Employee Performance Management Essay Answer

Topic: Essay on Performance Management

Introduction

Because they can be upsetting, unpleasant, and unnecessarily formal, performance reviews are generally unpopular with both employees and managers. Successful organisations are built on the foundation of individual accomplishment. It should come as no surprise that almost all firms have some sort of performance management system in place. However, both managers and employees are dubious about the effectiveness of performance management; often, they view it as a waste of time and money. The majority of systems only concentrate on specific and evaluative areas like performance evaluation, which prevents the potential advantages of performance management from being achieved (Aguinis, 2011). Here, we provide a more comprehensive analysis of performance management, along with a discussion of its differences from performance appraisal. The essay covers the advantage and disadvantage of performance management along with the weaknesses and strengths of both the organization and employees that are based on the evidence. Furthermore, it will outline the alternate solutions for the organizations of Australia.

Among the major corporations that have abandoned performance reviews are Adobe, Deloitte, as well as Accenture. According to a recent study, some businesses may have ceased having important dialogues with their employees when they eliminated performance reviews, which has led to a decrease in employee engagement. Performance management can be defined as a constant process of recognizing, evaluating, along with improving an individual's or team's performance in order to match it with the organizational strategy. An organization's performance management system is among its most crucial components. Typically, performance management is carried out by HR managers inside a business. Sometimes the causes of performance management system loss are not immediately apparent, and HR managers must dig deeper to determine why the system was unable to provide any outcomes. The majority of firms already have a performance management system in place; however, some of the typical mistakes that might lead to a system's failure that the organization should try to avoid (Pham, 2020).

Process of Performance Management that is Unstructured

One aspect of performance management failure is the lack of structure in the procedure. It is not a one-time process; thus it has to be done more regularly. It is not feasible to control performance without a well-designed framework. Because establishing a performance management technique in a business's primary objective is to improve overall employee performance. consequently, a well-structured system of performance management helps to increase employee desire to strive toward goals and grasp of organisational strategies. 

Zero/the Incorrect Choice of Goals of Employee

In many businesses, the performance appraisal process routinely excludes employee goals. Sometimes, in an effort to maximise staff performance, the incorrect goals are set, which results in bad performance management. Setting goals is essential for preserving employee engagement and enhancing performance. 

Communication Issues

Managers may find it difficult to be explicit about what they expect of their workers. They must successfully explain the benefits of performance management to the workers. Employees should be provided with the resources they need to continue grow as well as educated on the benefits of performance monitoring and development programmes. 

Emphasizes Current Performances too Much

This is one of the most common mistakes made by HR specialists and Managers. Biases of various kinds commonly hinder performance management processes. Recency bias is one of them. This bias is inadvertent since memory and the way the mind makes connections are factors in the problem. However, it is a damaging bias. Simply put, it might be because Recency bias seems to have the ability to make or break a performance review. Therefore, placing too much emphasis on present performance might result in the failure of a system of performance management system (Bayo-Moriones, 2020). 

Yearly Review of performance

Only routine performance reviews are beneficial. Every company need more than simply an annual performance evaluation. According to some managers, it consumes a large portion of their time. However, staff workers have to wait a whole year before making or receiving comments if performance assessments are conducted yearly. The business's productivity will deteriorate. Therefore, one reason your performance management system could not work is the yearly performance evaluation (Baird, 2020). 

No Employee Rewards or Recognition

A survey in Psychometrics found that 58 percent of HR professionals concur that employee engagement and happiness are fueled by praise and reward. To maintain staff inspiration and boost productivity, appreciation and reward are crucial. A performance management system that doesn't reward and recognise employee achievement often fails more frequently. Monitoring employee performance is crucial, as is recognising their hard work. 

In Australia, the term performance management commonly associates with procedure of exiting or managing out the employees who are underperforming. However, performance management may be a potent instrument for boosting employee engagement, giving praise, laying the groundwork for career advancement, and boosting retention. Meaningful growth talks, which are the real goal of performance management, are prevented by the assumption that managing performance is the same as terminating an individual. It was found that the methods or approaches to performing in New Zealand and Australia still lagging when compared to methods used by the other organizations in other nations or regions such as U.S. (Kivipõld, 2020).

To put it mildly, the past 15 months have been difficult for people and organisations all across the world. In the case of ANZ, the Delta variation, the protracted closing of international borders, and The Great Resignation all happened at the same time in the recent months, making it much harder to attract and retain personnel. The foreign travel prohibition has drastically decreased the talent pool because it has made it challenging or perhaps impossible for firms to hire outside of ANZ. The epidemic also caused 286,000 foreign employees to leave the nation, leaving a huge void in the labour market. In addition, 1 in 3 foreign students did not return to Australia before the borders were closed. This is essential since between 60 and 80 percent of foreign students plan to continue living and working in the country where they are currently studying once they graduate. Regarding present workers, the 2021 Gartner HR Survey revealed that 24% of Australian employees are actively looking for new jobs, with respect, manager quality, along with work-life balance ranking as the top three reasons for leaving (Stone, 2020). 

