CASE STUDY :GLOBAL HUMAN CAPITAL TRENDS 2015LEADING IN THE NEW WORLD OF WORKPERFORMANCE MANAGEMENT: THE SECRET INGREDIENT1. OVERVIEWa. Performance management is important for the organization to review the implementation of decision regarding Human Resource Management that has been made in the organization. b. The reviews are used to support decisions related to training and career development, compensation, transfers, promotions, and reductions-in-force or employment termination.c. According to Lockett (1992), performance management aims at developing individuals with the required commitment and competencies for working towards the shared meaningful objectives within an organizational framework.
2. OBJECTIVE OF PERFORMANCE MANAGEMENTa. To urge the employee toward a higher quality standard of employee work performance. This will make sure that employees to obtain and identifying higher knowledge and skills required in order to performing the job efficiently as this would drive their focus towards performing the right task in the right way.b. To encourage employee empowerment, motivation and implementation of an effective reward mechanism. Promoting a two way system of communication between the supervisors and the employees for clarifying expectations about the roles and accountabilities, communicating the functional and organizational goals, providing a regular and a transparent feedback for improving employee performance and continuous coaching.
c. This show in the study that is made base on the case study which show the effect of performance management in a company:-Only 8 percent of the MANAGERS respondents in our survey believed that their performance management process drove business value. This year, the importance of performance management rose significantly, with 75 percent of respondents rating it an important or very important issue, up from 68 percent last year. So far, however, the rising importance of revamping performance management is just beginning to translate into a positive view of the process. Just 10 percent of survey respondents believe that performance management is a good use of time (slightly more than the 6 percent from last year), and just over half (56 percent) believe that it positively affects employee engagement and performance (figure 1). Moreover, the overall capability gap in performance management grew by almost one-third. d. Identifying the barriers to effective performance and resolving those barriers Managers through constant monitoring, coaching and development interventions.e. Creating a basis for several administrative decisions strategic planning, succession planning, promotions and performance based payment. This will promote personal growth and advancement in the career of the employees by helping them in acquiring the desired knowledge and skills.f. The management can monitor regarding company’s output and the outcome that the company set to achieve and processes that have been developed to make sure that the required such as knowledge, skills and attitudes for reaching the results are on track.g. To make sure the result that has been set by the company can be measure in term review of progress in achieving of set targets. Concerned with defining business plans in advance for shaping a successful futureh. Striving for continuous improvement and continuous development by creating a learning culture and an open system. Concerned with establishing a culture of trust and mutual understanding that fosters free flow of communication at all levels in matters such as clarification of expectations and sharing of information on the core values of an organization which binds the team together.i. Concerned with the provision of procedural fairness and transparency in the process of decision making. The performance management approach has become an indispensable tool in the hands of the corporates as it ensures that the people uphold the corporate values and tread in the path of accomplishment of the ultimate corporate vision and mission. It is a forward looking process as it involves both the supervisor and also the employee in a process of joint planning and goal setting in the beginning of the year. 3. REVIEWING PROCESSa. Usually the review process will indicate the target clearly and specifically to the aim that the company has set for each employee of the company regardless the position of the employee.b. The employee then will be provided a review informally or formally regarding the ability of the employee in achieving the target set by the management.c. A number of companies, as for example Adobe, Juniper, and Microsoft, have revamped the process in order to minimize the impact of ratings. This reflects the negative impact of recognition that ratings-based this will impacts culture and engagement. d. The target that are set up are based on the a target that has been set up by the management in order to achieve aim and goal such as:i. Strategic planning. In order to retain the most talented and high quality work force, a long term measurement management tool are develop this is to make sure the management can assess the quality and measure the quality of the workforce.ii. Total compensation. Most organizations use performance measurements as the basis for pay-for-performance compensation processes.iii. Individual and team development. This is the plan for individual or team development that are developed as the conjunction with the review process in order to help employee as Individual or in a team can get advancement or promotion opportunities in the companyiv. Continuing planning Performance information on the achievement for some time or period can be used as a base in order to identifying data over time in order to set plans for the near future in organizing leadership management. v. Managers Technology Systems. A lot of company are now using technology system in order to manage or identified key performance area regarding setting the ultimate target in improvising the management and indirectly help to setimprovement plan for the company.4. ACHIEVEMENT OF GOALSa. In setting effective goals should be participative both manager and individual should be involved in the development of goals to ensure understanding and commitment. b. Focusing only on a few major goals during a single year, the goals should be SMART:i. Specific, clear and understandable.ii. Measurable, verifiable and results-oriented.iii. Attainable, yet sufficiently challenging.iv. Relevant to the mission of the department or organization.v. Time-bound with a schedule and specific milestones.c. Goals should be documented, available for review, managed on a continuous basis and acknowledged. Goals should be flexible enough to account for changing conditions. Examples of effective goals include statements such as these:i. Increase revenue by 10 percent during the first quarter.ii. Reduce office expenses by 25 percent as compared with the prior year’s actual costs.iii. Decrease employee absences from tManagersee days to one day per quarter.5. STAFF PERFORMANCE IMPROVEMENT SCHEMEa. Staff