Performance Management Process

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Question 1: Discuss how the issues above will have an impact on the six steps in the performance management process i.e. how can these issues be incorporated into the six steps of the performance management process – your response is to be supported by information provided in the case. (30 marks)

The term performance management, may be defined as a systematic process utilized by companies or firms to enhance success by advancing the quality of performance of their staff. This involves the participation of all employees, whether on an individual or a team basis which promotes organization effectiveness in alignment with the organization’s goals.

In order for performance management to be effective, there are six steps of the performance management process which must be carried out. These include: prerequisites, performance planning, performance execution, performance assessment, performance review and performance renewal and contracting.

The first step, prerequisites, takes into consideration knowledge of the organization’s mission and strategic goals and knowledge of specific job. As the word prerequisite suggests, employees are required to know the organization’s purpose, where it is going, the organizational goals and its strategies before one can move to the next stage. Therefore, organizations are required to create specific and clear goals, transfer these goals to the departments which will communicate them to employees. In addition, job description and job specification should be clearly stated. These include the knowledge, skills and abilities required for the specific job, the duties of the job and its working conditions along with the necessary tools employed for hire. Performance planning specifically relates to results, behaviors, competencies and development plan. It basically involves employee responsibility for producing results, its outcomes, evaluation of how well each objective has been achieved, how a job is done, how to measure skills and abilities, how results will be achieved and the areas in which improvement is necessary and the goals in each area of improvement. Performance execution is a critical step in the performance management process as it involves both the responsibilities of the employee and the manager. Employees are required to commit themselves to achieving goals, request feedback, communicate with supervisors, gather and share performance data and adequately prepare for performance reviews. While on the other hand, managers are expected to discreetly observe and record findings, provide updates and feedback, utilize resources and reinforce objectives and goals. Performance assessment is administered mainly through managers, self and other sources such as peers, customers, etc. This enhances increased employee ownership and commitment, makes information available and creates mutual understanding. Performance review is a comparison between three elements; past, present and future. This will enhance productivity and create greater success. During this stage/step, organizations should identify what each employee has done well and poorly, request feedback, highlight and discuss the implications of changing behavior, identify ways in which skills employed in the past can help reduce performance problems, agree on an action plan and discuss behaviors, attitudes and actions to be evaluated. Lastly, performance renewal and contracting involves the use of insight and information from the phases to drive performance growth and development improving the overall success of the organization. The issues identified in the case study will impact the six step process significantly in that production levels will decrease due to absenteeism, unavoidable financial costs will be incurred due the increase in labour turnover and the company having to go through the recruitment process repeatedly, and time will be lost. However, carefully developing a good performance management plan using the six steps...
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