Definition of Performance Management:
“Performance management is an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. The communication process includes clarifying expectations, setting objectives, identifying goals, providing feedback, and reviewing results.” – Melany Gallant. (2012).
Performance management operates as a continuous cycle rather than a one-off event. If the performance management is effective it will be achieved. Performance management is a repetitive process, established by organisations to help them in accomplishing their objectives. It is designed to maximize the performance of an individual, team or whole organisation and ensure that the objectives are achieved.
The Performance Management Process is a key component of organisation’s overall approach to the management of its people. As part of the performance management system, Performance Management Process aims to achieve the following:
Scenario One: The focus must be on long-term issues. This could be development of new skills for certain employees so that they may implement the introduction of a new product in the future, for example. It also makes employees feel valued and self-esteem, along with helping to improve and maintain a high level of performance.
Scenario Two: All employees must have a full understanding of their duties and to which standard they are expected. If this doesn’t happen it can have a negative effect on employee performance and satisfaction, which in turn can lead to poor customer satisfaction. This knowledge helps everyone to work efficiently to meet objectives, organisational goals and aids personal development.
2. Ac 1.2 – Identify three components of performance management systems.
Performance planning: The performance planning is a formal process in organizations for discussing, identifying and planning the organizational as well as individual goals which an employee can or would achieve in coming appraisal or review cycle. This is essential part of any performance management process. This is where employee and the appraiser formally discuss SMART objectives:
Specific: Clear, detailed and understandable as to what is required.
Measurable: To monitor and measure progress towards achievement of the objective.
Achievable: Challenging but obtainable by a competent person.
Realistic: Relevant to the goals of the organisation with a focus on outcomes of achievement.
Time-Based: Outcomes to be achieved within an agreed timescale
Rewarding good performance: This is an excellent component for motivating an employee. It gives the opportunity for the employee to be recognised within the organisation and awarded for good performance via salary reward or promotion. However; a sound procedure needs to be in place if an employee should appeal against an alleged unfair assessment.
Feedback: Feedback is a crucial assessment of a performance management system. Feedback can be provided by the manager only; or the 360-degree method, where feedback is supplied by stakeholders. This could involve other managers, peers, internal customers (Staff) and external customers. This is an excellent tool for giving the perspective and feedback from different sources.
3 Ac 1.3 – Relationship between motivation and performance management referring two motivational theories.
Definition of motivation:
“Motivation is a theoretical construct used to explain behaviour. It gives the reasons for people’s actions, desires, and needs. Motivation can also be defined as one’s direction to behaviour, or what causes a person to want to repeat a behaviour and vice versa”. – Merriam-Webster.
Herzberg
This theory again has been around since 1923 and is also known as the “Motivator – Hygiene Theory”. Herzberg concluded that within a job there is factors that result in “Satisfaction” and other job factors that prevent “dissatisfaction”. According to Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction”.
Some of these factors that affect job satisfaction/dissatisfaction are:
? Salary – Should be appropriate, reasonable, equal and competitive.
? Job Security.
? Working Conditions – Safe, Clean and Hygienic.
? Interpersonal Relationships – Appropriate and acceptable. No conflict.
? Fringe Benefits – Health Care Plans, Benefits for family members.
From these factors, he then looks more in depth:
“Remedying the causes of dissatisfaction will not create satisfaction. Nor will adding the factors of job satisfaction eliminate job dissatisfaction.”
According to Herzberg’s and Maslow’s theories, any business needs to provide the basic needs for individuals to become motivated and increase their performance. Good motivation leads to higher performance which could impact on business growth, whereas poor motivation among staff leads to poor performance can have negative effects.
Maslow hierarchy of needs.
This theory has been around since 1954 and is also known as Motivational Theory.
