MGMT7063 Performance Management

Introduction 

This assignment is focuses on the relationship between organisational success, performance management and motivation. The relationship between performance management and reward will also be described. The focus will also be provided over reward management and effective performance. At the end, a reflective review will also be given.

Performance management and its relationship with business objectives and organisational success

Performance management can be defined as a process which ensure about a certain level of performance given by the employees of the organisation. It is directly connected with the business objectives and the success of the organisation. If the employees of the company will perform up-to a significant level, it will surely help them in achieving organisational goals (Chaddha, et al., 2021).

If the employees will not work effectively, the business of the organisation will adversly affected. Poor performance may also hinder the success of the company whereas effective performance results in achieving growth in business along with customer satisfaction. At the other hand, if the effective performance will result in achieving hike in sales and customer satisfaction which results in improving the brand image of the organisation (Govender & Bussin, 2020).

The long-term success and growth of the organisation is depending upon the productivity of the employees. If the employees are providing good quality of services with sufficient productivity, it will result in enhancing the business of the organisation. Quality services and products helps in attracting maximum number of clients which ultimately results in the success of the organisation (Chaddha, et al., 2021).

The key components of performance management system 

The process of performance management is consisting of planning, monitoring, developing, rating and rewarding to the employees so that the management can ensure for getting better results from the side of employees (Gruman & Saks , 2011).

Planning is associated with plan all the activities of performance management system like monitoring the performance of the employees, developing their performance, providing rating to their work and at the end, providing rewards to them (Mansoori , 2020).

The whole performance management system is works for achieving particular targets which are linked with the success of the organisation. The major targets and components of the performance management system are as follows:

• Accuracy

The target of performance management system is to achieve accuracy in the work of the employees. Achieving accuracy in the performance of the employees will results in achieving long term success of the company because it is directly connected with the customer’s satisfaction (Gruman & Saks , 2011).

• Efficiency

The target of performance management system is to enhance the efficiency of the work of the employees so that they can achieve an effective performance (Mansoori , 2020).

• Output/ productivity

The performance management system is totally focusing on enhancing the output and productivity of the employees (Mansoori , 2020).

• Involvement of management

The degree by which the management of the organisation is involved with the performance management system leads towards successful implementation of performance management system (Gruman & Saks , 2011).

Connection between performance management process and staff motivation 

If the performance management process is well executed in the organisation, it will result in enhanced level of motivation of the employees. All the employees of the organisation will feel motivated when their performance level will be enhanced (Mello & Thabayapelo , 2021).

In performance management process, the managers of the organisation not only help the employees in achieving better performance but also it results in enhancing the confidence and motivation among the employees. If required, training will also be given to the employees so that they can acquire necessary skills which helps them in enhancing the level of their performance (Mello & Thabayapelo , 2021).

Motivation also results in improved performance of the employees. If the employees are well motivated towards their work, they will contribute in the success of the organisation. The leaders of the organisation have to motivate their employees so that they can improve their performance. Providing rewards to the employees are also make them motivated towards constantly giving better performance (Mello & Thabayapelo , 2021).

It can be said that effective performance management leads towards motivating the staff members. It also helps in achieving the objectives of the organisation (Berdicchia, et al., 2021).

Purpose of reward within a performance management system 

Reward motivates the employees regarding contributing towards the growth of the organisation while giving their full efforts. Reward enhances the motivation level of the employees. It also provides him job satisfaction (Myint & War, 2021).

If the employees are satisfied with the management, they will perform in more effective manner. Reward also motivates the employees in achieving consistence in their performance. It can be said that giving rewards within performance management system helps in improving the performance of the employees by motivating them. It also helps in making the employees happy and more engaged with the organisation. It increases the retention rate of the employees inside the company (Myint & War, 2021).  

