Performance management

Performance management PART B Process Performance planning Performance monitoring Performance development Performance evaluation Succession planning Ans. 1 Performance planning means the different steps or stages which are used for the organisation success. In which the manager discuss all things like future plan, goals, targets and objectives with their all company members. It play crucial role in organisation because it is used to setting the organisation goals and objectives to achieve its objectives. Moreover, it play significant role to make a good relationship between the employee and their manager and supervisor. The company that I have chosen can create a performance planning for the organisation success. They can create a performance planning by helping the employee and manager and supervisor to understand their jobs and organisation objectives. In addition employee can communicate with their supervisor or manager about their performance and supervisor can make performance planning for goals with the help of employees. Furthermore, supervisor can check that employees have all types of resources that are require for the o rganisation success. Moreover, there goals should be smart which help them for organisation success. Last but not least, supervisor communicate with their management about the company goals and competencies and career development activities about the employees. Ans. 2 Performance monitoring means checking or measuring the performance of the employee and giving them feedback to employees about their work, office support and some guidance on their work performance toward to reach the organisation goals. Moreover, it means the organisation work and project are monitor continually. The company that I have chosen can complete the performance monitoring by assisting the company to measure its progress by taking reviews with the employees whether they are doing good work or not. In addition, they compared their performances against their standard and element they set for the organisation goals. They can do every day monitoring that gives a lot of benefits. We can check how our workers are doing their work whether they meeting the organisation goals or not. Furthermore, we can check problems in the work and we can make some changes in work to reach the organisation objectives and goals. We can also change unrealised and standard problems. Last but not least, Monitoring continually we can identified some unacceptable problems in work. Ans. 3 Performance development means the improving the capacity of work performance of employees by giving training or providing new skills and higher level of responsibilities, it is very important for the company to improve the work process. In addition, company should provide development opportunities to the employees. Moreover, company can identified the development needs of employees. The company that I have chosen can complete the performance development by encouraging the employee’s performance. Furthermore, they can strength the skills which are related to job need employees for the development. In addition, company helps their employees to keep with them. Moreover, they are introducing new technology which are used for the company development and helping the employees for work. Due to performance development, every employees can identify their strength and performance because of resources and capability framework which are provided by the company to them. Ans. 4 Performance evaluation means to review the employee performance after 12 month. It is very important for company because it is used to review or evaluate the company annual performance whether the company making profit or not. It is used to review the job performance. It is used to evaluate the past performance. The company that I have chosen can complete the performance evaluation by discussing expectation and accomplishment of organisation. This can assist the company to improve its retention of staff by HR development strategies, policies and development. In addition, we can improve it by the expertise and experience employed in the organisation. Last but not least, the company can improve it by comparing and rating the employee’s performance. Ans.5 Succession planning means that the process of checking that business is going or running successfully without the people. This is very important because if the business is not reliant on the person and owner knowledge they will get the better sale. These type of planning are complicated and emotionally difficult. The company that I have chosen can complete the succession of planning by developing the chance of business growth and challenging. The company can assist to improve the retention of the staff by asking the right questions and put realistic value on the business. Moreover, they can improve by setting the achievable time framework for employees to make plan. Last but not least, they can do it by providing the best resources to the employees. Progressive warning system Ans.1 Ans.2 The progressive warning system means to assist the employees to understand the problems at workplace for the improvement of the company. For the new employees it means If the employees did mistake the employer ask first why this happened and give verbal warning to employee. If the employees did simple mistake the employer give them written and verbal warning. For the serious mistake employer give suspension order for short term and may be discharge the employees. The employee know that employer consider their small or serious problem by when the company profit goes down and when they did wrong work and when the company work is not improving. Ans.3 Progressive warning system for new manager means to correct the employee performance problems. It means for the new manger first they discuss the problems with the employees and ask them why this problem occurred and how. If the simple mistake is made by employees the manager will discuss problems with the employees which are not good and unsatisfactory. They warn the employees to take action which are lead to further action. If the serious mistake is made by the employees manager warn the employee and take action. Manager will put the copy of warning letter, time and date of its issue to the employee’s personal file. The steps that manager must take when the serious problem occur first they give the verbal