Employee Performance Management
What is Employee Performance Management?
Factors that Influence Employee Performance
The following section
walks you through the differences between an annual appraisal and a continuous
appraisal.
Their names make it clear
what the main distinction is between an annual performance review and a
continual performance appraisal.
“A formal evaluation of
an employee's development is conducted once a year as part of the traditional
technique known as the annual performance appraisal. Contrarily, continuous
performance appraisal is a performance review procedure that is done all year
round.”
An annual performance
appraisal assesses an employee's work over the previous 12 months. The manager
evaluates the worker's performance based on predetermined standards, such as
meeting KPIs and KRAs and having effective communication skills.
Additionally, the
employee highlights their accomplishments, growth figures, met KRAs, etc. In
the end, the manager gathers input, the employee's worries, and more
information to produce an appropriate KRA roadmap that the individual can
adhere to.
To discuss and review
work, this method requires a lot of paperwork in the form of Excel spreadsheets
or PowerPoint presentations. Additionally, there's a good likelihood that some
important information was overlooked in the process of gathering this much
data.
For this reason,
businesses are moving to a more complex yet practical continuous performance
review system. Nonetheless, the results of SHRM's study from the previous year
also show that yearly performance reviews are gradually losing favor. In
contrast to the conventional yearly appraisal procedure, performance reviews
can be conducted without the necessity for large data compilation. Rather, it
consists of work preferences, frequent review sessions, conversations about
potential areas for growth, and real-time feedback.
By taking things one step
at a time, the management and resource are guaranteed to be in agreement from
the beginning. Additionally, it enables them to maximize the potential of every
resource and use it for the sake of the company. An employee who receives
timely performance assessments can also learn where they are strong and weak.
It allows them enough room to grow by making adjustments as needed.
How Employee Performance Management Benefits Employees?
1. Increased Satisfaction at Work
Employees that are motivated and dedicated to their work benefit from a consistent performance assessment procedure combined with prompt accomplishment recognition. Anxiety is lessened when an organization recognizes the potential of its people and is concerned for their welfare.
2. Reduces Conflict and Enhances Efficiency
Conflicts between workers and management are less common when there is an efficient performance review procedure in place. Disagreements are resolved by one-on-one conversations concerning each employee's performance, obstacles, and strong and weak points.
3. Alignment with Organizational Goals
Communicating the organization's objectives is a critical component of a performance management plan. Also, staff are given a clearer understanding of what has to be done by being assigned key responsibility areas and key performance metrics.
4. Better Opportunities for Growth and Promotion
Frequent meetings for
performance reviews that address duties, progress, and performance aid in
fostering camaraderie. Additionally, they support staff members in showcasing
their accomplishments and work as well as expressing their desire for prospects
for advancement.
How
Employees Management Benefits an Organization?
1. Highlights Areas of Improvement
Frequent meetings for performance reviews assist in identifying areas where each employee needs to improve. Some people could need upskilling, while others would need training on the newest trends relevant to their line of work.
2. Keeps Employees Engaged and Motivated
Employees that are part of a strong performance review system feel appreciated. Giving themselves a pat on the back for a job well done inspires them.
3. Reduces Unplanned Attrition
Managers can better
comprehend HR's concerns and expectations when there is two-way communication
between them. Furthermore, it assists in establishing future KRAs and KPIs in
accordance with their capacities and expectations.
Best Employee Performance Management
Practices to Follow
It's time to study some
best practices for employee performance management now that you are aware of
its advantages.
1. Give Feedback on a Regular Basis
Your performance evaluation process will be strengthened if you provide the appropriate feedback when needed. Thus, it is imperative that you consistently evaluate and deliberate over the work produced by your staff, offer suggestions, and see that they are carried out. By gathering input from peers and leaders in many sectors, you may use 360-degree feedback to make your feedback more impartial and inclusive.
2. Communicate KRAs at the Start of the Appraisal Cycle
Establishing KRAs at the
outset of each appraisal cycle creates the foundation for efficient performance
management. When all KRAs and objectives are well-defined, your staff members
are more aware of what needs to be done.
It also promotes a culture of creativity, increases trust on many levels, and increases productivity and autonomy. As a result, make sure your resources are aware of your expectations as well as the criteria you will use to assess them.
3. Acknowledge and Reward Good Performers
According to Gallup, 74%
of teams that get recognition for their efforts believe they have a role in the
organization.
Therefore, it is crucial
to recognize and incentivize high-performing resources in order to strengthen
their sense of purpose and belonging.
References
·
Aguinis, H. (2009). An expanded view of performance management.
In J.W. Smither, & M. London (Eds.). Performance management:
Putting research back into practice (pp. 1-43). San Francisco, CA: Jossey-Bass.
·
Cawley, B. D., Keeping, L. M., & Levy, P. E. (1998). Participation in the
performance appraisal process and employee reactions: A meta-analytic review of
field investigations. Journal of Applied Psychology, 83(4), 615–633.
·
London, M., & Smither, J. W. (2002). Feedback orientation,
feedback culture, and the longitudinal performance management process. Human Resource
Management Review, 12, 81–100.
·
Marc, E. (2014, July 24). The
Hard Truth about Effective Performance Management.
·
Pulakos, E.D., & O’Leary, R.S. (2011). Why is performance
management so broken? Industrial and Organizational Psychology: Perspectives on
Science and Practice, 4 (2), 146-164.
Agreed about the Employee Performance Management. Further on this article, Performance management is a tool that helps managers monitor and evaluate employees' work. The goal of performance management is to create an environment where people can perform to the best of their abilities and in alignment with the organization's overall goals. Performance management is widely used in both the private and public sectors. (C Tard 31st July 2023) employee performance appraisal process is important for organizations to enhance employee productivity and improve their outcomes. Performance appraisals are an annual process where an employee’s performance and productivity is evaluated against a predetermined set of objectives. What do you think about 360 Degree appraisal? Is it important to 2024?
ReplyDeleteThanks Mahesh on your valuable comment on this. If add some more, the 360 degrees Performance Appraisal method was first used in the 1940s. 360-degree evaluations go by several names, including 360-degree feedback, 360-degree assessment, and 360-degree performance review. Essentially, it is a process for measuring employee performance by utilizing feedback from peers, employees, clients, supervisors, and members of other teams. The 360-degree performance appraisal policy is very complicated and difficult to implement if it is not carefully handled.
DeleteAgreed with your article. Since the world is rapidly changing the practices of performance management has also changed. The traditional method of annual appraisal wiped out from most of the industry long time before, employees are expecting day to day measurement of performance and frequent communication, best measuring practices, development and learning, by providing them employers can drive towards the success of the organization.
ReplyDeleteIs there a balance between quantitative and qualitative assessment? While metrics are essential, qualitative feedback provides a holistic view of an employee's performance. Strive for a well-rounded evaluation approach.
ReplyDeleteAgree with your article. Further to this article, Employee performance management should be future oriented. Performance Management should provide insight into the professional maturity levels of people. There should be compulsory development steps for employees moving from junior to senior roles.
ReplyDeletePerformance Management should be forward-facing and a personal development plan of some sort needs to be introduced.
Performance management indeed to be transformed with the modern business world and technology. HR needs to identify what are the best methods they can adopt which are most beneficial for both parties. Technology based, transparent systems need to be implemented for better outcomes.
ReplyDeleteYes Ayesh. thanks for foreseeing the future and I have little added in my 07th post in HR.
Delete