Elements of a Good Performance Management Framework/Strategy
Performance management refers to a systematic process that focuses on enhancing how organizations operate and productivity by developing team’s and individual’s performance. Performance management is a strategy of establishing a common understanding of what an organization should achieve and the procedure to accomplish that, and an approach to managing individuals to increase chances of succeeding (Armstrong and Taylor, 2009, p. 620). The process aligns individual and organizational objectives and encourages employees to uphold their companies’ core values (Armstrong and Taylor, 2009, p. 620). Additionally, it facilitates the definition and agreement of expectations in terms of job responsibilities and accountabilities, behaviors, and skills. It also presents opportunities for individuals to identify personal goals and develop their competencies and skills. Therefore, performance management’s primary objective is to develop individuals’ capabilities to meet and exceed expectations and accomplish their full potential to benefit themselves as well as the organizations. Various elements, including agreement, measurements, feedback, positive reinforcement, and dialogue, comprise a good performance management strategy.
This element of performance management defines the performance expectations of individual employees and facilitates the establishment of result-oriented goals in organizations. Notably, it is easier for workers to understand the link between a company’s daily activities and processes for goal achievement when a firm aligns employees’ performance agreement with its core objectives (Armstrong and Taylor, 2009, p. 620). Agreements in performance management are beneficial to individuals, teams, and organizations.
Agreements ensure strong alignment with result-oriented goals since they define the responsibilities and accountabilities of every employee for specific organizational objectives. Additionally, the agreements make sure that workers’ daily activities support set goals and objectives and clarify how the former and latter are made possible by operations in different departments. For instance, role requirements and procedures that must be followed in the execution of duties and responsibilities are included in the agreements. Other factors that are included in the contracts include personal development and performance improvement plans. The agreements also facilitate collaboration across various units within organizations.
When a company provides its workers with a clear definition of expected results and holds them accountable for the same, employees can eliminate internal barriers that inhibit teamwork and cooperation from setting goals. Moreover, the agreements provide better opportunities to discuss and utilize performance information to facilitate improvements. Undeniably, the contracts are an instrumental tool for collecting and communicating information for any progress in organizations. They help management track results, identify performance gaps, locate internal processes’ improvement opportunities, and develop necessary strategies to accomplish better results (Armstrong and Taylor, 2009, p. 265). They also have a significant role in determining employees’ performance ratings and bonuses and identifying and maintaining organizational goals through better and effective leadership.
This element is a process by which organizations monitor fundamental aspects of their systems, procedures, and programs. It involves the collection of data to reflect the effectiveness of processes, and companies use that information in decision-making. Performance measurement compares organizational goals and objectives with what employees have accomplished and provides information about how current programs are working and the way resources can be allocated to optimize effectiveness and efficiencies (Armstrong and Taylor, 2009, p. 620). Measurement in performance management is concerned with inputs and values. In this regard, inputs include such factors as skills, knowledge, and behaviors necessary to produce expected results. For example, organizations can assess employees’ understanding of the processes needed to execute particular tasks. Equally, they can evaluate how a worker can cooperate and collaborate with others, respect colleagues, which are factors with significant influence on the working environment. Companies identify developmental needs by defining input requirements and assessing how effective utilization of skills and knowledge through behaviors that uphold their core values impacts the level of expected performance. Therefore, managers have to define measurements that their organization use in performance management clearly.
Performance feedback is a continuous process that depends on the information exchanged between individuals, teams, and managers. This element of performance management allows managers to identify where operations are going right or wrong. Managers should spontaneously and regularly provide feedback to the employees to help them learn from their mistakes, build confidence, and clarify expectations (Armstrong and Taylor, 2009, p. 620). They should do it in their day-to-day encounters with the workers to encourage an environment where everyone can comfortably give and receive feedback and develop understanding. Feedback can be either positive or negative, and while the former is easy, the latter difficult due to a lack of right words for the undesirable comments. Undeniably, the best thing that HR managers can give to the employees is constructive feedback since it facilitates correction of any negative performance, the establishment of strong culture among teams, and reinforcement of positive behavior.
