Employee Performance Management Process in HRM
Employee Performance Management is one of the most important Human Resources Function for an organization. Employees perform assigned job responsibilities in different positions for an organization. Continual growth & success of an organization mostly depends on the effective & efficient job performance of the employees of the organization.
HR department of an organization is responsible for developing & sustaining an effective performance management system to evaluate actual delivered performance standard of the employees of the company and formulate rational competitive increment, promotion, reward, punishment, training & development programs from the performance outcomes.
By going through the below write up we will get detail information on the following topics:
What is Employee Performance Management?
Employee Performance Management is the set of activities and processes that aim to identify, maintain and continuously improve employee performance in line with an organization’s set goals/objectives. Performance Management is strategic as well as operational, as its aim is to ensure that employees contribute positively to achieve the set business goals or objectives.
Following are some quotes about performance management:
Objectives of Employee Performance Management is to align the organizational goals with the employees’ agreed measures, skills, competency requirements, development plans and the delivery of results. The emphasis is provided on improvement, learning and development in order to achieve the overall business strategy and to create a high performance workforce.
Employee performance management is controlled by establishing and practicing effective performance appraisal system. Performance Appraisal is a systematic approach to evaluate performance of the employees for understanding their capability of performing assigned job responsibilities, finding out strength & weakness and determining the training and development needs.
Performance Appraisals helps in improving employer-employee relations in the workplace. It initiates a continuous flow of communication between employee and employer in connection with achieving company goals.
What Are the Basic/Key Elements Necessary for Effective Performance Management?
Performance Management System should be developed and implemented in a very effective & systematic way to get desired output for both the organization & the employees. Performance Management is used to ensure employees’ activities and outcomes are fitting with the organization’s objectives and entails specifying those activities and outcomes that will result in the company successfully implementing the strategy.
Basic or Key elements for developing & sustaining an effective performance management system in step by step are as follows:
Setting Goal aligned with organization objectives
Organization appoint employees to perform some specific jobs. Linking individual employee’s objectives with the organization’s goals is the most vital part for designing an effective performance appraisal system and getting best output from the employees. The employee should get a clear idea/concept on the job activities they need to perform to contribute for the achievement of overall business objective of the organization.
Goals should be set by discussing with the individual employee. Goals need to be meaningful and achievable. Employees should have clear idea as to why these individual goals matter and how they are linked with organizational objectives. Employees will care much more about their roles and will be more engaged when they know and truly understand how their job matters for the organization.
Goal setting should be a collaborative process. It should involve meeting with employees and being transparent about company goals, direction and obstacles. Furthermore, when employees are put in the drivers’ seat and allowed to develop their own goals (prior approval by their line manager), employees take ownership over their work. Inevitably, this results in improved employee performance.
Effective communication & cooperation for achieving set goals
Employee of a specific position are required to perform some major jobs those are aligned with company objectives. It is the responsibility of respective supervisor/line manager to make the concern employee thoroughly clarify about their roles to perform the assigned jobs. Managers should explain the employees how to execute the assigned jobs successfully.
Employees expect their managers and leaders to be open and caring at all times. Often they may face difficulties to perform their job activities smoothly. In that instances, they should get necessary assistant from their supervisors to overcome the problematic situations. A professional cordial and harmonious relationship should be maintained within the team to get desired effective output.
Obtaining regular performance feedback, find out performance gap & take necessary development actions
Employees are performing their assigned jobs on regular basis. Respective supervisors are continuously monitoring employees’ job performances and providing guidelines to them as & when required. The more frequent and precise the feedback, the better individual performance is achieved. Proper & timely guided employees provide better job performance.
Conducting regular monitoring & discussions throughout the performance cycle (which include coaching, mentoring, feedback and assessment) certainly improve employee performance. Through getting regular employee performance feedback, performance gap/lacking of the employees are identified. Accordingly necessary training & development programs are designed to minimize performance gap of the employees.
Initiate Employee Training & Development Program
Employee performance gaps are identified through performance appraisal process. Some gaps can be overcome through finding out and implementing effective training programs for the concern employees. After completion of the training programs, feedback need to be taken from the employees on their learning. Learning & training program should be continued till getting the desired improvement of employee performance.
