essay of performance management

Performance Management: Key Strategies and Practical Guidelines Essay

Reflective statement, introduction, performance management background information, developing objectives for individuals and teams, assessing performance and providing feedback, performance support for improvement, philosophy in disciplinary and grievance procedures in an organization, references list.

In this study, there are a number of practical lessons and values learnt that are of the essence to a manager. Firstly, performance management is a process that is geared towards achieving objectives set by a business plan in order to realize success.

This work thus gives a manager an insight onto ways and methods that he or she can use to steer an organization towards performance. In this process, a manager learns soft skills in team management, team structure and team social relations as a creation of a “family setup” in business. This can only guarantee success if properly utilized.

Secondly, in performance management, there is a need to develop objectives and goals. Goals and objectives are developed using certain measures and strategies in order to get the organization on top.

These are skills that a manager learns that they give the right approach to the business. In this process, a manager gets certain knowledge, experience and practice to develop what right, recognize what is above of below the actual requirements of the organization.

In terms of team management, this assessment helps in the future appreciation on values embedded in human relations in the work place. As a manager one can develop the right environment in order to nurture different human perspectives, qualities and concerns.

The lesson is that as a manager one is needed to take the role of an evaluator of the interconnection of many systems and how effective they are. In case something goes wrong, a manager can take actions to provide solutions. This may include disciplinary measures as well performance appraisals for an effective organization.

Performance management recognizes the use of modern technology that is appropriate in the work place. The lesson for a manager lies in choosing what works where and how does it impact to an organization. This helps a manager in the future to determine the best technology to incorporate in the most efficient and effective manner.

Performance management goes beyond the simplistic approach towards the employees only. In the book, “Field Guide to Leadership and Supervision in Business”, McNamara and McNamara (2002) argue that successful management focuses on the organization, departments processes, programs, products projects and teams (Bayazit and Mannix, 2003).

Performance is not about being busy; however, it involves delivering results in line with the survival of the business. A business has no choice, but to ensure that strategic processes opted for are only those meant to increase the effectiveness of the organization. This paper will take a detailed analysis method to explain performance management under the given highlights of this assignment.

The definition of performance management includes various components, which are linked together in a cycle. In this cycle, business strategy forms the starting point of which the summary of the organization is outlined in fair details. Business strategy allows personnel in the organization to grasp the sense of direction. This is because it is clearly outlined and thus the objectives act as a guide to planning (Bacal, 2011).

Secondly, the goals or the objectives that are in an organization must emanate from the business strategy. The objectives or goals must be placed within a time framework where certain activities are guided by each step to the next. Following objectives is the structure of the organization. There must be systems established to work in line with the emerging and on-going strategic issues.

Modern technology and information systems provide competitive advantage if utilized properly. This approach enables the job descriptions to be designed, and the organisation to achieve the prescribed goals.

From these job descriptions, there is mutual agreement between the employer and the employee with certain targets put in mind. The targets, systems, and the organization can thus be expected to perform to the required standards hence the attachment of performance standards (TACK International (Africa) Ltd, 2009).

Emanating from this knowledge, personnel in the organization should be assigned duties that are detailed in the designed job description. For the organization to come up with a job description, job analysis must be conducted to ascertain the key competencies needed to achieve the set goals.

These competencies are explained in terms of knowledge, skills and capabilities. The goals in this line help to indicate the direction to be followed and do form the central frame work of reference and aid to identify success as well as clarify issues and expectations of the organization and the employees (Ridzi, 2004).

On the other hand, the team objectives start from the basic process of laying out the business strategy. A business plan in any organization must communicate its vision to its members. The objectives of the company and direction as directed by the overall strategic planning set the ground for team work.

If the systems in the organization are not incorporated in this aspect, then the sense of direction and objectives may not be a source of motivation to employees and thus this may pull the company vision to individual objectives (Warner, 2002).

Setting goals is a process that requires meetings between the various stakeholders in the organisation. In this process, the individuals form a team, which focuses on development of key attributes like positive attitudes on employees, morale, and job satisfaction. Through team social relations, team effectiveness and participation in decision making enhance in building a team that perceives the level of commitment as very high.

This aids in formation of team objectives that are in line with individual objectives due to the sense of togetherness and positive attitude. By developing such groups of individuals in a team, then every person understands his or her roles and responsibilities and thus adequate resources are provided for it (Cammann, et al., 1983).

The SMART plan is a concept that is used by quite a number of organizations. SMART stands for Specific, Measurable, Attainable, Relevant, and Time framed. The plan makes goals conform to the best ideals and strategies in making objectives.

The links between individual, team, and organization perspectives are put into consideration by allowing individuals to participate in the decision making process through meetings. Through mapping, the process can incorporate performance planning where the profile roles are reviewed to determine the appropriateness and the expected behavioural requirements (Riccucci, 2005).

During the planning stage, as a leader, it is important to identify and reach an agreement on the criteria that should be used to measure how far the objectives have been achieved.

In this section, the assessment should be focused on the objective chosen by the individual in collaboration with a manager, and evaluate how well it has been performed. It is important to put in mind that the objective may be focused on a task, a project, behaviour, values, developmental or performance improvement as well as on going role objectives (Talbot, 2005).

When performing assessment, the following measures should be used to evaluate individual and team performances. Finance as a performance measure seeks to check whether value has been added either to shareholder’s or even income.

On the other hand, output seeks to assess whether new accounts or sales have reached the agreed target. Impact checks the quality of standards, behaviour changes and completion of identified task or project or even innovation.

The measure of reaction seeks to ascertain the judgment gotten from other colleagues who may be internal or external like customers. In terms of time, the assessment analysis refers to the records of the speed taken to respond to something, or to assess the time taken in the process of delivery marketing and retrieval of data in regard to the set timetable (Cummings & Worley, 2009).

Assessment largely involves evaluating what has been achieved in comparison to established standard. Secondly, documenting recorded results in the most appropriate manner and finally communicating the results as feedback to the individual or groups follows.

Feedback in cases of performance management is either positive or negative. One important thing to note as a manager is that feedback must be timely and specific with regard to the objectives established thus acting as standards. When the space between time of performing and feedback is prolonged or hurried untimely, then the appreciable effect is never realized.

With this in mind, the methods of providing feedback must be carefully chosen upon the most relevant communication methods available and used by an organization. The major modes of communication include oral, writing and nonverbal communication systems. Each system has its disadvantages and advantages (Moynihan, 2008).

The writing mode of communication involves the traditional writing of letters, memos reports, manuals, forms and critical summaries. In modern forms, a manager must understand that emails, e-memos, social websites and mobile texts form the most common and advanced usage of writing as a method of communication.

Oral communication involves the use of meetings, forums, and discussion groups that are meant to deliver solutions or chat the way forward through the mechanics of voice variation, tone setting, pitch adjustments and body postures and attitudes (Armstrong, 2006).

Thirdly, the nonverbal method of communication includes all the elements that do not include written or oral expressions of communication. These may be facial expressions, physical movements. Facial expressions may be indicated by a number of things including eye contact.

Therefore, a manager has will use the appropriate communication network for individual and team performance feedback. For teams circle communication method should be the best method of providing feedback and line network is the best for individual feedback (Radin, 2006).

