Executive Summary
The Performance Management (PM) system refers to the organization activity to ensure that employees work is aligned with the company strategic objectives, vision and the goals are met consistently and efficiently.
Performance appraisals and awards systems are tools of PM that can improve the work performance of employees by helping them realize their full potentials in carrying out their organization mission; ensure that employees understand what is expected from them, and also to provide information for use in making work-related decisions for management.
The general objective of the study, therefore, is to evaluate the performance management and furthermore the appraisal system of Luminex Corporation aligned to the organization strategic goals. Elements such as goal setting and reward system are evaluated to provide insights into the success and efficiency of the performance management program.
Having an effective performance management system could improve morale, motivation and overall productivity by identifying employee’s strengths and addressing areas that need improvement.
Introduction
Performance management is an ongoing process that ensures that employees get the direction, coaching and developmental opportunities that they need to continually improve their work performance. The overall goal of performance management is to ensure that the organization and all of its subsystems are working well together and they align to the organizational strategy and performance goals.
According to (Lam 2014, pg. 183), PM aims to recognize good performance and continuously improving the performance of the employee by fostering a culture of cooperation and partnership between management and employees. Thus, the per...
... middle of paper ...
...t-e-effective form of rewards that can add more motivational value to employees and positively transform the work environment (Spitzer, 1996).
References
Grant, R. M. (2013). Contemporary strategy analysis (Text and Cases, 8th ed.).
Chichester, West Sussex, UK: John Wiley & Sons Ltd.
Lam, H. (2014). Essentials of Strategic Human Resource Management & Organizational Behaviour, Toronto, ON; Nelson Education Ltd, Second Edition
Vecchio, R. P. (2004). Organizational Behavior Core Concepts (6th ed.). Boston, MA: Cengage Learning.
Globerson, S. (1985). Issues in developing a performance criteria system for an organization. International Journal of Production Research, 23(4), 639.
Spitzer, D. (1996). Power rewards: Rewards that can really motivate, Management review, May 1996.(45-50).
Furnham, A. (2004). Performance management systems. European Bussiness Journa
The Baldrige criteria provide a structured approach to achieve performance excellence and an ideal set of performance and quality criteria toward which an organization should continuously strive. The criteria are used to help organizations assess their improvement efforts and to diagnose their overall performance management system (Byrne, 2003). The Baldrige criteria address seven major categories, each with sub-criteria and allocated points. In the Business Criteria for Performance Excellence, these categories are: 1.
Marks and Spencer's Definition of Performance Management Performance management provides Marks and Spencers with needed information on their employees. The information helps Marks and Spencers develop the skills of the employees based on the information collected at the appraisal, it helps recognise when training is needed. Performance management helps M&S by improving their service by having able workers that work to their full abilityand by improving the relationship between workers and the company. Here is Marks and Spencer's definition of performance management: Performance management is a joint process that involves both the supervisor and the employee, who identify common goals, which are linked to the goals of the organisation. This process results with the establishment of written performance exceptions later used as measures for feed back and performance evaluation.’
‘If you can’t measure it, you can’t management it’, [Dan vesset and Brian, M. 2009]. Performance management is concerned with the measurement of results and with studying progress to achieving objectives base on the results. Managing performance can tell you what you’re doing well in, and also reveal areas where you need to make adjustments. Measuring performance tells you how far you’ve gone achieving your ultimate
“Using PM System doesn’t improve the performance of an organization. PM system incorporates of not only evaluating performance appraisals but also rewards. As quoted by Sheridan (2009) and Latham (2005), “the cultural maturation of performance based can take decades to implement and requires the organizations to allocate the required resources”. Technology plays a pivotal role in future of PM systems where e-monitoring of performance of employees in Hilton and other entities respectively can change the evolution of performance management thus bringing necessary and important changes to stay competitive in the market as well increasing an individual’s productivity in the company (Sheridan & Latham, 2005)”.
Preview: This book provides a lengthy indoctrination of the what and why of performance management. This summary will cover both the pragmatic and practical pieces of the text; while excluding some of the specific instruction for those who oversee the overall orchestration of performance management in the workplace. The purpose of this paper is to allow its readers to grasp some main themes of performance management and develop a vocabulary for discussion and debate of the topic.
