Performance Management Process: Benefits, Significance & Implementation

Concept of Performance Management Process

Question:

Case study on "Dolphin Logistics Company".
 

The paper focuses on the case of Dolphin Logistics Company that is aiming to enter into two new foreign markets like Singapore and Hong Kong. The logistics company is observed to focus in entering the new markets by 2018. The paper reflects the perspective undertaken by a HR consultant appointed by the management of Dolphin Logistics Company to introduce a performance management system in the business institution. The HR consultant is required to formulate the performance management system in a manner as to help in enhancing the productivity and efficiency of the subordinates and managers in the business institution.

The paper in this regard would effectively focus on highlighting the concept of performance management process while also in reflecting on the benefits and significance of the same before formulating an ideal performance management system needed for Dolphin Logistics Company. 

Performance management is identified as a critical process undertaken by the human resources department of a business institution that focuses on evaluating the performance generated by the employees along the different departments in contributing the organisational, business and customer servicing objectives. The performance management process is identified as a holistic process that as a whole encompasses different activities like learning and development, performance evaluation and measurement and also focusing on organisational development. Further, performance management also highlights to an important activity that contributes in effective management of employees, staffs and teams such that the same helps in enhancing the performance and productivity elements of the business institution. Performance management activities are attributed to be strategic and integrated in nature (CIPD, 2016).

Performance management activities from the strategic viewpoint aptly contribute in addressing the long-term objectives and also the broader organisational issues. From the viewpoint of integration, performance management activities are conducted through integrating the functions of the different organisational departments, different levels of management and people and teams associated with the various departments and units in a firm (Chew, 2012 ). Further, the performance management activities carried out in a business organisation are carried out along three main aspects like improvement of the performances and potentials of individuals and teams, focusing on manpower development and also management of behaviour between different individuals in teams and along different organisational levels (CIPD, 2016).

Performance management is also identified as a process of carrying out communication activities between two different organisational levels consisting of the supervisory or the management level and the subordinate or staff levels operating in a business institution. The communication activities between the two organisational levels are carried out throughout the annual period for helping in the meeting of business and strategic objectives of the firm (Pulakos, 2009). Communication objectives between the supervisory and subordinate levels are carried out for clarification of the business and organisational expectations, setting of business, strategic and customer servicing objectives, identification of business and organisational goals, generation of needed feedback from the higher managerial level to the subordinates and finally the reviewing of the results generated by the employees and managers across different levels and departments (UC Berkeley, 2016).

Strategic and Integrated Nature of Performance Management Activities

The Performance Management Process divided along the different steps is reflected in the following illustration.

(Cardy & Leonard, 2014)

The above model is elucidated as follows. The performance management process is ideally carried out in a seamless fashion along the different sub-parts identified above. Breaking down the performance management process along the different sub-parts contributes in effective diagnosis of the problems or issues pertaining to the different aspects. The same helps in effective management of the problems relating to the different aspects in that it contributes in making the performance management process productive and efficient in nature (Momba, 2014).

The performance management process is initiated based on the performances or outcomes generated by the staffs and managers along different levels and departments. It also indicates on the behavioural aspects that encourage the individual employees and managers to generate needed performances. The understanding of the behavioural aspects that encourage the individual workers to generate needed performances contribute in determining the different types of financial and non-financial incentives that are needed to enhance the productivity and performance levels of the staffs and workers (Rolstadas, 2012).

The performance part of the performance management process is followed by diagnosis. Diagnosis related activities are conducted based on the use of observation and also the analysis of the cause-effect relationship. Observations are conducted by the organisational managers to effectively diagnose the problems or issues concerning the workers and staffs in the firm. The analysis of the different causes contributes in identification of the different factors or symptoms that contribute in generation of the stated effects (Marr & Gray, 2012).

The third stage of the performance management process is identified as evaluation. Effective evaluation focuses on identification of the different attributes that contribute in the development of diverse causes for generating the needed performances. Evaluation of the performances generated by individuals and teams are required to be conducted in an effective and unbiased fashion in that the same contributes in enhancing the level of trust of the internal people on the company management. The evaluation of the behaviours and outcomes for individual employees and teams need to be rightly conducted so that needed feedback can be generated to the significant stakeholders (Osman, 2013).

The evaluation stage is followed by the feedback stage where the evaluations made by the managers, customers and peers of the different employees and employee groups are transmitted over to the internal people. The feedback needs to be effectively transmitted to the staffs such that they can work on such for generating greater performances and productivity in the future (Ashdown, 2014).

The next essential stage in the performance management process model is identified as dealing with feedback where the feedback gained from the different parties like managers, customers and peers is used by the persons evaluated for bringing about needed changes. This stage is coupled with needed reactions that are generated based on studying the feedbacks rendered by the different parties (Osman, 2013).

The stage following the feedback model reflects on the manner the employees and subordinates focus on improvement of performances through setting of new goals and expectations. The identification of new goals and expectations is also coupled with the reduction of existing barriers and obstacles that in turn impede the performances of the people in the business institution. The final stage of the performance management process triggers the generation of new performances in the course of time (Mone & London, 2014).

