1HUMAN RESOURCE MANAGEMENT Introduction In the modern globalized era, it is considerably undemanding to achieve accessibility to the competition’s technological, expertise, knowledge and products. With regards to internet and technologicaladvancesaswellasproductdifferentiationisnolongerconsideredasa fundamental competitive improvement in most business sectors. As a result, certain significant question has been arising related to the efforts businesses are making in order to become more successful than the others. Organizations with enthusiastic, motivated and expertise employees serving exceptional service to their clients have the possibility to surpass in the competitive industry and further become competitively advantageous (Rummler & Brache, 2012). It has been noted that only individuals can execute things effectively and produce a sustainable competitive benefit and gains. Performance management systems are regarded as the essential tools in order to transform the talent as well as the level of expertise of employees and motivation into the domain of strategic business development. The concept of performance management is known as anenduringprocessofrecognizing,categorizing,evaluatingandenhancingthelevelof performance in organizations by associating the rate of performance of each individual as well as objectives to the overall missions and objectives of the organization (Gruman & Saks, 2011). The report aims to evaluate the performance management process and further provide an understandingofthewayperformancemanagementprocessacknowledgesandsupports employees. In addition to this, the paper will shed light on three significant performances appraisal methods namely self-evaluation forms, psychological ability and 360 degree feedback by analysing the role and importance of rating scale within an organization. Discussion
2HUMAN RESOURCE MANAGEMENT Role of Performance Management Process in Organizations The concept of performance management is regarded as a communication process by which mangers, supervisors and employees perform together in order to strategize, plan, administer and review the performance objectives as well as overall contribution of an employee to the organization. The role of performance management can further be defined as an essential and fundamental part of any transformation procedures as it aims to evaluate the way effective plans and strategies are executed within the business process of an organization (Trkman, 2010). As a result, an appropriatereviewof what comprisesgood performanceand the way various dimensions of high and improved performance level can be evaluated and is critical to precise framework of an effective performance management process. A well-structured efficient concept of performance management process entails six significant components namely organizational goals as well as objectives that is regarded as way of strategic planning, individual employees performance and development, employee performance evaluation, performance assessment, enduring review and induction along with recognition and rewards system (Walker, Damanpour &Devece,2010).However,itissignificanttonotethatfeworganizationshavebeen implementingtheirexistingperformancemethodsineffectiveways.Inseveralbusiness enterprises, performance management refers that managers and supervisors must conform to the HR departments appeal and fill the gaps of tedious, ineffective review forms. In order to execute the performance management process in a more proficient and effective, managers must learn to excel the procedures and further apply it consistently. For example, the Federal Competency Assessment Tool Management (FCAT-M) evaluates whether andtothedegreetowhichmanagersinanorganizationpossessspecificexpertiseand competencies (Bouskila-Yam & Kluger, 2011). However, one of these proficiencies is known as
3HUMAN RESOURCE MANAGEMENT the Understanding Performance Management Process and Practices. It has been noted that a managerequippedwithsuchproficiencieswillhavetheabilitytofocusonemployee performance and efforts on attaining organizational as well as individual goals and objectives. An effective Performance Management process functions as a systematic process of: Planning work and establishing expectations Persistently administering performance Enhancing the performance aptitude Periodically rating or evaluating performance Recognizing and rewarding good performance Planning work and establishing expectations- Manager must aim to meet and organize discussion with employees in order to create the organizational performance aims and objectives. Supervisors or managers should effectively establish evaluative purposes that support the enterprise’stactical and operational plans and further confer with the workforce while establishing these goals (Dusterhoff, Cunningham & MacGregor, 2014). However, it is in this stage, the manager obtains an opportunity in order to provide explanation to employees the way performance has a direct influence the way business and operations will attain goals. Persistently administering performance- Supervisors must focus on examining the development and progress not only when there has been a development appraisal due but on an enduring basis throughout the timeframe of the appraisal (Thurston Jr & McNall, 2010). Effective supervision provides managers with an opportunity to make a course correction or make modifications to the timeline so that employees will generate the