Various conflicts in the RM system can affect the benefits that can be obtained. It has been argued that performance management systems only provide superficial motivations and have little effect on underlying behaviours and attitudes. Although the RM system can have some limitations, there is strong argument for the benefits, and logic also deems it as a credible strategy to assist in improving employee performance.
Performance management is a management tool used to value, monitor and measure a company’s strategies that ensure the efficiency and effectiveness of its product delivery. This management tool does not focus on the organisation and on its employees as well as stakeholders. It is a continuous process that entails that managers make sure that organisational and employee values are corresponding (Aguinis, 2005,p.1/2-1/5). Performance Management brings about the competencies in the employees, increases self-esteem by giving feedback to employees, there is a low number of lawsuits because it helps understand the company better (eThekwini Municipality, 2008,p.10-11). According to Pride, Hughes and Kapoor (2011, p.288) performance management creates motivation for employees; one theory of motivation is of Expectancy, which stipulates that employees satisfaction is driven by expectations of what an organisation will offer in return.
Performance management is a great tool for both the employee as well as the organization. For the employee, it gives the employee a clear picture of his areas of improvement and helps him improve and grow. From the organization’s perspective, it lets them understand the potential they have in their employees and how to realize them. It helps them to analyze who are worthy of being held onto and whom to let go so that the organization grows. In all, an effective tool, if used in the correct manner by all the parties involved.
The manager communicates with the members of staff individually on a regular basis providing all the necessary information about the employee’s overall performance as it relates to their roles in the workplace. This performance appraisal is beneficial to employees as it allows them to create an outline for their goals with the greatest effort it should not be used to lower the employee’s level of motivation but seek to increase it.
Performance management is a useful and powerful tool that can be used by managers to identify what areas of their organisation they need to improve to increase the organisation’s overall performance. The idea of a balanced scorecard enforces a sensible distribution of resources and effort across all aspect of performance an organisation is, or should be, concerned with.
Performance management is defined as the partnership of two individuals reaching for a mutual goal, exceptional performance. They are the employee and the supervisor.
Organization is a group of people brought to gather to achieve specific goals. Goals can be achieved if team member are performing well. Performance is the results of activities given to the employees in an organization to be achieved within specific period of time. Evaluating the current performance of employees against past performances and organizational standards is known as Performance Appraisal (Dessler, 2005). Furthermore performance appraisal helps the company know how individual employees are performing and how to improve their performance thus improving the performance of the company (Grubb, 2007). A performance appraisal is propose in which the performance management system in an organizations set work goals, determine performance standards, provide performance feedback, determine training and development needs and distribute rewards as well as evaluating an employee’s job performance during a period of time. The performance of team member is much more than appraising individuals’ works, it is managing the business, so the performance of an employee is influences by the performance of an organization. It is target to achieve the best results for the planned strategic by managing activities of employees. There are many different opinions on the performance appraisals, some organizations do performance appraisals without any aim just follow others., where some organizations do performance appraisals to make sure they have a record of a piece of paper in the employee’s file – they are careless about do corrective action. But successful organizations understand the importance of combining performance appraisals into their performance management process and strategy plan as the success of any organizatio...
Performance management is used for the basis of promotion, reduction in force purposes (talent management), gives transparency of what an organization is looking for, merit increases, and lastly it provides protection against lawsuits for unlawful termination by keeping written documentation. Performance evaluations are advantageous to both the organization and the employee. A leading advantage of performance evaluations is it gives the employee an opportunity to create and achieve smart goals. Although performance evaluations primary function is to measure whether an employee is a good fit or a bad fit for the organization, its function is so much a broader. Performance management is tool purposely used to motivate employees to examine themselves and determine if they have selected the profession that is best for them; consequently the feedback an employee receives from their superior supports them with increase their knowledge and
The performance method can be used to evaluate the effectiveness of employee at work through performance appraisals
Performance management is a continuous process that creates a working culture to encourage employees to improve their work performance and reach their full potential during their stay of employment. Performance Management also provides strategic direction, develop competency in employees and instill organization value. This paper will identify methods and affects that performance management plan has on the organization and their employees.