Evaluation of Links in the Performance Management Process - Assignment Example

Performance Management Report Name: Course: Institution: Tutor: Performance Management: Case Study Introduction Performance 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 i. Prerequisites-performance planning link In 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). The prerequisite-performance management link is conspicuously missing in Omega’s performance management process. The absence of this link is clearly evidenced by the decision by franchise owners to conduct a thorough job analysis of the roles of sales representatives and write job descriptions, tasks which should be done by Omega. One reason for this missing link is that the company (Omega Inc.) does not have direct control over its employees. Lack of direct control and supervision of employees mean that Omega’s management cannot establish regulatory requirements for planning performance management system. Similarly, the company cannot establish elements and standards for the employees’ performance appraisal. It is important that performance management planning is made flexible so that the process can be adjusted for changing work requirements and program objectives (Mondy, 2008). ii. Performance Planning-Performance Execution Link Performance execution is the next step after performance planning. Once performance planning has been done, the plans have to be executed. For individual employees, the critical responsibility in the performance execution phase is to get the actual work done by achieving objectives. For the supervisor or appraiser, performance execution entails creating conditions that motivate employees to perform, and confronting and correcting perceived problems in performance. Performance execution also includes continuous review of performance objective to ensure that performance is always on track (Campbell & Lee, 2003). The performance planning-performance execution link is present in Omega’s performance management system. In the performance planning-execution link, supervisors and frontline managers tend to be more participative and hands on with employees. Therefore, supervisors and managers play a critical role in coaching, directing, facilitating and counselling employees. This way, the supervisor is the person to be involved in providing feedback about employee development and this includes both evaluation and performance feedback. Roberts (2003) has noted that performance execution includes both individual and managerial activities. Eliminating performance challenges and reinforcing effective behavior are part of the communication process through which supervisors provide feedback to employees regarding their performance. Feedback can be positive recognition of job well done and other forms of appreciation. Feedback can also be negative and this serves as the basis for identifying and correcting poor performance. In typical organizations, managers and supervisors are responsible for creating conditions that motivate employees to increase productivity, eliminating performance problems and providing development opportunities in addition to reinforcing effective behavior. Individual employees in the performance management process are responsible for achieving stated performance objectives, collecting and sharing data and soliciting feedback and coaching (Cardy, 2003). iii. Performance Execution- Performance Assessment Link The performance execution- performance assessment link is missing in Omega’s performance management system. Performance-based assessment is a valuable approach for monitoring employee’s progress in relation to identified performance outcomes Campbell & Lee, 2003). Basically, performance assessment requires developing solutions to identified performance problems. In order for performance assessment to be effective, employees should be active and not just passive selectors of the right solutions to identified performance problems. In addition, expected performance outcomes should be clearly communicated as they serve as the guide for designing performance tasks. Performance assessment is effective for measuring products and processes involved with employee achievement. The process involves observing employee performance and examining the progress that they have achieved. In his article, Roberts (2003) has explained that the performance execution- performance assessment link looks at authentic use of information. As a system of developmental checklist, performance assessment can be of immense benefits to the manager and the employees. Firstly, performance assessment recognises that employees can express what they know and how they can do it in various ways. In the process, employees are involved in the assessment of their productivity and this serves as a basis for motivating employees (Campbell & Lee, 2003). Secondly, performance assessment establishes a simple but comprehensive framework for observing performance achievements that are inconsistent with the organizational goals and objectives. Performance assessment also contributes to improved performance management planning as well as the design of developmentally appropriate management interventions. The process also gives managers direct, specific and understandable information about their employees. In return employees collaborate effectively with their supervisors and hence enhance their productivity and professional skills. iv. Performance Assessment - Performance Review Performance review is the appraisal and discussion of an employee’s performance of assigned duties and responsibilities. The actual appraisal process is usually based on the results obtained by employees in their job performance and to a small extent on the employee’s personality characteristics. According to Grote (2002), the performance review process measures employee’s skills and accomplishments with a reasonable degree of uniformity and accuracy. The process provides a way for identifying areas of performance enhancement, which in turn promotes employees’ professional growth. However, the process should not be considered the manager’s only tool of communication. Lack of open lines of communication