Managing Human Resources - Assignment Example

Name: Tutor: Title: Managing Human Resources Course: Date: Introduction Performance management and Performance appraisals are commonly used human resource management practices to evaluate employee efficiency. However, the two practices differ in their concepts and implications. Performance management is focused on controlling performance within a state time to ensure that performance meets the required standards. On the other hand, performance appraisals involve setting the ideal standards for jobs as well as evaluating the past performance. One interesting lesson with the two approaches is that companies rely on them in a bid to appraise how skilled employees are, particularly in market conditions where competition and rapid changes are dominant. Organizations that are highly effective in their performance put a people management principle at the center of their operations, and thus strive to ensure that their employees are satisfied. Performance appraisals are commonly used tool for people management in organizations. However, performance management is perceived to be a wider subject matter which is incorporated into the corporate culture of an organization. It is critical that the human resource management make a distinction between performance management and performance appraisals so as to enhance productivity (Hal J. W, et.al. 2008). Question 1: What is the difference between performance management and performance appraisal? Most employers and supervisors become confused in their people management task when it comes to different between performance management and performance appraisals. Performance management is more of dynamic in nature though it uses the performance assessment tool. In contrast, performance appraisals also referred to as performance evaluations are human resource management tools applied to measure employees’ effectiveness. Such tools are conducted once a year as annual performance evaluation process. Unlike the traditional annual appraisals, performance management offers employees with the needed feedback throughout their annual performance. This is because the performance management system used provides continued re-evaluation of organizational goals, progress as well as performance. Furthermore, the performance management process demands more interaction or communications between supervisors and employees. Performance management, therefore, promotes professional development among the employees to enhance accessibility to the dynamic needs. Although it is time-consuming, performance management as a dynamic appraisal process creates high productivity levels important to all organizations (Evans 2004). Based on their definition, it can be argued that both are methods used by human resources to evaluate the performance employees within the organization. While performance management is considered to be a long-term and traditional approach, performance appraisal is applied as a kind of modern approach to evaluate performance of employees in an organization. Therefore, human resources take performance management as a continuous function to ensure that their employees execute their capabilities in a manner that enable the organization to achieve its objectives within the real-time basis. This is in contrary with performance appraisal characterized by limited capabilities because it is aimed at evaluating only the past performance and carried out once or twice a year. It is relevant to argue that performance appraisal concerns individual or staff activity. This implies that the purpose of performance management is continuous in nature, while for performance appraisal the purpose is occasional. In regard to their methodology, performance appraisal operates in a formal and structural manner unlike performance management which proves to be casual and flexible in its nature. This difference creates an interesting view of the two approaches to human or employee performance evaluation. Performance management is often used because it is customized for each employee’s work. However, performance appraisal standardized on the basis of employee’s designation in an organization (Fletcher 2001). Performance management is important because it involves systematic and strategic training of employees to enable them gets a shared understanding of the organizational standards, goals, expectations as well as mission statements. This indicates that employees who feel to be adequately prepared for their tasks or job positions, improves in their performance due to increased morale. Therefore, developing employees’ skills through continued trainings not only increases day to day employee productivity, but also improve the overall performance of the organization. On the other hand, performance appraisals provide the human resource managers with the opportunity to obtain important feedback from their employees. This fosters open or clear communication amongst staff, supervisors and employees. Research indicates that most employees’ value appraisals conducted fairly effective because they develop a feeling that their employers really value (Fletcher 2001). Performance management requires employers to offer continued appraisal services in form of feedback and the re-alignment of goals in regard to the current performance. This is not the case with annual evaluation process in which most of the performance management practices are adopted to meet the varying needs of employees and the organization. According to Armstrong (2006) performance appraisals involves agreeing to