Various factors such as time, specificity, and language are vital to consider guaranteeing constructive feedback. It should be given shortly after an event or behavior has been observed. For instance, managers should address a severe incident as soon as possible and provide actionable feedback (Kuvaas, Buch and Dysvik, 2016, p. 521). They also need to be specific and provide examples of the observed behaviors and their impacts to guarantee better understanding. Positive language when giving feedback is essential because it encourages individuals to learn and minimizes the chances of becoming defensive.
Cultural difference is an important factor that HR managers need to consider when giving feedback to the employees. Clarity and positive or negative feedback are paramount in nations where communication is direct. For instance, Russian and Dutch cultures uphold honest feedback without a mixture of positive and negative messages. In other cultures, like in the Middle East and some Asian countries, feedback is given in one-on-one or private settings, and words are carefully selected using indirect approaches, especially when a message is negative.
This element involves rewarding desirable behaviors to increase the possibility of employees repeating the actions. Positive reinforcement is an effective strategy used by managers to boost employees’ confidence and performance. It ensures a supportive environment, which is vital for enhanced workers’ engagement and productivity. In most cases, positive reinforcement is in the form of feedback provided by the managers to acknowledge staff’s actions and encourage them to repeat the deed (Armstrong and Taylor, 2009, p. 620). Therefore, it is beneficial to both individuals and organizations since it instills discipline and a strong work ethic in the workforce. Examples of positive reinforcement in workplaces include giving constructive feedback for a job well done, providing opportunities for growth and development, and allowing employees to voice their opinions.
This element involves a discussion between employees and managers to clarify goals and expected performance. It is an ongoing process that aims to follow up work, adjust direction when necessary, manage changes, and set the salary. Performance management in organizations focuses on planning and improvement of future performance as well as personal development. Dialogue is a “continuous and evolutionary process in which performance improves over time” (Armstrong and Taylor, 2009 p. 620). Therefore, it sets the foundation for regular and frequent dialogue between employees and managers and expected performance and development need to be based on self-assessment and feedback. Therefore, effective performance dialogue should be honest, conversational in nature, clear, and constructive to facilitate the achievement of personal and organizational goals.
Types of Performance Appraisals and Their Pros and Cons for Each
Public and private organizations conduct performance appraisals periodically to ensure that they are on track towards achieving their goals and objectives. The process involves the assessment of employees’ performance based on competency expectations set by their employers. It encompasses core competencies needed by companies as well as capabilities specific to a particular job. Notably, appraises, who are in most cases managers or supervisors, use the assessment outcome to provide workers with constructive and actionable feedback. The latter gives the employees a direction necessary to improve and develop in the employment. Graphical rating scales and 360 degrees are examples of performance appraisals adopted in most organizations.
Graphic Rating Scale Method
This technique of performance appraisal involves listing behaviors or traits that are essential for effective performance. The employees are then rated against the listed qualities, allowing the employer to quantify the behavior portrayed by the workers. Examples of behaviors that organizations focus on include teamwork, quality of work, ethics, and a sense of responsibility. These components are vital since they significantly influence companies’ productivity levels. For instance, efficient and effective performance is evident in organizations where workers can work as teams to achieve set goals since they complement each other’s skills and capabilities. Equally, the quality of work and sense of responsibility are fundamental aspects that determine customers’ satisfaction and employees’ engagement. The ratings in this performance appraisal method are usually on a scale of 1 to 5, with 1 indicating the non-existence of a trait, two being Average, three being Good, four being Very Good, and five being Excellent.
Various features characterize the graphic rating scale method of performance appraisal. The measures against which workers have to be rated using this technique must be well defined and scales based on behavioral factors. For instance, an organization may be evaluating employees’ responses to customer needs or the quality and accuracy of their work. These measures are easier to understand, and respondents can rate them accordingly based on the provided scale. If an employee’s quality of work is rated 5 (excellent), it means she/he rarely makes errors, and if 1 (non-existence), then she/he is a caress worker who repeatedly makes mistakes. Another important feature of this technique is that it avoids ambiguous behaviors definition such as honesty and loyalty. Additionally, ratings are relevant to the behavior that a company is measuring. For example, an organization measuring employees’ English speaking skills should use such rates as fluent, hesitant, and so on.