However, the two types must incorporate all modes of communication at the same for purposes of clarity and review. Feedback gives the personnel the window to assess his or her importance in an organization. At the same time, it allows management to come up with rewards for everyone. Individuals and teams are able to identify skills and abilities they should work on and the organization can assess the skills needed for success.

In the process of assessment, conflicts may arise if the program is marred by ineffective strategies or poor planning. Three issues in particular that may bring conflict are, who does the assessment, how often is the evaluation done and thirdly how is performance measured.

Inadequate think through processes may result to lack of diversity in the performance evaluation. Environment, available structures and other issues like gender must be taken into consideration during assessment to avoid or minimise conflicts (Griffin & Moorhead, 2011).

Therefore, the person who does the assessment must put these questions in mind and promote truthful accounting of feedback. The instruments used for assessment like graphs, charts, behaviour observation, forms, questionnaires and calculation indexes must be standard.

In this case, they should be acceptable universally or have international bearing, and provide competent results across the spectrum. The frequency and timing of measure should be stipulated in reasonable periods according to the organizations period of operation.

In the development of objectives like in the MBO plan, managers guide the teams, and individuals to develop objectives in line with what the organization has laid out. In this process, planning, performance review and evaluation have to be backed by the development of the interrelationship between managers and the group.

This development should be based on trust, social interactions, and social relations, which enhance team structure (Heinrich, 2000).

Since goals are developed in line with problems or outlined objectives, the performance improvement cycle involves planning for improvement as the first step. Secondly, the implementation of the improvement follows after review, which is followed closely by evaluation of success of the improvement program.

Finally, from the results, the next step involves making decisions. Therefore, in this cycle, the principles move from the plan, then to check and finally to act (Avis, 2009).

As a manager, one need to support the efforts of teams and individuals should be guided from the top going down. Support should be of different forms in order to enhance performance since changes keep on happening in the management process. The support on performance from management is advantageous since communication is enhanced and during difficult periods.

The support may involve verbal encouragements to individuals or teams from managers. On the other hand, the management as an organization should support the individual and team by providing systems that are needed.

The support systems for teams may include efficient inventory and schedule systems, better hiring systems, improved information systems and appropriate compensation systems. Team leaders and managers must ensure growth of the team and individual towards the outlined objectives (Lussier, 2011). The following is a sample of the performance improvement cycle diagram:

Source: Joint Commission Resources, Inc. 2001, p. 36

Grievances are common in work places and court processes often return to an employer after an ex-employee sues an organization. The philosophy of discipline in an organization revolves around evaluation of work performance.

The process of assessing how much has been gained, as projected in the goals and objectives of individuals, teams and organizations, lead to performance review through continuous performance improvement cycles (Grifffin and Moorhead, 2011).

From the assessment feedback and review, an organizational can determine the right employee suited for a certain job, as well as the needed skills. At the same time, employees are able to identify their areas of improvement using measures like 360 degrees self-feedback mechanism and other measures.

The management takes keen interests in both those who have performed and underperformed. For those who have performed above or as expected through the objectives, rewards, incentives and compensation follow from as a process of support from the organization (Falcone, 2002).

In cases of underperformance, the organization, teams, individuals and managers work together in review meetings to analyse the results and possible failure in the support process or the development of unrealistic objectives. This results to performance improvement cycles until the performance is satisfactory.

However, in situations where the individual consistently espouses underperformance due to lack of ability skills in the presence of necessary supportive systems, then disciplinary actions must prevail (Grifffin and Moorhead, 2011).

The philosophy of disciplinary measures must put in mind the “work place due process” concept. This involves recording of documents that “indicate threefold” warnings to an individual who constantly under performs. These records serve to help the individual assess the procedures and ways she or he can use to improve in order to avert the chance of losing the job.

In this process are the principles of progressive discipline. These principles attempt to indicate to the employee that they stand a chance of losing a job. Therefore, legally, probations, suspensions precede termination which must be founded on just cause (Brousseau, 1978).

Therefore, as a manager, the role is to first support the individual or team found to have underperformed. This is done through various measures of support improvement.

In the progress of serious mistakes or grievances as a manger, I should record the warnings and expressly offer information that places the concerned personnel informed. These roles must fall in the stipulated procedures as stipulated in the Fourteenth Amendment and thus respect the rights of employees and employers.

In summary, an organization must first assess and measure performance of teams or individuals using the appropriate procedures and methods. At this stage, information must be recorded and documented for future purposes and references. In the process, appropriate feedbacks are communicated using the relevant procedures through performance review meetings and forums.

Following this the organization takes to the drawing board to plan and redevelop or assess the objectives laid out in the previous plan. This makes a performance improvement cycle which enhances achieving of objectives.

In case there is under performance, the manager and team leaders refer to documented information and continue to support the areas that need development in an individual. These from the background warnings must accumulate to three or more than three times.

If the performance falls less than below the set goals for three improvement cycles then suspension, probation and summons should precede termination. If these fail, then the manager has the power to terminate on an acceptable cause (Cardy and Leonard, 2011).

For those who perform to the expected goals the organization promotes them to desired levels in order to help the organization to train others in the area or department. Secondly, the organization reviews the performance remuneration to commensurate with the new results hence the profitability of the organization.

Organizations should incorporate performance management strategies in the management process in order to realize the benefits of optimal resource utilization. The human resource in an organization forms one the factors that an organization has the power to use to realize goals and objectives. It is thus paramount that performance management should be regarded positively and accepted by managers worldwide.

Increased improvement and success in organizations has often been attributed to efforts in the team work. The measure of success used to assess teams can have more impact when performance management is put in place. It is thus important for organizations to include performance management in order to achieve success.

Armstrong, M 2006, Performing management: key strategies and practical guidelines (3 rd ed), Pentoville Road, London: Kogan Page.

Avis, J 2009, P2 – Performance Management, Managerial (6ed), Jordan Hill Oxford: Butterworth-Heinemann.

Bacal, R 2011, Performance Management (2/E), Burr Ridge New York: Mcgraw Hill Professional.

Bayazit, M and Mannix, EA 2003, Should I stay or should I go? Predicting team members’ intent to remain in the team. Small Group Research , 34(3): 290-321.

Brousseau, KR 1978, Personality and job experience. Organizational Behaviour and Human Performance , 22: 235-52.

Cammann, C, Fichman, M, Jenkins, GD, & Klesh, JR 1983, “Assessing the attitudes and perceptions of organizational members”, in SE Seashore, EE Lawler, P. Mervis and C, Cammann (eds), Assessing Organizational Change , New York: Wiley, pp. 125-175.

Cardy, LB and Leonard, B 2011, Performance Management Concepts, Skills, and Exercises. Business, Park Drive, New York: M.E. Sharpe.

Cummings, TG and Worley, CG 2009, Organization development & change , Australia: South-Western/Cengage Learning.

Falcone, P 2002, The hiring and firing question and answer book , New York: AMACOM Div American Mgmt Assn.

Grifffin WR and Moorhead, G 2011, Organizational Behaviour: Managing People and Organizations , Boulevard, Mason: Cengage Learning.