Communication Objectives of Performance Management

The significance or importance of the performance management process is potentially underlined in the following points.

-The performance management process contributes in helping subordinates and managers whether performing in an individual or team setting understand the different types of role expectations. The understanding of their roles and expectations from them helps individuals in judging their place in the organisation and also the performances required of them to ideally contribute in meeting of business and organisational objectives. Thus goal setting identified with performance management is considered as an important activity on the part of the internal people of a firm (Marr & Gray, 2012).

-Performance management process as a whole potentially helps in reflecting on the shortfalls both from an individual or group point of view for the members involved along the different departments and levels. The gaining of effective feedbacks based on the use of the performance management system ideally contributes in the production of training and developmental programs for different levels of individuals operating in the business institution (Mone & London, 2014). The generation of such programs are focused on enhancing the skill and expertise of the internal people to work in a more productive and efficient fashion in the firm and thereby help in meeting of business and organisational objectives in an efficient fashion. The performance management programs help in the identification of gaps in individual and group skill sets. The identification of skill sets and gaps rightly help in development of coaching and mentoring programs for enhancement of future performances and productivity (Momba, 2014).

-The performance management process conducted in an organisation also earns needed importance in that the same helps in the development and positive and negative reinforcements. Generation of positive reinforcements encourage the individuals in generation of greater performances in the future while use of negative reinforcements and coercion help in deterring the individuals from conducting of erroneous activities that affect the productivity and performance of the department and the organisation as a whole (Cardy & Leonard, 2014).

Further, the performance management process conducted in an ongoing fashion is also taken to generate other added benefits that are enumerated as follows.

-The performance management functions contribute in aligning of individual or group goals with that of the business goals. The alignment of individual and company goals thus contributes in reducing the strife and thus ideally supports in meeting the vision and mission objectives of the firm. The same thus continually helps in generation of needed productivity and profitability of the firm in a consistent fashion (Rolstadas, 2012).

-Again, the performance management functions in an organisation also contribute in developing a culture of shared accountability in the firm. The same contributes in development of a team culture where people would work in groups and focus on sharing needed information and knowledge for helping in future growth (Hessle, 2016).

-The performance management functions conducted in an effective fashion also help the company management to identify the high, moderate and low performers in an organisation. Generation of effective feedback thereby contributes in aligning of internal people with same type of potentials and skills for meeting of business and organisational objectives (Rolstadas, 2012).

Performance Management Process and its Steps

-The understanding of individual job roles and expectations in turn help in reducing the chances of role conflicts in the organisation. It would rather help to motivate the people in fulfilling the roles and responsibilities entrusted on him or her to meet the organisational objectives (Ashdown, 2014).

-Clarity of expectations makes the employees more concerned and aware of the roles and functions required of them to be conducted for the accomplishment of departmental and institutional goals. The same contributes in enhancement of ownership of individual employees regarding the fulfilling of duties and obligations of the organisation (Hessle, 2016).

-Again, the clarity of departmental and group goals further help the team leaders in assigning individual roles for the different members in each of the different groups. The same also helps in evaluating the efficiency and potency of the individual team members in fulfilling of group and departmental objectives. The same in total augments the effectiveness of the different teams and the organisation as a whole (Osman, 2013).

-The performance management practices are also evaluated to enhance the efficiency and effectiveness of the team members. The team members are thereby pursued to stretch their own capabilities and thereby would gain needed confidence for challenging their existing positions and going for something new (Rao, 2016).

-The incorporation of performance management practices would also help the individual team members’ gauge and evaluate their own potentials and expertise. The same would contribute in making the internal people aware of their shortcomings and thereby help in improving their performances in an easy and steadfast fashion (Marr & Gray, 2012). 

The performance management process is required to be effectively developed for Dolphin Logistics Company relating to its Singapore or Hong Kong operation. The performance management process can be effectively established in the logistics company based on the incorporation of the following factors underlined as follows.

Organisational managers are required to focus on effectively planning the work based on setting and defining work expectations for internal people whether operating in an individual fashion or operating in a group. Similarly, work expectations are also required to be generated for the different departments constituting a firm. After having identified the task goals for the different groups and departments the individual members are required to be effectively trained and channelized for addressing the departmental and organisational objectives in an efficient and productive fashion (Newman, 2014). The work or task planning process in the organisation is required to focus on the involvement of the different employees pertaining to different levels and departments. The involvement of the people for task and work planning requires the people in understanding the goals and objectives of the departments and the business institutions and also what is required to be conducted to meet the objectives. It also requires the understanding of the fashion based on which the tasks need to be conducted for meeting the goals identified (Rao, 2016).

The performances of the internal people pertaining to different departments and levels need to be effectively monitored based on the work or task targets. The monitoring of the performances of the employees is required to be carried out within effective periods such that potential feedbacks can be generated to them for taking of needful actions. Implementation of the feedbacks by the employees are also required to be rightly monitored and evaluated to understand whether improvements brought about by employees rightly contribute in meeting of the organisational objectives (Mone & London, 2014). The monitoring activities are required to be conducted by the supervisors and managers for the different departments. They are also required to make needed adjustments to change the unrealistic sales and revenue targets and make them realistic in nature based on aligning the targets with the potentials and skills of the people (Cardy & Leonard, 2014).

