â€œIf you canâ€™t measure it, you canâ€™t manage itâ€
Big companies always want to keep a high level of performance to make sure everything is done timely and efficiently. Performance management comes into place to assure that would happen; by introducing a bundle of techniques that would give good outputs, profits and results.
WD Scott is known to have come up with the first performance appraisal back at World War I. (University of Leicester) Performance management as a whole originated in1960s. Back then, records of employees were kept but the employees didnâ€™t know about it. During the late 1960s and early 1970s, some parts ...view middle of the document...
Clear and definite targets should be set and adequate measurements should be put into place.
Second step is monitoring, as you canâ€™t know what is happening unless you keep an eye on everything. This is where the â€œcoachingâ€ process comes in which is where managers guide and aid the employees. Then you review everything, summarize all results and give feedback. Final step is rewarding, where you reward good performance and construct mediocre performance.
A good performance management system must be job specific, reflective of the organizationâ€™s strategies, easy to comprehend and put into action, specific about what is expected from employees, monitored all along to provide feedback(positive or constructive) and full of remedies for any under-performed aspects.
Main reasons why PM fails sometimes is due to inefficient integration, problems with design, top management not backing it up, incorrect implementing, an insufficient rewarding system, problems with communication or monitoring. (Saravanja, 2011)
Mainly performance management revolves around employee as previously mentioned, and there are many theories that support that. Maslowâ€™s hierarchy divides peopleâ€™s needs into set of needs as a hierarchy (Maslow, 1934), consisting of: Physiological needs, Safety needs, social needs, Self-esteem, Self-actualization. Self-esteem relates to performance management because it provides managers many methods which can help them increase employee satisfaction (besides money) thus motivating them to performing better. Self-actualization relates because managers want their employees feel good about themselves and their achievements thus perform better.
Safety needs relates because when you provide employees with medical benefits, they feel safe about their jobs and themselves and that feeling of security makes them perform better. (Hamlett, n.d.)
It is also included in Frederick Taylorâ€™s four principles of scientific management which are Four Principles of Scientific Management where it says that you should assign workers to jobs they would excel at, not just any job, to increase motivation and efficiency. In addition, you should monitor performance and give instructions about what should be done. (Taylor, 1911)
The motivation- hygiene concept (Herzberg, 1964) discusses that certain motivators and hygiene factors are important and should be implemented to achieve better employee performance.
There are two theories that define the concept of performance management (Salaman et al, 2005): The goal-setting theory and the Expectancy theory. Goal-setting theory was first brought up by Edwin Locke in 1968 and it suggests that the goals an employee put for themselves have a significant impact on their motivation for better performance. Expectancy theory was discusses by Victor Vroom in 1964. It says that employees change their behavior based on what satisfaction they think theyâ€™ll get from the previously-set goals.
A recent survey (Oberoi,...