Heinrich, CJ 2000, Organizational form and performance: An empirical investigation of nonprofit and for-profit job-training service providers. Journal of Policy Analysis and Management, 19: 233–61.

Joint Commission Resources, Inc. 2001, Using performance improvement tools in ambulatory care , Oakbrook Terrace, IL: Joint Commission Resources.

Lussier, NR 2011, Management Fundamentals: Concepts, Applications, Skill Development (5ed), Boulevard, Mason: Cengage Learning.

McNamara, C and McNamara, T 2002, Field Guide to Leadership and Supervision in Business , New York: Authenticity consulting, LLC.

Moynihan, DP 2008, The dynamics of performance management: Constructing information and reform , Washington, DC: Georgetown Univ. Press.

Radin, BA, 2006, Challenging the performance movement: Accountability, complexity, and democratic values , Washington, DC: Georgetown Univ. Press.

Riccucci, N 2005, How management matters: Street-level bureaucrats and welfare reform , Washington, DC: Georgetown Univ. Press.

Ridzi, F 2004, Making TANF work: Organizational restructuring, staff buy-in, and performance monitoring in local implementation, Journal of Sociology and Social Welfare, 31:2.

TACK International (Africa) Ltd, 2009. A briefing note on Performance Management . Web.

Talbot, C 2005, “Performance management”, in E Ferlie, LE Lynn and C Pollitt (Eds) The Oxford Handbook of Public Management , Oxford: Oxford Univ. Press.

Warner, J 2002, The Janus performance management system: A complete performance management support process for individuals, teams, and the entire organization , Amherst, Mass: HRD Press.

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Performance Management Essay

Type of paper: Essay

Topic: Communication , Workplace , Development , Employee , Management , Behavior , Goals , Organization

Words: 1200

Published: 11/25/2019

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Performance Management

It is not enough to have a talented workforce in an organization. For the organization to meet its objectives, the manager has to work close to the workforce so as to understand what is being done correctly and wrongly. Moreover, his presents encourage workers as well as showing them how activities are suppose to be done. Therefore, performance management is inevitable if the organization is to succeed. Arguably, in this case, the term ‘performance’ is twofold; it encompasses behavior plus results. In every organization, results and behavior go hand-in hand. This is where the importance of performance management comes in handy, (Adiele, 2009). The term “performance management” is used to refer to a constant, uninterrupted process of communication, illuminating job responsibilities, performance as well as anticipations intended to create a clear and common understanding between the workforce and the manager. Precisely, these are the entire activities that guarantee consistent achievement of organizational goals in a successful and proficient manner. Notably, performance management may be centered on the performance of a department, organization, process or employees as well as other areas, (Bustamante, 2009). It generally concentrates on behavior and results, which are the two crucial elements of performance. It is important to note that, performance management is a viewpoint which values and supports the development of employees through a management style that offers regular feedback as well as promoting teamwork. It accentuates communication and centers on putting in value to the organization through promotion of the performance of jobs and encouraging development of skills, (Bustamante, 2009). Generally, performance management engrosses clarification of job duties, definition of standards of performance, documentation, rating as well as discussion of performance with each and every member of the workforce. Consequently, the major objective of performance management include: boosting two-way communication between the employees and the manager; clarification of goals, missions, priority, tasks and expectations; identification and determination of performance problems; distinguishing quality performance; and lastly, giving a starting point for administrative decisions, (Adiele, 2009). As mentioned above, there are two main parties that are involved in performance management; the employee and the manager. Being the leader, the manager plays various roles as far as performance management is concerned. To begin with, he/she has the responsibility of establishing decisively the results as well as the signs of performance according to the input of the employees, and recording them on the performance chart, (Bustamante, 2009). Precisely, he/she is the one to bring into record the work of employees and the results achieved. Another role is that, he/she checks on the performance of the workforce during evaluation period and informs the workforce on issues concerning their performance consistently. Moreover, it is the responsibility of the manager to assist the employees through the evaluation period to ensure that they improve on the areas that had been identified in need of improvement, (Adiele, 2009). Besides, it is his/her role to seek for feedback from external and internal customers, suppliers, coworkers, team members and from other areas as far as the performance of his/her employees is concerned, to be able to know how the decisions that should me made. The other responsibility of the manager is that of carrying out progress reviews for each and every employee between the opening yearly planning period and the end of the evaluation period. Lastly, the manager should be able to identify employees with high-quality performance and ensure that they are rewarded accordingly. By so doing, these employees will be motivated to work even harder and those are registering low performance rates will try to improve in order to qualify for these rewards. Feedback is a very important element in performance management. As a matter of fact, feedback is two-way; the employee has to seek feedback from his/her manager concerning his/her work performance and also, the manager has to seek feedback from his/her employees in order to determine any probable problem. As a matter of fact, the feedback may be positive or negative. Whichever kind of feedback one might get, it will determine the performance of the individual in the future. For instance, if an employee gets a negative feedback from the manager, he/she becomes aware of what is not being done right, (Adiele, 2009). Therefore, he/she would concentrate on improving his/her performance. If the feedback is positive, it acts as a motivation for the employees to work even harder as they are assured of good performance and output. There are various issues that should be noted as far as performance feedback is concerned. The feedback should be frequent. It should also be focused on solving probable problems. Additionally, the feedback should be centered not on an individual, but on the results. It is of importance as well the manager to enquire about the performance rates of each employee before the beginning of the session and support him/her to be active in participation. Lastly, the manager should identify effectual performance through congratulation, (Bustamante, 2009). Generally, there are three important elements of feedback. To begin with, the employee is made aware of his/her weaknesses and strengths. The other element is that, it acts as a motivational factor for the employees to improve their productivity. Lastly, it plays a significant role in achievement of professional goals of the company as well as developing competencies among the workforce. In some cases, problems may arise in the performance of the employees. It is the work of the manager to chip in to help correct this problem. It is the role of the manager to prepare and embark on a focused discussion of the problem at hand with the affected individuals, (Bustamante, 2009). This should then be followed by stating the need for performance improvement. Thereafter, the manager and the affected individuals should jointly review the situation at hand. After the review, they should then both decide on the steps that are to be undertaken. Through this process, the affected individuals will be able to identify the possible actions to take. To ensure that the problem has been effectively addressed, the manager should take the initiative of following-up the progress on the issue and offer his/her support to the affected individuals to help them regain their self-esteem. Finally, rewards are vital elements in performance management. The manager should be able to identify high performing employees so that they can be rewarded in order to encourage them in their daily activities. This is also an opportunity to motivate poor performing employees to raise their standards. Notably, there are different categories of rewards: monetary or salary related, promotional opportunities, and recognition awards, (Bustamante, 2009).

Adiele, N. (2009). Business Performance Management Explained. Retrieved on 20th July 2011 from http://www.helium.com/items/1334476-performance-management-explained Bustamante, C. (2009). Tips for Conducting Effective Performance Reviews. Retrieved on 20th July 2011 from http://www.helium.com/items/1440842-tips-for-conducting-effective-performance-reviews

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Performance Management

Ivan Andreev

Demand Generation & Capture Strategist, Valamis

March 14, 2022 · updated April 2, 2024

17 minute read

Increasingly, organizations are understanding that their management systems must be brought into the 21st century if they are going to be competitive in the current market.