The development of the knowledge and skills of the employees in the organisation is carried out through the designing of training and knowledge development modules associated with the functional elements relating to the different departments. The performance and potential of the internal people is continually enhanced through the development of training and educational modules and also in training the people both on and off-the-job training venues (Marr & Gray, 2012). The development of training functions in a holistic fashion rightly helps in augmenting the potential of the people to gain needed confidence in addressing the changing and strategic needs of the business institution. Moreover, the training and employee development functions in the organisation needs to be further enhanced to help employees rise up to new levels and shoulder greater responsibilities. The generation of effective training and development modules also would help the people in adapting to the changes introduced in the logistics organisation (Newman, 2014).

The organisational managers are required to effectively appraise the performances of the employees pertaining to various levels and departments. The performances of the employees are required to be evaluated by the managers based on comparing the same with set standards. The gaps identified based on the same are highlighted and informed to the employees. The importance of the performance appraisal programs is enhanced based on the incorporation of the 360 Degree Performance Appraisal program that contributes in rating the performances generated by the employees based on the feedback generated by the different stakeholders like managers, customers and peers of the different employee groups (Hessle, 2016). The incorporation of the performance appraisal programs in the business institutions contributes in promoting the employees to higher organisational roles and also in generation of financial and non-financial incentives. Incorporation of such measures rightly helps in enhancing the levels of employee satisfaction and accountability in the organisation. The pay increments and promotions are rendered to the employees based on the ratings generated in the performance appraisal process (Mone & London, 2014).

Effective reward programs and practices are developed by the organisational managers through incorporation of financial and non-financial constituents. Financial rewards are generated to the employees through the generation of salary increments and also through the provision of financial incentives to the employees based on the performance outputs of the employees (WorldatWork, 2015). Similarly, non-financial rewards are generated by managers based on recognising the performances rendered by the employees based on their job roles and departments. Both positive and negative reinforcements are required to be put in place that help in encouraging and governing the actions and performances of the employees for generating needed productivity (Osman, 2013). 

Conclusions

The management body of Dolphin Logistics Company is required to design the performance management plan and process based on the above analysis. The human resources department along with the organisational managers are required firstly to identify the goals and responsibilities of the people pertaining to the various departments like operations, finance, marketing, human resources and customer services. Further, the organisational managers are also required to focus on the setting of needed work or task expectations such that the same helps in effective monitoring of the performances generated by the people based on the standards set. The middle level managers and the supervisors pertaining to the different departments are required to effectively monitor the performance of the employees and staffs based on the set standards.

Similarly, effective performance appraisal systems like the 360 Degree Performance Appraisal system needs to be put into place that focuses on appraising the performances of the employees based on the feedbacks generated by the employees, customers and the managers or supervisors. The above system helps in the generation of effective feedbacks for helping in the enhancement of the performance and productivity of the people in the organisation. The feedback of the performance appraisal programs can be effectively used by the managers of Dolphin Logistics Company in promoting employees and also in generation of salary increments. Further, effective financial and non-financial reward programs can be effectively introduced in the organisation based on generation of financial incentives and also through recognising the efforts generated by the employees along the different departments. The above activities would potentially help in increasing the productivity and efficiency of the people in Dolphin Logistics Company while also enhances the responsibility and loyalty towards the organisation. 

References

Ashdown, L., 2014. Performance Management. United States : Kogan Page Publishers.

Cardy, R. & Leonard, B., 2014. Performance Management: Concepts, Skills and Exercises. New York : Routledge.

Chew, E.K., 2012. Knowledge Driven Service Innovation and Management: IT Strategies for Business Alignment and Value Creation: IT Strategies for Business Alignment and Value Creation. United Kingdom : IGI Global.

CIPD, 2016. Performance management: an overview. 

Hessle, S., 2016. Human Rights and Social Equality: Challenges for Social Work: Social Work-Social Development, Volume 1. New York : Routledge.

Marr, B. & Gray, D., 2012. Strategic Performance Management. New York : Routledge.

Momba, J., 2014. Zambia Social Science Journal Vol. 3, No. 1 (April 2012). United Kingdom : Cambridge Scholars Publishing.

Mone, E.M. & London, M., 2014. Employee Engagement Through Effective Performance Management: A Practical Guide for Managers. New York : Routledge.

Newman, A., 2014. Business Communication: In Person, In Print, Online. United States : Cengage Learning.

Osman, I.H., 2013. Handbook of Research on Strategic Performance Management and Measurement Using Data Envelopment Analysis. United Kingdom : IGI Global.

Pulakos, E.D., 2009. Performance Management: A New Approach for Driving Business Results. United Kingdom : John Wiley and Sons.

Rao, T.V., 2016. Performance Management: Toward Organizational Excellence. New Delhi: SAGE Publications India.

Rolstadas, A., 2012. Performance Management: A business process benchmarking approach. United Kingdom : Springer Science & Business Media.