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Abstract
In the competitive scenario of today, the success of different organizations will depend a lot on the manager-employee relationship. One essential component of a successful relationship between the employee and his manager is the performance management. The aim of the paper is to evaluate as to how performance management an important aspect in employment relations. An increasing number of companies are fast realizing the importance of this aspect and are training their managers to build this essential connection. The paper explores the relationship between performance management and employee relations.
Introduction
Strong employee relations are not built in a day, but require continual effort in the establishment of an environment that is full of trust and confidence. The employees need to feel valued and recognized for their efforts and contribution towards the organization. There are no precise strategies or methodologies to worn on Employee Relations. The commitment of the worker towards his organization plays an essential role in determining the success of the organization. The high commitment performance management increases the level of commitment.
What is performance management? Before learning how performance management can play an important role in employment relations, it is essential to understand what performance management is. The performance of every employee can be a complex mix of knowledge, ability and efforts. The aim of Performance management (Isaac, 2014) is to evaluate his abilities and maximize his performance that aligns well with the aims and objectives of the organization. Thus, it makes good sense to create a performance management culture in the company and gain a competitive advantage.
Performance management is not a one-time evaluation, but a continuous cycle that starts with the recruitment of an employee and set performance criteria for him. Regular monitoring and assessment, getting feedback and taking timely action with the right planning go a long way in the strong management of the performance of an employee. Certain learning and development activities are designed for the employee so as to encourage him and keep him motivated towards the goals of the organization. The aim here is to keep the employee involved, make him feel important and recognize his worth.
The aim of performance management cover individual and team effort to work towards the goals and objectives of the company. It is essential to generate a shared vision of the organization and give a strategic direction to the workers. Performance expectations, standards and achievements should be discussed openly in a transparent atmosphere. The employees get an individual mechanism to follow and feel confident when working for the company.
A strategic planning approach is required to develop an emphasis on performance management and one good means is to make use of incentives (Karolus& Peter, 2007). More precise monitoring and reporting systems need to be put in place to specify the nature of performance required. The roles of funder, purchaser and provider need to be segregated along with an optimum decentralization of management decision, especially in the human resources management department. The employment relationship is one of the key social institutions in a capitalist society and can have a wide range of impact on economic issues.
Organizations and business performance are direly linked to the development of social capital, and these aspects will further lead to macroeconomic considerations such as wages and employment. There are special agencies that deal with recruitment, selection and development of the employee. There are other institutions that deal with performance management. Individual performance will set the grounds for appraisal and target setting, the level of wages and payment system.
Many employees complain that they have fewer preferences than they used to because of the nature of the targets built into performance management systems. There are many varieties of capitalism and the interplay between external market, and internal performance issues are only getting more complex. There is a need for larger flexibility and high performance working links between globalization, when looking at employment relations. Indeed there are many new challenges surfacing for the workforce as well as the organizations. One of those is unraveling the links between practice and performance. There is no doubt that employment relations are crucial in the eyes of policy makers and practitioners. There is a stronger need to understand the complexity of the relationships between practice and performance.
The role of the immediate manager is to lay out clear expectations for the performance of the employee. The manager should follow a highly individualized approach and regularly revise the performance of the employees working with him. After all, one has to keep pace with the rapidly changing environment and address the needs of the organization.. Consequently, in an attempt to predict employees’ commitment and measure his performance, the employment relationship gains a stronger foothold.
There is a great deal of proof that employees and managers do not agree on the employee performance often. However, these perspectives are only to be expected and raise a fundamental question as to whether the employee and the organization agents have a good understanding of the relationship. The sluggish economic performance in recent years and a slowdown in productivity growth have drawn more attention to the role of performance management in employment relations. This is ushering in a new era of experimentation with different agreements and participation programs. The aim is to improve employment relations and organizational effectiveness with a new emphasis within management. Organizations and companies are critically examining their prevailing practices so as to support the planning, and evaluation processes relating to the systematical collection of performance data and analyze employment relations.
It is recognized now that not all of the goals of the workers and the organization can be compatible. The employment relationship carries a mixed motive nature as some goals are shared, and others are not. Some goals can be realized with problem-solving methods and integrative solutions. Others will need tradeoff decisions via tough bargaining. The performance level among the employees is influenced by the fact that how effective is the management in solving the conflict in the employment relationship. The commitment and motivation of individual workers and work groups, as well as practices governing the use of human resources, play an important role in explaining the observed relationships observed between measures of employment relations and performance. It has been noticed that there are fewer resources available to improve productivity with the help of problem-solving communications. Efforts need to be made directly or through improvements in employment relations that will further lead to improvements in the quality of jobs and job satisfaction. This would mean improved economic performance for the firm.
An effective performance management contributes positively to the company by improving communication and employment relationships. The efforts of individual and team align well with the goals and objectives of the organization, and this contributes positively to the work environment. One is able to identify areas for improvement and help maintain high levels of performance by empowering employees.
Conclusion
A great deal has been written on the employment relationship and the growing changes in employee-organization relationships. When taking a broader view of the employment relationships, it has been found that the employees are directly impacted by the conditions at the workplace and any change in the managerial actions. While some changed circumstances may prove to have positive effects, not all changes are welcomed. The working culture of an organization should promote performance management among the employees and favor transparency. Communication and messages should be consistent and clear. In recent years, the diversity of work experience and performance management (Shore & Coyle-Shapiro, 2007) are fast ganging importance. There is a building need to assess the performance of employees at the workplace, and implement well-designed strategies that can help improve their performance. The companies and unions have been experimenting with new strategies to improve their relationships. Succession planning improves the effectiveness of workplace, its systems and procedures and the type of performance management system used depends on the kind of industry.
References
Isaac Chaneta 2014, "PERFORMANCE MANAGEMENT", International Journal of Management, IT and Engineering, vol. 4, no. 2, pp. 277.
Karolus Kraan & Peter Oeij 2007, "Do New Production Concepts and a new Management of Employment Relations, yield higher Employee Performance and lower Job Strain?", Interventions Économiques, .
Shore, L.M. & Coyle-Shapiro, J.A.-. 2007, "The employee-organization relationship: where do we go from here?", Human resource management review, vol. 17, no. 2, pp. 166-179.