Contemporary Human Resource (HR) Challenges - 10

Performance Management (PM)

World where we are living is getting more and more competitive and furthermore in order to survive on it, we have to think and work very differently. When it comes to business world, it is even more competitive and that is where performance management (PM) plays a pivotal role as far as competitive word is concerned. Moreover PM is an important HRM process that provides the basis for improving and developing performance and is also part of the reward system too.

According to Weiss and Hartle (1997)  he further states that performance management is ‘A process for establishing a shared understanding about what is to be achieved and how it is to be achieved, and an approach to managing people that increases the probability of achieving success.’ However when discussing PM, it is also getting connected with word called performance appraisal which can be defined as the formal assessment and rating of individuals by their managers at or after a review meeting. But As Armstrong and Murlis (1998) said clearly that performance appraisal too often degenerated into ‘a dishonest annual ritual’.

Objectives of Performance Management 

When it comes to objectives of PM, on the whole it is to develop the capacity of people to meet and exceed expectations and not only that it is also to achieve their full potential to the benefit of both themselves and the organization.

Characteristics of Performance Management

There are five primary elements under performance management starting with are agreement, measurement, feedback, positive reinforcement and dialogue. However this is a planned process.

However it also focuses on targets, standards and performance measures or indicators. It is based on the agreement of role requirements, objectives and performance improvement and personal development plans. As Buchner (2007) emphasizes, performance management should be something that is done for people and in partnership with them.

Underpinning theories as per, Buchner (2007);

Goal Theory

This theory underpins the emphasis in performance management on setting and agreeing objectives

Control Theory

Control theory focuses attention on feedback as a means of shaping behavior

Social Cognitive Theory

Social cognitive theory was developed by Bandura (1986). It is based on his central concept of self-efficacy.

Performance and development agreements

When it comes to development against the performance, it is obvious that Performance and development agreements form the basis for development, assessment and feedback in the performance management process. They further define expectations in the form of a role profile, which sets out role requirements in terms of key result areas and the competencies required for effective performance.

Measuring performance in achieving objectives

As far as measurement is concerned, it is an important concept in performance management. It is the basis for providing and generating feedback, measuring performance is relatively easy for those who are responsible for achieving quantified targets in fact sales is a best paradigm. On the other hand It is much more difficult in the case of knowledge workers, for example scientists. But this difficulty can be alleviated when a distinction is being made between the two forms of results – outputs and outcomes.

REFERENCES;

v   Armstrong M.(2009),Human Resource management practice 11^th ed. UK;Kogan – Pg. 615

v           Weiss, T B and Hartle, F (1997) Re-engineering Performance Management Breakthroughs in achieving strategy through people, St Lucie Press, Boca Raton, FL

v            Armstrong, M and Murlis, H (1998) Reward Management, 4th edn, Kogan Page, London

v       Buchner, T W (2007) Performance management theory: a look from the performer’s perspective with implications for HRD, Human Resource Development International, 10 (1), pp 59–73