the changes expected to both the objectives and work plans as responses to the changed circumstances, discussing the achievements of a job holder, identifying shortfalls associated with meeting the organization’s set standards or objectives as well as establishing reasons for them inclusive of the changed circumstances. Organizations that decide to use the performance management practice do so simply because the annual appraisal practice is not effective to enable them achieve their appraisal needs. It has been suggested that continuous communication process of the performance management can play a great role in ensuring that organizations meet their development goals as well as feedback needs of their employees. On the other hand, the annual appraisal process due to its retrospective nature does not offer employees with formal opportunity to receive some important feedback concerning their performance. It also hinders them to request for development as a way to enhance their efficiency or simply demand new goals in the course of the year. Therefore, performance management can only be effective if the employees clearly understand their roles and responsibilities in the organization. It has been argued that defining core competencies for employees at individual level is an important step towards creating effective goals since it enables supervisors or human resource managers to communicate the personalized feedback (Armstrong 2006). Many intellectuals and practicing managers consider the performance appraisals as a valuable HR tool because of the critical role it plays in recruiting and the hiring employees. The tool is also useful in the validation of selection tests as well as in staffing in cases where termination, transfer, layoff and decisions on promotion are made based on appraisal results. Performance appraisals also acts as a motivational tool through which performance expectations are communicated to employees, and thus offering them the needed feedback. However, performance appraisal is not dispensable in both training and development behaviors to enable the management assess the potential and discover training needs (Thomas & Bretz 2000). Question: 2 What are the features of an unsuccessful versus a successful performance management system? It is important to note that both performance evaluations and performance management involves setting realistic performance targets, making a review of whether or not targets are achieved as well as devising ways through employees are encouraged to meet the set targets. As a result, the two human resource management methods develop clear expectations from which employees are required to deliver, set guidelines on what comprises successful job performance. This helps to identify the various obstacles that hinder the attainment of improved performance (Aguinis 2007). Unsuccessful performance management system exists as a result of unconstructive application. A number of supervisors or managers become resistant to the shift from performance appraisal process or simply no process to a performance management system due to various reasons. For instance, lack of confidence in appraisal instrument, dislike to criticize employees and the new procedures. Performance management system may as well fail due to lack of support from senior managers and employees, lack of clear goals or sustainable professional development. It is quite clear that incorrect performance makes unsuccessful performance management system to cause negative consequences to the organization (Gary, et. al 2007). Some of the danger characteristics of a poorly executed performance system include increased turnover, low motivation to perform, unjustifiable demands on resources for managers, varying, unfair standards and employee ratings as well as ambiguous rating systems, emerging biases and high risk of legal action. Due to these exceedingly negative effects associated with poorly conducted performance management system on the organization, human resource managers should focus on implementing their performance management system thoughtfully and consistently (Aguinis 2007). Development of a successful management system proves to be a hard task. The human resource management should take into consideration its design as well as strategically plan for its performance prior to using to appraise employees. A successful performance management system must offer employees with basic benefits such as a clear view of their job expectations, rewards for improved performance, provides regular feedback on performance, advice on steps necessary for enhancing performance. This implies that successful performance management system is characterized by its capability to improve employee performance and the organization’s output (Mayhew 2011). In order for it to be successful or effective in its role, performance management system must incorporate some critical elements, for example, updated job descriptions that describe the current duties and the performance expectations of the employees, performance baselines or standards in terms of average levels of performance, evaluator training to enable managers how to effectively communicate, conduct fair and consistent appraisals. It has been examined that successful performance management system oversees training to human resource managers prior to conducting their preliminary reviews. In addition, guidelines for performance improvement, employee input as well as compensation and rewards for good performance are critical elements of a successful performance management system. Ensuring