Employee development needs also identified from the performance evaluation process. Careerist & ambitious top performers do not want to remain at a company for long term without having the scope of attaining developing skills. Advancement and development are important to employees. Companies should identify potential brilliant employees, engage them in prospective development programs, and thus retain them in the company for a long term to get optimum output from them.
Ensure Employee Recognition and Reward
An organization find out good and bad performers through the performance appraisal process. An effective performance management system should prioritize employee recognition and reward. Employees should feel valued and appreciated for the work they do and the effort they put in. If employee recognition is not given priority, this will provide negative impact to the better performers and provoked them on voluntary turnover from the organization.
Purposes/Objectives of effective performance management system
Performance management system aims to develop individuals with the required commitment, skills and competencies for working towards shared meaningful objectives within an organizational framework.
Performance management is about what the employee can do for the organization. It is equally about what the company can do for the employee, to keep them engaged, content and productive. The main purposes of an effective performance management system are as follows:
Setting individual goal aligned with organization objectives
Effective Performance Management System set & link individual employee’s goals with the organization’s objectives. When employees get clear idea on the importance of their performed job activities for the overall business growth of the organization, they become motivated & perform their jobs more enthusiastically.
Setting rational expectations for Appraiser and Subordinates
An efficient performance management system always tries to set clear and rational expectations for both managers and subordinates. As Managers/Supervisors are continuously monitoring job activities of their subordinates/juniors, they can easily set manageable expectations for their subordinate employees.
Once employees know their own achievable roles, responsibilities, and accountability they are more likely to be more consistent and productive. This facilitates better business performance and personal development of the employee.
To ensure effective communication, teamwork & employee engagement
Performance Management promotes a two way system of communication between the supervisors and the employees for clarifying expectations about the roles and accountability for achieving organizational goals.
Through the process of providing regular, actual and transparent feedback between the supervisor & subordinates an effective & amicable work environment sustains in the organization which certainly improves employee & organization performance.
In this process employees are willingly engaged with the assigned job responsibilities. When the employees are contended with their well-defined job roles and getting regular performance feedback they are likely to be more enthusiastic to perform in a better way and thus obtain the company objective.
To provide actual regular Performance Feedback & take immediate corrective actions
Through getting Real time performance feedback employee job performance is evaluated on regular basis. Concern Manager/ Supervisor can easily identify whether the employee is performing as per the set standard or not. Accordingly, s/he can guide the concern employee to overcome the performance gap and successfully.
Performance Feedback is more effective when delivered promptly. Effective Performance management system give emphasize to provide feedback regularly, regardless of whether it is positive or negative in nature.
Performance management system allows managers and HR to address performance gap issues at an early stage Poor performing employees can have a serious impact on the entire organization’s productivity and if performance issues are left unaddressed it can cause disaster for the organization. So, by getting regular performance feedback and taking required corrective actions employee performance is improved & organization’s objective is achieved.
To Identify Training & Development Areas
Through performance appraisal process performance gaps of the employee are identified. Accordingly, Training needs are identified for filling up the performance gap of the concern employees. By arranging effective training programs, employees become capable to perform their jobs as per the set job role.
Excellent Job performers are also identified through performance appraisal process. Career advancement and development are important for this group of employees. Company should engage the best employees in potential development programs and thus retain them for a long term to get maximum output from them.
To Provide Employees Visible Career Path & reduce employee turnover
Most of the potential employees are very focused about their career progression. A good performance management system engages managers to discuss a career plan with their employees by covering what the employee needs to do to get there.
If the career path is well defined & structured, employees are motivated to perform spontaneously to reach at the top ladder. If a company can ensure providing career progression as highlighted, top performers are more likely to remain in the company for a long period.
To provide employee Recognition and Reward
Through performance appraisal process, organization finds out performance standard of its employees. An effective performance management system prioritizes employee recognition and reward. Recognizing & rewarding employees is the simplest way to improve morale and employee engagement. Recognition is also positively linked with high performance.
Employees who are contributing significantly for attaining goal of the company are identified and rewarded by the company in the form of increment, promotion, appreciation letters etc.
To improve overall Business growth
Organization needs to take care of their employees to obtain its business objectives. By developing & implementing an effective performance management system, employees are truly judged for their provided job performance. Further, through this process best performance of the employees are also ensured.
When the employees provide their best output, obviously organization will be much more benefited. So, by implementing effective performance appraisal system, the employees become contented & continuously work for achieving overall business growth of the company.