Advantages and concerns of performance management


The concerns expressed about performance management are that it seems extraordinarily difficult and often unreliable to measure phenomena as complex as performance. People point out that today's organizations are rapidly changing, thus results and measures quickly became obsolete. They add that translating human desires and interactions to measurements is impersonal even heavy handed (McNamara, 2010).

2.8 Role of line managers and HR managers in performance management:

Human Resource division at any organization has unique challenges, it has to make sure that the employees are motivated and dedicated to the organization with complete reliability and honesty. However, at the same time, the Human resource division has to make sure that the market dynamics are not badly affected by the total volumes of investment involved in the process. And also line managers are crucial to the success of performance management. But there can be problems with their commitment and skills and it is necessary to involve them in developing the process, provide training and guidance, gain top management support, keep the process simple, emphasize that performance reviews provide for quality time with their staff and need not be stressful if conducted properly (Taylor, 2008).

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The main reason to the success at Google Inc. is simple work procedure apart from the incredible benefits and compensations. There are a few fundamental rewards existing at Google like, there is no real hierarchical structure in the company, and it works in small groups it will give an opportunity to maximize the performance and this follows a flat structure. The ideas getting at the work place which are shared within the groups. Even though they work in smaller groups, they will have a project manager to look over the development of the committees. The company treats the small groups and teams as individual start-ups (NYU IBA, 2008).


3.1 Methods of performance management:

There are number of methods we can use for managing performance. Below table shows some information on a number of official methods of performance management that may be used (Department of Economic Development, Tourism and the arts, 2010).


What is this method?

Where is this method used?

360 - Degree appraisal

This method gives a valuable approaching into how the person's work and behavior. This method is often used for managers and supervisors. While the values of this method are very useful, it can be administratively good method for small businesses.

This method is used when funding and time is available.

Where it is important to get quite a few perspectives on a person's performance, for example in the customer service roles or where the person is working across teams.

Self assessment

Just the name suggests, the individual assesses their own performance to set criteria. This is a good method for identifying where the businesses opinion of performance and the individuals opinions are different.

Where there is an interview based performance management process

Competency based assessments

In this method they will access skills and capabilities.

Ability can be harder to define in jobs with a high level of vagueness or where outcomes are not clearly express, such as managing relationships with staff.

Where there are task leaning jobs with little or no uncertainty or decision making responsibility.

Management by objectives

A joint method, the MBO defines goals and future targets by discussion. Future tasks, performance and productivity, for example, are discussed and a SMART plan is created so that the manager and staff member are conscious of what needs to be achieved to what standard and by when.

Where the business uses official processes to manage performance and where outputs can be considered accurately.

Implementation of Google feedback program -

Google measures the performance of their employees and give feedback in both formal and informal ways. Google uses 360 degree feedback to evaluate employees. One of the main advantages with Google feedback system is that the employee has options to select three or more official to evaluate his performance. The managers evaluate the performance of the employees on a day to day basis and provide informal feedback in a regular basis. This informal feedback adds more value than the formal feedback system (NYU IBA, 2008).

Implementation of Google Reward Program-

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The Google reward system takes the formal and informal feedbacks received by the employees into account and reward accordingly. The bonuses are based on both individual and team performance. One of the major advantages in the Google's reward system is that they offer shares to the employees. The employees are even allowed to sell, their shares to the public. The advantage for Google in this is that the share value of Google increases with the above measure (NYU IBA, 2008).


After the developing and implementing the performance management system, the next major task is to evaluate the performance management system. The evaluation process varies between different organizations. Some organizations evaluate by conducting regular surveys with their employees. The inputs taken from these surveys can be considered for improving performance management in the organization. HR conducts one to one meetings with the managers involved in measuring the performance of the employees. In this way, HR team takes suggestions from the line managers to improve the process of performance management (Armstrong, 2006).

Evaluation of Google feedback program -

By considering all the above statements, we can say that Google has room to improve upon its feedback system in terms of making it more stabilized and prearranged. In addition, one-on-one interaction should be encouraged as much as possible. The informal feedback should be thought as a process of helping employees than hurting them. The managers can convey the negatives of an employee in a positive way, so that a well being is created (NYU IBA, 2008).

Evaluation of Google reward program -

In today's world retaining talented employees in the organization is a difficult task, since if they are not rewarded properly they might shift the job to the competitor's organization. Google identifies talent and reward them with suitable bonuses. They offer US$2000 when an employee refers a friend to work in Google. The rewards and perks given by Google differentiate them with their competitors who have also expanded their benefits given to employees (NYU IBA, 2008).

Although the perks given by Google to the employees are considered as the major advantage, Google will not be able to give perks for all the employees in the future. With the growing strength of employees, it is impractical for Google to give perks for all the employees. Instead of giving perks to the entire employees Google can link perks with performance based rewards, so that a fair reward system maintained in the organization loyalty (NYU IBA, 2008).


Armstrong, M. and Baron, A. (2004). Managing performance: performance management in action. London: Chartered Institute of Personal and Development.

Armstrong, M. (2006). Performance Management: Key Strategies and Practical Guidelines. 3rd Ed. London: Chartered Institute of Personal and Development.

Armstrong, M. (2009). Armstrong's Handbook of Human Resource Management Practice. 11th Ed. London: Chartered Institute of Personal and Development.

Taylor, S. (2004). People Resourcing. 4th Ed. London: Chartered Institute of Personal and Development.