In human resource management, it is important to ensure that employees are motivated and satisfied with their work. This makes them give their best in their place of work. It is worth noting that one way to motivate and satisfy employees is by carrying out employee performance management (Cokins, 2009). There is no universally accepted definition of performance management; for the sake of this paper, Armstrong and Baron idea of what performance management is will be adopted; the two though performance management as “A strategic and integrated approach to delivering sustained success to organization by improving the people who work in them and by developing the capabilities of teams and individuals contributors” (Armstrong & Baron, 1998 p.1).
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The entire process of PM is responsible for driving the results of organization performance. Workers who meet organizational goals and objectives are usually rewarded in whatever manner for instance promotions and additional bonus based on their performances as well as what they have contributed to the organization.
History of Employee Performance Management System
According to Rummler & Brache, 1995 the concept of performance management came to limelight about 60 years ago as a way of justifying employees’ income; it was used to determine the salaries and wages of workers. During its initial stages, PM was typically employed to simulate the behaviors of employees to attain certain organizational goals and objectives. It is worth to note that these yielded results only when considering workers that were driven by rewards in monetary terms.
The concept failed in situations where workers were deemed to be driven by learning and developing their skills. The gap between justifying pay and skills development became an issue of concern. Towards the end of 1980, it was acknowledged that there was a need to have comprehensive mechanisms that will help manage and reward good performance (Cokins, 2009). The two countries that were first to come up with the approach of managing performance are the United Kingdom and the United States of America.
In the recent past, human resource departments have adopted a more formal and specialized approaches when it comes to managing people. Old methods of performance appraisal have been taken in to be part of PM. Among the developments that contributed to what PM is today include managing talent, monitoring, evaluation and reviewing of performance indicators, management by objective. Trait rating evaluation system has also been used as PM. With this approach close to 10 to 15 personal traits/qualities are listed which may include being social, having analytical competence, effective leadership, knowledge about the job to mention but a few. The major problem with this approach is that it lacks objectivity.
Another system that has been used for the past several years include performance management recognition. Both formal and informal recognition programs can be utilized in rewarding as well as recognizing workers about their excellence and commitment. It is worth noting that these approaches were catalyzed by having in place an HR department bestowed with the responsibility of managing the workforce and the desire or organizations to have a competitive advantage in this competitive business world.
Benefits of Employee Performance Management System
Strictly speaking, there are typical outcomes associated with performance management. Because the methods of performance management will be implemented in the best way possible with certain objectives linked to operational plans and strategic plans an organization will realize efficiency, effectiveness, and competence when doing business (Rummler & Brache, 1995).
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As suggested by Zaffron & Steve, 2009 PM helps improves how information is shared within an organization. The system compels both managers and employees to frequently get in touch and share information. With such an approach, there is dialogue that results in consensus bringing a sense of ownership to both relevant parties. Additionally PM ensures that every worker is aware of the rules of the game. Assessment criteria make both the employees and managers aware of what is expected of them.
Where communication is open, there are higher chances of reducing stress which ultimately results in a happier working team. More importantly, PM creates an environment in which the organizations turn into being a learning organization (Aubrey, 2004). Commitment from managers as well as employees ensures that personal development is sought after. With this, workers feel part of an organization and realize that the two are interdependent. Financially, it helps grow sales and revenue, cut operation cost and stops project overrun (Gilbert, 1996).
Amstrong, M. & Baron, A. (1998). Performance Management: The New Realities (Developing Practice). New York: Chartered Institute of Personnel & Development.
Aubrey, D. (2004). Performance Management: Changing Behavior that Drives Organizational Effectiveness. New York: Springer.
Cokins, G. (2009). Performance Management – Integrating Strategy Execution, Methodologies, Risk, and Analytics. New York: John Wiley & Sons, Inc.
Aubrey, D. (1999). Bringing out the Best in People. New York: McGraw-Hill.
Gilbert, F. (1996). Human Competence: Engineering Worthy Performance. New York: Pfeiffer.
Rummler, G. & Brache, A. (1995). Improving Performance: How to Manage the White Space in the Organization Chart. London: Jossey-Bass.
Zaffron, L. & Steve, D. (2009). Performance Management: The Three Laws of Performance: Rewriting the Future of Your Organization and Your Life. London: Sage.