Performance Management Essay

Activity 1: The business life today becomes more challenging for the companies and employees, where the organizations want to attract employees with high qualifications and professional experience with lower salary. On the other side the employees looking for jobs develop their qualifications with high (or reasonable) salary. And here is the challenge. This challenge could be managed by something called performance management, where it will give the balance to the relationship between the two sides. Performance management is process used to recognize, encourage, determine, evaluate, develop and reward the employee performance. And this will grease the circle and shrink the gap and toward achieving the organization objectives. Any effective performance management system must include these components: 1. Performance Planning: Performance planning is the first crucial component of any performance management process which forms the basis of performance appraisals. Performance planning is jointly done by the appraise and also the reviewer in the beginning of a performance session. During this period, the employees decide upon the targets and the key performance areas which can be performed over a year within the performance budget. This is finalized after a mutual agreement between the reporting officer and the employee. 2. Performance Appraisal and Reviewing: The appraisals are normally performed twice in a year in an organization in the form of mid reviews and annual reviews which is held in the end of the financial year. In this process, the appraisee first offers the self filled up ratings in the self appraisal form and also describes his/her achievements over a period of time in quantifiable terms. After the self appraisal, the final ratings are provided by the appraiser for the quantifiable and measurable achievements of the employee being appraised. The entire process of review seeks an active participation of both the employee and the appraiser for analyzing the causes of loopholes in the performance and how it can be overcome. This has been discussed in the performance feedback section. 3. Feedback on the Performance followed by personal counseling and performance facilitation: Feedback and counseling is given a lot of importance in the performance management process. This is the stage in which the employee acquires awareness from the appraiser about the areas of improvements and also information on whether the employee is contributing the expected levels of performance or not. The employee receives an open and a very transparent feedback and along with this the training and development needs of the employee is also identified. The appraiser adopts all the possible steps to ensure that the employee meets the expected outcomes for an organization through effective personal counseling and guidance, mentoring and representing the employee in training programmes which develop the competencies and improve the overall productivity. 4. Rewarding good performance: This is a very vital component as it will determine the work motivation of an employee. During this stage, an employee is publicly recognized for good performance and is rewarded. This stage is very sensitive for an employee as this may have a direct influence on the self esteem and achievement orientation. Any contributions duly recognized by an organization helps an employee in coping up with the failures successfully and satisfies the need for affection. 5. Performance Improvement Plans: In this stage, fresh set of goals are established for an employee and new deadline is provided for accomplishing those objectives. The employee is clearly communicated about the areas in which the employee is expected to improve and a stipulated deadline is also assigned within which the employee must show this improvement. This plan is jointly developed by the appraisee and the appraiser and is mutually approved. 6. Potential Appraisal: Potential appraisal forms a basis for both lateral and vertical movement of employees. By implementing competency mapping and various assessment techniques, potential appraisal is performed. Potential appraisal provides crucial inputs for succession planning and job rotation. Good performance management will result to good motivation for the employees. Such thing will take us to discusses theory x and theory y. If we assumes the employee is lazy and doesn’t like to work, where he will avoid taking responsibili ties and duties, and he works for getting the salary only. Then the attitude toward the employee will be similar to mind image, So, there is a hidden guidance line will prove that imagination in the real life. And the opposite thing is right. Where if we considered the employee is responsibility seeker and challengeable and like the work. We will consider him as creative, where we will motivate him and develop his career and knowledge to be innovative in the work. In the performance management system the organizations relies on the appraisal system to build the appropriate reward theme for employees who are under evaluation. Where the reward is the result of the employee performance and it will represent the pleasure of that performance by the organization or in other words it is the return on investment of the employee’s skills, time and efforts. The fair and reasonable reward will lead the employee to be in motivation situation, and on top of that it will give the feeling of loyalty in the organization, also the fair reward system w ill increase the satisfaction level and will make innovative culture in the organization. The reward that is given to the employee could be financially and could be non-financially. For example the financial rewards could be cash compensation, commission or bonuses which are considered as direct compensations, on the other hand there are non-financial rewards one example of them is the life insurance for the employee himself only or his family as well. We know that the performance management is a process not an event. Performance management is not another term for personal appraisal. It is a process that brings together and manages all the factors that affect performance, treating the individual as a vital component but not the only component in a multifaceted aspect of management Well, in the performance management, the key elements to be considered while managing the poor or good performance are: * The level of performance to be achieved. * the competences needed to achieve this level of performance * the activities and resources needed to motivate and empower people * the monitoring and review mechanisms that measure performance and compare results with targets * the measures taken to improve performance and attain best practice * the measures taken to ensure