Behavior of Performance Management in HRM

 

What is “Performance Management”?

Performance Management is identified as a precise cycle for improving organizational performances by building up the performances of people and groups. It is a method for improving outcomes by comprehension and overseeing performances inside a concurred system of arranged objectives, norms and competency necessities. It centers individuals around doing the correct things by explaining their objectives which is possessed and driven by line management. (Armstrong, 2006).

Aims of Performance management as expressed by global organizations

• Empowering, motivating and rewarding employees to do their best. Armstrong World Industries
• Focusing employee’s tasks on the right things and doing them right. Aligning everyone’s individual goals to the goals of the organization. Eli Lilly & Co
• Proactively managing and resourcing performance against agreed accountabilities and objectives. ICI Paints
• The process and behaviors by which managers manage the performance of their people to deliver a high-achieving organization. Standard Chartered Bank
• Maximizing the potential of individuals and teams to benefit themselves and the organization, focusing on achievement of their objectives. West Bromwich Building Society

Advantages & Disadvantage (Rostam, 2019)

As per Rostam (2019), Advantages could be categorized in 3 main perspectives.

From an organizational perspective

• Organizational values are reinforced
• Staff and supervisors communicate more easily and the goals of the organization are better met
• Organizational goals, goals, and priorities are clearly made available to everyone
• Create a lasting organizational commitment to rewarding the best in the workplace

From Staff’s perspective

• Enmity between staff is reduced and the risk of staff violence is reduced.
• Focus on paying salaries and benefits, bonuses and other compensatory payments based on the performance value and performance of individuals.
• Employees better understand their duties and work with supervisors to achieve the organization's goals.
• Staff performance is measured and guided in a tangible, clear and clear manner.

From Supervisor’s perspective

• Evaluating employees is easier done and the impact of evaluations is to increase employee productivity.
• Supervisors, by directing employees, align their goals with those of the organization.
• Providing the right environment for open, unbiased and mutually beneficial communication and dialog between supervisor and employees
• Supervisors do not merely emphasize the negative aspects of employee performance, and the positive aspects of their performance are more emphasized

 

The Disadvantages are as follows

• Most of performance management systems are extravagant and widespread, rather than essence.
• Performance management is sometimes perceived as a system of imposed supervision rather than as a development system.
• In most organizations, HR units are the only units responsible for designing and controlling the performance management system
• Organizations confuse performance management systems with performance appraisals and consider them equivalent 

Conclusion

The Performance Management discuss about improving organizational performances by building up the performances of people and groups rather than appraising the employee performances. Contribution of the same for the organizational performances is much effective & higher.  

 

References

https://www.researchgate.net/publication/338215098 - ADVANTAGES AND DISADVANTAGES OF PERFORMANCE MANAGEMENT  by Fatemeh Azizi Rostam

Handbook of Human Resource Management Practices – Michael Armstrong, 2006