Performance Management at my organization

(Marr, 2019)

It is important to identify the difference between performance management and performance appraisal. Aguinis (2013) defines the Performance management as a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization. Performance appraisal means evaluating the employee once a year. Neither it provides a feedback about employee’s performance nor any training or coaching to increase the performance of the employee (Daoanis, 2012). Simply, performance appraisal is an important step in performance management system.

Performance Management at my Organization….

Each year April, we identify number of goals which need to be accomplished during that fiscal year. At least one development goal and five operational goals needs to be identified, and weightage must be assigned for each goal, and total should be 100% for both development and operational goals. Then these goals are reviewed by the manager and approved.

In November, we perform the mid-year review my analysing the completion percentage of each goal. Then this completion percentage is reviewed. By end of the fiscal year, we perform the final performance appraisal and, final completion percentage or rating is given by us.  Manager then gives his/her rating.

Drawbacks in existing Performance Management system:

1. I also look after Engineering and design issues that arise time to time. Sometimes we get several issues during the day and, most of time, we don’t get anything. Some issues need several days to solve, but most can be solved in few hours. Issues are always not homogeneous; therefore, existing performance management system does not capture these variations.
2. Individual goals are not directly related to organization’s goals. There are no internal mechanisms to capture some of the tasks we do. Therefore, goals which can only be measured are identified as goals in the performance management system.
3. We believe that current performance management system is an utter waste of money and time and does not capture the true performance.
4. HR dept has developed some scales (eg: excellent, very good etc) and advised managers to limit the number of employees in each scale to predefined percentages. Therefore, every employee can’t reach the top level and manager can favour individual employees by giving higher rating.
5. No feedback system available regarding employee’s performance.
6. No coaching is available to improve the performance.
7. Final appraisal rating is linked to following year’s salary increment. Since this increment is very small, employees do not bother about rating they get. 

Conclusion:

Holland (2006) argues that only 3 in 10 employees believe that their performance was improved by organization’s performance review systems. I believe that performance management system at my company is poorly implemented. It does not make any positive contribution to employee performance and leads to several negative outcomes such as increased turnover, wasted time and money, decreased motivation to perform, varying and unfair standards and ratings etc (Aguinis, 2013).

References:

Aguinis, H. (2013) Performance Management. 3^rd Edition. New Jersey: Pearson.

Daoanis, L. (2012) ‘PERFORMANCE APPRAISAL SYSTEM: It’s Implication To Employee Performance’, International Journal of Economics and Management Sciences, 2(3), pp. 55-62.

Holland, K. (2006) Performance reviews: Many need improvement. Available at: https://www.nytimes.com/2006/09/10/business/yourmoney/10mgmt.html (Accessed: 23 December 2019).

Marr, B. (2019) What Is Performance Management? A Super Simple Explanation For Everyone. Available at: https://www.bernardmarr.com/default.asp?contentID=770 (Accessed: 23 December 2019)