Performance management is a continuous system which enables line managers to assess their employees’ performance. Performance Management is directly looking at how people work, how they are managed and developed and ultimately to maximise their contribution to the organisation. As (M Martin et al, 2010, pg 157) stated;
‘A process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such it is established shared understanding about what to be achieved and on approach to leading and developing people.’
Performance Management is to drive improvement in business goals and objectives. Performance Management can be seen to motivate and retain high performers by providing career development through learning and development opportunities. By providing these opportunities this helps the business objectives by strengthening and retaining knowledgeable staff. This allows employees to thrive by meeting company goals and aims. On the other hand, performance management can be for staff that are under performing. Their daily performance is looked into and agreed goals are set. This can be seen as ‘better management,’ in which the individual feels supported.
1.2 The Performance management process needs to have the following features;
1) Job Description – to help assess and review individuals’ key accountabilities
2) Coaching and mentoring – helping behaviours by enhancing individuals skills and knowledge of their work performance
3) Learning and development plans – looking at ways to increase and meet any learning needs
4) Succession Planning – identifying and developing potential future leaders or senior managers.
1.3 Explain the relationship between motivation and performance management, referring to at least 2 motivational theories
The term motivation can emphasis on what elements drives an individual towards a need. This interacts with performance management, as employees thrive to meet their wants and needs, and if this is not fulfilled, underperforming can occur.
Looking at Maslow’s hierarchy of needs (figure 1), it is based on 5 stages of needs that are met during different stages of life. When the first need is met, which is the basic needs of life; air, food, sleep etc, an individual will then look at the safety needs such as security, protection and so forth. The third need, many believe, is more important than the first two, as individuals want to be accepted and have good family and working relationships. The last two are esteem needs such as achievement and reputation; with the final being self actualization meaning being able to reach one’s full potential.
Maslow’s hierarchy of needs relates to performance management as follows; Firstly, an employee who has an adequate income is able to provide for their biological and physiological needs, the employee will then look at being in a secure and stable environment thus having their safety needs met. All employees want to feel that they belong to a team especially within the working environment. Being able to feel apart of a team encourages employees to perform well especially if it is a team task, the importance in this, is that all employees desire to work in an environment where they are accepted. Along with belongingness, reputation and status within the company is important, as individuals need to have respect from others. Lastly, self actualization, which is more costly for companies, employees are looking for personal development, such as a challenging job or a leadership role, completing a further education course and so fourth. If at any stage, an employee’s need is not met, motivation decreases and the needs will be taking a step back rather than forward. It could be said that most employees always revert back to their basic needs, in a way to increase their motivation. This in conclusion relates to performance management as,...
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