HRM’s role in the performance management process
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Does your school have a performance management system in place to help students succeed? If so, how do you think the system might be similar or different to performance management systems in the workplace?
Chapter 8: Performance Management: 8.1 Performance Management Systems Book Title: Managing Human Resources Printed By: Carmen Banner ([email protected]) © 2016 Cengage Learning, Cengage Learning
8.1 Performance Management Systems We have discussed some of the ways that you as a manager can acquire top- notch employees and train and develop them. But how do you know if your efforts are really paying off in terms of what the employees are contributing once they are on the job?
Performance management (The process of creating a work environment in which people can perform to the best of their abilities) is the process of creating a work environment in which people can perform to the best of their abilities in order to meet a company’s goals. It is an entire work system that emanates from a company’s goals. Figure 8.1 shows the elements of a performance management process.
Figure 8.1
Steps in the Performance Management Process
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Performance evaluations (The result of an annual or biannual process in which a manager evaluates an employee’s performance relative to the requirements of his or her job and uses the information to show the person where improvements are needed and why) , which are also referred to as performance appraisals and performance reviews, are the result of a process by which a manager evaluates an employee’s performance relative to the requirements of his or her job and uses the information to show the person where improvements are needed and why. Evaluations are a tool organizations can use to maintain and enhance their productivity and facilitate progress toward their strategic goals. The federal government began evaluating employees in 1842, when Congress passed a law mandating yearly performance evaluations for department clerks. Today, the process continues to be widely used by organizations large and small and those in both the private and public sectors.
Typically performance evaluations are delivered annually or biannually. In a recent survey of 1,350 human resources managers, 76 percent of them said their firms conduct them annually; 12 percent said they conduct them biannually. Some organizations find value in conducting them on a quarterly basis. In many firms, new employees are often put on probationary status for a period of time and evaluated 30, 60, or 90 days after their start dates, with their continued employment contingent upon their performing satisfactorily. However, as you can see from Figure 8.1, the performance appraisal is just part of the performance management process. Aligning the goals of employees with those of the firm,
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providing workers with continual on-the-job feedback, and providing them with encouragement and rewarding them for a job done well are critical too.
You might compare a performance evaluation to taking a test in college. Do tests motivate you? Do they make you want to truly excel, or do you just want to get through them? Now compare your test-taking experience with an experience in which your instructor talked to you about your career plans, complimented you on your performance, and offered you suggestions for improving it. That probably had a greater motivating effect on you.
We hope you can see the analogy we are making. Employers have to appraise you, just as your university has to test you to be sure you graduate with the qualifications people in society expect. But your performance in either scenario consists of so much more than that. That is why organizations need to look at the performance management system as a whole, rather than just evaluations. Evaluations are simply a logical extension of the day-to-day performance management process.
Chapter 8: Performance Management: 8.1 Performance Management Systems Book Title: Managing Human Resources Printed By: Carmen Banner ([email protected]) © 2016 Cengage Learning, Cengage Learning
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