Performance management is critically evaluated and presented in this chapter. This evaluation starts with the arguments regarding the significance of performance management, and then proceeds with the conversation relating its intrinsic procedure and main points, linked with it and it complete with the analysis of this kind of processes as well as their contribution for organization. By going through this evaluation process, an approach is determined to analyze why PMS (Performance Management Systems) is adopted by organizations and to find out the challenges an organization experiences while attaining the goals, enhancing the organizational and individual performance.
A systematic way used for the betterment of performance of an organization by enhancing the team’s and individual’s performance is called as performance management (Armstrong, 2016). To find out the organizational goals, standards of performance, give feedback of performance, assess the work, find out the needs for training and allocate rewards, system of performance management is adopted by organizations (Claus & Briscoe, 2016). Performance management, performance development, performance planning, performance reward and performance review are included in the process of performance management (Deb, 2016).
Performance management’s theoretical base
Motivational theory, especially expectancy theory and goal setting theory are the fundamental theoretical basics for performance. It is hypothesized by expectancy theory that behavior of an individual is changes in accordance with their probability of fulfilling their attainable specific goals (Vroom, 1964). It is suggested by the goal setting theory (Latham & Locke, 1984) that performance and motivation can not only be enhanced by just assigning the specific goals to individuals but increasing the difficulty or challenges of goals are also required for acquiring the accepted performance. For PMS, both the above mentioned theories are essential to execute and these theories are explored in the later sections of this chapter. The basis for the foundation of both expectancy theory and goal setting theory is the individualistic, calculative and rational way of thinking of persons (Clark, 1998).
Certainly, it is argued that organizational instructive and rationalistic views are the basis of performance management
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Processes of Performance Management
However, no standard model is there for performance management, but it is suggested by the practices and a literature review that lots of elements are there that might be present in the PMS. Generally, these elements are considered to be the presenting factors (IDS, 2003) for performance management cycle. Generally, formal appraisal and objective-setting systems are placed at the main points of this cycle by performance management models and it is suggested by literature that cultural background mainly affect these two areas (Millimanet al, 1998; Lindholmet al, 1999; Fletcher and Perry, 2001). Figure 2 is depicting a classic cycle
The function of goals/ objectives
This cycle typically starts with the process of performance planning where objectives of an individual are associated with the goals of organization and generally goal-setting happens in accordance with yearly standard evaluation cycles (Tahvanainen and Suutari, 2002). Sometimes, these objectives are stated as KRA (Key Result Accountabilities or Areas and supported by performance measures and performance standards. Nature of objectives as well as the way of expressing and defining them has been focused by the theory plus practice both (Mitchell et al, 2000)
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Significance of the Process of Performance Management
Finger and Flanagan (1998:154) cited most of the process of performance management includes the agreement on the expectations and standards by staff and managers, observing progress, identifying accomplishment as well as analyzing the performance presented with review and recognition attribute in the plan of maintenance.
It is very important that employee and supervisor accept and understand the job expectations of every person. Whole process of performance management is based on this. Both employees and supervisor need to face the challenge of comprising negotiating abilities because they need to accept and get agreed on job expectations of every person. Main aim of this process is to enhance the performance and develop people by coaching regularly and clarifying goals (Cornell University, 2016). Another aim is to give accurate and honest formal assessment to pay reward for the practices of performance.
Process of performance management is significant as it involves the employee’s performance planning, reviewing performance and make easy the accomplishment of work relevant objectives as a motivating approach for employees to attain their full capability according to the objective of organization (Swanepoel et al, 1998 like stated by Maila, 2006:8). From the above given literature, it is assumed by the researcher that the process of performance management was significant because it involves accepting the standards, planning the performance of employees, evaluate and monitor the performance with an opinion to make it easy to attain the goals related with work. This process is further significant because it permits two way feedback which aims towards punishing and supporting the practices of performance. A framework of performance management model (Source: Cornell University, 2016) which is very useful has been provided by the literature and presented in figure 1.
Figure 1: Model of the Performance Management
(Source: Cornell University, 2016)
Performance Management Model is presented as a cycle consisting of four main parts that are planning, evaluating, identifying and career growth. According to an argument, this model identifies the significance of coaching because it links every stage of this model.
Finger and Flanagan (1998:153) cited that “to make an efficient team, coaching is a main step, but it could not be done messily”. Employee’s goal alignment at the time of planning stage is also a significant characteristic of this model. An important benefit is that understanding of researchers for the significance of the process of performance management contributing for the career growth of employees has been increased by this model. Another argument is given for this might be that this model has been prepared for the educational institute thus its application need to be increased specially exterior to the University range. Spangenberg’s Integrated Performance Model has also been reviewed by this study.
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