Components of an effective reward system 

• Compensation: Compensation is the major components of a reward system. Usually, salaries, compensations and benefits are provided to the employees as a reward(Mojahed, 2020). This is the primary factor which is connected with reward system. All the organisations are providing compensations, salaries, bonuses and other benefits to their employees on the basis of their performance. It not only makes the employees financially string but also it helps in motivating the employees (Mojahed, 2020).
• Benefits: Other benefits like fringe benefits, perks, incentives and other additional benefits will be given to the employees so that they can become motivated towards the growth of the organisation(Mojahed, 2020). Monetary and non-monetary, both types of benefits have been provided to the employees in order to improve their performance (Mojahed, 2020).
• Performance recognitions: The employees are also given many other awards and benefits so that their performance can be recognised and maintained(Mojahed, 2020). This method is essential for boosting the confidence of the employees. If the good performance of the employees will be recognised by the company, it will be very good for boosting the performance of the employees (Mojahed, 2020).
• Career development: A proper career development techniques are used so that employees can develop their career inside the organisation. Trainings and other development programs have been launched by organisation so that they can develop their career(Mojahed, 2020).
   

Five factors of managing the performance 

There are many factors exist which manage the performance of the employees. Major five factors are as follows:

Establishing SMART goals for organisation 

If the mangers of the organisation already set the smart goals for the organisation, it will help in understanding the job duties for the employees. Unclear goals not only make the employees confused but also it downgrades the performance of the employees. It can be said that establishing SMART goals always helps in improving the performance of the employees (Bartender, 2017).

Measuring and tracking the performance of the employees 

If the performance of the employees is tracked on a regular basis, it will help them in improving their performance. The pitfalls and negative factors of the performance of the employees results in providing better results (Soft, 2021).

Regular tracking of performance is also beneficial for the growth of the employees because if the employees are doing any mistake, they can be guided by their seniors at a regular level. This factor can improve the performance of the employees at a significant level because it improves the performance of the employees at a regular basis (Soft, 2021).

Employee engagement 

The organisation needs to develop effective techqniues to enhance the engagement level of the employees. The company should make effective programs and effective leadership styles which helps the employees by making them feel valued (Soft, 2021). Employee engagement require a lot of efforts by the management like organising some activities for the benefits of the employees, implementing some programs, training sessions and many other factors leads towards engaging the employees for improving the performance of the candidates (Soft, 2021).

Reward system 

Proper rewards results in boosting the confidence level of the employees and it also enhances their motivation level. Distributing rewards provide job satisfaction to the employees which ultimately results in better performance of the employees (Bartender, 2017).

Rewards pushes the employees in giving their best efforts towards the growth and development of the organisation. Excellent performance given by the employees also enhances the customer satisfaction level. It can be said that reward system is very beneficial for the business of the organisation (Bartender, 2017).

Appraisals

Regular appraisal increases the retention rate of the employees. It also enhances the motivation level which ultimately results in improved performance of the employees (Soft, 2021). Appraisal is necessary to be given to the employees so that they can feel motivated and happy with their jobs.

Data required by individuals that are involved in the performance and reward management process  

• Total amount of work done by the individual is need to be represented for analysing and managing the performance of the employees(Kvirikashvili, 2021).
• Feedback of the managers and the colleagues of the employees also received so that the performance of the employee can be managed(Kvirikashvili, 2021).
• Feedbacks and ratings provided by the customers also helps in giving rewards to the employees after analysing his total performance(Kvirikashvili, 2021).
• The quality parameters of the performance of the employees also count in managing the performance of the employees(Kvirikashvili, 2021).

The above stated individual data is required to assess the performance of the employees. It is essential to assess the performance in an effective manner so that the reward can be distributed to the right persons. It can be said that collecting accurate data helps in measuring the performance of the employees (Kvirikashvili, 2021).

Frequency, purpose and process of performance reviews  

• The performance of the employees should review after every month. Review of monthly performance is necessary to identify the cons in the work done by the employees. The leaders of the organisation can guide the employees towards enhancing their level of performance by reviewing their performance after every month(Connelly, et al., 2018).
• The purpose of the performance review is to enhance the quantity and quality of the production made by the employees. The objective of the performance reviews helps is to achieve the long-term objectives of the organisation by improving the performance of the employees(Connelly, et al., 2018).
• The process of the performance review is consisting of planning, analysing and providing feedback to the employees. In planning process, the complete planning of performance review will be done. In analysing process, the data which is provided by the employees will be analysed and synthesised. In the end, review will be given to the employees so that they can boost the level of their performance(Connelly, et al., 2018).