Advantages of Graphical Rating Scale Method
The technique is faster and easier to understand and is less challenging for the managers or supervisors to use. The measures used and corresponding scales are simple and clear. It also provides standardized comparison criteria that an organization can use in making such decisions as salary increments or promotions. Moreover, the method is satisfactory for most evolution purposes since it provides decision-makers with mathematical performance assessment, which calculates usable figures. Notably, managers can use the latter to validate selection instruments and to justify job or compensation changes. Further, a graphical rating scale quantifies employees’ behavior, making the appraisal system easier.
The method increases the chances of making judgmental errors because they may be accurate or inaccurate since the perception of particular behaviors can vary with judges. Additionally, rating against such labels as poor and excellent is at times difficult and even tricky. These scales fail to exemplify the ideal conducts necessary to accomplish the rating. Incorrect ratings may also occur due to perception errors such as stereotyping, recency effect, and halo effect. For instance, a person rating employees can allow recent incidents of workers’ behaviors to have considerable weight on the performance evaluation. Equally, raters can use one impressive achievement or trait to assess an employee as outstanding on the assumption that all other attributes are remarkable. Another shortcoming of this technique is that ineffective in differentiating average employees. It only helps managers and supervisors identify the best performers and non-performer staff in their organizations. Lastly, a graphical rating scale does not facilitate a better understanding of employees’ strengths. Strong characteristics vary across individuals, which can quantify to the same level of performance.
360-Degree Method of Performance Appraisal
This technique is an advanced kind of appraisal used by most organizations to evaluate their employees’ performance using reviews of several individuals. The reviewers are coworkers, sharing the same working environment with the person being assessed (Armstrong and Taylor, 2009, p. 644). Notably, employees also take part in their appraisal through self-assessment. A 360-degree performance appraisal is an approach that helps enhance the understanding of workforce strength and weaknesses, which is facilitated by the use of creative feedback forms.
Companies prefer this method to others, such as graphical rating scale, because they get an improved review performance and future leader’s perspective. Additionally, they widen their insight into labor force development and its needs and ensure organizational justice by collecting feedback from all employees (Armstrong and Taylor, 2009, p. 645). Organizations use job surveys based on employees’ performance to collect feedback from peers, managers, subordinates, customers, and worker’s team members.
The process of implementing the 360-degree performance appraisal is not a simple task. Organizations have to consider various factors for them to plan an operational 360-degree appraisal system. They need to determine the right skills to assess and properly select appraisers (Armstrong and Taylor, 2009, p. 646). Additionally, companies have to ensure that employees have adequate training on how to use the review system and its intention is elucidated. Moreover, the process design should be simple and easier to understand and follow up plan after appraisal review.
Objectives of 360-Degree Performance Appraisal
Although the process differs from one organization to another, its main objective is to evaluate employees’ performance holistically. The assessment method makes workers comfortable with their organizations, develops and boosts them when well-planned and implemented. 360-degree feedback system creates an enhanced team-oriented to the companies (Peng and Zeng, 2016, p. 834). Unlike the traditional performance appraisal that was an HRM’s responsibility, the 360-degree technique includes all workers to collect anonymous feedback about a particular employee. The approach facilitates effective performance evaluation and the well-being of the organization’s workers.
The Process of 360-Degree Performance Appraisal
While steps for implementing the technique may vary across organizations, its schedule remains the same. The process starts with communicating the 360-degree performance appraisal to the key stakeholders. Companies should clearly mention and explain the purpose and objective of the process to all participants. The latter should be aware of the procedure of collecting feedback and how organizations will use the gathered information (Armstrong and Taylor, 2009, p. 647). Ideally, communication the process can take approximately two to three weeks. Emails and personal meetings with the employees, leaders, supervisors, and managers are important strategies to communicate about the 360-degree performance review process.
The next step involves the selection of raters and distribution of the survey. Organizations should have an adequate number of participants to ensure the relevance and comprehensibility of collected data (Armstrong and Taylor, 2009, p. 647). Such factors as employees’ working relationships and job profile determine the number of raters. Questionnaires are mainly distributed through emails, which is a faster method among the employees. The stages that follow are the submission of the questionnaires and report completion. The participants complete the surveys online and submit them to the evaluators, who process the data to produce a comprehensive report. The last three phases include feedback facilitation, creation of a development plan, and re-evaluation (Armstrong and Taylor, 2009, p. 647). The evaluators confidently give managers feedback by arranging meetings where they discuss the strengths and weaknesses of the employees. Companies design and implement development plans for each worker based on the provided feedback. Notably, participants’ re-evaluation allows firms to note changes and areas that have been improved.
