Performance Management System
Sparrow and Hiltrop (1994) suggest that “performance management is essentially a strategic management technique that links business objectives and strategies to individual goals, actions, performance appraisal and rewards through a defined process.” They also believe that “the most important feature of an effective performance management system is its ability to be seen as a method of continuously securing improvement’s in the performance of teams and individuals against pre-defined business strategies and objectives.” From reading through the quotes of Sparrow and Hiltrop I understand performance management to be a system which identifies the strengths and weaknesses of individuals or teams of employees. From then speaking to the employees in a formal manner, in which you are praising them for their achievements throughout the year i.e. promotion, raise or a company car, but also explaining to them where they could improve themselves to be motivated in following the objectives and strategic plans of the company. Job performance within management performance reveals several terms that are often used interchangeably, such as performance appraisal, performance assessment, performance evaluation and job appraisal. However, in general terms, they are regularly all concerned with measuring an individual’s performance in a given job against preset work standards and involve designing a formal system to facilitate observation, monitoring, analysis, feedback and target setting. Since of late I have had my own performance appraisal done in my part time job in a large fast food restaurant I will be constructing my essay around performance appraisal. In my essay I will be looking at how performance appraisals help improve motivation within the work force, I will explain how the system operates currently, provide evidence that base criticism of the system, and suggest practical and implementable improvements. History
Its roots started in the early 20th century; it can be linked to Taylor’s scientific management theory. Taylor thought that workers should be paid and rewarded by meeting specific work targets. If the workers met these targets, he would then pay his workers fairly for the tasks and goals met. He would also give regular feedback to his workers. This point ties in with performance appraisal, by Taylor rewarding and giving feedback to his workers he was demonstrating how if workers did well they would be rewarded for their efforts. Also by giving his workers feedback he was showing how the task could be better or to the correct standard. Taylor also believed that workers should be trained and developed, which is also relevant to today’s role of performance appraisal. However Taylor assumed the way of thinking like an autocratic manager, where he thought workers where only motivated by money. But as performance appraisal has expanded and grown with time, it has seen that workers are not just motivated by money. Performance appraisals started out as being a simple method of income justification. Appraisals were used to decide whether or not the salary or wage of an individual employee was justified. If the employee’s performance was found to be unsatisfactory then the employees’ wages would be cut. However, on the other hand if the employees work was found to exceed the manager’s expectations, then the employee would find him/herself with a pay rise. Very little consideration was given to developing the employees’ skills and talents in the work place. It was seen that a cut or rise in pay was good enough for the employee to work harder or keep working hard. More often or not this system failed. Motivational research showed that workers with evenly the same work abilities could be paid the same but one individual’s motivational principles could be completely different to someone else’s. Pay rates are important to workers but it is not the only characteristic that influences an employee’s...
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