MANAGING PERFORMANCE - Professional Human Resource Management Practices
If performance management or performance review system is fair and equitable then it will nourish and provide a clear understanding to what should be done in a way to achieve short-term goals, and it will also help in making long-term planning. But at a same time if organization is not following the fair and equitable review system in the process then it will reduces the teamwork spirit and it will create bad politics in the organization which result in negative consequences and ultimately it will hamper the culture of the organization and at the end overall performance of the organization will decrease (Linda et al.,2014).
Deming's made the observation on performance management or performance review system, and he pointed out that performance review process is as same as another operational process which has tolerance limit as well as out of tolerance limit in both positive and negative direction. As he also pointed out that the performance review or merit rating is a very attractive idea and it sounds very good also as it will enable to make payment according to what you have done or performed, or performed according to the payment (Steinhardt et al., 2015). So due to this employee feel motivated and they perform their best. But what he observed is that its effect exactly in the opposite of the word of promise.
He pointed out that the system in which employee work in and get interaction with various people may account for 90 to 95 percent of performance. So he focused on the system of the performance evaluation or review.
He said that if an excellent employee can be put to work under poor condition only provided low and poor equipment to perform his task then it will definitely reduce his performance. So here who is to blame the answer is the system. Because the system in which an excellent employee was put to work was not favorable and due to this he can't put his best as a final result his performance will diminish.
The observation which is of most important is that he clearly quoted that performance of the employee is very much influenced by the system in which employee is put to perform work or task. To clarify it further he observed and pointed out that performance of the individual employee is not in fully in their hand to control, as it will be affected by the system overall in which they are placed to work or to perform a certain task.
He also observed that if poor performance review process is adopted then it will hamper the mindset of the employee. He also suggests that every employee has its own unique Psychology so in a way to do best with performance review emotion of the employee should be considered.
He argues that need for improvement in the system is required, that is the improvement in processes, methods not only on individual's employees or worker (Beichman et al., 2014). Because he said that if we make the only improvement in individual or worker and not focusing or considering the improvement in the overall system then it will not make to yield more profit. He said that this strategy is very low strategy and yield only short-term profit and result.
Deming observed and pointed that in a way to yield the long-term goals and achievement management need to focus on the overall system of the organization as it will result to enhance the performance of the individual employee or worker (Desert et al., 2015). And through this organization can motivate their employee also to work at their best knowledge with zeal and interest. It will also increase the morale of the employee and they will like performance appraisal system also, and it will also reduce the employee turnover.
He observed that improving the system will give or produce more positive result instead of trying to find out the wrong done by the worker or employee in the organization.
Deming’s observation is still true?
Nourishes short-term planning
It will lead to lack of proper planning regarding training and morale of the employee will be decreased and employee turnover will increase.
Whereas if only focusing on the individual performance in the organization it will destruct or annihilates the long-term planning such as management may not be able to concentrate on the core issues in the business concern. Because the result which is achieved due to focusing only on individual performance and not on providing the full amenities and the improving system is not so accurate and true and this result may leads management to take various action regarding employee which is making the management to go somewhere which is of no use. So in this way, they lack the proper long-term planning.
Management may not be able to focus on the core area, as a result, they lose profit and corporate image. Satisfaction level of the employee will decrease.
An unnecessary competition will be increased for the same reward and it will hamper the spirit of working in the team. Due to performance evaluation.
It will hamper the group performance and as a result, it will affect the overall performance of the organization.
In general - Up to some extinct now a day also Deming's observation is still true as many, organization is still not in a position to focus on both the aspect that is focusing on the system as well as to the employee performance simultaneously. But there are many organization too which are focusing on the system as well as the individual performance simultaneously such as Google, Tata etc. as they are conducting performance appraisal in very sound manner and on time and they are very well providing all the amenities and facilities to their employee to perform the task in a good manner. They are focusing on the system also as their working environment and culture is so fine and all the required equipment are also available to perform a particular task which is increasing the morale of the employees. They are conducting their employee's appraisal in fair and equitable manner.
There are various issues related to the performance review such as poor or ineffective communication, rating biases and so on are the key issues which need to address in a way to make all the employee motivated and accept the performance review.
My own experience after analyzing and reading various literature about performance review is that performance review is the process which enables to develop the employee and organization as a whole. There should be a timely evaluation of the employee performance in regards to know the actual potential and to determine the weakness of the particular employee. It will guide to implement the proper training program to help the particular employee. It will ensure better work and increase motivation level to work at the best of the knowledge (Nyberg et al., 2016). I will also support the Edward Deming observation that we should not only focus and concentrate on to the individual employee rather we need to focus and consider the overall system of appraisal and system of organization which will produce the better result for the longer period of time. Improving the overall system and at the same time implementing fair and equitable performance review system will enable to achieve the longer term goals (Long et al ., 1986). The key issue which I found is that many organization is focusing on the system rather they only focus on the particular employee performance which is not fair and although many executive and manager are not rating their employee performance on stated policies and procedure. They are not concern about the objectives. So in a way to achieve the performance appraisal system in best and equitable manner manager need to avoid the biasness in rating and they should rate according to the objectives only in this case employee will also start liking the review system and it will enhance the employee performance also, they will work with zeal and interest. Before reviewing the performance of the employee proper communication and objectives and time should be communicated in a way to make all the employee concern about the performance review, as it will also decrease the conflict in the organization. If the organization will focus on developing and enhancing the overall system of the organization then it will be more fruitful than only focusing on particular employee or worker. If all the amenities and proper facility and good working condition or environment is provided to all the employee with all the well quipped equipment which is necessary to perform the task and then after certain period the evaluation of the performance of the individual employee or the worker is carried out then it will provide the true result and meet the long-term goals of the organization.
All the efforts that are been focused to individual performance will only constitute a low yield strategy and have only short-term result whereas efforts focusing on both the system as well as to the individual employee's performance will yield high strategy and produce the long-term result.
- Honest ethics (manager should be ethical in applying practices in the organization selecting of the rating scale according to the objectives of the organization to rate the employee).
- Ability to communicate
- Good knowledge of making the judgment (manager must have the ability to make a fair and ethical judgment regarding all the affairs especially regarding providing performance feedback to the employee).
- Ability to convince and to apply the performance appraisal system
Rating bias- the manager should always rate his employee performance according to the stated objectives which will lead the employee to like the performance review system.
Effective communication- manager should always provide timely reminding to all the employee about the time and the purpose of the performance review (Carroll et al., 1982). So in a way to have fair and equitable performance appraisal or review system in the organization manager must have some skills and he must be able to formulate the overall system of the performance review system. Selection of various scales on which employee or worker are to be rated should be perfectly chosen that is manager must have the skills to analyze and to select the rating scale to rate the employee or worker (Woehr et al., 1994).
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