Why Performance Management system is needed for organization
Introduction
Performance Management is an essential part of HR and isn’t an easy field to align with the company goals. That helps to develop an employee to perform their job according to the best of their ability.
Performance management is posited as a strategic management technique that supports the overall business goals of the firm through linking each individual’s work goals to the overall mission of the firm (Costello, 1994).
Performance Management process
Source: Armstrong's Handbook of Performance Management (2017)
Global context of performance management Uber & Facebook
Uber is on the leading taxi company which operate worldwide. After every Uber ride, checking the performances of the journey. Regular performance ratings have a real impact on both the driver’s and the rider’s ability to continue to use the platform. Uber has a new strategy they call the “T3 B3 process.”. T3 B3 stands for “top three bottom three”, and it asks employees to list their top three qualities or strengths and bottom three areas that need improving. Goals are then derived from these answers and entered into a system which can be accessed by everyone; employees, managers, top executives, etc.
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.
Benefits of the performance management
- · Encourages and motivates employees to enhance performance
- · Help to set goal and objectives
- · Hell to identify the potential superlative performance
- · Employee understand towards training development
- · Improve communication between superior and subordinate
- · Improve overall organizational performance
As leading Telecommunication Company, Sri Lanka Telecom also using the performance management process via HR systems .Beginning of the year targets and objectives are set by the corporate strategy units and it’s deployed to the relevant department. All employees having target and it’s may be qualitative and quantitative based on their job status.In mid-year review will be carried out by the relevant department heads it’s time for all review the status of the target vs achievement of the organization. End of the year performance review will be conducted and discussed about the achievement, future actions, more feedback and identifying strength and weakness .considering all areas performance grade will be granted for respective year. Its direct impact available for bonus, salary increment and promotions.
Conclusion
Finally organizational success lies in the hands of the employees who put their best effort to be effective in their area of work. Individual performance directly impact to the team performance and finally it impact for organizational performance.
Source ; You tube
References
Costello, S. J. (1994). Effective Performance Management. New York: Irwin.
Armstrong, M., 2017. Armstrong's Handbook of Human Resource Management Practice. 6 ed. s.l.:s.n.
https://www.youtube.com/watch?v=c_kpLISbuzo
Measuring and managing employee performance is important because it gives organization the ability to properly gauge worker efficiency, identify who is working hard and who isn't, determine how to properly compensate to the workforce, and improve workplace's overall productivity.
ReplyDeleteThanks you Ruwan your feedback.
DeleteAny compensation plan, whether it is for salary or bonus administration, strives to be fair with paying for performance
Strong performance management system is required to an organization to evaluate its KPI achievements. Evaluating both employee and organizational performances, management can get better understanding to drive the company towards organizational success.
ReplyDeleteThanks you HR Lounge.
DeleteSetting the KPI is need to evaluate the Performance levels.
It is in deed every performance management system should ensure the achievement of overall organizational goals and ambitions. Performance management has focused on data. There is a big problem with performance ratings. Some tools are motivational and techniques (such as stack ranking) will leave employees demotivated and disengaged. So performance management trends need to identified to improve your performance management system to get the most out of your team.
ReplyDeleteThanks Hemal
Deletecompany need to focus new performance management trends.
Performance management doesn’t end once a performance appraisal is delivered. Managers should take an integrated approach to employee learning. This means creating development plans that support an employee’s goals, career interests, and potential, as well as the organization’s business and talent needs.
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