Maslow concluded also that within a job there is factors of basic needs that have to be met before the employee can be fully functioning, high achieving and loyal member of staff these are:
• Esteem – Self-Esteem and the feel good factor creates motivation in the employee to be
Self-conscious
• Physiological – Vital to our survival
• Belonging – The individual feels a more integral part of the organisation and therefore; more inclined to seek higher performance/productivity
• Safety – This is crucial to the employee, as this effects the employee’s behaviour and attitude in a positive way. I:e – Long-term contracts, job security and future promotions.
• Self-Actualisation – Performing at one’s optimum level, fully engaged and fully focused on achieving the organisations goals.
3. Ac 2.1 – Two purpose of reward within a performance management system.
Definition of reward:
“A thing given in recognition of service, effort, or achievement”. – Baron & Armstrong (2009).
The main purpose of reward management is to provide interest and motivation to all employees. When fully engaged, workers are more dedicated to maintaining a high level of performance. Personnel are motivated by some type of reward or compensation: production, performance and work quality improve.
The rewards used do not need to be monetary. It is important that the reward is something desired by the employees. Skill development and better career choices can be highly prized rewards in some career fields. To be properly effective the rewards must be based on performance. As an employee reaches specific goals, some types of reward that could be given will motivate others to reach that goal also. The one reaching the goal will want to continue to the next reward level, knowing they are real and attainable. Reward management is also a tool used to recruit highly professional employees. The benefits package available is an important aspect to finding good employees and to retaining them.
An effective reward management system involves the company being transparent on as many of its operations as possible. Rewarding people fairly and consistently for their contribution, valued skills and performance. This is directed towards the organisation so that it achieve its goals. When employees understand what a company is doing, and why, they are more likely to work towards the said goals and to help the organisation to achieve its desired growth and profit. This is the ultimate desire of the organisation.
5. Ac 2.2 – Three components of total reward system, Financial and non-financial.
? Free shares after so many years of service.
? Work/life balance & flexible working.
? Employee discount cards.
? Responsibility within the work placement.
? Personal Growth.
Every organisation is different in terms of outlook on how to motivate their staff with different reward systems. These can be Financial and non-financial to the employee. An example of this is an employee being recognised as being an important component in the overall structure. This can lead to development in an individual’s career opportunities within the organisation, this is a positive motivational tool that encourages the individual to always perform at their optimum level. Work-life balance is a crucial consideration because the individual has to achieve fine equilibrium between demands of the organisation and the demands and responsibilities of home-life.
6.Ac 3.1 – Explain factors that should be considered on managing good and poor performance.
Good Performance:
Managing the performance of employees is a continuous process. It involves making sure that employee performances contribute to both team goals and those of the business. The aim is to continuously improve the performance of individuals and that of the organisation.
Managing performance is central to the relationship between managers and employees. It can be a key element of good communication and foster the growth of trust and personal development. Where a performance management system is working well employees are more likely to be fully engaged with the goals of the business. A fully engaged employee is someone who:
? Takes pride in their job and shows loyalty towards their line manager, team and organisation.
? Goes the extra mile – particularly in areas like customer service, or where employees need to be creative, responsive or adaptable.
Poor Performance:
Regular reviews and support will help minimise under-performance: There may be occasions when; despite adequate support, an employee’s performance consistently fails to reach the required standard. Where this is the case managers must not dodge the issue. Line managers must be prepared and ready to have difficult conversations with their team to identify problems early on. In most cases action can be agreed between the manager and employee to remedy any problems at the earliest opportunity. Where informal approaches fail, you may decide to take more formal action which could eventually result in dismissal if employees fail to make the necessary improvement.
? Disengaged with business: The employee does not contribute towards team or business targets and goals.
? Customer satisfaction feedback drops, organisation reputation is damaged, or called into question.
? Knowledge and experience: Although the employee has this skill and experience if there is no reward either motivationally or financially then there will be the possibility of lethargy in the individual.
? Personality: This could be a clash between the employee and management, therefore; the employee will not be fully engaged with the company’s motives. Negativity, once it has occurred is a barrier to progress or higher productivity.
