The Use Of Performance Management In Hr Business Essay

The Use Of proceeding forethought In Hr Business EssayPerformance forethought is a topic that cuts across traditional HRM boundaries, as it also has implications for employee development. Performance Management is seen as a dimension of employee resourcing and deed monitoring and review as part of the assessment process. In many nerves, formal, systematic procedures ar introduced to regularly assess employee writ of execution, usually involving, at a minimum, an interview between a manager and an employee, with documentation of recorded deed.One major advance being undertaken in the public service is the development of a process circumspection system. Its primary contain is to improve work by focaliseing on key areas of activity of the Ministry/department, teams and singulars done on concur framework of planned goals, objectives and standards.7.3 DEFINITIONSNoe et al. (2008) define performance caution as the process trough which managers hold that employees activi ties and outputs are congruent with the organisations goals.(This definition emphasises the need for performance focal point to be aligned to the strategy of the organisation).Performance management burn down be defined as a strategical and integrated burn down to delivering sustained achievement to organisations by improving the performance of the race who work in them and by developing the capabilities of teams and individual contributors (Armstrong and Baron, 1998).7.4 marrow OF PERFORMANCEBates Holton (1995) pointed that performance is a multi-dimensional construct, the measurement of which varies depending on a variety of factors.They also state that it is principal(prenominal) to determine whether the measurement objective is to assess performance outcomes or behaviour.Kane (1996) argues that performance is something that the person leaves behind and that exists asunder from the spirit.Bernadin et al. (1995) are concerned that performance should be defined as the ou tcomes of work because they provide the strongest linkage to the strategic goals of the organisation, customer satisfaction and economic contributions.The Oxford dictionary defines performance as the accomplishment, execution, carrying out, working out of anything ordered or undertaken.Performance is about doing the work as well as about the results achieved. Performance can thus be regarded as behaviour the way in which organisations, teams and individuals, get the work d wizard.Campbell (1990) believes that Performance is behaviour and should be distinguished from the outcomes because they can be contaminated by system factors.For Brumbach (1988), performance means both behaviours and results. Behaviours come up from the performer and transform performance from abstraction to action. Not just the instruments for results, behaviours are also outcomes in their consume right the product of mental and physical effort applied to tasks and can be judged apart from results.From thi s definition, we can conclude that when managing the performance of teams, and individuals, both inputs (behaviour) and outputs (results) need to be considered. This is the so-called mixed model (Martle, 1995) of performance management which covers competency levels and achievements as well as objective mount and review.7.5 PERFORMANCE APPRAISAL AND PERFORMANCE careWhat, in your opinion, is the difference between Performance judgment and Performance Management?Noe et al (2008) emphasises that Performance estimation is solely a component of Performance Management as it involves the administrative and relatively isolated trading of measuring aspects of an employees performance. Performance Management is a broader concept than Performance Appraisal in that it provides not only for the measurement of performance, but the defining of performance according to organisational goals as well as the provision of performance feedback.Performance Appraisal (Performance MeasurementSpecificat ion of Performance CriteriaPerformance FeedbackPerformance Management (Noe et al, 2008)7.6 FEEDBACKFeedback is a system of communication, usually face-to-face with another person where the desired outcome is normallyImproved work performance.A maintenance of performance.A change of behaviour.To make another person aware of ones behaviour upon others.Performance Management is strategic in the sense that it is concerned with the broader issues facing the business if it is to function effectively in its environment, and with the command direction in which it intends to go to achieve longer terms goals.It is integrated in four senses vertical integration linking or aligning business, team and individual objectives.Functional integration linking functional strategies in varied parts of the business.HR integration linking different aspects of HRM, specially organisational developmentHR development and reward.The integration of individual needs with those of the organisation, as far as this is possible. operation 1(i) Differentiate between Performance Appraisal and Performance Management as you see it in the local context.(ii) Discuss the importance of feedback in the management of performance.7.7 PURPOSE OF PERFORMANCE MANAGEMENTPerformance Management is a means of getting better results from the organisation, teams and individuals by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements. It is a process for establishing share understanding about what is to be achieved, and an cuddle to managing and developing people in a way that increases the luck that it will be achieved in the short and long term. It is owned and driven by line management (Armstrong, 2001).Activity 2(i) Based on your experience of performance management within the organisation in whichyou work, what do you think is the purpose of Performance Management?Performance Management has three essential purposesstrategic purpose .administrative purpose.Developmental purpose.Strategic purposeA Performance Management system serves to link employee performance to the overall organisational strategy and organisational objectives.However, research has shown that very few organisations utilise Performance Management in a manner which supports the strategy of the organisation.The