Dessler, D. (2009) defined performance management as a process employers use to ensure employees are working towards organization goals. (p. 191). My company’s performance management is a formal process that begins with planning, feedback, development and links performance with pay.
Planning: Helps employee to understand what is expected of them.
Feedback: Employee will understand how they are doing
Development: Employees will learn ways to improve their performance
Link between performance and pay: Employees will understand how their performance affects
The process allows ...view middle of the document...
It gives the employee an opportunity to discuss and implement training and development needs with management. It helps reinforces employee behavior with business goals and promotes accountability and the value of team work. Due to the joint effort of managers and employees in creating goals and objectives, performance management strengthens the leader/employee relationship and promotes consistent treatment and development of employees regardless of race, color, age, culture.
Performance appraisal assess employees performance and provides feedback to improve job performance ( Peretz, H., & Fried, Y. (2008)). My company’s performance appraisal starts with a performance process cycle which begins during the first quarter of each year. The cycle is a three phase process similar to Kinicki, A., & Kreitner, R. (2009) steps to follow when implementing a goal setting program (p. 186). It starts with setting expectation, performance to expectation, and assessment &development review. England described this type of technique as “Management by Objective (MBO)” in which both employees and managers jointly set objectives and the performance evaluation is based on the achievement of meeting the goals (Engalnd, R., & Pane, W. (1987))
Set expectations: This is when employees meet with their managers to sets their goals and objectives. Goals and Objectives are set using the SMART method identified by Dessler, D. (2009) (p. 194). The goals and objectives must be specific, measurable, attainable, relevant, and timely (Kinicki, A., & Kreitner, R. (2009) p. 191).
Performance to expectation: Throughout the year, employees and their managers will continue to work together in achieving the goals and objectives set in the beginning of the year. They will continue to discuss about performance relative to objectives, development activities, career interests, and training needed to meet the goals.
Assessment and Development Review: This is the yearly review when employees will meet with their managers to discuss their performance through the year. The performance review identifies strengths of the employee and identifies areas needed for improvement. Employees will receive open and direct feedback on their performance and will discuss development planning for the following year. The yearly performance will be reviewed and graded based performance ratings. The performance ratings determine the employee’s compensation.
The goal in creating the performance ratings was to ensure an appropriateness differentiation among categories that accurately reflect each employee’s contribution. Due to the current MBO method, rating is solely based on job performance with no consideration for behavioral and communication performance. The company’s performance rating system can be divided into five categories:
Exceptional: Possesses a unique set of abilities that lead to superior results. ...