Performance management
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Performance management has evolved over several phases from the 1960s to the present. Originally, annual confidential reports focused on controlling employee behavior and documenting performance. Later phases introduced communicating issues to employees, allowing employee self-assessments, emphasizing targets and productivity, and developing a more collaborative process focusing on development. The objectives of performance management are to enable superior work performance, help employees perform the right tasks effectively, boost performance through motivation and rewards, promote two-way communication between supervisors and employees, identify and resolve barriers to performance, and create a basis for administrative decisions.
Performance management
- 2. Definition of Performance Management According to Armstrong and Baron (1998), Performance Management is both a strategic and an integrated approach to delivering successful results in organizations by improving the performance and developing the capabilities of teams and individuals. The term performance management gained its popularity in early 1980’s when total quality management programs received utmost importance for achievement of superior standards and quality performance
- 3. Evolution of Performance Management First Phase: The origin of performance management can be traced in the early 1960’s when the performance appraisal systems were in practice. . During this period, Annual Confidential Reports (ACR’s) was also known as Employee service Records were maintained for controlling the behaviors of the employees and these reports provided substantial information on the performance of the employees.
- 4. Evolution of Performance Management Second Phase: This phase continued from late 1960’s till early 1970’s, and the key hallmark of this phase was that whatever adverse remarks were incorporated in the performance reports were communicated to the employees so that they could take corrective actions for overcoming such deficiencies
- 5. Evolution of Performance Management Third Phase: In this phase the term ACR was replaced by performance appraisal. One of the key changes that were introduced in this stage was that the employees were permitted to describe their accomplishments in the confidential performance reports, several new components were considered by many organizations which could measure the productivity and performance of an employee in quantifiable terms such as targets achieved, etc.
- 6. Evolution of Performance Management Fourth Phase: This phase started in mid 1970’s and its origin was in India as great business tycoons like Larsen & Toubro, followed by State Bank of India .
- 7. The system focused on performance planning, review and development of an employee by following a methodical approach. In the entire process, the appraise (employee) and the reporting officer mutually decided upon the key result areas in the beginning of a year and reviewed it after every six months. In the review period various issues such as factors affecting the performance, training needs of an employee, newer targets and also the ratings were discussed with the appraisee in a collaborative environment. This phase was a welcoming change in the area of performance management and many organizations introduced a new HR department for taking care of the developmental issues of the organization.
- 8. Fifth Phase: This phase was characterized by maturity in approach of handling people’s issues. It was more performance driven and emphasis on development, planning and improvement. Utmost importance was given to culture building, team appraisals and quality circles were established for assessing the improvement in the overall employee productivity The performance management system is still evolving and in the near future one may expect a far more objective and a transparent system
- 9. OBJECTIVES OF PERFORMANCE MANAGEMENT To enable the employees towards achievement of superior standards of work performance. To help the employees in identifying the knowledge and skills required for performing the job efficiently as this would drive their focus towards performing the right task in the right way. Boosting the performance of the employees by encouraging employee empowerment, motivation and implementation of an effective reward mechanism.
- 10. Promoting a two way system of communication between the supervisors and the employees for providing a regular and a transparent feedback for improving employee performance and continuous coaching. Identifying the barriers to effective performance and resolving those barriers through constant monitoring, coaching and development interventions. Creating a basis for several administrative decisions strategic planning, succession planning, promotions and performance based payment
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