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4HUMAN RESOURCE MANAGEMENT anticipatedconsequenceofsuccessfullyaccomplishingtheorganizationalgoaland performance. Effective performance monitoring provides avenues to raise the level of awareness and knowledge of the employees (Pichler, 2012). Enhancing the performance aptitude- Through proper examination and monitoring supervisorswouldobtaintheunderstandingofwhetheremployeeswouldrequire additionalimprovementordevelopmenttoachievetheconsignedrolesand accountabilities of the organization (Salleh et al., 2013). Types of development must incorporate such as formal induction, informal training, lessons and mentoring. Periodicallyratingorevaluatingperformance-Managerswillutilizethe understanding attained from employee performance supervision during appraisal period in order to compare the level of performance against the employee’s standards and further assign a rating of record system (Mone et al., 2011). Recognizing and rewarding good performance- This stage explicitly reveals the approaches supervisors will implement in order to make constructive characteristics and peculiarities while recognizing the abilities of employees. Rewards and recognition must be unambiguous between various performance levels which are considered as successful and achievable (Crawford, LePine & Rich, 2010). The Relationship between Performance Management System and Employee Performance Developing and Planning
5HUMAN RESOURCE MANAGEMENT The fundamental objective of performance management is intend to increase the level of performance which can further be regarded a distal consequence of the process. One significant variable which has been obtaining growing rate of recognition as a fundamental determinant of performance is employee engagement. It has been noted that creating effective performance management process aids to promote effective employee engagement system which will further increase the levels of performance (Mone et al., 2011). In order to enhance performance, several organizations have been focusing on the performance of the organization on an unambiguous, challenging and realistic objectives and goals. The idea of motivation is to drive that leads one to function as human behaviour is administered towards certain organizational goals (Prowse & Prowse, 2010). Organization establishes individual performance management process which is associated with both functioning unit along with the wide range of organizational purposes. It must be noted that motivated or enthusiastic employees are recognized as more self-driven and possess more autonomy-centric in comparison to the ones who reveal low level motivation (Wickens et al., 2015). However, on the other hand, motivated employees are considered to be intensively involved and engaged with individualistic roles and responsibilities (Rummler & Brache,2012).Themostimportantfactorofdevelopingandplanningperformanceis establishing mission and goals of the organization. Effective mission and goals could foster could enhance the level of employee motivation towards the acts of directions and develop organizational performance (Pichler, 2012). Managing and assessing performance This stage explicitly reveals the improvement of communication process within the organization, in order to increase the level of understanding and awareness of organizational objectives and strategies which can further provide contribution to the formulation of the system.
6HUMAN RESOURCE MANAGEMENT Several reports have demonstrated that employees are more inclined towards direct interpersonal communication process in order to mediate communication when employees require detailed information on the continuing issues and complexities of their enterprises (Pichler, 2012). Furthermore,quantitativeandqualitativestandardsforevaluatingindividualaswellas organizational performance, individual employees would obtain awareness of the principles and standardsthatwouldfacilitateinincreasingthelevelofacknowledgmentandappraisal (Crawford, LePine & Rich, 2010). Administering and reviewing performance Recognizing employee performance and further offering a reward at the end of the performance period has been considered as a significant factor of enhancing the level of employee motivation. However, it aims to evaluate the productivity of the overall procedures and its contributions to the organizational performance in order to promote transformations and developments and further provide the review to the business organization as well as to individual employee regarding their actual job performance (Maxwell, 2011). Furthermore, the financial appraisal tool is considered to be effective in provide incentives to the employee’s passion and motivationtoperform.Rewardsandrecognitionfostersmotivationtothepositiveand constructive emotion of employees such as sense of job satisfaction and commitment. As a result, theefficacyof pay-for-performancehasa directinfluenceon increasedlevelsof efficiency and productivity along with other desirable work behaviours. Eli Lilly Australia, one of the leading pharmaceutical enterprises comprises a unique performance management process. The company being well-recognized for its well-established concepts on HR practices, have been sustaining their mission of utilizing development benefits