warning and second they give the written waning which is reason for the continuing mistake. Moreover, they give the final written warning which is put in employee’s personal file and if they did mistake again the employee will be dismissed. Ans.4 Ans.5 Personal grievance means that employee can complaint to management. Every employees have right to pursue personal grievance. Before the personal grievance employee first tell to representative that there is done within 90 days and then them complaint. If they employee lost money and if there is some discrimination between the employees they can bring personal grievance. Unjustified dismissal means the employee believe that they have unjustifiably dismissed. They can use the personal grievance against the employer and representative. Constructive dismissal means if the employee who feel that they have been facing the employer to resign or leave the job they can use personal grievance. Some example of the constructive dismissal means employer will tell employees to leave the job or u will be terminated. Performance Management Performance Management Other than the above, employers can ride on the performance appraisal event to provide feedback to the employees regarding his or her past performance and to help them to improve their job performance. This exercise also provides opportunity for employees to express their feelings about the job and to increase interpersonal communication. From this it can stimulate interest in self-development for the purpose of greater personal development. Beside, performance appraisal will produce a databank of information can be used for financial and non-financial rewards. Performance management approaches are generally described in the context of Managing by Objective (MBO) framework. MBO programs is an knowledge that evaluation must be secured to act like objective setting, communicate expected result, establish time frame and how to accomplish objective (Nankervis, Compton McCarty, 1999, Pg. 399 400). Within the managing by objectives system the performance management process refers to the management of individuals, starting with the assignment of individual objectives through the final, formal assessment process. Employees today would like to climb the corporate hierarchy as quick they can. To stop employees from job-hopping, companies should provide views for individual and professional development. If people can achieve their development objectives with one employer over a long period of time, they will usually continue the same pace. Employees will certainly seek clearer fields if they distinguish the environment is restrictive. Especially when reviews are not fair, accurate and timely, they fail to compensate star workers, fail to provide support and guidance to average workers and fail to give proper feedback to whose work is imperfect.It is in no doubt that there is convincing plane logic for steps in a performance management system. And, the benefits and purposes cited for such a system are intuitively compelling; there are very few managers who would disagree with any of the functions or results apparently associated with performance management. Keep in mind that while most agree with the concepts, few actually implement them. In todays global economy, the advantage of growth from employees performance is cleared. It is referred as intangible performance. Stock returns are closely correlated with intangible performance. Take for example how Bill Gates built a multibillion-dollar software empire and how McDonald created its fast food kingdom. Many businesses are going through the same kind of internal dialog about their assets, particularly in the global economy, firms with relative little invested in factories and other tangible assets. To improve business performance, therefore, companies need tools that grow and manage their intangible assets. In this assignment we will discuss a few important issues when deciding and implementing an effective performance management system. As mentioned above, performance management is generally descr ibed within the context of MBO. As such the process shall be started with a thorough understanding of an organizations business strategy. Here we refer to a strategy that is not lets make money. Rather, its here how to make money.In the context of strategic corporate planning, Balance Scorecard framework is widely used for goals and objectives setting for the entire organization or department. These goals and objectives are made as team goals. The Balance Scorecard provides a framework to describe and communicate strategy in a consistent and insightful way (Kaplan Norton. 200, Pg. 10). This works best in departments or entire organization where the people are fairly independent and striving to achieve a singular purpose. A strategic scorecard is a process of establishing multi-faceted measures of an organization or unit they typically includes: (a) finance; (b) customer; (c) internal business process and (d) leaning and growth.Having, balance scorecard organizational strategic dire ction is communicated well to the employees who must implement it. Once strategy is clear the process then moves to indemnifying cause-and-effect relationship driving business success. Nankervis, Compton McCarty (1999, Pg 380) stress that performance review must never be taken isolation but, rather, tied directly to the organizations strategic plan and the strategies that make up that plan. Organizational success is base on the result of adding together all the individual outputs. Using a mathematic equation as an example, if person X and person Y and person Z do their jobs correctly, the organizations results are X + Y + Z. manage each individuals result, and organization will succeed. Key Factor in an Effective Performance Management System As mentioned in the introduction, performance appraisal is the process of formal process in assessing someones performance. Performance appraisal is the end of process that goes on all the times. It is a process that is based on good communication between managers and employees (subordinates). In this exercise, not only the manager and employees is the key to success, the human resource department also play an important role because it can create a situation that virtually determine the value from the performance appraisal process.Manager and supervisors traditionally have served as