PRESIDENCY UNIVERSITY
COURSE CODE – HRM 421
COURSE INSTRUCTOR- DR. TARUN TAPAN DHAR
FALL - 2010
Performance Management in
Organization: Achieving Short term
and long term Goals
Date : October 10, 2010
Introduction
Performance Management is one of the key processes that, when effectively carried out, helps
employees know that their contributions are recognized and acknowledged. Performance
management is an ongoing process of communication between a supervisor and an employee
that occurs throughout the year, in support of accomplishing the strategic objectives of the
organization. The communication process includes clarifying expectations, setting objectives,
identifying goals, providing feedback, and evaluating results. An effective performance
management process sets the foundation for rewarding excellence by linking individual
employee work efforts with the organization’s mission and objectives, the employee and the
organization understand how that job contributes to the organization. Performance
management is an overall process which ensures the efficiency of the personnel of the
organization and achieving overall goals and objectives. Performance management brings focus
on overall results, measuring results, focused and ongoing feedback about results, and
development plans to improve results. The results measurements themselves are not the
ultimate priority as much as ongoing feedback and adjustments to meet results.
Defining performance management
Performance management can be defined as a strategic and integrated approach to delivering
sustained success to organization by improving the performance of the people who work in
them and by developing the capabilities of teams and individual contributors.
To perform well, employees need to know what is expected of them. The starting point is an
up-to-date job description that describes the essential functions, tasks, and responsibilities of
the job. It also outlines the general areas of knowledge and skills required of the employee an
employee to be successful in the job.
Performance expectations go beyond the job description. When you think about high quality
on-the-job performance, you are really thinking about a range of expected job outcomes, such
as
What goods and services should the job produce?
What impact should the work have on the organization?
How do you expect the employee to act with clients, colleagues, and supervisors?
What are the organizational values the employee must demonstrate?
What are the processes, methods, or means the employee is expected to use?
In discussing performance expectations an employee should understand why the job exists,
where it fits in the organization, and how the job’s responsibilities link to organization and
department objectives. The range of performance expectations can be broad but can generally
be broken into two categories:
Results (The goods and services produced by an employee often measured by objectives
or standards)
Actions & Behaviors (The methods and means used to make a product and the
behaviors and values demonstrated during the process. Actions and Behaviors can be
measured through performance dimensions.)
Performance expectations serve as a foundation for communicating about performance
throughout the year. They also serve as the basis for assessing employee performance. When
you and an employee set clear expectations about the results that must be achieved and the
methods or approaches needed to achieve them, you establish a path for success.
Performance and Organization
Performance management is a means of getting better results from the organization, teams and
individuals by understanding and managing performance within an agreed framework of
planned goals, standards and competence requirements. An effective performance
management process sets the foundation for rewarding excellence:
By linking individual employee work efforts with the organization’s mission and
objectives, the employee and the organization understand how that job contributes to
the organization.
By focusing attention on setting clear performance expectations (results + actions &
behaviors), it helps the employee know what needs to be done to be successful on the
job.
Through the use of objectives, standards, performance dimensions, and other measures
it focuses effort. This helps the department get done what needs to be done and
provides a solid rationale for eliminating work that is no longer useful.
By defining job-mastery and career development goals as part of the process, it makes it
very clear how the current position supports employee growth and the additional
opportunities the employee needs to explore.
Through regular check-in discussions, which include status updates, coaching, and
feedback, it promotes flexibility, allowing you and the employee to identify problems
early and change the course of a project or work assignment.
By emphasizing that an annual appraisal should simply be a summary of the
conversations held between you and the employee during the entire cycle, it shifts the
focus away from performance as an “annual event” to performance as an on-going
process.
An effective performance management process, while requiring time to plan and implement,
can save you and the employee time and energy. Most importantly, it can be a very effective
motivator, since it can help organization and the employee achieve the best possible
performance.
Performance management and long term goals
The purpose of performance management is to make sure that employee goals, employee
behaviors used to achieve those goals, and feedback of information about performance are all
linked to the corporate strategy. In achieving the long term goals, the overall goal of
performance management is to ensure that the organization and all of its subsystems
(processes, departments, teams, employees, etc.) are working together in an optimum fashion
to achieve the results desired by the organization. To facilitate the long term goals an
organization’s unique circumstance may necessitate more or less focus on certain activities:
A clear mission statement understood by all employees
Continuous communication of organizational priorities, business plans and progress
Presence of systems focusing on quality improvement
Clear linkage between performance and rewards
Focus on performance of members of all levels
Existence of clear, continuously reviewed, performance standards
Presence of systems to foster high performance
Emphasis on fostering good employee relations
These key attributes are the key to achieve an overall performance standard and the overall
organizational long term goals. Overseeing performance and providing feedback is not an
isolated event, focused in a performance assessment or evaluation. It is an ongoing process
that takes place throughout the year. The Performance management process is a cycle, with
discussions varying year-to-year based on changing objectives.
Performance management and short term goals
The proper Performance management systems establish when the whole vision of the
organizations is separated in parts throughout the organization in individual level. Expected
results and the outcome in short term level combine the whole long term goal of the company.
Performance objectives and standards are two of the most common methods to define
expected results. Both objectives and standards are most useful when, in addition to being
written down and verifiable, they are:
Specific
Measurable
Attainable
Relevant
Timely
Specific – Objectives and standards should let employees know exactly which actions and
results they are expected to accomplish.
Measurable – Whenever possible, objectives and standards should be based on quantitative
measures such as direct counts, percentages, and ratios.
Attainable – The objective or standard should be achievable, but challenging, and attainable
using resources available.
Relevant – Individual goals, objectives and standards should be in alignment with those of the
unit and the department in support of the University’s mission.
Timely – Results should be delivered within a time period that meets the department and
organization’s needs.
Objectives and standards identify baselines for measuring performance results. From
performance objectives and standards, supervisors can provide specific feedback describing the
gap between expected and actual performance. When the performance of the employees are
SMART, only then possible to achieve the short term goals with high efficiency.
Conclusion
Performance management is concerned with communication and involvement. It creates
acclimate in which a continuing dialogue between managers and the members of their teas
takes place to define expectations and share information on the organization’s mission values
and objectives. Like all other systems, performance management systems require continuous
review and change. Every change and corporate goals or strategies requires modifications in
operational priorities while changes in technology or workforce characteristics necessities new
ways of working. This means that a performance management system should evolve in
response to emerging priorities. A vision of an organization is the main concern, and the
employees are the individuals who give a view of the goal. If the overall performance of the
organization is systematic and concerned only then it can achieve its long term and short term
goal with high efficiency and effectiveness.