at Omega that could provide for effective performance appraisal relationship between supervisors and employees is evident of the absence of the performance assessment - performance review link. Aguinis (2007) has asserted that it is imperative for managers to conduct thoughtful and careful performance review. The effectiveness of the performance review process greatly depends on the manager’s willingness and ability to conduct objective and constructive appraisal as well as employee’s willingness to offer constructive suggestions and to work with the supervisor in order to attain desired goals. In an effective organization, performance assignment and projects are reviewed continuously. Reviewing means consistently measuring performance to determine ways of helping employees improve their progress towards reaching their goals. Periodic review of performance progress helps supervisors gain an enhanced understanding of each employee’s abilities. According to Fiorenza (2007) the primary goal of performance review process is to recognise and appreciate employee’s achievement and design training programs for further development of strengths and skills. Moreover, performance review helps stimulate employee interests and improvement of job performance. The review provides employees, supervisors and human resource managers with a critical and formal mechanism for collecting and working on performance feedback (Mujtaba, 2007). Regulatory requirement for performance review includes conducting progressive appraisals with employees in which their performance is reviewed against stated standards and elements. Ongoing reviews provide opportunities for organizations to assess how well their employees are meeting predetermined performance standards and also to make changes to problematic or unrealistic standards. By reviewing performance progress continually, unacceptable and inconsistent performance standards can be identified in time during the performance appraisal process and appropriate assistance provided to address performance challenges (McAndrews, 2005). v. Performance Review - Performance Renewal and Recontracting Performance renewal and recontracting is the final stage in the performance management process. Essentially, this process is very similar to the performance planning process. The only difference is that the performance renewal and recontracting process uses information and insight gained from other stages. For instance, some performance goals may have been set unrealistically or with no corresponding appropriate allocation of necessary resources. In this case, performance renewal and reconstructing may lead to setting of less ambitious goals for the next review period (Nance-Nash, 2006). Crane (2002) has explained that in the performance renewal and recontracting stage, supervisors have the responsibility to assess performance achievements and make necessary adjustments to improve organizational performance and productivity. Although supervisors have primary responsibilities for performance renewal and recontracting, the employees also need to do their part. Primarily, supervisors have responsibilities over the following areas: a) Documentation and assessment of employee progress: performance renewal and recontracting requires supervisors to keep track of their employees’ performance progress. This is vital in providing overall rating of employee performance and also for enhancing performance. b) Updating: an organization’s goals and objectives are subject to continuous change. It is therefore important to review and revise initial goals, key accountabilities, performance standards and competence areas to keep in touch with the changing organizational objectives and goals. c) Providing feedback: supervisors have a duty to provide feedback on progress made towards goals attainment and coaching so as to improve performance. It is important that feedback is provided regularly and before the performance review period is over. Overall, supervisors have the responsibility to ensure that employees have the necessary encouragement, funding and supplies to perform their job properly. It is also important for supervisors to provide employees with necessary resources as well as the opportunity to participate in development activities. As such, supervisors should sponsor and encourage participation in training programs (Nance-Nash, 2006). iv. Performance renewal and recontracting- prerequisites link According to Aguinis (2007), the performance management process includes an endless cycle which starts with prerequisites and ends with renewal and recontracting. In fact, the process repeats itself through the performance renewal and recontracting-prerequisites link. Because of the absence of other links, the performance renewal and recontracting- prerequisites link is also missing. This repetition is necessary because of continual changes in organization’s gaols and objectives, which in turn call for evaluation and discussion of prerequisites including organization’s strategic goals and mission. Because an organization’s business environment changes continuously, stakeholders’ expectations and needs also change and hence there is need to monitor and evaluate the effectiveness of the prerequisites. This way, planning and other subsequent stages can progress consistently well with the organization’s strategic objectives and goals (Mujtaba, 2007). As part of the performance management’s endless cycle, it is important for organizations to reward their employees. Rewarding implies recognition of employee’s efforts as individuals and members of a group. Through rewarding, organizations recognise their employees’ performance and contribution to specific missions. For effective performance management, supervisors and employees should continually practice good performance skills naturally Mclaughlin, 2007). Question 2: Strategies for Implementing Successful Performance Management System It is apparent that there are disruptions in Omega’s performance management process. These disruptions can, however, be fixed by considering the essence of performance management process and its contribution to organizational improvement. Essentially, Omega’s