Effective peerfomance mangemant

Effective peerfomance mangemant

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  EFFECTIVE PERFORMANCE MANAGEMENT Performanceis your reality, forget everything else. It is an immutable law in business that words are words, explanations are explanations, promises are promises—but only performance is reality. Harold S. Geneen 1910-1997, Communications executive1 Abstract The paper seeks to show that Effective Performance Management has become the core of Human Resources and is revitalizing, reenergizing and rejuvenating HR. The challenges faced by the present day organization are broadly discussed under the effectiveness of its performance management systems, which ultimately acts as a catalyst for employee engagements and their effective performance. This paper explores through its findings a new performance management system for improving overall organizational performance in general, through inventing new dimension for effective individual performances in specific. A framework is developed for the implementation of effective performance management in any organization. This paper is explicitly directed towards various parameters for energising human resources and serves interesting food for thought for the future managers dealing with performance management. Introduction Performance management, as pertaining to human resource management (HRM), is the process of delivering sustained success to organizations’ by improving capabilities of individuals and teams. It supports the philosophical principle that people and not capital provide organizations’ with a competitive advantage. However, performance management presents severe challenges in terms of practical implementation. Previous studies have largely failed to overcome many of the organizational constraints on its successful implementation. Overcoming barriers to change is especially important given their close relationship to the fulfilment of the psychological contract2 and related HRM systems (reward, development, etc.). The psychological contract construct consists of the existence of a “soft” set of expectations held by the employee, which have to be organized and managed. Within the relationship defined by these constructs, the employer and the employee inform, negotiate, monitor and then re-negotiate (or exit) the employment relationship. Thus, if the employee feels that a performance management approach breaches or violates their psychological contract expectations this can lead to an irrevocable breakdown in the employment relationship. Careful implementation
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  of performance toolsis therefore crucial to their success as contributors to organizational development. Performance Management as a core of HR Performance appraisals, performance reviews, appraisal forms; whatever we want to call them, let’s call them gone.3 As a standalone, a performance appraisal is universally disliked, after all how many people in any organization want to hear that they were less than perfect last year or how many managers want to face the argument and diminish morale that can result from the performance appraisal process. If the true goal of the performance appraisal is employee development and organizational improvement, we consider moving to effective performance management system. There has been a paradigm shift in the focus of HR from the early days where craftspeople organized guilds using unity to improve working conditions. Companies in today’s era focus on performance of employees which in turn helps the organization’s performance. No doubt that effective performance management has become a core of HR. Performance management to support organizational change The ultimate competitive asset of any organization is its people, thus organizations should develop employee competencies in a manner aligned with the organization’s business goals. This can be achieved through performance management systems, which act as both behavioural change tool and enabler of performance management system improved organizational performance through being instrumental in driving change. This can then be institutionalized through organizational policies, systems and structures. Performance management aims to emphasize and encourage desired and valued behaviours, thus is a key tool of communication and motivation within organizations seeking a competitive edge through strategic change and control. A visionary performance management then becomes a system for translating organizational intention and ambition into action and results, delivering a strategic goal, such as behavioural change. The system also brings focus to organisational change and development, particularly regarding competencies. When competency profiles support company goals, they become instrumental in developing the human resources necessary to deliver business goals. As a result, performance management system is an important tool for communicating priorities and for providing feedback to stimulate employees to meet the new expectations.