2. Performance Management Process
1. Definitions of Performance management process
In theory, the Performance Review process can be thought of as a
positive interaction between a “coach” and an employee, working together to
achieve maximum performance. In reality, it’s more like finding a dead squirrel
in your backyard and realizing the best solution is to fling it onto your
neighbor’s roof (SCOTT ADAMS (THE
DILBERT PRINCIPLE) (Herman Aguinis, 2013).
Performance management is a natural process of management (Michael
Armstrong, 2006). He accepted Plan,
Act, Monitor and review theory of quality expert William Deming to consist performance
management process. In Armstrong’s Handbook mentioned the performance depends on
participation, commitment and other elements of the performance management process
such as feedback.
According to Elaine D. Pulakos the performance management
processes vary from organization to organization. Performance management has an
important effect on retention – effective performance management processes in
place contribute to improved employment retention (Matthias Zeuch, 2016).
If we consider the above theories it’s clear that performance
management system is a step by step process which includes Planning, Doing, Checking and
Action.
2. Performance Management process cycle
2.1 According to Armstrong the performance
management cycle closely resembles the cycle for continuous improvement defined
by William Deming (1986). This is not a coincidence. Performance management
is all about continuous improvement (Michael Armstrong, 2009 and 2006).
Figurer 2.1 Performance Management process cycle (Michael Armstrong, 2009)
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| Source: (M. Armstrong, 2006). |
2.2 Herman
Aguinis had described 9 components in the performance management process.
Figure 2.2 Performance management process - (Herman Aguinis, 2013).
 |
| Source :Performance Management (Herman Aguinis, 2013). |
Figure 2.3 Performance management process - (Elaine D. Pulakos, 2009). |
 |
Source Performance management (Elaine D. Pulakos, 2009). |
 |
Source : HRM Handbook (Matthias Zeuch,2016). |
source: online (AIHR Learning Bite)
Considering the above theories and
videos, the performance management process is described in different steps, but
in summary it seems that the all steps are same.
Our company is following 05 stages in
performance management process. The 5 stages in the cycle are; Plan, Manage,
Review, Reward and Renew.
According to Mabey there are 05
elements which should be implemented in an organization. The 05 elements are;
Planning
Stage - this will involve getting together with an employee and
evaluating expectations for a set period of time. The first stage in the
planning process will be to evaluate an employee’s current role and
performance; this will gain an initial idea about areas of improvement and
realistic targets.
2. Performance
measuring
Manage
Stage - Implementing the plan and managing performance is stage 2 of
the cycle. This can be providing support to an employee at all times and ensuring
that the appropriate systems and tools are available to maximize performance
expectations.
3. Feedback
of the employees performance
Review
Stage - Making sure that the performance structure set out in stage one
is being adhered to, this may be particularly useful if there are any barriers
to performance that could have a direct impact on other areas of the
organization. Speaking to an employee mid-way through a performance cycle is a
good chance to tweak their objectives depending on external factors.
4. Based on the performance outcomes, a
reward system
Reward
Stage - If all of the objectives have been met, stage 4 of the
performance management cycle is to reward employees. Reasons and types of
rewards will be discussed during stage one when objectives are outlined.
5. Amendments
to objectives and processes
Renew
Stage - The final stage of the performance management cycle is
renewing. This can involve analyzing the previous objectives and looking at
ways to improve on them and how to plan for the next cycle. Methods of rewards
can vary from an annual bonus to share scheme options.
Performance Management Cycle has an important part to play in the implementation of staff motivation in an organization. The 5 stages (elements) ; Plan, Manage, Review, Reward and Renew, depending on the type of organization, the management cycle may take place over a year's period or month by month.
List of Reference
- Elaine D. Pulakos (2009),Performance Management: A New Approach for Driving Business Results, John Wiley & Sons, UK.
- Herman Aguinis (2013), Performance Management, 3rd Edition, Pearson Education, Inc, USA.
- Mabey, Christopher; Salaman, Graeme; Storey, John. 2nd Edition. 1999. Human Resource Management: A Strategic Introduction. Blackwell Publishers Ltd.
