Performance Management - Week 6

                                                 Performance Management

Performance management is a process by which managers and employees work together to plan, monitor and review an employee’s work objectives and overall contribution to the organization. More than just an annual performance review, performance management is the continuous process of setting objectives, assessing progress and providing on-going coaching and feedback to ensure that employees are meeting their objectives and career goals.

How to evaluate the Performance

Goal Setting Theory

Goal setting refers to goals being set for the future for subsequent performance of an individual or organizations. The pioneer of goal setting theory Edwin Locke states that when individuals or organizations set more difficult goals, then they perform better. On the other hand, if the set goals are easy then a performance of an individual or organization decreases (Locke & Latham 2006).

In addition, goal setting will help in developing the action plan designed to guide people and organizations. Consequently, this helps in making it a major component of personal development and management literature. Furthermore, many researchers point out that there is a positive correlation between goal setting and improved business and organizational results. This is because goal setting theory encompasses all aspects of building organizations with efficiency (Locke & Latham 2006; Spaulding & Simon 1994; Koppes 2014).

Properties of Goal Setting Theory

1.  Clarity refers to a clear and measurable goal that can be achieved within a specific timeline and within goal setting.

2.  Challenge refers to the goals of being able to achieve a decent level of difficulty, motivating the individual and organization to strive for positive goal achievements.

3. Feedback provides information on the progress towards achieving goals. Individuals and organizations can adjust goal setting according to the feedbacks.

4.  Task complexity makes the achieving of goals easier by laying down process and steps. Goal setting can be achieved by applying all the principle stringently and ensuring that all goals account for the principles (Pamkhuila Shaiza and Indra Giri,2016).

Control theory

Control theory focuses on control mechanism which should be imposed at all levels of an organization. There are different forms of control which an organization can use in order to get the desired results such as:

·         organizational structure,

·         behavioral controls like norms and policies of an organization or

·         performance measurement mechanisms.

Control theory has three types of control systems

1.  Under behavior control, employer monitor and evaluate the actions of the employees on a regular basis, as per the standards of the organization and then reward accordingly.

2.  In case of output control, the performance of an employee is controlled with rewards or sanctions after evaluating it on the basis of organizational standards.

3.  Input control system seeks to control the selection and training process of an employee. However, it is important to ensure the availability of required competencies in the employees as desired by the organization for growth and development (Akanksha Dwivedi and Indra Giri, 2016).

Purpose of the Performance Management

•         Motivation to perform is increased.

•         Self-esteem is increased.

•         The job definition and criteria for job success are clarified.

•    Managers gain insight about subordinates, which helps the manager build relationships with their staff.

An effective performance management system will inherit followings.

·         Be job specific, covering a broad range of jobs in the organization

·         Align with your organization’s strategic direction and culture

·         Be practical and easy to understand and use

·         Provide an accurate picture of each employee’s performance

·      Include a collaborative process for setting goals and reviewing performance based on two-way communication between the employee and manager

·         Monitor and measure results (what) and behaviors (how)

·       Include both positive feedback for a job well done and constructive feedback when improvement is needed

·         Provide training and development opportunities for improving performance

·         Ensure that employee work plans support the strategic direction of the organization

·         Establish clear communication between managers and employees about what they are expected to accomplish

·         Provide constructive and continuous feedback on performance

·         Identify and recognize employee accomplishments

·         Identify areas of poor performance and establish plans for improving performance

·         Support staff in achieving their work and career goals by identifying training needs and development opportunities

· Support administrative decision-making about promotions, terminations, compensation, and rewards

·   Provide legal documentation to demonstrate due diligence for legal challenges related to dismissal or vicarious liability (an employer can be held liable for the acts or omissions by its employees during the course of employment) (hrcouncil.ca, 2017)

Reference

Australian human resource institute, Performance management, Australian HR institute, 6 June 2018, < https://www.ahri.com.au/assist/performance-management >

Akanza, D 2016, Control theory of performance management system, 6 June 2018, < https://www.projectguru.in/publications/control-theory-performance-management-system/ >

Pamkhuila, S 2016, Goal setting theory of performance management system, 6 June 2018, < https://www.projectguru.in/publications/goal-setting-theory-performance-management-system/ >

Hrcouncil.ca, Keeping right people, 6 June 2018, < http://hrcouncil.ca/hr-toolkit/keeping-people-performance-management.cfm >