appraisers of their subordinates performance (Nankervis, Compton McCarty, 1999, Pg. 385). Appraisers do appraisal to improve performance, not to find a donkey to pin a tail on or blame. Because blaming process is pointless and doesnt help anyone. If there is to be a point to performance appraisal it should be getting manager and employee working together to have everyone get better. Formal appraisal is normally conducted every six months or one year, however, feedback is not just relevant to annual or semiannual appraisal. Feedback about performance needs to be immediate and continues since it is to influence future behavior. Appraisers should spend more time to prevent problems than evaluating at the end of performance cycle. When appraisers do good things during the performance evaluation period, the appraisal is easy to do and comfortable because there wont be any surprises.Many times, we found appraisers did all sorts of funny and dump things to destroy the process of performance appraisal that is important to everyone. But another important factor in the appraisal process is the employees they themselves herein referred as appraise. Appraisers take their cues from management and human resources. However, when appraise perceive the process in negative ways, they can create or damage even the best appraisal processes. Appraiser tend to take their jobs personally and making it m ore difficult to hear others comments about their works, particularly when they are critical. Even constructive criticism is often hard to hear. When appraise enter into the discussion with an attitude of defending then its almost impossible to create the dialog necessary for performance improvement. Appraisers are advised or should present their own opinions and perceptions in a calm, factual manner rather than a defensive, emotional way. Of course, if appraisers are inept in the appraisal process, it makes it very difficult to avoid this defensiveness. Similar to the appraisers, appraisees need to know how they are doing all year found, not just at appraisal time. Generally it is primarily appraisers responsibility to ensure that there are no surprises at appraisal time. Often, appraiser discusses both positives and negatives of appraiser performance throughout the performance period, but this is unfortunately not a universal practice. Its in the appraiser interests to open up dis cussion about performance during the period, even if the appraiser does not initiate it. The sooner appraisees know where they are at and what they need to change and keep doing, the sooner the problems can be fixed. In fact many problems can be prevented if they are caught early enough. Even if appraisers arent creating that communication, appraiser can and should. It is a shared responsibility. The success and failure of performance appraisal system doesnt just fall on appraisers and appraise only. Human resource department is one of the major contributors to the final results. F then, human resource department tends to focus on and stress the paperwork and forms. We can understand why human resource personnel want some sort of paper trail related to performance appraisal in concerning the formality and the possible legal implications. But when the emphasis on the forms and paperwork overshadows the real purpose of doing appraisal, the huge amounts of resources are wasted. When hu man resource department focus on getting the forms done, thats exactly what they get i.e. forms done.Documentation in performance appraisal is seen as the central of performance appraisal. The issue is that the one size fits all requirements doesnt really work. In many organizations, human resource department uses a standardization approach; this means one form use across the organization. A weakness of many performance programs is that manager and supervisors are not trained adequately for the appraisal task and provide little meaningful feedback to subordinates (Nankervis, Compton McCarty, 1999, Pg. 389). Training for not only the appraisers but also the appraisees in their role in the appraisal process is one the important tasks of human resource department. Both appraiser and appraiser need to hold the same understanding about why they are doing appraisal, how it will be done and what is expected. In this discussion, top management is being seen as on the key factors in perform ance appraisal system. Recognition and commitment from top management towards the performance appraisal system will eventually affect the entire implementation of such system. People who involve in the appraisal process will conduct appraisal so long as they have to do so to justify or withhold certain objectives. Management can influence personnel in a holistic manner to ensure the ultimate goal of performance management system i.e. for improving individuals, teams and organization as a sole base on measures that tie directly to the success drivers of the organization. Performance appraisal isnt about the forms although, often management, appraiser and human resource department treat it as such. The ultimate objective of performance appraisal s to allow employees and managers to improve continuously and to remove barriers to job success and not to get the organizational success as well. The major responsibilities for setting performance assessment tone and climate rest with apprais ers and the human resource department. However, even when managers and human resource department do their job well, workers who come at the process with unenthusiastic or suspicious approach are not likely to aim from the process or to do well over the long term. The constant key for successful performance management is active and self-confident sharing among the key personnel, but keeping a problem-solving mindset, and keeping focus on how things can be improve in the future. No matter how instigates it, performance appraisal is about positive open communication between appraises and appraisers. Implementation of Performance Management System: Problems and Recommendations: Performance appraisals are always sticky for everyone. While organizations make an effort to be as objective as possible, there are always concern about specific performance appraisals and their accuracy. Performance appraisal instruments are considered as test and must be validated against actual job-related requirements. Job requirements or standards should be based