Performance Improvement Scheme for all level of the staff whether new nor senior ranking staff who may be new to a role or who are unclear on performance expectations. This issues will make the employees who are regularly falling short of meeting performance expectations and whose performance may necessitate the beginning of a progressive discipline process regarding the performance level.b. The standard operation procedure can be the referral document used to guide the process. This is a critical tool as it helps facilitate performance discussions, records areas of concern and ways to correct them, and serves as legal and decision-making documentation. c. The format of the will be difference between employer and should include the following components:i. Employee information.ii. Relevant dates.iii. Description of performance discrepancy/gap.iv. Description of expected performance.v. Description of actual performance.vi. Description of consequences.vii. Plan of action.viii. Signatures of the manager and the employee.ix. Evaluation of plan of action and overall performance improvement plan.d. A statement regarding expectations for sustained or consistent performance should be included to ensure that true performance improvement has been attained. e. This documentation may also prove helpful in protecting the employer should performance fail to meet expectations and should further disciplinary action need to be taken.f. If Staff Performance Improvement Scheme is part of a progressive discipline process, this may be in the near future eventually lead to termination of employment, language in the document should specify that termination is a possible consequence of failure to meet expectations and that it may occur with or without the employee’s signature on the Staff Performance Improvement Scheme. The employee should clearly understand the consequences of not meeting the goals outlined in the Staff Performance Improvement Scheme. 6. AUDITING AND EVALUATING THE PERFORMANCE a. In order to make sure that the performance of the management system that has been developed is functioning as it should. However, employees’ perceptions and experiences with it may be very different as with any system of business practices.b. Accordingly, Managers must continuously evaluate the system to determine if it is effective and to identify opportunities for improving it. Perception is reality when it comes to employee and managerial acceptance of a performance management process.c. A good way to determine whether the system is being used consistently and administered fairly is to conduct an independent audit of the way the appraisal system affects various groups of employees. Adverse impact on a protected class raises legal concerns, but adverse impact on any group should raise equity concerns. d. Managers must take the responsibility for monitoring the system outcomes to make certain that all employees are being treated in a consistent and fair manner, and that the system is supporting organizational goals.7. COMMON PROBLEMSa. Many of the problems commonly associated with performance management systems are similar to those that surround any other organizational initiative, but with potentially much greater consequences.i. Lack of top management support If senior management does not send a message to managers and supervisors that the process of rating employee performance is a valuable use of their time, they are likely either to fail to commit the time or simply to fill out the forms but not engage in the important discussions with their employees. Unless senior management actively participates in the process and takes primary responsibility for it, managers and employees will remain unsure of its value.ii. Perception of the process as time-consuming “busywork” Without an organizational commitment to the process and a clear understanding of how it contributes strategically to the organization’s successful performance, managers will view it as “busywork” of little value and a waste of time.iii. Failure to communicate clear and specific goals and expectations A manager’s specific expectations must be clear for an employee to be able to implement an agreed-on goal. Goals can direct attention, increase persistence and motivate the development of strategies or plans to attain those goals. Clarifying and discussing the performance goals for the coming year is a valuable use of a manager’s time and will help avoid miscommunication and surprises. Follow-up communications can be used to reinforce specific goals and to serve as reminders to employees about their progress.iv. Lack of consistency In most organizations, some managers are perceived as “tough” and others as “easy.” This inconsistency may result in varied interpretations of an organization’s performance rating scale as applied to employees in different groups. Therefore, Managers should train managers in using the rating system so that inconsistencies do not occur. Despite training and the best of intentions, differences in the interpretation and application of the rating scale are almost inevitable. Accordingly, some organizations apply higher levels of review to calibrate ratings across a larger group or even an entire workforce. Organizations can develop a calibration system to ensure consistency between rates, between different departments and between jobs.v. Common Performance Rating Errors Regardless of the review system used, a variety of common rater errors exist. Managers should take the lead to train managers on recognizing and ameliorating their effect on the system. Common errors include:vi. Lack of differentiation. Because raters often lack the confidence to defend their ratings or are reluctant to pass judgment, they may rate everyone pretty much the same. This approach can take the form of leniency (everyone gets high ratings), severity (everyone gets low ratings) or a universal feeling that everyone is doing just fine (and everyone gets rated in the middle). A reluctance to differentiate can often be attributed to poor training or the failure of an organization to clarify that performance-based judgments are a critical part of the managerial role.vii. Recency effect. When managers are not diligent in continuously measuring performance, providing feedback and documenting results, they often cannot remember the earlier part of the performance period. As a result, they weigh the most recent events too heavily.viii. Halo/horns effect. The “halo” and “horns” effects occur when an employee is highly competent or incompetent in one area, respectively, and the supervisor rates the employee correspondingly high or low in all areas.ix. Personal bias/favoritism. Some managers may allow their impressions of employees or their personal feelings about them to dominate the performance rating process.x. Inaccurate information/preparation. To[ Management sometimes fail to take the time to ratified relevant information that project employee’s actual performance from those who work most directly with the employee, resulting in an inaccurate assessment.