Lesson 4 performance management

Editor's Notes

• #13: The performance management process involves all levels in an organization. Strategic goals set by the organization filter through the organization and affect the goals and activities of each employee. In addition, the performance management process gathers and updates current employee data to maintain the human resource information system (HRIS). The HRIS contains a skill bank of employee information that enables the HR department to determine if the organization has the right mix of skills and people to achieve the organization’s goals in an ever-changing world. This information is used in all areas of HR decision-making. Effective performance management requires ongoing communication between supervisors and staff. The assessment and review part of the process provides the opportunity for documentation and formal communication. It’s the time for the supervisor and the employee to set developmental goals that reinforce the organization’s strategic plan and, if there are areas of problem performance, action plans for improvement. There should be discussion of the employee’s career progress and plans made for training and long-term career growth. Many supervisors see the appraisal process as a motivation tool to improve employee performance.   The employee’s main objective is to obtain feedback from the supervisor on his or her work performance. Ideally, employees receive feedback at all times and not just through the review process. The employee will also expect organizational support in his or her career growth. Together, the employee and the supervisor should identify areas for improvement and set goals for training and skill development. Anything the supervisor can do to enhance the employee’s skills will benefit both the employee and the organization. If the organization links performance appraisal to compensation, most employees will expect a raise as a result of a positive review. Though supervisors generally conduct the review, they may not have a say in the amount of compensation awarded because compensation is normally determined by organizational policy. This can be particularly problematic for supervisors who want to motivate employees through the appraisal process but find the organization’s compensation to be a de-motivator when increases are not as much as employees would like. For this reason, many supervisors prefer that compensation increases are not linked to the performance appraisal process.
• #22: This is a good place to ask students to discuss whether employees should do self-appraisals. Ask if any of them have done a self-appraisal where they work and if so, ask them to discuss their experiences. Performance management requires that managers and the employees take responsibility to evaluate the extent to which desired behaviors have been demonstrated and whether the desired results have been achieved. In the past, the performance appraisal was simply a process of the supervisor passing judgment on the employee’s work and then presenting the judgment to the employee--much like a courtroom judge rendering a verdict and a sentence. This was not a satisfying process for either the employee or the manager. Adding employee self-ratings to the process can help identify discrepancies between the views of the manager and the employee and can often point out areas for development opportunities. Some believe the review process can be significantly improved by employee participation throughout the process. There are a number of reasons why employee participation is valuable. 1. Who knows the job better than the employee? Employees possess relevant and unique insight into the job performance that may not be observable by even the most astute evaluator. 2. Appraisal participation gives employees input into the process, making them more confident in the fairness of the process and more likely to accept performance ratings, even adverse ones. 3. Employee participation generates an atmosphere of cooperation and employee support that may reduce tension for all involved. 4. Participation gives employees ownership of the process and a stake in the system. It is a key element in intrinsic motivation that increases employee growth and development (Roberts, 2003). There are some drawbacks to the self-evaluation process. “Research indicates the self-appraisal has great appeal for managers who are primarily concerned with employee participation and development, but self-appraisal appears less useful as an evaluative tool or for compensation purposes.” (Campbell, 1988). Sources: Roberts, G. E. (Spring, 2003). Employee performance appraisal system participation: A technique that works. Public Personnel Management. Campbell, D. J. and Lee, C. (April 13, 1988). Self-appraisal in performance evaluation: Development versus evaluation. Academy of Management Review, 302-314.