- Matthias Zeuch - Editor, (2016), Handbook of Human Resources Management, Springer-Verlag Berlin Heidelberg.
- Michael Armstrong (2006) Performance Management Key Strategies and Practical Guideline. 3rd edition, London, Kogan Page Ltd.
- Michael Armstrong (2009) Armstrong's Handbook of Performance Management. 4th edition, London, Kogan Page Ltd.
I agree with your argument, and similarly, According to Cardy and Leonard (2011), the performance management process has seven steps: performance, diagnosis, evaluation, feedback, dealing with feedback, improving performance, and future performance.
ReplyDeleteYes, performance management is a continuous process cycle including Plan, act, monitor & review(Armstrong, 2009). At the end of each cycle feedback is the main component taken to understand effectiveness of performance management to the organization(Buchner, 2007).
ReplyDeleteAgreed.Effective performance management cycles align managers' or supervisors' and employees' efforts with the organization's goals (Russell and Russell, 2009). Encourage all employees to perform at their best by ensuring uniformity in performance evaluations. This strategy should be applied in a fair and transparent manner. Many companies and managers today see performance management as a continuous cycle of actions that connects the company's culture, corporate goals, and strategy to individual performance and contributions (John Mattone,2013).
ReplyDeleteYes. Performance measurement plays a critical role in any company and appropriate measures are needed for, e.g. communication purposes (Elgazzar et al., 2019; Bourne et al., 2018). Koste and Malhotra (1999) state that to be able to understand and develop any type of flexibility, companies must be able to capture it in a reasonably accurate and credible way. Elgazzar et al. (2019) found few flexibility measures in their recent overview of supply chain measures. Maestrini et al. (2018) highlight a research gap in how companies apply supplier performance measurement in a broad sense
ReplyDeleteFurther we can describe Performance Management Cycle in three stages.;
ReplyDelete1. Anticipating, receiving, and reacting to feedback
Individuals’ beliefs about themselves and their environment, and their feedback orientation, shape their initial reactions to feedback (DeNisi, Cafferty, & Meglino, 1984).
2.Processing the feedback
People generally try to affirm their self-concept by interpreting their experiences in such a way that their self-image remains stable or is restored (Baumeister, 1999; Steele, Spencer, & Lynch, 1993).
3.Using the feedback
Acting on goals entails actually participating in learning, trying new behaviors, and making an effort to reach specific performance objectives.
Performance management is: ‘The development of individuals with competence and commitment, working towards the achievement of shared meaningful objectives within an organization which supports and encourages their achievement’ (Lockett, 1992). l ‘Performance management is managing the business’ (Mohrman and Mohrman, 1995). l Performance management is: the process of ‘Directing and supporting employees to work as effectively and efficiently as possible in line with the needs of the organization’ (Walters, 1995).
ReplyDeletePerformance management is a process to plan, monitor and examine an employee’s overall performance to the organization. And also performance management is the continuous process of setting objectives, appraising progress and providing training based on that and feedback to ensure that employees are meeting their career objectives (Oklohoma, 2015).
ReplyDeleteAgreed. Additionally, Performance management is a communication 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 ongoing coaching and feedback to ensure that employees are meeting their objectives and career goals (Hawas, 2001)
ReplyDeletePerformance management cycles based on supervisors and workers attaention with organizational goals (Russell and Russell, 2009).Through the perfect performance Management, at the end of the cycle supervisors could recognize the contribution of employees to the organization. By motivating workers organization can get more contribution to achieve the goals objectives.
ReplyDeleteAgreed Nilmini,
ReplyDeletethe organizational performance criteria should include profitability, productivity, marketing effectiveness, customer satisfaction, but also employee morale. In this perspective, employee performance is tightly related to organizational performance, effective and efficient employee performance will positively influence organizational performance (Chan and Lynn, 1991).
Agree Nilmini, as per Shane (2012), Performance management is a continuous process of planning, coaching and reviewing employee performance.
ReplyDelete