Employee performance management

Introduction

Performance management is a process of ensuring that set of activities and outputs meets an organization's goals in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, an employee, or the processes in place to manage particular tasks (Wikipedia)

The History of Employee Performance Management

According to peoplestreme.com, Productivity management began about 60 years ago as a source of revenue justification and was used to determine employee salaries based on performance. The gap between the rationale for payment and the development of skills and knowledge has become a big problem when using Performance Management. This became apparent in the late1980s; the realization that managing and promoting efficiency requires a more integrated approach. This performance management approach was developed in the United Kingdom and the United States much earlier than in Australia.

Source: Youtube

Benefits of performance management

Managing the performance of employees or the system and coordinating their goals contributes to the effective implementation of strategic and operational goals. Some proponents argue that there is a clear and direct link between using performance management programs or software and improved business and organization results.

• Direct financial gain (Reduce costs in the organization, Grow sales, Aligns the organization directly behind the CEO's goals)
• Motivated workforce (Optimizes incentive plans to specific goals for over achievement, Create transparency in the achievement of goals, Professional development programs are better aligned directly to achieving business level goals)
• Improved management control (Flexible, responsive to management needs, Helps audit, Displays data relationships)

Difference between performance management & performance appraisal (talentmanagement360.com)

Table: Difference between performance appraisal & performance management

Performance appraisal	Performance management
Operational	Strategic
Top-down assessment	More likely to involve dialog
Retrospective for corrections	Future-oriented for growth
Typically, once or twice per year	Ongoing or continuous review, interspersed with formal reviews
Often uses ratings or rankings	Less likely to involve ratings
Rigid structure/system	Flexible process
Not linked to business needs	Linked to business needs
Usually takes a quantitative approach	Combines quantitative and qualitative approaches
Individual	Collective
Often linked to compensation	Not usually linked to compensation
Often very bureaucratic with a focus on paperwork/documents	Less concerned with documentation
Usually housed in the HR department	Conducted by managers and supervisors

Performance management in Nestle

The HR team of Nestle is considered as a benchmark in terms of recruiting processes. The company helps the employee in improving their skills, attitudes, and behavior as well as decreasing the labor work rate. As Nestle provides the freedom to ask questions. This also facilitates honest, transparent coaching, feedback and recognition, and supports employees’ development, motivation and engagement within an organization (Nestle in Society, Creating shared value 2017).

Conclusions

Evaluation of effectiveness is not just a process of evaluating a person with an award/award as a consequence of this. Instead, it aims to align and improve personality indicators to achieve the overall goal of the business.

References

• https://en.wikipedia.org/wiki/Performance_management
• Adeline Decramer, Carina Smolders, Alex Vanderstreten, 2013. Employee performance management culture and system features in higher education: relationship with employee performance management satisfaction. P352-371
• https://www.peoplestreme.com/what-is-performance-management#:~:text=Employee%20Performance%20Management%20is%20an,achieved%20at%20an%20organisational%20level.
• https://sourceessay.com/performance-management-report-nestleuk/
• https://talentmanagement360.com/the-difference-between-performance-management-and-performance-appraisal/#:~:text=Performance%20management%20is%20the%20process,process%20of%20evaluating%20employee%20performance.

By N.M.Jayaweera