Research shows that previous systems, such as yearly appraisals, are outdated and can even serve to decrease employee engagement and motivation. In light of this, more companies are turning to performance management than ever before.

This dynamic and strategic approach to developing improved performance in employees is gaining ground in companies large and small, including many Fortune 500 and industry-leading organizations.

What is performance management?

The importance of performance management, the purpose and goals of performance management, the benefits of performance management, 15 employee performance management best practices, 5 real-world examples of performance management, what is the difference between performance management and performance appraisals.

Performance management is a strategic approach to creating and sustaining improved performance in employees, leading to an increase in the effectiveness of companies.

By focusing on the development of employees and the alignment of company goals with team and individual goals, managers can create a work environment that enables both employees and companies to thrive.

Based on the definition of performance management, a system is built within an organization to measure and improve the performance of the people in that organization.

In practice, performance management means that management is consistently working to develop their employees, establish clear goals, and offer consistent feedback throughout the year.

In contrast to other systems of reviewing employee performance, such as yearly performance appraisals , employee performance management is a much more dynamic and involved process with better outcomes.

For the Human Resources department, performance management is an important system for onboarding , developing and retaining employees, as well as reviewing their performance.

It is increasingly understood that a yearly performance appraisal system does not effectively engage employees, fails to consistently set and meet company objectives, and does not result in a strong understanding of employee performance.

The digital learning ecosystem workbook

You’ll get a list of useful questions and tasks to help you know your learning space better and ways to improve it.

Why is performance management important?

In any organization, no matter the size, it is important to understand what your employees are doing, how they are doing it, and why they are doing it.

Without a system in place to define roles, understand individual strengths and weaknesses, provide constructive feedback , trigger interventions and reward positive behavior, it is much more difficult for managers to effectively lead their employees.

Smart organizations pair their performance management with an incentive management process. The two systems have a lot in common, from defining roles and setting goals to reviewing and rewarding employee behavior, and as such, do very well when run simultaneously. Using incentive management also means that the all-important ‘reward’ step of performance management is done properly.

Talent management is an important part of every organization. Three of the main problems that organizations face are:

• keeping employees engaged
• retaining talent
• developing leaders from within

These are the issues that performance management very effectively targets.

1. Keeping employees engaged

Engagement of employees is a focus of any management team. In a yearly appraisal system, goals would be given at the beginning of the year and then revisited 12 months later to see if they had been met. This long stretch of time without feedback or check-in is an almost certain engagement killer.

In fact, 94% of employees would prefer their manager gives them feedback and development opportunities in real-time, and 81% would prefer at least quarterly check-ins with their manager, according to the Growth Divide Study .

Studies show that employees do best with feedback on a monthly or quarterly basis, with regular check-ins serving as a zone to problem solve, adjust goals as necessary, and to refresh their focus on the goal. In fact, companies where employees meet to review goals quarterly or more frequently are almost 50% more likely to have above-average financial performance.

When surveyed, employees had some negative feelings about a yearly appraisal system:

• 62% of employees feel that their performance review was incomplete
• 48% did not feel comfortable raising issues with their manager in between performance reviews
• 61% feel that the process is outdated
• 74% feel that they would be more effective with more frequent feedback
• 68% of executives don’t learn about employee concerns until the performance review

All of this adds up to a lot of missed opportunities to solve problems and increase employee performance and engagement.

As employee engagement rises, nine key performance indicators show successful outcomes. Absenteeism, turnover, shrinkage, safety incidents, patient safety incidents and defects in quality are lessened by at least 25%, and often more, across the board. Customer experience, productivity and profitability all show positive outcomes.

This study, by Gallup , was conducted across a broad range of industries, showing that employee engagement is a critical factor, no matter the industry.

2. Retaining talent

Employees who have frequent meetings with management to discuss performance, solve problems and receive training are more likely to stay with the company.

If employees see that their management team is putting in the work to develop them professionally, help them succeed with their goals, and reward performance on a consistent basis, then they are more incentivized to both stay with the company and work harder.

3. Developing leaders from within

This consistent development and partnership between managers and employees allow for the development of leaders from within the company.

Recruiting costs can be extremely high, as are costs for onboarding and training new employees. To be able to groom leaders from within the company means that there is already a proven culture fit with this individual and that training costs and resources spent developing this person into an asset are not lost.

This leadership path also serves as a motivating force for employees, who can see that their hard work will be rewarded with promotions and other benefits.

Performance management also creates a need for management to consistently focus on company objectives and goals, and to consider how best to achieve them. This continual revisiting of goals means that they are more likely to stay relevant, as goals will be adjusted in light of new technology, changes in the market, or other factors throughout the year.

According to Forbes , ‘companies that set performance goals quarterly generate 31% greater returns from their performance process than those who do it annually, and those who do it monthly get even better results.’

The purpose of performance management is to give both managers and employees a clear and consistent system within which to work that, in turn, will lead to increased productivity.

• This system shows employees the pathway to success, allows for the measuring of performance coupled with feedback and offers training and development opportunities.
• Performance management allows management to understand what their employees are doing and track progress on company objectives while providing consistent feedback.

There are five main objectives of performance management:

• Develop clear role definitions, expectations and goals
• Increase employee engagement
• Develop managerial leadership and coaching skills
• Boost productivity through improved performance
• Develop a performance reward program that incentivizes accomplishment

These performance management goals show a clear path from the developing of goals to the rewarding of increased accomplishment. If one of these performance management objectives is not done well, then the others will suffer as a result.

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Performance management has a multitude of benefits for employees and managers, as well as for the company as a whole. If a company can successfully create an environment of engagement where customers are equally engaged by employees on the front line, their outcome is even better.

When organizations successfully engage their customers and their employees, they experience a 240% boost in performance-related business outcomes compared with an organization with neither engaged employees nor engaged customers. – Gallup

• Having well-defined roles and performance standards makes hiring an easier process, as candidates know what is expected of them, and HR can more easily understand if a candidate is a right fit for the role.
• Those well-defined roles and standards make training easier, as trainers know exactly which areas need to be covered, and which information is nonessential.
• Consistent developing and revisiting of goals ensure that the organization keeps up with changing market forces easily, and reacts quickly as a whole, regardless of the size of the organization.
• Clear expectations and roles set employees up for achieving goals from the start, providing a springboard to success.
• Employees who feel that their company is invested in their success stay with their companies, increasing employee retention.
• Consistent feedback and coaching from managers lead directly to increased engagement from employees while developing the ability to provide good coaching and feedback leads to more skilled managers.
• As employees become more skilled, they can move up through the company, creating a leadership pipeline.
• Productivity will increase thanks to increased engagement, clear goals and upskilling of employees.
• Employees remain incentivized to perform long-term, as they are properly rewarded for their hard work.

While performance management can sound deceptively simple, with just four steps as outlined above, the process itself is very complicated. That’s why we have put together this list of best practices for performance management.

Think of it like the essentials of performance management – these will help make sure that your employee performance management system is performing the way it should.

1. Identify the goals of your performance management initiatives

As you are creating your performance management program, you need to understand what you want to accomplish.

