#8: Topic 6 : Performance Management

Performance management can be defined as the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities (Armstrong, 2003). Performance management is a whole work system that begins when a job is defined as needed and it ends when an employee leaves your organization.

According to Cardy and Leonard (2011), the purposes of the performance management are to driving results, building capability and growing talent. In my opinion, performance management can drive improvement in business results, through the individual and group’s measurement, performance coaching and performance information sharing. Moreover, by clarifying role-specific goals, competencies and feedback, individual capability can be developed. Plus, by providing career development programs, it may help to motivate and retain high performers in the organizations.

There are five crucial stages in performance management which are plan, monitor, develop, review and reward. Immediate supervisor will assess the performance. Besides, employee itself, peers, coworkers and internal and external customers will also make the performance assessment. Paired comparison, MBO and Graphic Rating Scale are the tools used by the organizations for performance appraisals of their employees (Robbins and Coulter, 2009).
 

Michael Armstrong and Angela Baron (2005) in Managing Performance: Performance Management in Action stated that an effectively implemented performance management system can benefits the organization, managers and employees.

· Organization’s benefits – improved organizational performance, employee retentiona and loyalty and cost advantages.
· Manager’s benefits – saves times, reduce conflict and ensures efficiency.
· Employee’s benefits – clearly defines career path and promotes job satisfaction.

Unfortunately, there are some conflicts happen in performance management. As mentioned by Robert Bacal (1999), discouragement and inconsistent message are two of arising potential conflicts. If the process is not a pleasant experience, it has the potential to discourage staff. The process needs to be one of encouragement and positive reinforcement of accomplishments. Moreover, if a manager does not keep notes and accurate records of employee behavior, they may not be successful in sending a consistent message to the employee.

Finally, there are three categories of role of technology in supporting the performance management. These are the web, third party vendors and ERP providers. (426)

References:

1. Armstrong, M. (2003). A Handbook of Human Resource Management Practice. UK: Kogan Page Publishers.

2. Cardy, R. L., Leonard, B. (2011). Performance Management: Concepts, Skills, and Exercises. USA: M.E. Sharpe.

3. Armstrong, M., Baron, A. (2005). Managing Performance: Performance Management in Action. London: CIPD Publishing.

4. Bacal, R. (1999). Performance Management. New York: McGraw-Hill Professional.

5. Robbins, S. P., Coulter, M. (2009). Management. New Jersey: Pearson Prentice Hall.