on job analysis or competency profiling and resulting job description and job specifications. When performance standards are properly established, they will translate job requirements into levels of acceptable or unacceptable employee performance (Nankervis, Compton McCarty, 1999, P. 390). It is a facto life that the easiest things to measure or evaluate are the least important things with respect to doing a job. Take for example; managers can simply define customer service as answering phone call within three rings or reply e-mails within 24 hours or some such thing. That is easy to measure if it is wanted. What is not easy to measure is the overall quality of service that will get and keep customers. By adding in the clause regarding legitimate customer complaints it becomes event serious. One-sided judgment must be trained and there is room for understanding, and the manager is required to evaluator whether a complaint is legitimate or not. So, the standard is no longer objective. Measuring overall customer service is hard, we could carry the above example to the point where standard resembles war peace, but the point here is that the more quantifiable a standard is, the less relevant it becomes. It is easy to measure a trivial but it is hard to measure what is important in an objective way. Many instruments have been developed to improve employees performance. Written procedures are a better contact between the employees and manager, incentives or punishment and so on. However, even well written standards have an appearance of objectivity but require subjective judgments. Expectation about work output in terms of quality, quantity, errors, waste, etc should be discussed as often as necessary until the employee is self-monitoring and self-correcting. When the subordinate is consulted in setting up standards of performance and he / she is given an opportunity to express his opinions during the post-appraisal interview will give him / her sense of participatio n and probably increase job satisfaction. Moreover, having helped to set the goals himself / herself, he / she will be less disposed to argue later about what is expected of him / her (Heyel, 1958, Pg. 33). Nankervis, Compton McCarty (999, Pg 391) suggested that jobs which involve tasks where qualitative measurement is difficult, this job it may well be that success must be measured in how the work is performed rather than by end numerical result. One cannot ignore in the appraisal system is the role of personal trait because it bear significant when performing current job and considering the potential of an individual for higher position in an organization. Any shortfall, training and development have to come in place to rescue and improve the situation for success. The performance management system conveys to people in an organization how work is to be performed and communicated, often unintentionally the values and organizational culture too. More specifically performance manage ment system can foster a lack of collective responsibility for achievement of organizational goals, encourage competition rather than cooperation and can impede the development of effective teamwork. It is not surprising that we eagerly embrace the idea that each person should be both responsible and accountable for this or her work. I am sure you agree. Performance management is designed to enhance this personal responsibility. It implies that you are not responsible for the work of others that is important to the organization. It focusing on individual responsibility reduces an employees responsibility to the organization and the activities that are not his or her job. To overcome this problem, management should create an environment in which all members of the organization are continuously buzzing about and striving to improve the organizations performance relative to its purpose. Promote team spirit, interest and induce feeling towards the responsibility for almost everything th at goes on. When employees want to be involved, they contribute ideas, they function in a team context because they see achievement of overall organizational objectives as more important than the achievement of their own objectives. Perhaps the mathematics equation illustrated earlier can be used as an example for explanation to all employees. Due to the limitation of, we shall look at the final problem for this assignment i.e. the relationship between performance and rewards system. Many organizations tie employee pay appraisal results, which puts employee and manager on opposite sides. Employees in such system tend to focus too much on the money component, although that focus is certainly understandable. It is also understandable when employees in such systems become hesitant to reveal shortcomings or mistakes. If employees main intention is to gain as much of pay raise out of the company, and the management tries to keep increasing as little as possible, it becomes completely imp ossible to focus on what eventually matters over the long term which is continuous performance improvement and success for the company overall. It may be very important, where possible, to tie remuneration and benefits to performance or at least to ensure that benefits package supports that organizational objectives (Lockett, 1992, Pg 199). Pay is important but it is on the only issue that related to the appraisal focus. Furthermore, pay is just one elements of reward. Promoting people on the basis of performance can divert the focus; however the factors appraised must be highly correlated to the requirements of the new job. Frequent reviews of the relationship between performance and reward system are important to retain high performance. How do we do that? We should start looking at how fairly are rewards distributed base on performance and does every employees understand this or in other words is how transparent is the system to all parties in an organization. Bibliography: Heyel, C., (1958), Appraisal Executive Perfomance, Amacom, New York Ivanchvich, J., (1998), Human Resource Management, 7th Edition, McGraw Hill, New Jersey. Kaplan, R. S. Norton, D. P., (2001), Harvard Business Scholl Publishing Corporation, Boston. Lockett, J., (1992), Effective Performance Management: A Strategic Guide to Getting the Best from People, Kongan Page Limited, London. Nankervis, A., Compton, R. 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