Asking the following questions can help you:

• Is increased productivity a priority?
• Does your organization want to identify leaders from within and develop them?
• Do you want to streamline the compensation process?
• Are you seeking to improve employee retention or engagement?

If you know what you want your program to do, it will be easier to build it to accomplish that goal.

2. Define and describe each role

We mentioned this above, but it bears repeating. It is much harder for an employee to be successful if they don’t know exactly what is expected from them, how they should do it, and what the end result should look like.

3. Pair goals with a performance plan

As you set goals, develop a performance plan to go alongside. Year-long goals often fail, as they are too large and employees can get overwhelmed before they start. A performance plan helps them visualize their path, making it much more likely that they will meet their goal.

4. Monitor progress towards performance targets

Review key areas of performance. Use metrics and analytics to your advantage, tracking how goals are progressing to make sure that interventions can happen early, if necessary.

5. Coaching should be frequent

The point of coaching is to help identify and solve problems before they get too big. If it’s not frequent, it’s not going to help at all. Monthly or quarterly meetings should be held to help keep employees on the right track.

6. Use guidelines to your advantage

Guidelines should be created for each role as part of the first stage of the performance management cycle. These policies or guidelines should stipulate specific areas for, or limits on, opportunity, search and experimentation. Employees do their jobs better when they have solid guidelines to follow.

7. Build a performance-aligned culture

Make sure your workplace has shared values and cultural alignment. A sense of shared values, beliefs and expectations among employees creates a more harmonious and pleasant workplace. Employees should be committed to the values and objectives outlined, and exemplified by, top management.

8. Organize cross-functional workshops

This helps employees – and managers – understand what other departments do, how they think and what their strengths and weaknesses are. They can discover something new and find new connections, which can help them in future work.

9. Management should offer actionable feedback

During these coaching meetings, tensions can arise if the feedback is not given in a constructive, actionable manner. It is not very important to look backward and point fingers, rather management should guide employees towards future success.

10. Keep it professional, not personal

Giving less-than-stellar feedback is hard on both managers and employees, it’s one of the reasons that performance appraisals tend to be a least-liked task. Managers should make sure to keep feedback professional and remember to focus on behavior, rather than characteristics.

For example, pointing out that David regularly turned in important reports late is feedback about a behavior. Saying that David is lazy, and that’s why the reports were often late is feedback about a characteristic. One of these can help an employee own their role in a project’s success (or lack thereof) and the other will make them defensive instantly.

11. It’s not only employees that need training

Management should be trained too. Coaching and offering good feedback are not easy jobs, which is why there are so many specialist coaches out there. For managers to be able to lead well, they should be trained in these skill sets.

12. Take advantage of multiple-source feedback

Ask employees to write feedback for each other. This will give management a more holistic view on employee performance, understand the challenges that teams are facing, and be able to better offer feedback.

13. Don’t depend only on reviews

While the review process is important, it is only one part of the system as a whole. Planning, coaching, and rewarding employees are equally key parts of the system.

14. Problems are not always employee-based

It can be easy to assume that problems are always caused by employees, but that simply is not the case. Problems can arise from external factors such as availability of supplies, internal processes that are causing issues, or organizational policies. Seek out the source of problems as precisely as you can in order to fix them.

15. Recognize and reward performance publicly and frequently

Management cannot expect employees to stay motivated if they are never rewarded, yet many companies overlook this key step. Make sure that employees are compensated and recognized for their hard work, and they will continue delivering for your organization.

Of course, it’s one thing to understand the theory of what performance management is, but it’s another thing to use it in a real company. Let’s take a look at some real-world examples of the performance management process in action:

It’s no surprise that Google would show up on a list of companies that use a newer, innovative system of management. This company has always been a trendsetter, and their performance management process is one that relies on data and analysis, as well as making sure that their managers are well trained.

When assessing their performance management system, Google launched a project dedicated to assessing their managers, which has led to a thorough training and future development process that sets managers, and thus employees, up for success.

They also use a system of setting goals that have caught on across multiple industries. Using their Objectives and Key Results (OKRs) system, they reframe the goal-setting process, with great results.

Another tech trendsetter, Facebook has a performance management process that puts a heavy emphasis on peer-to-peer feedback. In semi-annual reviews, they are able to use that feedback to see how well teams are performing and understand where collaboration is happening – and where it is not. They also have developed an internal software to provide continuous, real-time feedback. This helps employees solve issues before they become problems.

Cargill is a Minnesota-based food-producer and distributor with over 150,000 employees and serves to demonstrate that even huge companies can ditch unwieldy performance appraisals and institute a new system. In following the latest research on the dissatisfaction of management with outdated performance management process, Cargill created their ‘Everyday Performance Management’ system. The system is designed to be continuous, centered around a positive employee-manager relationship, with daily activity and feedback being incorporated into conversations that solve problems rather than rehash past actions.

The Everyday Performance Management system had overwhelmingly positive results, with 69% of employees stating that they received feedback that was useful for their professional development, and 70% reporting that they felt valued as a result of the continuous performance discussions with their manager.

Adobe calculated that managers were spending about 80,000 hours a year on performance reviews, only to have employees report that they left those reviews demoralized and turnover was increasing as a result.

Seeing a system that only produced negatives, Adobe’s leadership team made a bold leap into a performance management system that began by training managers how to perform more frequent check-ins and offer actionable guidance, then the company gave managers the leeway they needed to effectively lead.

Management was given much more freedom in how they structured their check-ins and employee review sessions, as well as more discretion in salaries and promotions. Employees are often contacted for ‘pulse surveys’ – a way for the leadership team to make sure that individual managers are leading their teams well. One of the many positive results of this has been a 30% cut involuntary turnover due to a frequent check-in program.

Accenture is a massive company – over 330,000 people, so changing their systems means a huge effort. When they switched to their new system, they got rid of about 90% of the previous process. Now, they are using a more fluid performance management process where employees receive ongoing, timely feedback from management. This has been paired with a renewed focus on immediate employee development and an internal app for communicating feedback.

There are common threads in all of these examples. Each company has built a system that works for them, rather than following a one-size-fits-all approach. What works for one company might not work for another – it depends on the industry, the speed and flexibility of the company, and the overall goal of the system itself.

With similar names and purposes that sometimes align, it is no surprise that some people find it hard to spot the difference between performance management and performance appraisals.

In fact, performance appraisals are often part of the performance management process , although some companies still rely on performance appraisals alone.

An easy way to understand the difference between the two is that performance appraisals are reactive, and performance management is proactive.

A performance appraisal looks at all of the past actions of the employee within a set amount of time , and rates how well they performed in their role and how many goals they met.

Performance management looks at the present and future of the employee, and what can be done to help future performance and meet future goals . Performance management is focused on the development and training of an employee, and how that can benefit both the employee and the company.

A performance appraisal is a formal, operational task, done according to rigid parameters and in a quantitative manner. HR leads performance appraisals, with input from management. Performance management is much more informal and strategic, led by management with input from the employees in a more flexible manner.

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90 Performance Management Research Topics

🏆 best essay topics on performance management, 👍 good performance management research topics & essay examples, 🎓 most interesting performance management research titles, ❓ research questions on performance management.