The Performance Management term is most of the Time Confused with other Concepts that are more restricted in scope. Some of them are (Amos, 2020)

PIP (Performance Improvement Plan)

Performance improvement plans, in accordance with SMRM, are instruments for assisting underperforming and low-performing personnel in succeeding. The term "performance action plans" is another name for them. Performance improvement initiatives are often linked to leaving an organisation for many employees. 

Performance Appraisal

Performance reviews and performance assessments both centre on evaluating prior performance in order to decide on pay and promotions. Performance reviews frequently don't have a developmental element (Kivipõld, 2020). 

Personal Growth Plan

Personal growth plans, an emerging idea, are focused on fostering cooperative dialogues between a direct supervisor and their management. The two parties collaborate to develop a shared strategy for both their personal and professional development (for example – getting better at presenting). 

Appraisals, growth plans and improvement plans are all included in performance management, although not all of them. Performance management, as a concept, is considerably more all-encompassing, taking into account and appreciating past, present, as well as future development of Individuals to support ongoing success and progress. The key objectives or purpose of performance appraisal are (Fishbach, 2022)

1. The organisation must be able to distinguish between those whose performance is actually helping the organisation accomplish its goals and people who are not. 

2. Employees who are giving their best want their efforts to be acknowledged and acknowledged. In order to prevent additional excellent performance from waning due to falling motivation, exceptional performers should be recognized and rewarded properly. 

3. Performance reviews must include setting clear, explicit standards and providing both criticism and positive comments. 

4. Setting precise, certain expectations for performance is required, as is offering both constructive along with complimentary feedback. 

The Strengths of Performance Appraisal

For the appraisee, Appraiser as well as the organisation as a whole, a performance evaluation process offers several advantages ((Pham, 2020). 

Regarding the Appraisee

1. Gratitude for a job well done Performance fosters self-assurance, self-worth, job happiness, dedication, and drive for ongoing progress. 

2. Possibility to propose development areas for improvement and explain probable underperformance 

3. Provides the chance to review work objectives and talk on what has performed effectively and what needs to be improved. 

4. Possibility to voice any complaints or discuss issues at work. 

5. Opportunity to talk about future advancement and professional aspirations. 

6. Builds rapport with manager and encourages the development of that connection through open communication. 

Regarding the Appraiser

1. Possibility to convey to each person, team, group, and organisational aims and objectives. 

2. The chance to learn more about certain careers and work teams. 

3. Possibility to hear possible complaints or concerns that need investigation that are brought up by employees Improved decision-making. 

4. Identification of improvement areas, training requirements, and future projections. 

5. Increased self-worth, drive, and work happiness. 

6. Increased group effectiveness. 

7. Opportunity to examine what has performed well and what requires updating, explain expectations of people and teams, and reassess work goals. 

8. Improved subordinate relationships in terms of quality. 

Regarding the Organization

• Creates an environment where employees are appreciated and ongoing development is prioritized.

• Better manager-employee interactions provide a sense of unity and belonging.

• Managers are better aware of specific tasks, teams, and organisations.

• Identification of training requirements and areas for growth at all levels (typically found through employee input) encourages managers to develop their communication, leadership, and motivational abilities, making them more useful to the organisation and fostering a sense of job satisfaction. 

Weaknesses of performance appraisal (Pham, 2020) 

• Negative Experience: If done incorrectly, the performance review process may be unpleasant for both the boss and the employee. This can be helped with appropriate process and technical training. 
• Natural Biases: Rater mistakes are a result of natural biases that affect human evaluation. To get rid of these biases from the process, managers need to be aware of them. 
• Time Consuming: Conducting performance reviews takes a lot of time and can be stressful for managers of large staffs. I've met bosses who had to conduct annual PAs on hundreds of workers. 
• Waste of Time: If not carried out properly, the entire procedure may be a waste of time. Consider the time commitment if the outcome is unsuccessful. It is a complete waste of time. 
• Stressful Workplace: Both managers and employees may experience stress at work as a result of performance reviews. The process's anxiety can be decreased with the right training. For instance, assessments are sometimes disregarded by courts as less reliable than other, more "factual" types of evidence because of their prejudice. Additionally, HR experts may think that managers wrote their evaluations with the intention of praising particular individuals. 

Finally, the effectiveness of performance reviews depends on the framework that they are implemented in. Organizations who conduct performance reviews only for show are wasting their time. However, firms that utilize performance assessments to execute business goals and integrate them into an extensive performance management system will be better able to meet their objectives and, ultimately, their strategic plan.

