MN7181-People and Organisations

Performance Management

How do you fix the gap between expected performance levels and current performance level of your organization?

Performance management is the point of evaluating the progress of both the company and its employees. The overall strategy of the company of the company is depicted by the vision and the steps of achieving the vision is depicted by its mission (Armstrong, 2006). The mission is further cascaded down to departmental goals and assigned to each department of the company. The HODs along with the HR department need to further break down the departmental goals/KPIs in to each position and assign the KPI to each and every staff. The realization of the business strategy will be done bottom to top in measurable entities which are KPIs (key Performance Indicators)

Figure 1 - Performance Management Cycle

Goals can be analyzed by adopting and developing a Balanced Scorecard, a trusted strategic planning and management system.

Setting goal, positioning them with accordance to the corporate vision and the process of setting these as goals against each employee in line with their job role, while closely/ periodically monitoring the performance of the implantation f the said goals; offering measures to enhance and improve the performance is the overall scope of performance management (Lauby, 2017). However, to manage the strategy of the company, the following steps need to be looked at. (Jackson, n.d.)

• Analyze business goals.
• Examine the data from the analysis to check the performance
• Identify and understand the areas that are well performed and areas that need
• Implement and track strategy

The process of performance management consists of four elements which are

1.      Agreement

Setting goals and KPIs for the employees and agreeing according to the development goals and measuring performance (Empower Success Corps, 2014).

2.      Feedback

The performance is evaluated against the KPIs and employees are encouraged to improve their weaknesses. Training programs are planned and designed with the input of the requirement from the employees. Feedback from both employee and manager is communicated at this juncture.

3.      Positive reinforcement

Rewarding and appraising the employees which have met the performance expectations while encouraging the others with positivity.

4.      Dialogue

Continues discussions and reviews on the KPIs in order to ensure that they are achieved and goals are met.

The performance management process if carried out as most suited for the organization; it will help in meeting the gaps in expected organizational performance with the current performance levels. It is the key tool to study where the organization and its employees stand in terms of performance and productivity.

References 

Armstrong, M., 2006. A Handbook of Human Resource Management Practice. 10th ed. London: Kogan Publishers.

Empower Success Corps, 2014. Performance Management: Four Components for Success. [Online]
Available at: https://www.empowersuccesscorps.org/blog/performance-management-four-components-for-success/
[Accessed 29 November 2019].

Jackson, T., n.d. What Is Strategic Performance Management & Why Should I Care?. [Online]
Available at: https://www.clearpointstrategy.com/strategic-performance-management/
[Accessed 19 March 2019].

Lauby, S., 2017. 5 Key Components of Any Successful Performance Management Process. [Online]
Available at: https://www.hrbartender.com/2017/employee-engagement/5-components-performance-management/
[Accessed 29 November 2019].