strategic purpose may be achieved through designing evaluation chemical mechanism which define employee performance in terms of organisations strategy and goals.Achievement of the organisations objectives.Increased productivity.Increased profit.Motivation of employees.Administrative purposePerformance Management systems provide selective information which assists organisations with administrative decisions relating to issues such as salary organisation (pay rises), lay-offs and promotion (Noe et al, 2008 348).Pay related pay (increment, bonus).Developmental purposePerformance Management systems provide information about employee stren gths and weaknesses and in so doing, identify employee development needs (Noe et al, 2008 348).Identify Training NeedsActivity 3(i) Discuss the purposes of performance management in your organisation.7.8 APPROACHES TO PERFORMANCE MANAGEMENTHereunder are the approaches to Performance ManagementThe comparative approach.The attribute approach.The behavioural approach.The results approach.The quality approach.The multi-rated approach.Note The different approaches to Performance Management watch their own strengths and weaknesses.7.8.1 The Comparative ApproachThe comparative approach measures an individuals performance by comparing his/her performance to the performance of others.Three techniques adopt the comparative approachRanking Supervisor ranking his subordinates from best performer to scourge performer.Forced Distribution Where employees are ranked in groups.3) Paired Comparison Where the supervisor compares all(prenominal) employee with every other employee in the work grou p, giving an employee a score of 1 every time he/she is considered to be the higher performer.Activity 4(i) Discuss the comparative approach to Performance Management in your organisational context.7.8.2 The Attribute ApproachThis approach focuses on the identification of employee attributes (knowledge, skills, attitude and experience) necessary for the organisations success. The employee is measured against these attributes.This approach includes techniques such asGraphic Rating Scales Where the supervisor rates the subordinate on particular traits and characteristics.Mixed ideal Scales Where the supervisor rates the subordinate against relevant performance dimensions.Activity 5(i) Describe the attribute approach to the Management of performance in your organisation.7.8.3 The Behavioural ApproachThe behavioural approach defines behaviours necessary for effective performance in a particular job. In assessing performance, managers identify the extent to which a subordinate has exh ibited the required behaviours. simulation (i) Behavioural Observation Scale.(ii) Assessment Centres.7.8.4 The Results ApproachThis approach is based on the belief that results are the one best indicator of how a subordinates performance has contributed to organisational success.Results-based techniques includeManagement by Objective (MBO) where goal setting is cascaded down throughout the organisation and the goals become the standard against which an employees performance is measured.Productivity Measurement and Evaluation form (PROMES) which involves a process of motivating employees to higher productivity.Balanced Score cards which may be apply to manage the performance of individual employees, teams, business units as well as the organisation itself. The appraisal considers four related categoriesFinancial.Processes.Customer.Learning.The balanced score card enables managers to translate organisational goals into business unit, team and individual employee goals for each of th e above categories.7.8.5 The Quality ApproachThe focus of the quality approach is on improving customer satisfaction through a customer orientation and the prevention of errors.The design of a quality-based performance management system should focus onThe assessment of employee and system factors.The relationship between managers and employees in solving performance problems.Internal and outside(a) customers in setting standards and measuring performance.Using a number of sources to evaluate employee and system factors.Activity 6(i) Enumerate the essential issues of quality based performance management system in relation to an organisation of your choice.7.8.6 The Multi-Rated ApproachMany organisations adopt a 360-degree feedback approach to performance measurement where information on an employees performance is not only provided by the employees immediate supervisor, but by those people whom he/she deals with on a day-to-day basis (eg. customers, co-workers, subordinates, suppli ers, contractors, consultants). (Snell Bohlander, 2007 343).This approach allows employees to receive an accurate view of their performance as different people see different things. (Snell Bohlander, 2007 343). This approach usually involves the administration of a questionnaire to a number of people with whom the employee interacts, in which they indicate how well the employee performs in a number of behavioural areas. (Noe et al, 2008 497).7.8.6.1 Strengths of the 360-degree Feedback ApproachAs the employee is appraised from multiple perspectives, the approach is more comprehensive than other approaches.The information produced is of good quality.There is an emphasis on internal and outside(a) customers as well as the team.Bias and prejudice is lessened as the appraisal is not pendent on one persons view alone.Feedback from people other than the manager contributes considerably to an employees development.7.8.6.2 Weaknesses of the 360-degree Feedback ApproachIt is a obscure s ystem in that numerous appraisals need to be combined.It can be intimidating, resulting in resentment on the part of the employee being appraised.Appraisals from different individuals may be different and confusing.Considerable training is required to ensure that the system works as it should.Employees could undermine the reliability of the approach through colluding in terms of the appraisal which they are to give each other.7.9 SUMMARYIn this Unit, the definition and meaning of Performance Management has been explained. The purpose of performance management has been enumerated. The approaches to performance management have been discussed in details.