Advantages of 360-Degree Feedback Performance Appraisal
The method allows individuals to have a broader perspective of how others perceive them. Additionally, it gives employees a comprehensive view of their performance, enabling them to understand their strengths and areas that they need to improve (Armstrong and Taylor, 2009, p. 646). Moreover, the technique increases awareness of particular competencies and their relevance to achieving organizations’ goals and objectives. Further, the process lets the senior management understand that they also have developmental needs like their subordinates (Armstrong and Taylor, 2009, p. 646). Finally, the 360-degree feedback method guarantees acceptance of outcomes and required actions since it is perceived as more objective and valid.
There is the possibility of people giving false feedback, leading to designing and implementing an ineffective development plan. Employees may be stressed in the process of giving or receiving feedback because of the complexity and length of the process (Armstrong and Taylor, 2009, p. 646). The method can also create tension among the employees if the feedback is exchanged among the staff. The procedure involves too much bureaucracy and over-relies on technology. For instance, evaluators distribute questionnaires and receive feedback through emails. A suspicious working environment may be inevitable if the information about the whole process is not available to everybody.
The appropriate performance appraisal method for EasyJet Airlines is the 360-degree feedback approach. Airline companies have employees from different cultural backgrounds all over the world. This method can help the employees understand how their peers think about their and their capabilities. Equally, the effective operation of airline organizations is determined by the way staff to behave towards each other and customers. For instance, poor communication skills and negative language can hurt customers, lowering their demand for services. However, 360-degree feedback performance appraisal can allow EasyJet Airlines to identify and develop particular competencies that can help the company deliver exceptional services and enhance its competitiveness in the industry.
The Link Between Performance and Reward Within the Business, Referring to the Motivation of Employees
Employees are a fundamental component that determines organizations’ level of success. Therefore, companies invest a significant amount of money to ensure that they have the best skills needed to achieve their goals and objectives. Nevertheless, the workforce level of motivation is an important factor that determines whether they will unleash all their potential for better productivity. Although remuneration is a basic cause for individuals to work, organizations invest in other reward programs to motivate their workers. Notably, employee rewards comprise tangible and non-tangible things that acknowledge workers’ contribution towards organizations’ goals and appreciation for their efforts. As a source of motivation, employee rewards are directly associated with their performance.
Rewards make the working environment an enjoyable place every employee would want to be. Notably, conflicts are inevitable in organizations, especially where work is fast-paced, creating a stressful environment. Coworkers can feel resentful of each other, which can strain the relationship between them and the management. Nevertheless, companies that embrace the culture of rewarding and recognizing their workers ensure the establishment of a pleasant working environment and cohesive labor force. Undeniably, encouragement and praise from supervisors and managers can enhance their relationship with the employees while building trust (Bonet, Eriksson and Ortega, 2018, p. 108). Employee rewards are effective strategies for motivating staff and encouraging teams to work together. Employees who feel unified and harmonious have the invariable capability to fulfill their duties and execute their tasks as required (Bonet, Eriksson and Ortega, 2018, p. 110). Indeed, effective rewards not only improve performance but also promote organizational growth.
Rewarding and recognizing employees’ efforts motivates them to be more productive. Rewards, whether intrinsic or extrinsic, motivate individuals, increasing their engagement with their work (Bonet, Eriksson and Ortega, 2018, p. 110). Undeniably, more engaged employees work more efficiently and proactively to ensure that they do a good job. Additionally, they are more likely to be innovative in executing their duties and responsibilities as well as solving problems they may encounter. As a result, significant individual, team, and organizational performance become inevitable. If employees’ efforts are rewarded and praised, the staff members work harder, knowing that they will receive such recognition. For example, if a salesperson exceeds the expected volume and the manager congratulates and rewards him or her in commission, that individual is more likely to put more effort than giving up. Therefore, rewards are an effective strategy adopted by organizations to motivate employees and encourage good performance.