• Amazon Approach to Management and Performance Evaluation
• The Amazon Company’s Performance Management
• Hotel Management: Performance Improvement Plan
• Performance Management and Strategic Planning
• Google Inc.’s Performance Management System
• TD Canada Trust Bank’s Performance Management
• Performance Appraisal and Human Resource Management
• Nike Company’s Performance Management & Logistics The conceptualization of Nike as a company dates back to the year 1962 when its founders, Bill Bowerman and Phil Knight.
• Performance Management and Appraisal Systems The performance management process is important. During it the HR team works together with other members of the company towards achieving organizational goals.
• Importance of Performance Management in Organizations The paper explores the concept of benefits management at the organization plumbing supply company in Olean, New York.
• Leadership, Management Style and Organizational Performance The focus on globalization and multiculturalism has emphasised the importance of understanding Organizational productivity and team effectiveness.
• Management: Effective Teamwork Role for Organizations Performance Groups usually pass several important stages: forming, storming, norming, and performing. Depending on the stage, teams and groups demonstrate unique organizational features.
• Performance Management and Appraisal Plan The Office of Human Resources presents a Management by Objectives (MBO) performance appraisal plan and process that will be implemented in the next month.
• Portfolio Management: Stock Selection and Portfolio Performance The paper covers the performance of the portfolio, stock selection criteria, each stock performance, and the returns of the portfolio for the period.
• New Employee’s Success and Performance Management Once a new employee is selected, strategies of how best to maximize employee success on the new job should be put in place.
• Why Performance Management Appraisals Fail Performance management appraisal may fail due to judgment by top management and the supervisors. The top management and supervisors sometimes experience errors.
• Human Resource Management and Performance of the Organization The success of the company relies on the proper management of its people because the workforce of a company is the major factor that runs the business.
• Management Functions for Better Company Performance Managing an organization is not easy when one has to the role of a leader, the role of a manager, and the role of an HRM specialist.
• Metrics and Performance Measurement in Operations Management Metrics is indeed a powerful management tool in aligning company strategies and objectives and ensuring people are working towards a common direction.
• Employee Performance Management System In human resource management, it is important to ensure that employees are motivated and satisfied with their work. It can achieve by carrying out employee performance management.
• Performance Management System: Role and Advantages Performance management systems play an important role in the achievement of organisational goals, mission, and vision
• Performance in Safety Management Systems (SMS) The study will collect data on improvement patterns of SMS regulations and technologies as two qualitative independent variables and risk factors.
• Performance Management in Business Performance has now been integrated into the quality management system of the organization. Effective performance measurement influences efficacy of the use of information.
• Performance Management Issues of the Organization There is a significant relationship between compensation and performance management. This is because compensation can be a way of performance management.
• Informative Speech On Business Performance Management In the troubled days of economic crisis and recession the only way companies have to survive economic uncertainty is by making good use of business “performance management”.
• Management: Performance Measurement in Organizations Performance measurement is vital in all organizations because the organizations need to verify the validity of the selection methods and to improve the productivity.
• Performance Management Issues: Types and Factors Performance management aims to ensure the effectiveness and growth of the organization through the definition of strategic objectives and management activities.
• Performance Management System: Personal Experience Managers collect the data systematically based on each department’s performance. In other words, the performance is measured by the results.
• Strategic Performance Management Plan for a Sales Manager The paper creates a strategic performance plan for the Dialogue Direct and recognizes the attributes that will be rated regarding the position of the sales manager.
• Negative Performance Management Managers should possess strong planning and problem-solving skills to establish clear goals and strategies to achieve goals on time without losing quality.
• Performance Management and Working Relationships Performance management is an area of execution, and benefits may not be obvious at the project planning stage.
• Quality Management and Performance Improvement in Healthcare There are a number of healthcare quality issues affecting the performance improvement of various caregiving centers.
• Performance Management System in Healthcare The Joint Commission enhances the level of the healthcare services provided to the public. The entity ensures that hospitals have a good performance management system.
• Information Systems and Project Management Performance The authors assert that requirements instability and requirements diversity are related to stakeholder perception gaps and this can be tied in with project performance.
• Performance Management and KPIs in a Management Measurement System Performance management is a dynamic process that requires timely reports so that procedures are drawn to guarantee that corporate goals are achieved.
• Balanced Scorecard: Performance Management Tool This essay presents an assessment of a balanced scorecard used by an organization in a real estate business environment.
• Business Intelligence and Performance Management Business Intelligence encompasses software tools for querying, reporting and analysing. It may be summarised as the processes and tools that turn data into information.
• Strategic Human Resource Management and Performance For successful performance, human resource managers have to ensure that they recruit employees with potential and possess qualifications that will enable them to create value.
• Organizational Management and Performance: Inter-Organizational Relationships Organization as a system entails that there must be inputs which are to be processed in order to give an output. This output is optimal goal the organization strives to accomplish
• Earned Value Performance Management for Projects In the earned value management system, the project performance is measured by taking into account the actual cost spent for the baseline plan.
• Performance Management: Aspects and the Levels Performance management is a cyclical process that is usually aimed at improving the performance of either under performing group, individuals, to further improve good performers.
• Performance Management: Term Definition Performance management is assessing the process of achieving goals and objectives to unsure that it is successful through communication and taking the right action.
• Performance Management: Employee Performance Documentation Organizations that succeed in effective documentation of employee performance can feel secure in the current economic realities.
• Performance Management: Warehouse Performance Measurement The analysis of the costs taken by the organization can be viewed as the first step towards identifying the changes in the warehouse business performance.
• Options Consulting Solutions Company’s Performance Management Options Consulting Solutions is a recruiting firm headquartered in Toronto, Ontario. The firm was started more than two decades ago.
• Issues Concerning the Use of Social and Environmental Indicators for Performance Management
• Performance Management and Performance Measurement in the Education Sector
• The Relationship Between Performance Management and Organizational Goals
• Effective Performance Management With the Balanced
• Major Constraints and Possible Solutions for Performance Management in Korea
• Performance Management and Key Performance Indicators for Higher Education Institutions in Serbia
• Differences Between Cost-effectiveness and Performance Management
• Performance Management Strategy and Broader Issues of Organizations
• Linking Performance Management Strategy To Corporate Management Strategy
• Relationship Between Hrm and Organisational Performance Management
• Effective Leadership Practices Can Lead to High-Performance Management
• The Difference Between Performance Management and Performance Appraisal
• Performance Management Practices, Employee Attitudes, and Managed Performance
• Factors Influencing Software Team Performance Management
• Power and Performance Management of GPUs Based Cluster
• Strategic Performance Management and Creative Industry
• Global Performance Management Systems: The Role of Trust as Perceived by Country Managers
• Effective Team and Performance Management
• Developing High Performance: Performance Management in the Australian Public Service
• Performance Management and Incentive Plan Design
• Does the Company Size Affect Performance Management System?
• Why Is Strategic Performance Management Important?
• How Is Performance Management Related to Learning and Development?
• What Are the Benefits of Performance Management?
• How Are Performance Management Systems Used for Dual Purposes?
• Why Is Team Performance Management Important?
• Can Performance Management Improve the Skills of an Individual?
• What Is the Impact of Performance Management on Employees?
• How Has Sainsbury’s Used Performance Management to Increase Their Quality of Service?
• What Can Performance Management Offer to Learning and Development Practice Within an Organization?
• How Does Performance Management Help Employees to Learn?
• What’s the Purpose of Performance Management?
• Why Are Learning and Development Important for Performance Management?
• How Does Performance Management Encourage Employee Development?
• What Are the Primary Objectives of Performance Management?
• How Can Performance Management Improve Productivity?
• Why Should HR Connect Performance Management and Learning?
• What Is an Effective Performance Management System?
• How Does Performance Management Work in an Educational Institution?
• What Are the Possible Outcomes From Effective Performance Management?
• How Does Performance Management Contribute to the Output of an Organization?
• What Is the Main Feature of Performance Management?
• How Does Performance Management Add Value?
• What Is the Difference Between Performance Management and Performance Appraisals?
• Why Is Performance Management Important in Training and Development?