Reflective review

I have taken a performance review meeting of my sub-ordinates before two days. I analysed by strength and weaknesses by reviewing my meeting so that I can improve my skills along with improving my leadership style.

I realised that I am using very effective communication skills which makes it easy to interact with the employees. I know, how to make my subordinates comfortable and friendly. I feel that if the employees will feel comfortable, it will also help me in letting them understand about their pitfalls.

I am also good at analysing the data. First of all, I gathered all the raw individual data and then analysed it so that I can find the negative and positive factors of the performance of my sub-ordinates. I feel that I have a good technical skill which is essential for assessing the performance of the candidates. I am impartial at reviewing the performance of my subordinates.

Later on, I feel that I should develop problem solving skills in myself so that I can suggest more alternatives to the subordinates in order to solve their problems. Actually, in my career, I find that every employee is unique. Solving the problems of the different employees need a very good problem-solving skills which is necessary for improving the performance of the sub-ordinates.

I also realsied that I should also work upon enhancing my intelligence level so that I can understand the perception and mind-set of another person. Most of the persons have different perception regarding the problems which they face during their work. If, I will be able to handle the problems of the employees in an effective manner, I will have to understand the psychology of other persons. It can be said that I need to develop my intelligence level which helps in improving the performance of the employees.

After taking the performance review meeting, I feel that if the employees are guided by some specialised persons, it will surely help them in solving their problems. I feel that I should work upon my weak points so that I can more effectively help the employees.

I also feel that some employees are good at improving themselves whereas some are not very effective. I should make plans and strategies for both types of employees so that I can help them in improving their performance.

Conclusion 

On the basis of above analysis, it can be concluded that managing the performance of the employees need a lot of efforts. An effective performance management system and a reward system is required for perfectly managing the performance of the employees. The organisational success, performance management and motivation are interlinked.

It is very clearly concluded that performance management plays a very important role in achieving long term success of the company. The organisational success is depending upon performance management of the human resources of the company.

References 

Bartender, H., 2017. 5 Key Components of Any Successful Performance Management Process. [Online]
Available at: https://www.hrbartender.com/2017/employee-engagement/5-components-performance-management/
[Accessed 15 May 2021].

Berdicchia, D., Bracci, E. & Masino, G., 2021. Performance management systems promote job crafting: the role of employees' motivation. Personnel Review.

Chaddha, M., Khalique, F. & Parimoo, D., 2021. Human Capital Management and Organisational Performance: A Literature Survey. [Online]
Available at:

https://www.researchgate.net/profile/Fehmina-
[Accessed 14 May 2021].

Connelly, M., Inui, T. & Oken, E., 2018. Annual Performance Reviews Of, For and By Faculty: A Qualitative Analysis of One Department's Experiences. The journal of faculty development , 32(2), pp. 1-5.

Govender, M. & Bussin, M., 2020. Performance management and employee engagement: A South African perspective. Journal of Human Resource Management, 18(1), pp. 1-19.

Gruman, J. & Saks , . A., 2011. Performance management and employee engagement. Human resource management review, 21(2), pp. 123-136.

Kvirikashvili, T., 2021. Organizational Triggers in Relation with Performance Indicators for Service Employees. [Online]
Available at: http://rais.education/wp-content/uploads/2021/03/0045.pdf
[Accessed 15 May 2021].

Mansoori , H., 2020. Identification of Factors and Components Affecting Performance Management System at Governmental Organizations. The Journal of Productivity Management, 14(2), pp. 97-118.

Mello, D. & Thabayapelo , K., 2021. Impact of performance management and development system on employee motivation at Mahikeng local municipality. Performance Management, 7(1), pp. 59-73.

Mojahed, N. A., 2020. How Does a Total Reward System Influence Employee Motivation Among Executive Management? An Analysis of the UAE Real Estate Industry. Human Capital in the Middle East, pp. 149-175.

Myint, O. & War, . D., 2021. Online]
Available at: https://seajbel.com/wp-content/uploads/2021/02/SEAJBEL23-519.pdf
[Accessed 14 May 2021].

Soft, S., 2021. 5 Key Factors of an Effective Performance Management System. [Online]
Available at: https://www.sutisoft.com/blog/5-key-factors-of-an-effective-performance-management-system/
[Accessed 15 May 2021].

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