Rewards are an instrumental tool that guarantees employees’ job satisfaction. Giving employees tangible or intangible rewards shows that you recognize their effort, demonstrating that their job is valuable to the organization (Bonet, Eriksson and Ortega, 2018, p. 113). The action sends a message their hard work is worth recompensing and, therefore, must be imperative. The latter makes individuals and teams feel that they are making a positive difference towards achieving organizational goals. Job satisfaction leads to motivation and allows workers to realize their full potential (Mahmudah Enny, 2016, p. 2). They become more satisfied with their job, increasing their engagement as well as performance levels.
Rewarding and recognizing an employee is an essential approach increase employee happiness. Happy and fulfilled workers are motivated to perform better due to the positive feelings they have towards the firm (Bonet, Eriksson and Ortega, 2018, p. 126). If companies show gratitude and respect to their workers, the staff members would want to do a good job in return. They would be more creative and innovative in execution and their duties and responsibilities. The positive feeling can also be experienced across the organizations by establishing a happy working environment that every individual would want to be associated with. Therefore, rewarding employee is an instrumental strategy for enhancing individual and organization performance.
Rewards encourage team culture, which helps organizations achieve their goals and objectives. Notably, rewards that integrate peer-to-peer recommendations are instrumental in promoting team spirit since they encourage workers to focus on positive attributes in one another (Bonet, Eriksson and Ortega, 2018, p. 130). This approach enhances collaboration and better relationships between team members, which can improve their capability to fulfill their duties and execute their tasks as expected. Moreover, allowing coworkers to nominate one another for rewards empowers them since it shows that they value each other’s abilities and opinions.
Further, rewards and recognition promote loyalty and retention of workers. Rewarding employees for their efforts and contribution towards achieving organizational goals and objectives generates royalty (Mahmudah Enny, 2016, p. 2). The action makes workers feel that they are an integral part of the companies and triggers a sense of emotional bond among teams with their employer. As a result, the employees become more engaged with the business, enhancing their performance. Conversely, the rate of staff turnover in organizations increases when employees are not motivated. This may hurt organizational performance since the time needed to hire and train new staff affects the utilization of resources, and the cost of the process is high. Therefore, companies prioritize rewards to motivate their workers to perform better and provide them with tangible reasons to make them stay.
How HR Managers Can Manage the Employee Relationship Throughout the Process, and Mitigate the Risk of Discrimination or Bias
Human Resource (HR) managers in organizations have various roles, including hiring workers, training them, appraisals, and others. Therefore, their roles and responsibilities encompass the engagement of employees throughout their lifecycle in companies. HR managers take care of all aspects of individuals, right from the time a firm hires them to when they retire or quit as employees (Armstrong and Taylor, 2009, p. 201). It is also HR managers’ responsibility to manage employees’ relationships throughout the process, which is associated with risks of discrimination or bias. However, they can effectively manage the relationships while mitigating the bias risks by adopting various strategies such as building cross-functional teams, conduct team-building activities, and equip employees with communication tools.
The establishment of cross-functional teams can cultivate good relationships among the employees, which can enhance organizations’ culture. The teams allow workers from different departments to cooperate, combine their skills, and pursue a common goal (Armstrong and Taylor, 2009, p. 203). Undeniably, cross-functional teams can ensure individuals from various units who would have never work together know each other. Additionally, they promote efficient problem-solving when employees with diverse skills collaborate to finish a project due to the development of new and innovative ideas (Lee and Puranam, 2017, 2333). Collaboration of employees in project implementation can further allow them to let go of their presumptions and promote understanding of each other’s perspectives. The approach helps them see the thought process of each team member and the way they arrive at conclusions. Indeed, cross-functional teams are a strategy that can assist HR managers in managing employees’ relationships since it makes them appreciate and accept each other and feel like part of the organizations’ common goal.
HR managers can also ensure productive relationships among the employees by encouraging social interactions. For instance, HR managers can organize team lunches to celebrate a major milestone in their organization. As a result, employees can have a good time together out of working environments to discuss other things apart from their jobs (Armstrong and Taylor, 2009, p. 260). It is not surprising to realize that most employees report to their work every day, execute their responsibilities in the same space, but rarely talk to each other. Workers in some large organizations have a personal workspace and even have their meals at their respective desks during lunch breaks, watching videos or scrolling their phones. Such culture is potentially detrimental to productive employees’ relationships (Armstrong and Taylor, 2009, p. 260). However, organizing team lunches and other activities that encourage social interactions can ensure that workers do not remain strangers. Indeed, such events in relaxed environments create opportunities for individuals to network with members from other groups.