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These essay examples and topics on Performance Management were carefully selected by the StudyCorgi editorial team. They meet our highest standards in terms of grammar, punctuation, style, and fact accuracy. Please ensure you properly reference the materials if you’re using them to write your assignment.

This essay topic collection was updated on December 28, 2023 .

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121 Performance Management Essay Topic Ideas & Examples

Inside This Article

Performance management is a crucial aspect of any organization, as it involves setting goals, evaluating progress, and providing feedback to employees in order to improve their performance. However, coming up with essay topics on this subject can be challenging. To help you out, we have compiled a list of 121 performance management essay topic ideas and examples that you can use for your next assignment.

• The importance of performance management in organizations
• The evolution of performance management systems
• The role of leadership in performance management
• Benefits and challenges of performance appraisals
• The impact of performance management on employee motivation
• How to create an effective performance management system
• The role of technology in performance management
• Performance management in the era of remote work
• The connection between performance management and organizational culture
• The link between performance management and employee engagement
• The role of feedback in performance management
• Performance management and talent development
• Performance management in multinational companies
• The impact of performance management on job satisfaction
• Performance management in the public sector
• Performance management in small businesses
• The role of HR in performance management
• The impact of performance management on organizational performance
• The connection between performance management and compensation
• Performance management and succession planning
• The role of training and development in performance management
• Performance management and diversity
• Performance management in healthcare organizations
• The impact of performance management on employee retention
• The role of communication in performance management
• Performance management in the gig economy
• The connection between performance management and job design
• Performance management in the age of automation
• The role of coaching and mentoring in performance management
• Performance management in the hospitality industry
• The impact of performance management on team dynamics
• The link between performance management and job performance
• Performance management in nonprofit organizations
• The connection between performance management and organizational change
• Performance management in the retail industry
• The role of goal setting in performance management
• Performance management and conflict resolution
• The impact of performance management on employee morale
• Performance management in the education sector
• The connection between performance management and employee well-being
• Performance management in the manufacturing industry
• The role of performance management in organizational learning
• Performance management and ethical considerations
• The impact of performance management on employee burnout
• Performance management in the financial services industry
• The connection between performance management and employee turnover
• Performance management and work-life balance
• The role of performance management in organizational development
• Performance management in the technology sector
• The impact of performance management on employee job satisfaction
• Performance management and corporate social responsibility
• The connection between performance management and employee empowerment
• The role of performance management in promoting diversity and inclusion
• Performance management and talent acquisition
• The impact of performance management on employee engagement
• Performance management in government agencies
• The connection between performance management and organizational resilience
• Performance management and employee performance improvement
• The role of performance management in promoting a culture of continuous improvement
• Performance management in the healthcare sector
• The impact of performance management on organizational efficiency
• Performance management and employee recognition
• The connection between performance management and organizational agility
• Performance management and employee development
• The role of performance management in promoting innovation
• Performance management in the energy sector
• The impact of performance management on team collaboration
• Performance management and organizational learning
• The connection between performance management and employee accountability
• Performance management in the telecommunications industry
• The role of performance management in promoting work-life balance
• Performance management and employee engagement strategies
• The impact of performance management on organizational culture
• Performance management and employee retention strategies
• The connection between performance management and organizational effectiveness
• Performance management in the automotive industry
• The role of performance management in promoting employee well-being
• Performance management and employee satisfaction
• The impact of performance management on team performance
• Performance management and employee development strategies
• The connection between performance management and organizational performance
• Performance management in the pharmaceutical industry
• The role of performance management in promoting employee motivation
• Performance management and employee engagement initiatives
• The impact of performance management on organizational success
• Performance management and employee performance management
• The connection between performance management and organizational growth
• Performance management in the construction industry
• The role of performance management in promoting employee productivity
• The impact of performance management on organizational resilience
• Performance management and employee development initiatives
• The connection between performance management and organizational change management
• The role of performance management in promoting employee engagement
• Performance management and employee satisfaction strategies
• The connection between performance management and organizational performance improvement
• The connection between performance management and organizational success
• The impact of performance management on organizational growth
• Performance management and employee satisfaction initiatives
• The impact of performance management on organizational change management

These essay topics cover a wide range of aspects of performance management, allowing you to choose a topic that aligns with your interests and expertise. Whether you are studying HR, organizational behavior, or management, these topics will help you explore the complexities of performance management in depth. So, pick a topic that resonates with you and start writing your next performance management essay!

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Home — Essay Samples — Business — Performance Management — The Future of Performance Management

The Future of Performance Management

• Categories: Business Plan Performance Management Strategic Management

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Words: 1483 |

Published: Aug 30, 2022

Words: 1483 | Pages: 3 | 8 min read

Table of contents

Current view of performance management, factors impacting organisations today, implication of these factors to performance management, influential research and its impact on performance management, emerging trends in performance management.

• Macro-Economic Environment;
• Globalisation;
• Increased competition.
• Collaboration;

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Essay on Performance Management Process

Through performance management, management and workers collaborate to organize, evaluate, and analyze an employee’s job objectives and contributions to the corporation. Performance management is a continual process of creating targets, measuring progress, and offering continuing feedback and coaching to ensure that workers fulfill their objectives and career goals. Armstrong and Baron (1998) consider it a never-ending process that prioritizes the future over the organization’s past. They stress the strategic and holistic character of the process, which aims to improve the efficacy of firms by enhancing the efficiency of the employees and by expanding the capacities of individuals and team contributors. The main goals of performance management are to communicate a common goal of the firm’s mission, define expectations of the firm, and ensure that the employees understand what high performance means and how to accomplish it. Also, it helps increase worker motivation and allows them to track their progress and determine what should be done to enhance overall performance. The process is more than just an annual performance review. The steps to the process can be broken down into four, including; planning, coaching, reviewing, and rewarding.

While planning, HR must describe the position in detail, including the short- and long-term goals, primary aims, detailed descriptions, and an explicit criterion for evaluating these goals and objectives. The goals should be detailed, quantifiable, attainable, and exact performance requirements should be established. Personnel has an opportunity to provide feedback on the information after managers have completed the defining step (Qureshi et al., 2010). They execute their jobs; therefore, they have a unique perspective on the skills, abilities, and goals that can best help the corporation accomplish its objectives. Both administration and the personnel agree on the role’s description, purpose, and aims. By making the first step of the process collaborative, the management set the tone for the rest of the process to be interactive. Personnel feels participated in goal setting, which is critical.

