7.Performance Management

 

Performance management is defined as continuous communication and feedback between a manager and employee toward the achievement of organizational objectives, Lalwani,(2024).

Performance management, traditionally a hindsight-based solution, is evolving into a continuous feedback culture powered by technology. This article provides insights into performance management, its cycle, best practices, software features, and future prospects.

7.1. Why is performance management important?

Figure 1, Performance management

Performance management is crucial for organizational success, with appraisal interviews being a key element. However, recent criticisms have led to some organizations considering removing or curtailing these systems. This chapter critically discusses performance appraisal and management systems, arguing that many models are simplistic and require more consideration.

Mainly performance management is most important for the following reasons, McDonnell, Gunnigle, & Murphy, (2018).

• Performance management supplements the annual performance review.

This helps managers and staff members be ready for the yearly performance review. It informs the manager and the worker about any modifications to the performance management procedure, how to make it more efficient, and how to raise performance levels generally.

• To employees, continuous performance management indicates that managers value them.

Workers think their supervisors are concerned about their objectives, work, and any problems they may encounter in the workplace. They also grow more receptive to helpful criticism.

7.2.The Performance Management Cycle

Figure 1, Performance management Cycle

The performance management process or cycle is a series of four key steps. These steps are imperative, regardless of how often you review employee performance.

• Planning

Setting and sharing goals with staff is what this step comprises. These objectives should be made clear in the job description to draw in qualified applicants, but they should also be reiterated to a newly hired candidate. To assess each of these goals' achieving, you could choose to give them a percentage, depending on how your company does performance reviews.

• Monitoring

In this phase, managers are required to monitor the employee's performance on the goal. This is where continuous performance management comes into the picture. With the right performance management software, you can track your team's performance in real time and modify and correct course whenever required.

• Reviewing 

A performance review is a formal assessment in which a manager evaluates an employee's work performance. Also called a performance appraisal or an employee evaluation, it can be structured in different ways to effectively identify strengths and weaknesses, offer constructive feedback, and set goals for the future.

• Rating

Your employees are special. They make your business what, and who, it is. Taking the time to evaluate their performance, encourage them, and help them to improve is well worth the effort. Rewarding them creates a culture of appreciation and teamwork.

7.3.Key features of effective performance management software

Any software should be chosen with the following considerations in mind:

• Customization.
• Transparency
• Objectivity
• Frequency

Youtube

7.4.Performance Management Best Practices

Figure 1, Performance Management best practices

7.5.What Is the Future of Performance Management?

Today, in the aftermath of the pandemic, performance management is set for unprecedented changes. Organizations and their employees are looking for agile, transparent, and fair performance management systems that serve as an aid to improving employee development, engagement, and retention.

7.6.What Is the Future of Performance Management?

The introduction of new HR technology, combined with an evolved understanding of employee performance, has brought on a new wave of performance management for organizations across the globe. Gone are the days of the sole annual performance review. Thankfully, these have been replaced (or at least accompanied) by myriad other performance management strategies.

The way organizations successfully track and manage employee performance has changed over the years, and that growth is expected to continue in the years to come, Schooley, (2023).

 Conclusion

Performance management is the process of tracking and evaluating employees' work, aiming to meet organizational goals and measuring progress. It involves collaboration between employees and managers, with poor performance often requiring a performance improvement plan.

References

• McDonnell, A., Gunnigle, P., & Murphy, K. (2018). Human Resource Management. E-Book.[Accessed 13 April 2024].
• Lalwani, P. (2024, January 26). What Is Performance Management? Definition, Process, Cycle, and Best Practices for Planning. Performance Management. [Accessed 13 April 2024]
• Schooley, S. (2023, November 06). Times Are Changing: The Future of Performance Management Trends. The Future of Performance Management Trends.[Accessed 13 April 2024] 
• Almond,  P.  and  Ferner,  A.  (2006).  American  Multinationals in  Europe:  Managing Employment Relations Across National Borders. Oxford: Oxford University Press. [Accessed 13 April 2024]
• Armstrong, M. (1999). A Handbook of Human Resource Management. London: Kogan Page Limited. [Accessed 13 April 2024]
• Armstrong,  M.  and  Baron,  A.  (1998).  Performance  Management:  The  New  Realities. London: Institute of Personnel and Development. [Accessed 13 April 2024]
• Barlow, G. (1989). Deficiencies and the perpetuation of power: latent functions in managerial appraisal, Journal of Management Studies, 26(5): 499–517.[Accessed 13 April 2024]
• Bevan, S. and Thompson, M. (1992). Personnel Management in the UK: an Analysis of the Issues. London: IPM[Accessed 13 April 2024]

• You Tube