhul.ac.uk/management/documents/pdf/events/2011-bam-paper-context.pdf [Accessed 16 Mar. 2019].
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Strategic plan is the blueprint, which channels the organizations resources towards the goals. Main purposes of a strategic plan in an ...
Dude its an interesting topic to talk about.
ReplyDeletePerformance management is an important area of work handled by the human Resource management.A performance management is a process which continuously identifies, measure, and develops the performance of the workforce in the organization. It makes sure that employees are known about their key job function, aware of performance level expected, get constant feedback on their performance, get rating on their performance and rewards.
What Brandon Hall Group says that, less than 50 per cent of organizations have a formal process in place, and the annual performance evaluation is a negative experience for managers and employees. Yet companies that invest in ongoing performance management are reaping the benefits. In fact, 70 per cent saw revenue increase after investing in ongoing performance management, 72 per cent reported improved retention and 54 per cent reported a boost in customer satisfaction scores. We can clearly see that we can not ignore the traditional performance evaluation.
ReplyDeleteBut the challenge is that we are moving towards working with New generations, X,Y and Z. are we going to use the traditional methods or are we going to be innovative in evaluation performance of employees for a better results.
Brandon Hall Group (2014), “Performance management study”, available at: www.halogensoftware.com/uk/learn/whitepapers-and-ebooks/the-value-of-ongoing-performance-management?source=PR&c=PR_BLOG_2015 [Google Scholar]
DeleteYes i agree with your saying, it is also one of the constantly least scored area in employee satisfaction surveys (Pulakos,2009).
DeleteHowever,even-though performance evaluation covers the lion share of PfM, there are other areas which can contribute towards the PfM.
And like you said all these factors has to evolve and adopt to suit the newer trends. I intend to cover about the evolution of the PfM from the past,present and into the future. I think this is also an important aspect of PfM and should be discussed, thanks for bring it.
Pulakos, E. D. (2009).Performance management: A new approach for driving business results.Malden, MA: Wiley-Blackwell.
DeleteMy view is when an employee joins an organisation, it becomes a business. How, because organisation expect something from him for the money he is paid for and employee too expect something in return for the service he gives. So its both way expectation.
ReplyDeleteWe should not only do performance evaluation to the employee but also to the organisation to evaluate what promised at the beginning is given back to the employee.
Agreed, the relationship between the employee and employer should be a conversation(both ways). But unfortunately Performance Evaluation is mostly limited only to measure employee output. but however, If Management or the HR is open minded they can analyses the root cause after an evaluation and ask the questions why? how? what can we do? etc. That way at least the the organization a can better engage them selves towards the employee who in turn can performing better. According to Pulakos in 2009, Only less than a third of employees believe that their company's performance management process assists them in improving their performance. So i really think the companies also should have some sort of mechanism to evaluate their short comings. So as you suggested i think having some sort of feed back evaluation after a performance evaluation can be a good practice.
DeletePulakos, E. D. (2009).Performance management: A new approach for driving business results.Malden, MA: Wiley-Blackwell.
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