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7HUMAN RESOURCE MANAGEMENT and perks by further involving the idea of trust, loyalty and commitment among its employees (Maxwell, 2011). This particular process has been effectively empowering employees to be opinionated and take initiatives thus reinforcing the employer-employee relationships. 3 types of Performance Appraisal Methods EmployeeSelfAppraisalForm-Employeeself-evaluationmethodwithinthe performance review method entails employees to evaluate their own performance level (Crawford, LePine & Rich, 2010). Self-evaluation process initiates following to the discussion of the performance between the supervisor and the employees regarding self- appraisal results and further negotiate the final generated assessment based on the perceptions of the manager and the employee. It helps an individual to judge his or her own level of competencies against predetermined criteria (Prowse & Prowse, 2010). However, this process can be considered as immensely subjective as employees may give themselves extensively high or low ratings however the level of inconsistency between employee and supervisor or employer can be insightful. PsychologicalAbility-Thenewlydevelopedmethodofevaluatingemployees’ intellectualaptitude,analyticalskills,emotionalandmentalstabilityandother psychological traits can aid the organization in developing induction methods and further for positioning employees on suitable teams (Wickens et al., 2015). 360-degree feedback procedure-Another form of performance appraisal method is the 360- degree feedback process that aims to review a comprehensive understanding at the performance of the employer by extracting feedback from external sources (Crawford, LePine & Rich, 2010). Furthermore, 360 degree feedback evaluation can incorporate an
8HUMAN RESOURCE MANAGEMENT assessment of the characteristic and leadership competencies of employees (Bracken & Rose, 2011). Organizational benefit of 360 degree feedback 360 degree feedback method varies significantly from the conventional method of performance evaluation systems as it aims to obtain a greater level of comprehensive feedback and review from several sources such as the ones positioned in managerial level, workplace peers, stakeholders, investors as well as supervisors (Crawford, LePine & Rich, 2010). It provides an immensely rounded appraisal of the performance and employee behaviour of the employees by further providing accurate insights and understanding while promoting certain areas for enhancement. 360 degree review methods provide beneficiary factors to leadership, team building and also develops the whole organization in an effective manner (Maxwell, 2011). This type of appraisal methods further provides the leaders and supervisors of the company with well-established knowledge and understanding of the organizational performance and gaps the company requires to fill. However, while implementing these review data in an appropriate manner, business enterprises can execute rapid actions by providing assistance to its employees for improvement and further instil better leadership skills into the employees and effective contributor to the organization (Crawford, LePine & Rich, 2010).
9HUMAN RESOURCE MANAGEMENT With the elevating rate of recognition of 360 degree feedback method, specialized survey softwareisdesignedandfurtherdevelopedbythepsychologicalspecialiststoexecute performance assessment in the business enterprise. Several companies like Tesco in UK or Woolworths, the leading Australian retail enterprise have been effectively using 360 degree feedback method to evaluate their business as well as employee performance (Bracken & Rose, 2011). Furthermore, it is essentially important for business enterprises to efficiently design and implement feedback questionnaire that incorporates open-ended questions in order to aid sincere feedbacks and reviews and must further incorporate close ended questions for generating quantitative ratings (Maxwell, 2011). Thus it can be stated that 360 degree feedback survey method can effectively be designed and customized by organizations who wish to utilize them. 360 degree feedback method is more of a reliable development and progress appraisal method which permits employees to gain the understanding about their strengths and weaknesses and
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10HUMAN RESOURCE MANAGEMENT further distinguish ways to approach them (Crawford, LePine & Rich, 2010). Furthermore, such performance appraisal methods aid organizations to promote effective induction for enhancing the needs and demands of employees. Conclusion Therefore, from the above discussion it can be stated that performance appraisal methods primarily facilitates business enterprises to develop the understanding of the competencies of the resources for prospective organizational growth and progress. The report has explicitly evaluated the role and importance of performance appraisal systems and the way it has been benefitting the workforce of the organizations. Furthermore, it has explained the three significant performance appraisal methods which modern organizations have been effectively using. Lastly, the paper has highlighted the importance of 360 degree feedback appraisal methods and the way it has been benefitting the organizations.