HR managers can also manage employee relationships through team-building activities, which have endless benefits. The undertakings facilitate frequent communication among the workers and enhance their problem-solving and decision-making skills (Armstrong and Taylor, 2009, p. 263). Notably, issues between employees are key factors that contribute to conflicts, hurting their relationships and productivity. Equally, the inability to decide how a particular task should be done can cause skirmishes among team members. Nevertheless, effective team-building activities in organizations help establish and strengthen relationships. Collaboration between teams paves the way for mutual trust and the exchange of opinions and ideas. Therefore, effective employee relationships through team-building activities encourage sharing and integration of knowledge and experience to accomplish organizational goals.
Equipping employees with communication tools is a strategy adopted by HR managers to manage employee relationships. Communication is a vital element that helps employees form and sustains relationships (Armstrong and Taylor, 2009, p. 949). Notably, if the latter fails, misunderstanding is inevitable, and as a result, conflicts may occur. The advancement of technology and its influence makes the need to remain connected paramount. Empowering staff with various communication tools ensures that they can always share vital information with each other. HR managers can plan and implement chat software such as Slack in their organization. Providing employees with various communication tools can effectively enhance their relationships.
Face-to-face interaction between the HR managers and the workers is also a technique for managing employee relationships. Most employees hesitate to share information with their managers due to worries about how that would reflect in their performance review. However, organized meetings with every individual in the company give every worker an opportunity to issues, concerns, and new ideas with the HR managers (Armstrong and Taylor, 2009, p. 222). Notably, the latter has a crucial role in these meetings since they influence how the relationships progress. Therefore, HR managers have to establish an environment that encourages employees to share their issues and concerns. Additionally, they must open-minded and rational while listening to the employees and trying to address any situation inhibiting the formation of effective relationships in the organizations. The face-to-face meetings help build trust and strengthen the bond between the managers and workforces.
Further, HR managers can conduct surveys to understand employees’ feelings and encourage transparency in their organizations. For instance, 360-degree surveys allow HR managers to understand the behavioral strengths and weaknesses of every individual working in their companies (Armstrong and Taylor, 2009, p. 643). As a result, they can identify areas that need improvement, take corrective measures, and provide feasible solutions about issues to the employees to ensure productive relationships. The reviews about employees’ relationships can make the staff feel they care about their needs, build trust, and strengthen overall relationships. Equally, being transparent to all employees about particular actions and decision-making processes cultivates trusting relationships.
HR managers can mitigate the risks for discrimination and bias by adhering to the anti-discrimination legislation. Notably, discrimination can occur at any stage of the process of hiring, promoting, and dismissing employees. The Sex Discrimination Act of 1975 prohibits the use of adverts that show favors towards either males or females, except for a few jobs (Armstrong and Taylor, 2009 p. 522). Therefore, HR managers advertising particular positions in their organizations must avoid sexist job titles. For example, they should such titles as a salesman and use neutral ones like sales representatives. Equally, the term candidate or applicant without gender specification is preferred in unisex job titles. Other laws that HR managers need to follow are the Age Discrimination Regulation of 2006 and the Race Relations Act of 1976 (Armstrong and Taylor, 2009 p. 522). It is unlawful for HR managers to use age and race as the basis for offering promotions, assigning duties, or firing employees.
The Link Between Performance Management and the Learning and Development Function (Benefits, Challenges, And Opportunities)
Performance management and the learning and development function of the HR managers are vital in determining organizational productivity. There is a significant link between the former and the latter because both processes focus on ensuring that employees reach their full potential to pursue personal and organizational goals. While performance management considers behavioral aspects of how employees execute their duties and responsibilities through reviews, learning, and development, it instills and enhances necessary skills and competencies in the workforce (Armstrong and Taylor, 2009 p. 584). Therefore, performance management helps in designing and implementing various learning and development initiatives in organizations.
