Performance Management Guides Employees to Organizational Goals

 Performance Management

 

Figure 1: Performance-Management

Introduction

Once employees successfully integrated into the organization, the focus shifts to the critical aspect of performance management, constituting the second fundamental pillar of human resources. Performance management is a crucial process for overseeing and assessing employee performance.

 

Rooted in the early 20th century with Frederick Taylor's scientific management principles, its historical evolution has seen a shift from a narrow focus on productivity to a more comprehensive approach that emphasizes employee development and engagement (Turan, 2015).

 

Performance Appraisal vs Performance Management
 

Video source: (Telania, 2016)

 

Performance Management Stages and Outcome

The contemporary perspective of performance management involves setting clear goals, providing regular feedback, and identifying areas for improvement. It serves as a mechanism to align individual objectives with organizational goals, ensuring that employees contribute to the overall success of the organization (Almulaiki, 2023). Today, organizations employ diverse tools such as performance appraisals, goal-setting strategies, and continuous feedback mechanisms to cultivate a culture of high performance, driving sustained organizational success.

 

Figure 2: Effective-Performance-Management-Key-Elements
 

Advantages and Drawbacks of Performance Management

 

Employee Development
Performance management structured in identifying strengths and fostering development, but traditional methods may overly emphasize weaknesses rather than enhancing strengths.
 
Feedback and Recognition/Continuous Improvement
Regular constructive feedback cultivates a culture of communication and recognition, motivating excellence. However, an excess of overly critical or vague feedback can demotivate (Pulakos, 2014). The continuous nature of performance management encourages ongoing improvement, yet effective assessment frequency is crucial to preventing potential burnout.
 
Data-Driven Decision-Making and Technology Integration
Utilizing performance data informs talent management, succession planning, and resource allocation. However, a risk lies in over-reliance on data, potentially neglecting qualitative aspects. While technology enhances efficiency in performance management, it may create barriers to human connection, impacting interpersonal feedback and communication.
 
Employee Engagement / Objectivity and Equity
Effective performance management fosters engaged employees, positively impacting team dynamics and productivity. However, perceived bureaucracy or irrelevance can lead to disengagement and reduced morale. While striving for objectivity, addressing inherent biases in evaluation methods is crucial and requires ongoing vigilance and education for a fair and equitable process.
 
Organizational Goals and Adaptability to Change
Performance management aligns individual goals with organizational objectives, ensuring collective contributions to overall success (Samwel, 2018). However, achieving alignment is challenging when organizational goals lack clarity or effective communication. A well-designed system can adapt to changing priorities and industry dynamics, yet some may struggle in rapidly evolving work environments, hindering effectiveness.


Conclusion

 

Performance management is a vital part of human resources, evolving to emphasize overall employee development and engagement. It brings benefits like employee growth and informed decision-making but faces challenges in balancing feedback and technology. Over the years, various methods like the balanced scorecard and managing by objectives have been employed to establish performance management. Regardless of the method, they agree on three essential phases for effective performance management: employee motivation, design, and execution. Successful performance management aligns individual efforts with organizational goals, adapting to changing priorities. Striking this balance is crucial for fostering a high-performance culture and ensuring long-term organization success.

 

Reference list


Almulaiki, W.A. (2023). The Impact of Performance Management on Employee Performance. Saudi Journal of Business and Management Studies. [online]

Available at: https://saudijournals.com/media/articles/SJBMS_82_22-27.pdf

[Accessed 13 November 2023].

 

Pulakos, E. (2014). Performance management A roadmap for developing, implementing and evaluating performance management systems. [online]

Available at: https://www.shrm.org/hr-today/trends-and-forecasting/special-reports-and-expert-views/documents/performance-management.pdf

[Accessed 12 November 2023].

 

Samwel, J.O. (2018). An Assessment of the Impact of Performance Management on Employee and Organization Performance - Evidence... [online]

Available at: https://www.researchgate.net/publication/326578053

[Accessed 13 November 2023].

 

Telania (2016). Performance Appraisal vs. Performance Management. YouTube.

 Available at: https://www.youtube.com/watch?v=XtoznQQ3NO0

[Accessed 13 November 2023].

 

Turan, H. (2015). Taylor’s ‘Scientific Management Principles’: Contemporary Issues in Personnel Selection Period. Journal of Economics, Business and Management. [online]

Available at: http://www.joebm.com/papers/342-M031.pdf

[Accessed 13 November 2023].

 

Comments

  1. Manthika SK13 November 2023 at 09:42

    Your article on performance management is well-written and informative. You have clearly explained the importance of performance management and provided valuable insights into its various aspects. I especially appreciate your emphasis on the role of performance management in employee development and organizational success.

    ReplyDelete
  2. Shariz13 November 2023 at 18:15

    An insightful article! Establishing SMART objectives and implementing a robust mechanism for evaluating and reviewing an organization's performance review system is crucial for its effectiveness. In today's age, data-driven decision-making holds paramount importance. However, it's essential to be mindful that personal biases do not influence the interpretation of the data.Great job on a well-written article! Keep up the excellent work.

    ReplyDelete
  3. Rasika Gardihewa14 November 2023 at 07:40

    Your blog effectively captures the multifaceted nature of performance management, recognizing its role in aligning individual objectives with organizational goals. The acknowledgment of challenges, such as achieving alignment in the face of changing priorities, adds a realistic dimension to the discussion. Overall, a well-researched and thought-provoking piece!

    ReplyDelete
  4. Zeinab Ahamed HRMBA15 November 2023 at 23:03

    This emphasizes the essential role of identifying employee development with the primary goals of the organization. As mentioned in the blog the focus on employee motivation, strategic design, and successful execution plays an essential part in establishing a high-performance culture and fostering sustained success.

    ReplyDelete
  5. Aravinda Fernando MBA2924 November 2023 at 08:33

    An insghtful and very well documented Blog with an essential topic. Performance management does matters for each and every aspect. Great.

    ReplyDelete
  6. HRMBAPriyantha28 November 2023 at 10:18

    Absolutely, performance management serves as a vital tool to align individual employee goals and achievements with the broader organizational objectives.

    ReplyDelete
  7. HR MAB Fazil Farook 202329 November 2023 at 14:14

    This blog describes Employee Development as Performance management that focuses on identifying strengths and fostering development, although traditional methods may overly emphasize weaknesses.

    ReplyDelete
  8. Roshani_HR_MBA_B291 December 2023 at 23:23

    Performance management is a tool that helps employees align with the organization's goals. It ensures everyone's efforts match the overall objectives, provides feedback, promotes continuous improvement, and encourages accountability. It adapts to business needs, playing a crucial role in the organization's success.

    ReplyDelete
  9. Merril John2 December 2023 at 06:12

    Performance management serves as the compass guiding employees towards organizational goals. It's not just a process; it's the strategic bridge that aligns individual efforts with the company's vision. By setting clear expectations, providing feedback, and fostering continuous growth, organizations empower their teams to navigate towards success. It's a symbiotic relationship where employee achievements amplify organizational triumphs, creating a harmonious journey towards shared objectives.

    ReplyDelete
  10. Rameshkumar2 December 2023 at 07:55

    Excellent article, Performance management serves as a crucial navigational tool, aligning employees with organizational goals by establishing clear expectations, providing feedback, and fostering continuous improvement.

    ReplyDelete

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