the planned targets and competences are the right ones for the organization and its stakeholders Performance Review & Development Plan is an evaluative tool to be used for all administrative staff and managers. It allows on an annual basis for each supervisor and employee to: Clarify and define areas of responsibility; jointly set performance objectives for the next review period; set measurable standards for performance; review objectives and performance; and identify and address developmental needs. In terms of potential outcomes of a performance review, high ratings (significantly exceeds expectations) will result in the recognition of extremely strong performance and lead to the identification of performance objectives or other assignments which may provide additional opportunities to obtain further skills and experience, as well as the establishment of development goals to continue the employee’s professional/personal development and growth. With moderate ratings (fully meets expectations), the supervisor and employee identify upcoming performance objectives and outline the ways in which job expectations and standards could be exceeded in future. Development goals that will support the employee to reach greater achievements should be established. In the event of low ratings (needs improvement), the supervisor and employee should clearly identify areas where performance can be improved, review what support and assistance may be required in order to realize such improvements, and establish development goals stemming from that discussion. During the course of the following review period, particular attention should be placed on areas needing improvement, with ongoing communication between the supervisor and employee regarding progress made. Frequency and Timing Performance reviews are conducted on an annual basis and should be completed by the immediate supervisor and submitted to Human Resources no later than August 1 of each year. All new employees undergo a performance review by the conclusion of their probationary term, and on an annual basis by August 1 thereafter. The supervisor may waive an annual performance review if it falls within three months of the probationary review Process 1. Setting Performance Objectives and Development Goals for the Review Period At the beginning of the cycle, the supervisor and employee meet to review the employee’s position and key responsibilities and establish performance objectives and development goals for the review period. Performance Objectives: * should establish between 3 and 5 objectives for a given year; * should be specific, measurable, and attainable within the time frame identified (multi-year objectives should be broken down into smaller components); * should be reflective of the employee’s role level; * should not be above and beyond the employee’s current duties, but reflective of his/her responsibilities within the context of the department’s goals and priorities for the upcoming year. Development Goals: In establishing new development goals, the supervisor and employee should consider: * areas of performance requiring improvement; particularly those with ratings of needs improvement; * training needs arising from the performance objectives set for the following review period, including situations where there are anticipated changes to responsibilities or technologies and where an employee may be assisted to gain the necessary skills and/or knowledge; and * Areas of personal interest for professional development and growth, as they relate to future potential opportunities at the university. The development plan should identify specific and measurable goals with a recommended course of action. Such goals may include: providing additional or more focused direction and guidance to enhance current performance; providing specific training opportunities related to job responsibilities; supporting enrolment in formal educational programs related to job responsibilities; encouraging the reading of publications related to work performed; supporting participation in professional organizations related to areas of responsibility; and/or delegating assignments to provide opportunities to acquire new skills. Throughout the year, employees should be provided with the necessary supervisory guidance, direction and feedback. Performance objectives should be periodically reviewed to ensure they remain valid and realistic and, if required, modified or removed. 2. Preparing for the Performance Interview: In late May or early June the immediate supervisor should: a. provide a copy of the Performance Review & Development Plan Guide and Form to the employee; b. schedule a review meeting with the employee with a minimum of two weeks’ notice; and c. prepare for the interview. 3. Conducting the Performance Interview The purpose of the interview is to promote increased communication and understanding between immediate supervisors and employees through discussion of the following: the accomplishment of performance objectives identified in the previous review, and any factors affecting their attainment; the degree to which development goals were met; strengths and weaknesses related to the performance factors; the development of performance objectives for the next review period; and the establishment of new development goals for the next review period. 4. Completing and Filing the Documentation – Comments and Signature by Immediate Supervisor and Employee – Approval stage. Activity 2: The discussed issue was the reduction in sales level from the side of excellent employee in the organization, where the employee has some strength such as he is well organized, answering too many queries and continues following up with the customers issues. On the other side he faced a problem where he was alone for last six months in the call center, where his colleague left the job. So, the overload was handled by only one employee, where it was terrible thing. But the weakness in the whole story was the bad communication from the employee to the management, where he kept quiet and didn’t report the problem to the management. After the discussion we agreed to give him promotion because of his great performance regardless the reduction in the sale, and he will follow a development program in communication skills. As well as that, I agreed with the management to hire another two employees with him to hold some duties with him. Here we can say that the problem solved and we guaranteed to do not repeat again, and established a development program to the employee to improve his skills. Reference: 1) C.LEATHERBARROW, J.FLETCHER and D.CURRIE (2010), Introduction to Human Recourse Management, a guide to human recourse practice. Second Edition. London, Chartered Institute of Professional Development.