Performance management and learning and development encourage teamwork, collaboration, and effective communication in organizations. HR managers use various strategies such as social and team-building activities to establish a sense of teamwork (Armstrong and Taylor, 2009, p. 637). The exercises help employees learn and develop their communication and collaboration skills, which are essential for business performance. Additionally, reviews collected through performance and management practices help the managers in designing and implementing learning and development programs to help to effective communication and collaboration among team members.
Performance management is an instrumental tool that helps employees set intelligent goals. The process helps workers understand what their employers expect from them. It clarifies duties, milestones, and expectations depending on the type of job (Armstrong and Taylor, 2009, p. 623). Therefore, employees set goals, of which their accomplishment depends on them, the HR department, and the supervisors. While HR managers ensure the goals are set, employees and their supervisors meet regularly to discuss their progress and resources and skills needed. This process helps identify different needs, such as training programs to guarantee the effective accomplishment of the goals (Armstrong and Taylor, 2009, p. 654). As a result, HR managers may initiate learning and development programs to ensure that all employees have the required skills and competencies.
While performance management facilitates identifying areas for improvement, learning and development ensure that the expectations in those parts are met. Notably, talent management is one of the core purposes of performance management. The latter helps HR managers and the employees to develop needs in their skills and competencies and design effective improvement plans (Armstrong and Taylor, 2009, p. 655). As a result, it leads to the enhancement of individual performance and, ultimately, that of organizations. Learning and development programs guarantee personal growth and attainment of career aspirations, making employees feel like valuable and respectable members of the company rather than a replaceable machine.
The feedback element of performance management helps organizations identify different ways of motivating their employees. The reward is one of the most effective strategies used by companies to inspire their workers. Rewards can be either tangible or intangible and are influenced by such factors as organizational needs (Armstrong and Taylor, 2009, p. 735). Providing employees with learning and development programs to enhance their knowledge, skills, and competencies is one of the intangible rewards that motivate them (Armstrong and Taylor, 2009, p. 683). They gain more confidence in the execution of their duties and responsibilities, guaranteeing high performance. Integration of performance management and learning and development can motivate employees to be creative, innovative, and productive.
Performance management and learning and development promote employees’ engagement and happiness. The former helps identify employees’ needs and support them and establish a favorable working environment. These aspects increase employee engagement and satisfaction with their job. Additionally, performance management helps HR managers track the trend of employee engagement, conduct surveys about the latter, and take appropriate actions to ensure that the workers remain engaged, motivated, and happy (Armstrong and Taylor, 2009, p. 630). On the other hand, learning and development equip employees with enhanced knowledge and skills. Consequently, the workers feel more passionate about their job, become committed to their organizations’ goals and objectives, and put unrestricted effort towards achieving them.
Performance management and learning and development ensure that employees have a clear career path and provide them with continuous support. Notably, career progression and success are vital to most workers. Effective performance management systems allow managers to discuss career plans with their employees, focusing on what is needed to attain the professional goals (Armstrong and Taylor, 2009, p. 630). Further training and promotions are some of the factors required to achieve career goals. Learning and development programs in organizations have a significant role in facilitating professional growth since they equip workers with appropriate skills and competencies. Organizations consider employees’ well-being, which has a direct impact on performance and provides proper support. Performance management helps managers identify such issues as stress, depression, and anxiety that affect workers’ wellness, learning, and development programs to train them to cope with the problems. Moreover, the two functions help HR managers identify issues and take corrective actions. For example, managers use performance management systems to pinpoint underperforming and unmotivated employees. If the cause of the problems is inadequate knowledge and skills, they design and implement appropriate learning and development programs as corrective measures.
Benefits, Challenges, and Opportunities
Performance management and learning and development are beneficial to both individuals and businesses. They ensure high performance at personal as well as organizational levels. Additionally, they help employees and companies accomplish their goals and objectives. Significant challenges for implementing performance management and learning and development include cultural differences and inadequate resources. For example, feedback and dialogue, which are crucial elements of performance management, are influenced by communication. In this regard, managers tend to incline towards their culture while giving feedback to the employees or discussing pertinent issues. Organizations may not have enough money and materials to train all workers, leading to low productivity. Nevertheless, firms can install performance management systems that help unleash the full potential of employees. Moreover, they can train few workers in different departments who disseminate the skills and competencies to other employees through coaching and mentorship programs.
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