3.2 – Two items of data, including one external to the organisation.
Internal data: Job analysis questionnaire or interview provides information on the day-to-day nature of the role. It shows the responsibilities and duties required within the role which helps bring together the job description. Performance management can be assessed against this source of data.
External data: Government website (.Gov.UK) keeps organisation right in terms of the law, employment law and legislation constantly changes, therefore; having access to this external data keeps the organisation within guidelines and keeps the organisation free from tribunal cases.
8. Ac 4.1 – Explain on frequency, purpose and process of performance review.
Performance reviews are normally carried out every 3, 6 or 12 months depending on the organisational structure and culture. In this respect the employee receives more frequent information and they can be more accurately assessed in regard to their performance level. This allows the employee to keep tweaking their performance in terms of what they need to do to be more effective.
Performance appraisal (or performance review) is a process for individual employees and those concerned with their performance: typically, line managers discuss their performance and development, as well as the support they need in their role. It is used to assess both recent performance and focus on future objectives, opportunities and resources needed.
Because performance management integrates various people management processes, it needs structures to support it. These should provide a framework to support operators, and to assist them in turn to help others to operate. But there is no one-size-fits-all approach to performance management. While the elements of performance management may be similar across different organisations, each needs to develop practices that are relevant for the specific business context and the actual or desired organisational culture. There should also be flexibility within the system itself to account for the different ways in which individuals operate even in a single organisation. Performance management is a process, not an event, as it operates as a continuous cycle. In performance management, corporate strategic goals provide the starting point for business and departmental goals, followed by agreement on individual performance and development priorities. Individuals and managers can then draw up plans and monitor performance continuously. Feedback should be given regularly, and could be supported by formal performance reviews at agreed points in the year. The plans can also highlight organisation-wide processes that are required to support performance, for example: for instance, leadership, internal communications and others.
4.2 – Conduct a performance review meeting.
Please see attached “Appendix B” for more details.
4.3 – Reflect on the outcome of the review, explain effectiveness and improves future occasion.
• Identify purpose – Purpose was highlighted generally in an appropriate manner
• Plan Meeting – Consider more time explaining evidence of appropriate resulting in a good appraisal
• Prepare suitable environment – Achieved in an appropriate manner
• Open meeting appropriately – Consider less use of “Desk” and consider outlying role in more detail.
• Establish rapport and put candidate at ease – Achieved in a very effective manner
• Use appropriate questioning techniques – good use of range of open type questions, supported well by clarifying issues
• Control meeting without dominating – Achieved in an appropriate manner, informal with discipline. Identifying issues well.
• Communicate (Listening and Speaking) with candidate, using appropriate body language – Spoke very clearly ; effectively with generally good eye contact which could have been enhanced at times.
• Invite, deal with candidate questions – Could have been highlighted at the start of the meeting.
• Identify any development needs and actions – Good open ended questions in relation to development areas, could have been developed further.
• Conclusion and summary – Good summary and conclusion of areas highlighted.
• Conduct meeting within legal and ethical requirements – Yes.
So, overall I felt the Appraisal went good for my first time conducting it out, I was nervous but felt in control of the meeting at all times. Looking back at the appraisal I have learnt so much from the feedback and refection. I could have enhanced my eye contact to the appraise throughout, I could have also highlighted my role, my name and let the appraisee know they can ask questions throughout the meeting if they were not sure of anything talked about. Looking back to the appraisal meeting, I could have explored more into development needs and what actions are needed to achieve development areas for the appraisee giving it a more transparent outlook. Looking back, I could also have used less of desk leaning instead, I will sit back on my chair, with positive engaging body language, believing in myself which will come across to the individual receiving the constructive formal feedback. So, moving forward I feel that I have learnt a lot in regards to conducting the appraisal so I will enhance my eye-contact, use less desk and explain who I am and what role I play at the formal appraisal meeting. Also, explore all personal development needs and what actions are required to make the difference on current performance as opposed to further performance.
