Performance Management
Scope
This document will outline the new Performance Management System. This briefing note will explain what a performance management system is, the main components of a good performance management system, the link between motivation and performance as well as other information regarding performance management.
What is Performance Management?
Performance Management is a tool to ensure that line managers effectively manage and develop their employees in-line with organisational objectives and goals.
Performance management is a method for line managers to communicate with their employees informing them:
• what is expected of the employee
• how the employee will be rewarded
• how the
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The feedback should be open and transparent and include any training and development needs that may have been identified.
Though there are only 2 performance reviews a year performance should be managed on a day to day basis so that the employee has a chance to improve their performance before the next review. This also informs the employee if they are meeting/exceeding the expected levels of performance.
How does motivation affect performance?
An employees performance will depend on a number of factors – skill, knowledge, competence, aptitude, attitude and behaviours amongst other. Motivation is important as the level of motivation an employee has will determine how these factors are applied. Each employee will be motivated differently and is affected by a change by a range of variables. Motivation is fluid and will change throughout an employees life.
If an employee is highly motivated they will perform higher and if they perform higher this may lead to a sense of achievement and a higher motivation.
Whilst a lot of employees are motivated develop and perform better, there are some employees who are not. These employees tend to do just enough to keep anyone from noticing them. This is the area where performance management falls down and it is up to the manager to find ways to motivate
Employee motivation is, or at least must be, one of the key issues for directors, managers and personnel managers. The leader must be able to find the sensitive strings of his subordinates, which can be motivated by influencing them to achieve high performance. The correct use of motivation encourages staff to make more efficient use of their knowledge, skills, and talents. In today's turbulent, often chaotic environment, commercial success depends on the employee's talent and effort. Despite the many existing theories and practices, some of the motivation of leaders today remains a mystical term. This is partly due to the fact that people are motivated by different things and techniques.
Motivation is derived from an internal force that provides an individual the opportunity to achieve their needs or goals. People are motivated by a variety of things and often have different motivating factors. Employers should be mindful of individual motivating factors when attempting to motivate staff to increase performance. While some people may be motivated by money, many are motivated by things like: recognition, promotion, and increased responsibility. Once an employer has identified motivating factors they are able to analyze a variety of motivational theories to design and implement a program that will motivate employees to go above and beyond what is expected of them.
Performance management can be defined as a systematic process, which helps an organization by improving the effectiveness of its
Performance management is essentially about creating a strong communication with the people around you in your working environment. It helps a manager monitor and assess how well their employees are
Employees should always be motivated; this attracts talent, opens up new channels for innovation and creativity and brings in a sense of satisfaction among them which helps the growth and development of the organization.
When looking at performance management it can be defined as (1) ‘a process which contributes to effective management of individuals and teams in order to achieve high levels of organisational performance. As such it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure it is achieved.’ We can see from this definition that managing performance is crucial to the overall performance of the organisation and meeting its goals and objectives. This process must then be strategic but also link other aspects of the organisation such as individuals and teams. As defined above, performance management is ultimately about achieving high levels of
Performance management is a holistic procedure collectively brings various types of elements that constitute towards the flourishing exercise of people management including, above all, learning and development.
An effective performance management procedure enables line managers to evaluate and measure individual performance and therefore optimize productivity by aligning their goals with business objectives. Many of the practices that support performance improvement also impact positively on job satisfaction, retention and loyalty of our employees.
Performance management is a tool that managers use to ensure that their companies remain at the top of their competitive edge. The Chartered Institute for Personnel Development (CIPD, 2008), defines performance management as a method by which individuals and teams are managed in a way that achieves high performance at an organisational level. The individuals within the organisation share an understanding of the achievement goals of the organisation. In order to achieve this, a general strategy is created, with each individual within the organisation understanding his or her role and requirements within such a strategy
Performance Management is a process aimed at improving performance in an effective and efficient manner. It involves following principles that ensure individuals or teams they manage:
Since a common goal of business is to achieve sustained high level of performance, it is important for companies to pay close attention to its employee’s mindset, and conduct the best way to motivate them. There are several factors that can affect employee performance such as goal setting, possible opportunities, working condition and reward system (Whetten & Cameron, 2005, p. 24).
(Armstrong and Baron 2010) define performance management as 'a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved'. They go on to stress that performance management is a key tool within an organisation to ensure that managers, manage the
The definition of the term ‘performance management’ varies in different literatures. As Hutchinson(2013) summed up, combined with Den Harton’s theory(2004), it is a continuous process which links individual and team objectives with organizational goals by measure and improve employee’s skill and performance. According to Armstrong (2012), human resource management aims at making sure the organization has the most talented, skilled and engaged people in order to attain its goals. In this context, performance management is one staple practice helping managers identifying and retaining most competent employees as well as correcting poor performance.
Motivation is therefore the force that transforms and uplifts people to be productive and perform in their jobs. Maximising an employee's motivation is necessary and vital to successfully accomplish the organisation's objectives and targets. However this is a considerable challenge to any organisation's managers, due to the complexity of motivation and the fact that there is no ready made
According to Hyde (2004), performance management is a group of guidelines utilized in refining productivity, handling workplace behavior, training and development of staff, and providing positive feedback on a regular basis. A good employee performance management system entails components that help employers concurrently accomplish goals and sustain employee satisfaction. Performance management allows a business to identify strategic goals, and measure/manage performance against those goals. It contains a set of incorporated management and systematic methods that deal with financial and operational activities.