Performance Management: Case Study IntroductionPerformance management refers to the systematic process through which organizations involve their employees, both as a group and as individuals, in improving effectiveness and accomplishment of objectives and goals. An effectively designed performance management system is a multi-step process that includes six interrelated components: pre-requisites; performance planning; performance execution; performance assessment; performance review and performance renewal and re-contracting (Stanley, 2007). Campbell and Lee (2003) have mentioned the following characteristics as being important elements of an ideal performance management system: meaningfulness; practicality; strategic congruence; identification of effective and ineffective performance; acceptability; fairness; ethicality and standardization.
A successfully designed and implemented performance management system provides employees the necessary support and direction to enhance their productivity on a regular basis. In addition to serving as an important feedback to an organization’s development initiatives, performance management systems can also provide valuable information for effective workforce planning. In today’s organizations, performance management programs allow managers and supervisors to gain meaningful and timely insight into their employee’s abilities and hence enable managers to execute better motivational strategies. For employees, a comprehensive performance managements system helps clarify job expectation and the perceptions of managers regarding job performance.
A comprehensive performance management system can also provide timely and relevant information for newly hired employees. According to Mondy (2008), an effective performance management system puts in place mechanisms for rewarding excellence and outstanding achievement by linking employees’ individual efforts to organizational mission and objectives. This way, employees understand how their efforts contribute to organizational improvement. Through the use of standards, performance dimensions and objectives, performance management systems focus on efforts, which provide a solid rationale for executing tasks.
Although performance management processes require time to plan and implement, these systems save a lot of organizational resources and time. In addition, performance systems promotes flexibility by allowing manager and employees to identify problems earlier enough and take remedial actions. Question 1: Evaluation of Links in the Performance Management Process Prerequisites-performance planning linkIn any performance management process, work is planned out in advance. In addition to setting clear objectives and rationale for performance management, the prerequisite phase establishes performance expectations that are measurable, verifiable and achievable.
Through these critical elements, employees are held accountable for their work and responsibilities. In the pre-requisite phase, the organization defines problems and creates objectives for performance improvement (Stanley, 2007). Planning entails setting out performance goals and expectations for individuals and groups to channel their efforts towards achieving desired organizational objectives. Basically, the prerequisite-performance planning link descries the process through which organizations get their employees involved in the performance management process by getting them to understand the goals of the organization, what needs to be done, how it should be done and why it need to be done.
This link serves as an objectives basis for communicating performance expectations and enables employees to differentiate between acceptable and unacceptable performance results. This way, the performance management process increases job satisfaction and motivation because employees get to know when tasks have been performed well (Campbell & Lee, 2003).