Performance management in HRM
Performance management in HRM
Figure 1: Performance management aspects
What is performance management?
Performance
management is a collection of processes and systems aimed at helping employees
improve their performance so they can do their jobs to their full potential.
Performance management does not attempt to improve all of a person's abilities.
In reality, effective performance management focuses on honing the abilities
that enable an individual to perform better at their work. This indicates that
one's job must be strategically aligned with the group and organization's
goals. Performance management is a planned and formal process since it tries to
connect individual ambitions with group and corporate goals. This implies that
this process influences all important career decisions, including as bonuses,
promotions, and terminations. Performance management may also be defined as a
procedure that is conducted on a regular, methodical, and objective basis
Common types of performance review
systems
1. Employee
self service
2. 360-degree
appraisal
3. Manager
performance appraisal
4. Rewards
and recognition program
5. Performance
improvement plan
Figure 2: Common types of performance review systems
Common
performance rating errors
1. Partiality
2. Stereotyping
3. Halo
effect
4. Distribution
errors
5. Similarity
errors
6. Proximity
errors
7. Recency
error
8. Compare/contrast
error
9. Attribution
error
Performance management cycle
Through
a planned process of employee development, the performance management cycle
helps management and employees to better fulfill corporate goals. The
performance management cycle is a subset of the performance management process
or strategy. A four-step process includes planning, monitoring, reviewing, and
rewarding. Increased competitiveness, structural flexibility, and staff
motivation are all advantages of using this strategy
Figure 3: Performance management cycle
The four primary steps of the performance management
cycle are as follows:
1. Planning
2. Monitoring
3. Reviewing
4. Rewarding
Planning
The
foundation for success is created in the planning stage. Before speaking with
the employee, the management team should convene and determine the
organization's annual goals and objectives. This includes not just the
company's overarching strategy, but also personal objectives for all
individuals and teams, such as career ambitions, particular tasks, targets,
actions, and behaviors. Any staff planning will be ineffective without that
critical knowledge. It is time to meet with the employee and establish a
strategic plan for the year after the management team understands the details
of what they want the employee to accomplish.
Monitoring
Monitoring
is an important function in the performance management cycle model for
attaining the goals set forth in the planning stage. However, if the monitoring
is only done once or twice a year, it will be ineffective. Management should
meet with staff on a monthly or quarterly basis to check in on progress, give
assistance if required, aid in the resolution of any issues that may have
occurred, and revise targets as appropriate. Poor preparation and a lack of
desire are common challenges in yearly goal formulation.
Reviewing
Management
and employees gather at the end of the year to assess the past year and
determine if goals were reached. This is another chance to work with the
employee in a collaborative manner. The more they are involved in the other
stages of the performance management cycle, the more motivated they will be to
continue working hard to meet their own and the organization's objectives. If
thorough monitoring were carried out, management would have a solid
understanding of how well the person performed during the year. Management and
staff can assess both the product and the process during the evaluation.
Rewarding
The
reward is the last stage of the performance management cycle plan. This is a
vital step that must not be missed because it is the most important for
employee motivation. Employees who do not receive an appropriate incentive
after a year of trying for and achieving corporate goals will lose motivation
for the next year. They may lose trust in their company and believe that their
skills are undervalued, prompting them to look for a new career. When
management appropriately rewards and recognizes employees' contributions, they
ensure that those employees will continue to work hard to meet the
organization's objectives.
Conclusion
The
ongoing process of communication between managers and employees with the mutual
purpose of achieving the company's strategic goals is known as performance
management. It is the cornerstone for employee performance and engagement in
every company that wishes to maximize its employees' productivity and success.
The procedure, which frequently includes both oral and written components,
takes place all year and generally culminates in an annual performance
assessment. Defining clear precise expectations, creating targets, establishing
goals, offering continual feedback, and analyzing the results are all part of
the communication process.
References
Vulpen, E. v., 2016. AIHR. [Online]
Available at: https://www.aihr.com/blog/what-is-performance-management/
[Accessed 19 April 2022].
Valamis, 2021. Valamis.
[Online]
Available at: https://www.valamis.com/hub/performance-management-cycle
[Accessed 19 April 2022].
Figure 1: Performance
management aspects
Figure 2: Common types of performance review systems
Figure 3: Performance management cycle
Performance management is an important function of HRM. As explained by you, it will help the organisation to identify well performing employees and also identify employees who need extra training and support. It will help to align employee goals with organisational goals. It will also promote employee engagement and motivation. Good article. All the Best Kawshi!
ReplyDeleteThank you !
DeleteAs you said in your post, good performance management is a critical role of HRM. Performance management is the continual process of communication between managers and employees with the mutual objective of accomplishing the business's strategic goals. It is the backbone for employee performance and engagement in any organization that seeks to optimize its employees' productivity and success. Excellent job Kawshi!
ReplyDeleteHR team will benefit from consistency and structure provided by performance management. as explained in your article it will help the organization to identify the employee performance. All the best!
ReplyDeletePerformance management without linking to rewards will not be recognised among employees. Most of the Company fail in performance management due to thus reason.
ReplyDeleteperformance management cycle helps management and employees to better fulfill corporate goals.In reality, effective performance management focuses on honing the abilities that enable an individual to perform better at their work.👍all the best
ReplyDeletePerformance management is an important aspect in HRM. It is used to create a work environment where people are motivated to provide their best performance and do quality work.
ReplyDeletewell explained good luck for your hard work.
I think this is a major factor influencing the growth of the organization. It has been well explained to you step by step. All the best!
ReplyDeletePerformance management of employees is important to monitor and identify whether the employees should be rewarded or reviewed to enhance their output levels. Its ultimate objective is to achieve the company's overall goals and vision. Good article Kawshi!
ReplyDeleteAs per my view of this Human Resources has established modules to assist in managing employee performance. Human Resources recommends in addition to setting goals at the beginning of the evaluation period and evaluating performance at the end of the evaluation period. Good luck 👍
ReplyDeletePerformance management plays an important role in HR as one of the most important goals of HRM is the increase of productivity of its employee by having them work at their optimum capacity. This is a great article on performance management and the cycle of performance management. Well done.
ReplyDeleteThe performance of employees is ultimately the performance of the organization. Therefore, performance management is utterly important to an organization. Your article very well explains the importance of implementing an effective Performance Management system. All the best.
ReplyDeleteThank you !
Delete