Benefits of Employee Engagement
History records how Alexander was able to march on and conquer hitherto unknown lands due his valour and his motivated troops. However, the same history also records, how dissent amongst his troops towards the latter part of his career, cut short his ambitions of supremacy in Asia. Alexander started hiring more outsiders, laying off his […]
Assigning Key Responsibility Areas (KRAs) to Employees
It is essential for management to know how to extract the maximum out of employees. Making employees deliver their level best is the biggest challenge faced by organizations in current scenario. Individuals in most of the cases attend office just for the sake of it and are concerned only with their monthly salaries. Let me […]
After Effects of a Poor Employee Retention
Employees are the major assets of any organization. An organization can’t survive if the individuals are not focussed and serious about their work. The success and failure of any organization depend on the hard work put by the employees to achieve the targets of the organization. It is a common observation that employees who spend […]
The Changing Nature of Employment and Impact on Professionals and Societies
The Fourth Industrial Revolution and the Changing Nature of Work The very nature of work and employment is changing rapidly before our eyes. Since the times of the First Industrial Revolution when the modern day arrangements of work and employment were firmed up, office was a place to go to every day and between certain […]
Training Needs Assessment – An Important HRD Function
Whenever training programs have to be conducted, there needs to be an assessment of the training needs which needs to preclude everything else. Assessment of the training needs should be done in an elaborate and methodical manner and should be comprehensive. Before we discuss how training needs are to be assessed, we need to understand […]
Performance management is an integral component of talent management that is aimed at ensuring that organizational goals are being met effectively and efficiently through individual and collective performance. It can thus encompass an individual employee, a department, a team, or even a process to build a service or a product.
Dr. Aubrey Daniels in late 1970’s used this term to describe a science for managing and enhancing both behavior and the results. It is this behavior and results that amounts to the performance of an employee. This is primarily achieved through attitudinal interventions. It was also defined as a strategic and integrated approach to increasing the effectiveness of organizations by improving the performance of the people who work in them and by developing capabilities of teams and individual contributors (Armstrong and Baron - 1998).
Performance management is most often used in professional organizations where the results and behavior of a certain course of actions has financial implications. Otherwise we can use it anywhere we wish to or enhancing people performance like sports, education, NGO’s, anywhere where there is an interaction between people.
Through performance management, organizations aim to align personal goals of employees with organizational goals and increase the overall efficiency, productivity and profitability for the larger benefit of the latter. There is no cap to the number of individuals on which it may be applied. It can be applied to one single individual or the entire department.
Typically the following steps are involved in performance management:
In commitment analysis a job mission statement is made for each job or process which is a job definition in terms of product, scope and purpose. Here the key objectives are outlined and performance standards are set against the same.
Work analysis follows next; this underlines the reporting structure and job description. Finally performance standards and expectations are set against each job or process keeping in view the efficiency and effectiveness both.
Employee performance management is of key benefit to organizations in helping them realize effectively the strategic and operational goals. In organizational behavior lexicon, performance problem is a gap between desired and actual results and performance management seeks to address just the same problem. There the effort is called as performance improvement. The guidelines that determine whether or job is being carried out effectively is based upon factors like whether the work is planned and clear expectations are set, work performance is monitored, staff is trained and developed continuously for a certain job etc.
The benefits of performance management are both financial and non financial in nature. Financial benefits include growth in sales, reduction in costs incurred, organizational alignment with the vision and mission, decrease in lead time.
In addition the workforce is motivated to a greater extent, employee engagement is enhanced, the incentive plans are optimized as per specific target or goal achievement and the importance professional development programs is better understood and made used of in learning and development. The management gains more control over its human capital, a transparency is ensured, work efforts are rewarded befittingly which boosts employee morale.
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