Alternatives for Australian Organizations

The current job climate is highly competitive. Businesses strive every day to provide the greatest possible goods and services. What has radically and quickly changed to cause the current spike in staff productivity rates? It refers to how a company makes use of its workforce and their abilities. According to CEB data that was released by the Washington Post, 90% of managers are unhappy with the way yearly evaluations are carried out. 90 percent more HR executives agree that the method doesn't produce reliable data. Individual performance assessments "had virtually nil association with actual company results," according to CEB study. In a recent TriNet poll, 85% of employees stated they would feel more secure if they could communicate with their supervisors more frequently. Employees desire feedback on their progress, confirmation that they are on course to achieve their objectives, and acknowledgement of their concerns. They do not desire to wait a whole year for that type of input (Bassous, 2015). 

The ideal method for managing performance is continuous feedback, which means that feedback is always given. As a result, behavior changes may be made more quickly, and workers are kept focused on the most crucial objectives. Results are also more impartial and fair because you may get comments from anyone. Giving regular feedback boosts morale and aids workers in maintaining their professional goals. Because regular, data-driven feedback fosters a happy work environment, it gives employees greater feedback, helps executives to gather better data, and improves corporate culture. Companies will need to make investments in cutting-edge HR technology since handling enormous quantities of input through email or paper is impractical. In order to review talks in combination with training and development plans, it should be able to categorize comments (for example, differentiating between coaching and offering recognition) and link to competencies and objectives in an integrated talent system. 

Many think that emphasizing intrinsic motivation is the most practical and long-lasting way to boost performance. When individuals like what they do, they perform at their best. Volunteers, who put in countless hours for causes that give them a sense of purpose, are some of the most devoted workers. They are unconcerned about receiving promotions, incentives, or even accolades. They volunteer because they believe they are making a difference and their job has value for them. Some individuals pursue their work with the same zeal. They enjoy pleasure while being involved and connected. They control their own performance, therefore there's no need to monitor it. Employees' passions, strengths, and objectives are revealed to managers when they pay attention to their input, and they may then consider how to combine these with the workplace. One of the factors influencing employee engagement is the sense of understanding and worth from a boss. Listening also shows that managers are receptive to fresh perspectives and teamwork. 

Goals are the next crucial component for igniting the intrinsic fire after the collaborative framework provided by listening has been established. These aren't the objectives that are established once a year and neglected until the yearly assessment. A job's autonomy is determined by how much it gives its employees freedom and control over how their tasks are carried out. High degrees of autonomy have been demonstrated to boost motivation and engagement in the workplace (Kim, 2020). 

Conclusion

Both performance reviews and assessments focus on assessing past performance in order to determine compensation and advancement. There is typically no developmental component in performance appraisals. It includes both strengths and weaknesses. Performance reviews serve three basic purposes: (1) to give each employee adequate feedback on their performance; (2) to serve as a foundation for behavior modification or change toward more productive working habits; and (3) to give managers information with which to assess future job assignments and remuneration. However, there are some alternatives for Australian organization such as intrinsic motivation.

References

Aguinis, H., Joo, H. and Gottfredson, R.K., 2011. Why we hate performance management—And why we should love it. Business Horizons, 54(6), pp.503-507. 

Amos, D., Musa, Z.N. and Au-Yong, C.P., 2020. Performance measurement of facilities management services in Ghana’s public hospitals. Building Research & Information, 48(2), pp.218-238. 

Baird, K., Tung, A. and Su, S., 2020. Employee empowerment, performance appraisal quality and performance. Journal of Management Control, 31(4), pp.451-474. 

Bassous, M., 2015. What are the factors that affect worker motivation in faith-based nonprofit organizations?. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 26(1), pp.355-381. 

Bayo-Moriones, A., Galdon-Sanchez, J.E. and Martinez-de-Morentin, S., 2020. Business strategy, performance appraisal and organizational results. Personnel Review. 

Fishbach, A. and Woolley, K., 2022. The structure of intrinsic motivation. Annual Review of Organizational Psychology and Organizational Behavior, 9, pp.339-363. 

Kim, S.H., Kim, M. and Holland, S., 2020. Effects of intrinsic motivation on organizational citizenship behaviors of hospitality employees: The mediating roles of reciprocity and organizational commitment. Journal of Human Resources in Hospitality & Tourism, 19(2), pp.168-195. 

Kivipõld, K., Türk, K. and Kivipõld, L., 2020. Performance appraisal, justice and organizational effectiveness: a comparison between two universities. International Journal of Productivity and Performance Management. 

Pham, N.T., Thanh, T.V., Tučková, Z. and Thuy, V.T.N., 2020. The role of green human resource management in driving hotel’s environmental performance: Interaction and mediation analysis. International Journal of Hospitality Management, 88, p.102392. 

Stone, R.J., Cox, A. and Gavin, M., 2020. Human resource management. John Wiley & Sons.

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