Performance Management

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Performance management is a systematic process for enhancing organizational performance by enhancing the performance of employees & teams (Armstrong, 2012)

Shields (2007) explained that a performance management system has 4 purposes.
  • Strategic Communication - communicate to employees what doing a good job means.
  • Relationship-building - create stronger relationships between managers and workers by reviewing performance achievement regularly.
  • Employee development - after the performance analysis, the company prepares a personal development plan for identified gaps in order to enhance performance up to the required level.
  • Employee evaluation - evaluate the employees’ performance as a basis for making decisions on the job reassignment, promotion or performance-related rewards 

Performance management system at Dubai medical Inc. 


Source: YouTube


Performance management system (PMS) at SGS Lanka.
Annual performance management process starting in September and mid-November targets are seg for the year by a panel of senior management. Once devised, these targets are cascaded down to individual employees in the organization.

Following tools using by employees and management to ensure the smooth running of the PMS.
  • A performance evaluation template.
  • Objective agreement templates.
  • Competency model – support tools for personal development planning
  • Technical competency – represent a support framework for identifying core technical competencies for a key operational role
  • Development guide – support for developing a PDP.
  • Personal development plan (PDP)
  • Career ladder – support to develop PDP
  • Site succession plan

The main part of the performance management cycle is the face-to-face meeting between managers and employees. As per the company procedure, 30 minutes is a minimum time for this discussion. This happened end of the performance management cycle and during the meeting, both parties examine performance over the last 12 months with the reference to the determined objectives. Following this, both parties agree on performance objectives for the next year, along with any required support in the form of training and development. In addition to the main performance management meeting, managers are advised to arrange a progress meeting quarterly.

Clearly defined goals, regular assessments of performance, and also the company-wide requirements will be helpful in defining the corporate competencies and also the main skill gaps which can successively function a useful input for designing the training and development plans for the workers. A sound performance management system help to realize employees’ personal objectives and organizational objectives.

References

Armstrong, M., 2012. Armstrong's handbook of human resource management practice. 12 ed. New Delhi: Kogan Page.


Dubai Media Inc, 2015. YouTube. [Online]  Available at: https://www.youtube.com/watch?v=YJuDeLO5yxU&list=PLD81ahs9n5s1DKw6pEU_2fbEGp9mnduzi&index=15
[Accessed 1 6 2020].


Shields, J., 2007. Managing Employee Performance and Reward. Cambridge: Cambridge University Press.


Comments

  1. Ruwan WeerasundaraJune 6, 2020 at 7:58 PM

    Nice Article Thilina. !!

    Further, Allow me to add my point of view on this topic.

    In order to keep the Organization on the track, it is necessary to move on with emerging trends in performance Management such as "Continuous Performance Management" and “Artificial Intelligence” in order to avoid injustice in evaluating the performance of the employee.

    Organizations should make sure to convert performance evaluation discussions to action and it is mandatory requirement of any organizations to keep the employees inspired to keep them on the track.

    ReplyDelete
  2. Dulan JayasingheJune 7, 2020 at 4:56 PM

    Good and informative article Thilina.
    You have clearly pointed out what is performance management and further you were able to highlight SGS performance management process, it has increased the value of your article. I would like to add some points to the article.
    If you would have highlighted why SGS do performance management? According to my knowledge Company do performance management to take judgments about the post and decision about the future.
    What are the intended results SGS Company is enjoying through performance management?
    Retain employees
    Reward high - performance
    Treat low- performance
    Identify the potential
    Learn through feedback
    Develop employees
    Management by objectives
    Motivate through objectives
    Track suitability
    Through above mentioned points you can judge SGS Company and can take decision for the future of SGS Company.

    ReplyDelete
  3. Rajan PradaphJune 8, 2020 at 8:48 AM

    Good job Thilina. The author had discussed the 4 main purposes of performance management ,which was interesting.Also he had clearly mentioned the practices on performance management currently at SGS company.It would have been better if some of the latest methods which are practiced on performance management in the global context been practiced at SGS company to improve the motivation of employees.

    ReplyDelete
  4. ThusithaJune 20, 2020 at 2:49 AM

    Your blog is very well written Thilina..obviously Performance management is a key area in any organization! your blog explain well about the impact of the performance management to the good wealth of the organization

    ReplyDelete

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