Rewards and Performance Management

Topics: Management, Human resource management, Performance appraisal Pages: 11 (3313 words) Published: August 25, 2013

Rewards and Performance Management
Assignment 1

Performance Management System in 3M

2013
Tresa Maria Joseph
F12058
7/5/2013
Rewards and Performance Management
Assignment 1

Performance Management System in 3M

2013
Tresa Maria Joseph
F12058
7/5/2013

Performance Management System

Introduction:

“A process for establishing a shared understanding about what is to be achieved and how it is to be achieved, and an approach to managing people that increases the probability of achieving success”- Weiss and Hartle (1997). The performance management process is used to communicate organizational goals and objectives, reinforce individual accountability for meeting those goals, track and evaluate individual and organizational performance results. It reflects a partnership in which managers share responsibility for developing their employees in such a way that enables employees to make contributions to the organization. It is a clearly defined process for managing people that will result in success for both the individual and the organization. It is a process that brings together many people management practices including learning and development. Performance management is about establishing a culture where individuals and teams take responsibility for continuous improvement of service delivery and of their own skills, behaviour and contributions. It is therefore a strategic process, long term in nature, aimed at the development of an appropriate culture linking people management, service issues and long term goals. It is not a once off quick fix process.

A Performance Management System includes the following actions:

* Developing clear job descriptions and employee performance plans which includes the key result areas (KRA) and performance indicators. * Selection of right set of people by implementing an appropriate selection process. * Negotiating requirements and performance standards for measuring the outcome and overall productivity against the predefined benchmarks. * Providing continuous coaching and feedback during the period of delivery of performance. * Identifying the training and development needs by measuring the outcomes achieved against the set standards and implementing effective development programs for improvement. * Holding quarterly performance development discussions and evaluating employee performance on the basis of performance plans. * Designing effective compensation and reward systems for recognizing those employees who excel in their jobs by achieving the set standards in accordance with the performance plans or rather exceed the performance benchmarks. * Providing promotional/career development support and guidance to the employees. * Performing exit interviews for understanding the cause of employee discontentment and thereafter exit from an organization.

Advantages of performance appraisals:
* Performance appraisal serves as a motivation tool.
* They provide a forum for a manager and employee to discuss performance. * They provide a structured and formal process for an employee to clarify expectations and issues with the manager. *  Performance Appraisal helps in chalking out compensation packages for employees. * The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. * It allows for planning future goals and expectations of the employee. * They motivate employees if supported by a good merit increase and compensation system. Disadvantages of performance appraisals:

* Managers and supervisors tend to trust and depend on one employee more than the others. It leads to dissension and distrust among the group members. * Lack of management commitment will have a negative impact on performance appraisal. * They can create a negative experience, if not done right * Performance appraisals are very time consuming and are overwhelming to managers with many...

References: 1. http://www.managementstudyguide.com/performance-management.htm
2. http://bookboon.com/en/performance-management-ebook
3. http://www.ccl.org/leadership/pdf/research/Using360Feedback.pdf
4. http://en.wikipedia.org/wiki/360-degree_feedback
5. http://smallbusiness.chron.com/advantages-disadvantages-performance-appraisals-1901.html
6. http://thethrivingsmallbusiness.com/advantages-and-disadvantages-of-performance-appraisals/
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