successful implementation of performance management system calls for hard work from the management. Thus, requires a firmness and discipline though most organizations appear to be resistant to commit themselves to (Armstrong 2006). Question 3: What are some common errors and ways to eliminate them? Performance appraisals identified with errors or simply constructed based on supervisor’s biased perspective greatly affect the working relationship of an employee. When human resource managers award unequal weight to their employees’ tasks, inaccurate performance evaluation is produced. Furthermore, errors may occur when the concerned people manager review only employee’s recent performance rather than making full evaluation. Incorrect and inaccurate ranking of employees’ performance puts them at risk of losing their positions, employees become disillusioned due to lack of morale as well as job satisfaction (Hal J. W, et.al. 2008). Therefore, elimination of bias and errors within the performance appraisals becomes a vital responsibility for human resource managers and supervisors. Performance appraisals entail opinion as a result of this personal bias may affect the outcome. On the other hand, prejudice related to issues of gender, race, class and religion my cause personal bias. This implies that bias can be avoided if the management adopts methods which fosters fairness and observes key principles throughout a performance evaluation process. The commonly experienced errors that managers make during their task of appraising employees are the rating biases of halo effect and the pitchfork. Other errors include poor setting of performance standards, lack of sufficient time set a side specifically for an appraisal process, every employee’s work is rated satisfactory and managers concerned do not incorporate the aspect of employee development to evaluation interviews (Hal J. W, et.al. 2008). Inclusive supervisor training about the basics performance management such as organization’s philosophy and practices is one major step towards eliminating biases and errors. Development of performance appraisal form together with the attachment of some supporting documents is also another important step. This involves revising the performance evaluation from own understanding, taking employees’ position and appraising from his or her perspective. It is also important to study the various biases and errors commonly made within the performance appraisals. Assessing the performance standards for job duties and the assigned tasks for which every employee is held responsible. Human resource managers are required to monitor employee’s performance throughout the appraisal period more objectively. It is important for the HR managers to identify discrepancies from the earlier performance evaluations which may if not controlled compound future performing issues (Mayhew 2011). Conclusion Organizations that are sustainably effective in their performance put a people management principle at the center of their operations, and thus strive to ensure that their employees are satisfied. Performance appraisals are common tools used by human resource leaders to manage their employees in organizations. Performance management is more of dynamic in nature though it uses the performance assessment tool. Performance evaluations and performance management involves setting realistic performance targets, making a review of whether or not targets are achieved and devising ways through employees are encouraged to meet the set targets. Successful implementation of performance management system, particularly new ones involves developing a business case through open communication, applying the lead and lag techniques to achieve clear measurement, aligning systems so as to encourage desired behaviors, developing skills for individuals involved and promoting the principle of accountability by clearly assigning roles and responsibilities to all the major stakeholders inclusive of the Chief Executive Officer (CEO). Incorrect performance makes unsuccessful performance management system to cause negative consequences to the organization. Successful performance management system must incorporate some critical elements such as updated job descriptions that describe the current duties and the performance expectations of the employees, performance baselines or standards in terms of average levels of performance, evaluator training to enable managers how to effectively communicate, conduct fair and consistent appraisals. Bibliography Aguinis, H., (2007) Performance Management. New Jersey, Pearson Education. Armstrong, M., (2006) Performance Management: Key Strategies and Practical Guidelines. London, Kogan and Page. Evans, G. E., (2004) Performance Management and Appraisal. New York, Neal-Schuman Publishers. Fletcher, C. (2001) Performance appraisal and management: The developing research agenda. Journal of Occupational and Organizational Psychology, 74(4), 473–487. Gary, R, et. al., (2007) Why Employees Dislike Performance Appraisals, Regent Global Business Review. Hal J. Whiting, Theresa J.B.K, Lorne, M. S, (2008) The performance appraisal congruency scale: an assessment of person-environment fit, International Journal of Productivity and Performance Management, 57(3), 223 – 236. Mayhew, R., (2011) How to Eliminate Bias and Error in Performance Appraisals. Demand Media Thomas, L.S & Bretz, R.D., (2000) Research and practice in performance appraisal: evaluating employee performance in America's largest companies. Advanced Management Journal, Vol. 59. Read More