Introduction
Employee performance management refers to an organizational approach of establishing the shared workforce in order to comprehend the goals of a given organization. Therefore, this implies that in order to facilitate employee performance management, it is essential to align organizational objectives with the skills, competency, development plans and delivery of results among employees. Notably, it is true that good implementation of employees’ performance management with considering objectives, the strategic and operational plan within an organization, such organization is likely to encounter a huge increase in its production. Consequently, it is imperative for organizations to note that employees’ performance management system plays a significant role in their general performance because it enables employees to understand their contribution towards organizational goals and objectives and facilitating cordial and a harmonious relationship between employees and employers (Mone & London, 2010).
Performance management came into existence at around 60 years ago as a source of justifying income as the employers used it in determining the wage of employees basing on their performance. Consequently, the intentions of employers who applied this system were to drive the employees’ behavior in order to obtain specific outcomes. As a result, the system was beneficial for different employees, who got the motivation of financial rewards. On the contrary, the system failed in organizations that had employees driven by learning as well as the development of their skills. This made the justification of pay and development of skills and knowledge to affect the application of performance management in organizations in a negative manner (Luecke, Hall & Harvard University, 2006).
Outcomes from employees’ performance management
Remarkably, in the contemporary society, good implementation of employees’ performance management with the collaboration of specific objectives and operational plan can increase performance outcomes. This is because employees’ performance management enhances communication by ensuring that employees and managers communicate more frequently, thus coming on the agreement regarding the changed objectives in order for it to suit continuing changes in both the conditions and priorities. Therefore, the system acts as an inclusive and collaborative process, which makes sure that all organizational employees have sufficient input so that they cannot feel that they have not been productive (Armstrong & Baron, 2005).
Additionally, a good employees’ performance management system is imperative in organizations because it improves the overall performance of an organization because it manages the performance of teams and individuals, thus attaining the organizational ambitions and goals. Organizations should consider introducing employees’ performance management because an effective system helps the employees in understanding the importance of their contribution to both the goals and objectives of an organization. Furthermore, the system makes sure that every employee in an organization understands what employers expect from them, and enables employer to assess employees in order to determine whether they possess the required skills and support. The system ensures that the organization has proper alignment and linking of objectives thus encouraging good communication throughout the organization. Finally, the system is beneficial because it facilitates a cordial and harmonious relationship between employees and the manager basing on their trust and empowerment (Kirkpatrick & Kirkpatrick, 2006).
Notably, employees’ performance management is essential because it brings about a positive influence on both job satisfaction and employee loyalty. This is possible because the system offers an open and transparent job feedback to the employees. It also ensures that there is a clear connection between the performance and compensation thus enhancing loyalty. The system further encourages ample learning and development opportunities because it encourages employees to participate in the leadership and development programs. It also evaluates the performance hence facilitating fair and equitable distribution of incentives and rewards. It also ensures that there are clear performance objectives in organizations because it gives room or open communication and joint dialogue. Finally, the system ensures that there is recognizing and rewarding of good performance as well as offering possible opportunities for career development (Mone & London, 2010).
Benefits of employees’ performance management
However, effective implementation of employees’ performance management in an organization can be beneficial to organizations, managers and employees in dissimilar ways. For example, the system can benefit the organization by improving its performance, enhancing the retention and loyalty among employees, increase the productivity, lowering the rates of communication challenges, bringing about clear accountabilities and having a cost advantages among others. Interestingly, the system can also be beneficial to organizational managers because it can act as a time saver and reduce conflicts in an organization. The managers can also be at an advantage because the system can enhance efficiency as well as consistency among employees performance. Finally, the system can be helpful to employees because it clears and clarifies the expectations of employees, offers self-assessment opportunities, encourages improved performance, job accountabilities, defines the career paths and promotes job satisfactions among others (Luecke, Hall & Harvard University, 2006).
Organizations with effective employees’ performance management are more advantageous because the system plays two significant objectives in their organizations. Initially, it evaluates the organizational objectives, which includes analyzing whether employees are ready to take up higher responsibilities in an organization. It also ensures that all employees get feedback regarding their current performances as well as areas they need to improve. The system ensures that there is a strong relationship between performance and things such as promotion, incentives, rewards and career development among others. Employees’ performance management also plays a crucial role in developing objectives in an organization. It conducts this by defining the training that employees need basing on the results of the reviews as well as the diagnosis of the individual and organizational competences. It also facilitates coaching and counseling of employees, which plays a significant role in winning employees’ confidence thus enhancing their performance, as well as encouraging good relationship between the superior and the subordinate. Consequently, this implies that organizations should consider implementing this system because it acts as an important tool in realizing the goals of a given organization thus implementing the competitive HRM strategies (Krausert, 2009).
Concurrently, employees’ performance management has different benefits to an organization. These include the fact that the system enhances business profits, because it entails increasing employee productivity and quality of work. It also improves the rate of responsibility among employees because it makes them to understand that they are accountable for all their decisions and actions. It also ensures that there is equal treatment of employees in an organization since it implements standardized procedures that encourage consistency in an organization as well as enhanced quality of work life (Houldsworth & Jirasinghe, 2006).
Conclusion
References
Armstrong, M., & Baron, A. (2005). Managing performance: Performance management in action. London: Chartered Institute of Personnel and Development.
Houldsworth, E., & Jirasinghe, D. (2006). Managing and measuring employee performance. London [u.a.: Kogan Page.
Kirkpatrick, D. L., & Kirkpatrick, D. L. (2006). Improving employee performance through appraisal and coaching. New York: American Management Association.
Krausert, A. (2009). Performance management for different employee groups: A contribution to employment systems theory. Berlin: Physica-Verlag.
Luecke, R., Hall, B. J., & Harvard University. (2006). Performance management: Measure and improve the effectiveness of your employees. Boston, Mass: Harvard Business School Press.
Mone, E. M., & London, M. (2010). Employee engagement through effective performance management: A practical guide for managers. New York: Routledge/Taylor & Francis Group.