At the beginning of the process, it is critical to go over performance objectives with personnel, covering both results and behavior they are intended to accomplish during the next cycle. Behaviors are significant because they indicate how employees approach their work, support the team, mentor, and communicate to others (Pulakos, 2014). Some employees produce excellent results, but it is challenging to deal with, unfriendly, and demonstrate maladaptive work behaviors. Behavior is vital to consider in the work environment; such behaviors can be pretty disruptive. On the other hand, a worker can be interpersonally practical, kind, and exceedingly helpful but never achieve significant outcomes.

Coaching is a necessary process and should be done regularly. Employees are coached to solve performance challenges and problems to make an excellent contribution to the corporation. Monitoring performances do not include scrutinizing details of how employees do their allocated duties and activities. During couching, there is an examination of how far the employees have a cone in achieving their goals. Potential roadblocks to the staff’s performance goals and what might be done to overcome them are identified. Thoughts are made on how the team achieves its objectives (Qureshi et al., 2010). Adjustments to the work schedule are determined due to shifts in the corporation’s priorities or when staff is required to take on new duties. The management determines whether more assistance is necessary to help the employee in accomplishing their goals. Setting objectives for specific employees is an integral part of performance management and requires a successful performance evaluation. Thus, there is a need to track how far the employee has progressed towards their objectives. Also, it is important to note how they attained their goals. The idea is to measure frequently and apply the results to coaching and counseling.

A review or appraisal meeting is a chance to examine, analyze, and highlight the employee’s achievements during the appraisal period. Most appraisals include a self-examination component. Workers can analyze their performance in advance of the appraisal meeting by utilizing the performance plan and evaluation form as a guide. The procedure can aid in the identification of discrepancies between the employee’s self-perception and the manager’s perspectives and promote a more in-depth discussion of performance difficulties. To properly analyze employee performance, the manager should evaluate their performance management notes and other documentation collected during the year issues communicated to the employee before the assessment should be included in the record and meeting. Thus, ensuring that the management address performance problems while developing and assuring the employees that the performance evaluation meeting will be free of surprises (Qureshi et al., 2010). A successful review system should include all critical parts of the job, be devoid of contaminating influences, and quantify essential job attributes. It should be trustworthy and free of rating flaws. Equally important, review systems should be fair to everyone as they must meet the criteria of equality legislation.

Recognition and reward are the last steps in the process, and it helps employees stay motivated such as leadership opportunities, time-off, recognition, and new projects. Workers should be motivated by a good incentive and recognition system that aligns their objectives with the company. Staff remuneration and recognition for good performance must maximize competitiveness and yielding pay investment in such a framework. Given the high expense of reward programs, it is critical to have a well-thought-out strategy that reflects their goals and expectations. The significant functions of incentive programs are attracting and retaining qualified people, particularly in tight labor markets, driving workers to fulfill their job aims and impacting the culture, reinforcing and defining the structure like status and hierarchy, and encouraging entrepreneurship, flexibility, participation, and innovation. The end of the performance cycle provides the last opportunity for the employees and the management to give feedback on the process and input and feedback for the first stage for the next cycle.

Performance engagement aids in the development of a culture of support and trust among employees and the business. Workers are more engaged when they are aware that their efforts are recognized and appreciated. Staff who receive feedback from their employers once a year, for instance, will be detached and disengaged (Brown et al., 2018). Performance management can also be helpful when building employee development strategies, indicating that one is anticipating employee development requirements thus, boosting the overall performance.

An aging population has two significant HR impacts in terms of the management process. First, the management can ensure the delivery of knowledge held by the older workers before they retire; second, firms have to address how to maintain reliable levels of efficiency among older workers even as they remain in the firm. As the personnel that drive the knowledge-based economy ages, there seems to be a risk that critical expertise will be lost as the older workers go to retirement (Beardwell & Thompson, 2017). Therefore, knowledge transfer ensures a firm’s success, and knowledge is recognized as the most significant business resource. A performance management process is a deliberate approach for providing the appropriate information to the right individuals at the right time and a method for placing knowledge into practice to enhance corporation performance.

Understanding how diversity influences performance has become a preeminent problem for HRM as the workers continue to be more diversified and inclusive. The impact of diverse populations on workplace results has been investigated. Job satisfaction is favorably and strongly connected to diversity management. Well-managed diversity management leads to a more satisfied workforce. It implies that resources should be allocated to diversity management initiatives and training programs at the corporate level (Beardwell & Thompson, 2017). All personnel, especially supervisors, should consider diversity as a fundamental asset. At the sub-organizational level, the management interested in successful performance management should devote time and effort to comprehending the various views of staff groups. Acknowledging and handling diversity present in teams will lead to the success of the organization. Therefore, HR teams must consider diversity management as a primary instrument in the toolset of performance management. They must endeavor to provide diversity-related competencies and elevate levels of awareness and understanding throughout the company.

In conclusion, human resources are significant to a company’s success. Corporations would be unproductive if they did not have efficient personnel, and they would risk missing to carry out their stated objectives and goals. As a result, every company, as part of its strategy, implements appropriate processes of performance management, a system that aids in the commitment of staff members to the company’s goals. If personnel realize that their effort and devotion are being reviewed, they will be more motivated to continue working. To encourage the growth of remuneration or other forms of incentives like praise and appreciation, as an element related to assessment and plays a vital role in engaging workers. Thus, many multinational businesses use remuneration due to good performance in the company structure (Osmani & Ramolli), 2012). The performance review process is perceived as more formal and should be completed by the management. Still, in most instances, the evaluation of the people is done without assessing the actual capabilities and outcomes of staff performance. While the technique of remuneration is used, it all remains a matter of choice as the evaluation is variable depending on narrow political or personal interests as determined by the management or business leaders. In addition, a component that should be present in performance evaluations is a greater emphasis on the discovery and use of strategies for enhancing performance instead of their application with no beneficial consequences.

Beardwell, J., & Thompson, A. (2017).  Human resource management: a contemporary approach.  (8th ed.). Pearson.

Brown, T. C., O’Kane, P., Mazumdar, B., & McCracken, M. (2018). Performance Management: A Scoping Review of the Literature and an Agenda for Future Research.  Human Resource Development Review ,  18 (1), 47–82. https://doi.org/10.1177/1534484318798533

Osmani, F., & Ramolli), G. M. (2012). Performance Management, Its Assessment and Importance.  Procedia – Social and Behavioral Sciences ,  41 , 434–441. https://doi.org/10.1016/j.sbspro.2012.04.052

Pulakos, E. (2014).  Performance Management A roadmap for developing, implementing and evaluating performance management systems . https://www.shrm.org/hr-today/trends-and-forecasting/special-reports-and-expert-views/Documents/Performance-Management.pdf

Qureshi, J., Shahjehan, A., & Afsar, B. (2010). Performance management systems: A comparative analysis.  African Journal of Business Management ,  4 (9), 1856–1862. https://academicjournals.org/journal/AJBM/article-full-text-pdf/0ECF0F532323.pdf

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