performance management process requires adjustments and to be aligned with the objective of attracting, developing and retaining talented employees (Gunn & Gullickson, 2005). An integral purpose of any performance management program, with regard to employees, is that effective coaching can build employee commitment and confidence while resolving attitudes and performance problems on a timely basis. The outcomes of such a process should be productive and motivated employees, enhanced bottom line profits and better competitive market position. In order for the interruptions in Omega’s performance management system to be fixed effectively, it is imperative for the company’s management to view performance management as a strategic tool for enhancing performance and achieving organizational goals. Currently, Omega’s management does not view performance management as an initiative that has the potential to add much value to the organization and its human resource needs (Crane, 2002). As such a new trend towards comprehensive performance management in the company should be designed by and involve all stakeholders including managers and employees. Another equally important trend is that the process should be linked to measurable results for individuals, work groups and the organization. This means that every member in the organization becomes a consumer of the results produced by the performance management program (Grote, 2002). In fixing omega’s disrupted performance management links, considerable thoughts should be given to the company’s corporate strategy, documentation of performance progress and format of the appraisal tool. If the company’s management takes the factors into consideration during the performance management design, the program can be viewed more favourable by employees and the franchised dealers from whom the company sources employees. In light of this consideration, it is important for the company to develop appropriate strategies for determining abilities, skills and behaviours required by employees to enhance their performance. It is necessary that strategy is clearly linked to each employee’s performance goals and expectations (Mclaughlin, 2007). Establishing clear goals and expectations help employees understand what they are required to do as well as the quantities and quality that they should produce. In setting goals, it is recommendable to focus on behaviours that are likely to change and to offer suggestions on how to implement the changes. It is also important to seek input from employees on how to implement desired changes (Fiorenza, 2007). Although employees make efforts to achieve results, they may want to gain something in return such as promotion, praise or recognition. It is, therefore, necessary that employees are made aware of what they stand to lose or gain by meeting or not meeting their performance expectations and goals. In order for Omega’s performance management system to be effective in the long run, its members should be motivated to use the system properly. Existing literature on different types of performance management programs show that effective program implementation depends on the degree of commitment by top management. The stronger the commitment, the higher the potential for the performance management program to succeed (Aguinis, 2007). In the case of Omega, it is important for its top management to model an effective performance management with the rest of the organizational members. This way, the company can establish clear expectations around performance management. Without the support of the management, the performance systems are likely to fail. Because the success of performance management relies greatly on the effectiveness with which employees and managers use the system, it is necessary to get all members committed to the new system (Ritter & Nunnally, 2002). Conclusion Performance management is a fundamental component of any management system. A well implemented and effective performance management system provides regular, formal and rigorous process for data collection, analysis and usage. This way, changes in the efficiency and effectiveness of the organizational processes can be measured to enable comparison of performance over time. Several factors can potentially impact on the effectiveness of an organization’s performance management system. However, the most important one is the degree to which the performance system is aligned to the organization’s strategic goals and objectives. A well aligned performance management system ensures that resources are administered appropriately to make the system friendly to all members in the organization. References Aguinis, H 2007, Performance management, New Jersey, Pearson Prentice Hall. Campbell, D and Lee, C 2003, Self-appraisal in performance evaluation: Development versus evaluation, Academy of Management Review, p. 302-314. Cardy, R 2003, Performance management: Concepts, skills, and exercises. Armonk, NY: M. E. Sharpe, Inc. Crane, T 2002, The heart of coaching: using transformational coaching to create a high performance culture, FTA Press – San Diego, CA. Fiorenza, N 2007, Tuning up performance. Printing Impressions, 49(8), p. 54-58. Grote, D 2002, The performance appraisal question and answer book: survival guide for managers. AMACOM – New York, NY. Gunn, R & Gullickson, B2005, Feedback:gift to the giver. Strategic Finance, 87(2) p. 8-10. McAndrews, J 2005, Managers should apply positive and negative feedback, American Agent & Broker, 77(7), p. 16-18. Mclaughlin, P 2007, Giving good feedback, SuperVision, 68(2), p. 7-9. Mondy, R 2008, Human resource management, 10th ed. New Jersey, Pearson Prentice Hall. Mujtaba, B 2007, Mentoring diverse professionals (2nd edition). ILEAD Academy, Davie, Florida. Nance-Nash, S 2006, Everybody’s a critic, PM Network, 2(20), p. 10-36. Ritter, B & Nunnally, K 2002, Formalize the feedback: employee performance evaluations. Rural Telecommunications. 21(3), p. 32-36. Roberts, G 2003, Employee performance appraisal system participation: A technique that works, Public Personnel Management. Stanley, T 2007, Poor performance and due process, SuperVision, 68(1), p. 8-12. Read More