11HUMAN RESOURCE MANAGEMENT References Bouskila-Yam, O., & Kluger, A. N. (2011). Strength-based performance appraisal and goal setting.HumanResourceManagementReview,21(2),137-147. doi:10.1016/j.hrmr.2010.09.001 Bracken, D. W., & Rose, D. S. (2011). When does 360-degree feedback create behavior change? And how would we know it when it does?.Journal of Business and Psychology,26(2), 183. DOI 10.1007/s10869-011-9218-5 Crawford, E. R., LePine, J. A., & Rich, B. L. (2010). Linking job demands and resources to employeeengagementandburnout:atheoreticalextensionandmeta-analytic test.JournalofAppliedPsychology,95(5),834.DOI:10.1037/a0019364 Sadikoglu, E., & Zehir, C. (2010). Investigating the effects of innovation and employee performance on the relationship between total quality management practices and firm performance: An empirical study of Turkish firms.International journal of production economics,127(1), 13-26. doi:10.1016/j.ijpe.2010.02.013 Dusterhoff, C., Cunningham, J. B., & MacGregor, J. N. (2014). The effects of performance rating,leader–memberexchange,perceivedutility,andorganizationaljusticeon performance appraisal satisfaction: Applying a moral judgment perspective.Journal of business ethics,119(2), 265-273. DOI 10.1007/s10551-013-1634-1
12HUMAN RESOURCE MANAGEMENT Gruman,J.A.,&Saks,A.M.(2011).Performancemanagementandemployee engagement.HumanResourceManagementReview,21(2),123-136. doi:10.1016/j.hrmr.2010.09.004 Maxwell, J. C. (2011).The 360 degree leader: Developing your influence from anywhere in the organization.ThomasNelson.Retrievedfrom http://www.loantoolbox.com/static/05MediaCenter/Community/360DegreeLeader.pdf Mone, E., Eisinger, C., Guggenheim, K., Price, B., & Stine, C. (2011). Performance management at the wheel: Driving employee engagement in organizations.Journal of Business and Psychology,26(2), 205-212. DOI 10.1007/s10869-011-9222-9 Pichler, S. (2012). The social context of performance appraisal and appraisal reactions: A meta‐ analysis.Human Resource Management,51(5), 709-732. DOI:10.1002/hrm.21499 Prowse,P.,&Prowse,J.(2010).Thedilemmaofperformanceappraisal.InBusiness PerformanceMeasurementandManagement(pp.195-206).Springer,Berlin, Heidelberg. DOI 10.1108/13683040911006800 Rummler, G. A., & Brache, A. P. (2012).Improving performance: How to manage the white spaceontheorganizationchart.JohnWiley&Sons.Retrievedfrom https://books.google.co.in/books? hl=en&lr=&id=dWT4LksTFQkC&oi=fnd&pg=PA75&dq=Performance+Management+P rocess+in+Organizations&ots=xgFrxWakRf&sig=uwy10js_e8T4- pukuYQjSC9yqCU#v=onepage&q=Performance%20Management%20Process%20in %20Organizations&f=false
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13HUMAN RESOURCE MANAGEMENT Salleh, M., Amin, A., Muda, S., & Halim, M. A. S. A. (2013). Fairness of performance appraisal andorganizationalcommitment.AsianSocialScience,9(2),121. doi:10.5539/ass.v9n2p121 ThurstonJr,P.W.,&McNall,L.(2010).Justiceperceptionsofperformanceappraisal practices.JournalofManagerialPsychology,25(3),201-228.DOI 10.1108/02683941011023712 Trkman, P. (2010). The critical success factors of business process management.International journal of information management,30(2), 125-134. doi:10.1016/j.ijinfomgt.2009.07.003 Walker,R.M.,Damanpour,F.,&Devece,C.A.(2010).Managementinnovationand organizational performance: The mediating effect of performance management.Journal ofPublicAdministrationResearchandTheory,21(2),367-386. https://doi.org/10.1093/jopart/muq043 Wickens,C.D.,Hollands,J.G.,Banbury,S.,&Parasuraman,R.(2015).Engineering psychology&humanperformance.PsychologyPress.Retrievedfrom http://webfiles.ita.chalmers.se/~mys/HumanAspects/WickensHollands/ 0_Wickens_Index_Preface.pdf