WHAT ARE THE COMPONENTS OF AN EFFECTIVE PERFORMANCE MANAGEMENT???

 

An effective performance management has several significant components. 

According to Public Health Foundation (1970), "performance criterions and measures are aiding the organisations to understand and enhance their objectives and improve their practices".

• Performance planning is the first and the important one which start from the objective setting.

• The process of reviewing needs live participation of both employer and employee which assist to identify flaws in the employee’s performance and understand how to overcome the issues if prevails.

• A personal counselling session followed after the feedback on the individual performances of employees will be fruitful for their growth.

• The employees also can get an awareness regarding their position, growth, areas that are in need of improvement, and what the organisation is actually expecting from them.

• For the process to be effective, proper guidance, counselling, mentoring should occur and the employer must attend to them if they are in lack of such methods.

• It is vital to reward and appreciate those who has achieved the relevant targets as it can be useful as a good motivational tool. The proper rewarding and recognition makes the employee to focus on their career and boost up their morality and positivity. It can be also useful to build up their self esteem.

According to MBA Knowledge Base (2021), the strategic performance planning process, the growth and the reward systems in an organisation will be always favourable and give the ability to realise the development opportunities of an organisation.

They mention some of the components that should be available in an effective performance management process as follows, 

 Transparency - An two way communication active communication should be available between the appraiser and appraisee related to the individual performance development along with the ways to develop planning, allocation of staff and resources, guidance, counselling, supervising and performance review.

Employee development and empowerment – In order to develop the self-esteem, and understand the value they have in an organisation, it is favourable to participate the employees In the decision making process, by giving them more authority and treat them as valuable assets of the organisation.

Values – If treated as a team, a family, the employees will always be keen to work towards the mutual benefits of both organisational and individual success and show satisfaction and loyalty.

Congenial work environment – An effective work environment should be provided by the employer that will aid the employees to share their knowledge, experience, ideas to superiors and subordinates to achieve their common goals.

Clarity of organisational goals – The employer must convey the organisational targets and goals to the team members clearly and precisely. The employees must be updated continuously so they have the ability to understand the organisational expectance from them.

Cooperation but not control – The employer should practise a method to make the employees obey and agree the objectives and goals set for them rather than ordering and control.

Leadership development – It is also effective for the benefit of the organisation to find our their future leaders and leadership potential in individuals through the performance management. 

System of feedback – Feedback as mentioned earlier should be systematic and effective which also has the ability to communicate and monitor individual growth continuously.

 

Evaluation –  Evaluation of the employee, team, departments needed to be done on a continuous basis.

Sandeep K. Krishnan (2013) also mentioned that there are 7 components of an effective performance management,

1. Target setting- goals should be set for both organisation and employees

1. Continuous Feedback- to gain consistent work 

1. Evaluation- evaluation of the achievement against performance

1. Competency Evaluation and Development- make sure they have the right skill set, knowledge and attitudes to perform

1. Career Planning -guiding for their personal development

1. Outcome Management-  identify the favourability of the outcomes and come up with solutions and better practises to avoid

1. Culture Process and Systems- better infrastructure must be provided by the organisation to gain optimum outcome

REFERENCES

·      Anon., 2019. Performance Management – Definition, Principles, Features and Scope. [Online] Available at: https://www.mbaknol.com/human-resource-management/performance-management/
[Accessed December 2021].

·      Anon., n.d. Performance Standards. [Online] Available at: https://www.phf.org/focusareas/performancemanagement/toolkit/Pages/PM_Toolkit_Performance_Standards.aspx
[Accessed December 2021].

·      Krishnan, S. K., 2013. 7 elements of effective performance management. Practice Lead – Organization Development, June