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Firms worldwide identify the value of retaining and increasing high-performing individuals for their ability to transform and develop in the future. That's why comprehensive talent management methods are the key topic in the world of human capital management. Thought-out this essay we will be mainly focusing on how performance management links individual employee performance to organisational success and Understand why managers might resist implementing performance management systems, and outline ways in which this resistance might be reduced.
Performance management includes activities to ensure that goals are consistently being met. Performance management can focus on the performance of an organization; this could include department, employees, or even the processes to build a product or service, and other area in the organization. There are many strategies that are used in today society to improve the performance of an individual to maximise the ability to gain profit for the company. The most common approach is the performance appraisal. This is commonly used in every single business organisation that is trying to attain their goals and profits.
The performance system is made up with two basic systems operating in conjunction: an evaluation system and a feedback system. The key idea to the evaluation system to find out whether there is any gap with in the employment structure. This gap is the shortfall that occurs when performance does not meet the standard set by the organization as acceptable. The feedback system on the other hands informs the employees the level of standard which are requires and whether they are accomplished or not, this is not a one way operation, what this means is that this works both the employee could inform leader what flaws are there and if any requirements are needed. One of the best ways to appreciate the purposes of performance appraisal is to look at it from the different viewpoints of the main stakeholders: the employee and the organization.
The most common question that arises from this is that: What is a performance appraisals?
Performance appraisal is a system which is put into place when there is a low amount of profit been made and also when employees are not performing at the level which the company see acceptable. An appraisal should not be viewed as an end in itself, but rather as an important process within a broader performance management system that links: Organizational objectives, Day-to-day performance, Professional development, Rewards and incentives.
Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, this interaction is done very often to see the progress of the employee and whether any improvements are needed and if so the opportunity to discuss how this can be possible. In most organizations (not all) appraisals are used directly and indirectly to determine the outcome of rewards. By using this appraisals team leader can recognize the employees which are reaching and aiming and getting their targets for either pay increases, bonuses, and promotions, by the same token, appraisal results are used to classify the poorer performers who may require some help in their areas, or in extreme cases, lowering, discharge from work or cuts in pay. (Organizations will need to know the law in their country to find out whether they can dismiss or reduce pay for one employee.) Whether this is an suitable use of appraisal - the task and reasoning of rewards and penalties - is a very undefined and contentious matter.
Evaluations of agencies and programs aid in determining levels of efficiency, effectiveness and appropriateness and facilitate future planning to enhance the ability to meet client needs. Similarly, appraisals of individuals provide vital information and also if that person is in need to improve in certain areas that are weak. Indeed there is an indisputable link between the two. (Dickenson, 1993) Argues, "To ignore individuals in the review process is to ignore a major input into the achievement of organizational outcomes" (p109). Most of the time when businesses perform great it is due to the success of the employees. Recognizing these efforts and appropriately praising or redirecting them is imperative for organizational success. This is the basic purpose of performance appraisals. (Wanna, O.'Faircheallaigh, & Weller, 1999) Explains that the objective of staff appraisals as "to improve planning and service delivery at the general level, but also to provide feedback to individual officers" (p162). (Covey, 1992), makes the point that as managers we must be less concerned with supervising and concentrate on being leaders. He finds that, "sustainable cultural change can take place within an organization only when the individuals within the organization first change themselves from the inside out" (p265).
(Cherry, 1993) explains that appraisal processes can be counterproductive to organizational success as they are odds with processes which encourage some degree of risk taking to meet client needs or develop new methodologies through trial and perfect example of this would be working at a retail and have the ability to maximize sale to the client and get the most of the sale.
The next question that rises is that what should be measured in the appraisal? In terms of performance appraisals of individuals, it is needed to pin point what is measured and judge in the terms or performance appraisals. This firstly requires examination of what the requirements of a certain positions are; this inspection is based upon those that are at a higher position than you or an executive position. To address the challenges facing public sector organizations and to place these organizations in positions of future success will require people with distinctive and particular knowledge, skills and attributes or competencies (Dickensen, 1993).
Now that we know what a performance appraisal is and what needed to be measured, the next step will be finding how performance appraisal helps the business or organization in its success. If appraisal is to be effective, staff must see the process attempting to meet their needs; otherwise the system will not work. This means Heads of Department do need to form an overview of the issues rose by their staff and if appropriate feed these into the planning process. There are three key elements which are affected by the performance appraisal a: Benefits for the individual, b: Benefits to the line manager/supervisor/team leader, and finally c: Benefits to the organization. Let take a look at some of the benefits, which fit into the three key elements. A: the individual and the ability to gain a better understanding of the role, identify ways in which that individual can improve performance, understanding and agreeing their objectives for the years to come, and there are many more. B; benefits for the team leader; the leader has the ability to find out the flaws and potential which in that individual, exchange views and opinions away from the normal pressure of work, an opportunity to plan for achieving improved performance, an finally an opportunity to motivate members of the team, and there are many more. Finally how the performance appraisals effect the business, C: A structured means of identifying and assessing potential, Up-to-date information regarding the expectations and aspirations of employees, Information on which to base decisions about promotions and motivation , An opportunity to review succession planning , Information about training needs which can act as a basis for developing training plans, Updating of employee records (achievements, new competencies etc), Career counseling, and Communication of information.
In conclusion there are many ways in which performance management can help the company grow, but the common and the most efficient way companies do this is by employee performance appraisals. These appraisals are done quite often to see where employees are and whether the standards of the company are reached by individuals. We can also see that parties, the team leaders and also the employees are benefiting from this. How exactly are they benefiting, firstly the leaders can find out flaws and strengths from every single employee and work on their ability to complete the standard which is required, secondly the leader could give training to employees which are not quite up to the standard so that the company could meet its goal and gain profit. Money is often required for creating training and other benefits which may help the company/employees to gain knowledge of the position/standards that is required from them, I believe that this is one of the risk the company many have to take in order to gain profit and have the best employment standards and together to reach a common goal. The employees also have the option to get something out of this appraisal and that is their ability to say something that is wrong and stopping them to improve to meet requirements to the company, not only this but the employees have the option of asking for rewards if they make their targets. These rewards can vary from money to gift which will motivate employees to work harder and get up to the standard which is required and make maximum amount of profit to the company.